SA has to manufacture its way to success.
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GUEST – Amith Singh is national manager: manufacturing at Nedbank Commercial Banking.
The discourse on SA’s manufacturing sector paints a picture of a once-thriving cornerstone of the economy now grappling with multifaceted challenges. Since the mid-2000s the industry has experienced steady decline, and so too its contribution to GDP. Figures Stats SA released in February illuminate this downturn, revealing a 1.7% drop in manufacturing production month on month and defying predictions of a 0.4% increase. The decline was broad-based, affecting six out of 10 sectors, with vehicle production plunging 13.8%. The drop is attributed to a combination of factors, including underinvestment, slow pace of domestic growth, escalating production costs, stiff competition from imports and pervasive investor uncertainty.
The discourse on SA’s manufacturing sector paints a picture of a once-thriving cornerstone of the economy now grappling with multifaceted challenges. Since the mid-2000s the industry has experienced steady decline, and so too its contribution to GDP. Figures Stats SA released in February illuminate this downturn, revealing a 1.7% drop in manufacturing production month on month and defying predictions of a 0.4% increase. The decline was broad-based, affecting six out of 10 sectors, with vehicle production plunging 13.8%. The drop is attributed to a combination of factors, including underinvestment, slow pace of domestic growth, escalating production costs, stiff competition from imports and pervasive investor uncertainty.
