Some good news - Manufacturing income up by 9.4%

SEPTEMBER 27, 2016

Statistics South Africa (Stats SA) on Monday released the manufacturing industry report which indicates that total income for the industry increased by 9.4% per annum.

“Stats SA today released the manufacturing industry 2014 report which indicates that the total income for the manufacturing industry has increased by 9.4% per annum, from R1.68 trillion in 2011 to R2.20 trillion in 2014,” said Stats SA.

The report is a periodic survey which measures economic activity in the manufacturing sector of the South African economy. The survey is based on a sample of private and public enterprises operating in the manufacturing industry.

The manufacturing industry's large sample survey is a periodic survey conducted every three to five years covering business enterprises registered for tax in South Africa.

Comparing 2011 and 2014, large increases were reported for ‘coke, petroleum, chemical products, rubber and plastic’ (+R248.1 billion), ‘food products and beverages’ (+R88.6 billion) and ‘transport equipment’ (+R81.3 billion).

The contribution of the top 100 enterprises (CR100) has risen from 53.5% in 2005 to 58.1% in 2014.

“The report further indicates that employment has declined from a high of 1 436 000 in 2005 to a low of 1 190 000 in 2014 (a loss of 246 000 jobs). The biggest loss in employment was in ‘textiles, clothing, leather and footwear’ (-91 000), ‘food products and beverages’ (-52 000), ‘metals, metal products, machinery and equipment’ (-35 000), ‘furniture, other manufacturing and recycling’ (-32 000) and ‘transport equipment’ (-30 000).”

Jobs were only gained in ‘coke, petroleum, chemical products, rubber and plastic’ (+20 000) sectors.

Large enterprises contributed only 46.4% of employment whereas the Small, Medium and Micro Enterprises (SMMEs) created 53.6% of employment.

The districts with the largest income from sales of goods and services were Cape Town with R366.2 billion or 17.3% of the industry total, Johannesburg (R342 billion or 16.2%), Ekurhuleni (R268.8 billion or 12.7%), eThekwini (R228.7 billion or 10.8%), Tshwane (R145.7 billion or 6.9%), Gert Sibande (R135.9 billion or 6.4%) and Nelson Mandela Bay (R111.3 billion or 5.3%).

The report noted that Johannesburg had the highest employment (312 000 or 26.1%), followed by Cape Town (157 000 or 13.2%), eThekwini (156 000 or 13.1%), Ekurhuleni (115 000 or 9.7%), Nelson Mandela Bay (61 000 or 5.2%) and the Cape Winelands (51 000 or 4.3%).

Since 1996, the survey was previously conducted for the reference years 2001, 2005, 2008, 2011 and 2014.

Construction industry

Meanwhile, Stats SA also released the construction industry 2014 report which indicates that the total income for the construction industry increased by 13.4% per annum, from R269 billion in 2011 to R392.3 billion in 2014.

Comparing 2011 and 2014, large increases were reported for ‘construction of civil engineering structures’ (+R46.8 billion), ‘construction of buildings’ (+R26.6 billion) and ‘other building completion’ (+R11.8 billion).

The contribution of the top 100 enterprises (CR100) has risen from 34.8% in 2004 to 40.0% in 2014.

According to the report, the number of persons employed as at end of June 2014 was 502 000.

The report noted that employment declined from a high of 541 000 in 2007 to a low of 485 000 in 2011 before a slight recovery to 502 000 in 2014 (a loss of 39 000 between 2007 and 2014).

Since 2007, most jobs were lost in ‘construction of buildings’ (-61 000) and ‘other building completion’ (-19 000). The highest growth in employment was in ‘construction of civil engineering structures’ (+45 000 jobs).

Large enterprises contributed only 37.3% of employment whereas the Small, Medium and Micro Enterprises (SMMEs) created 62.7% of employment.

In 2014, the province with the largest income from sales of goods and services was Gauteng with R144.9 billion (or 38.3% of industry total). The second largest was the Western Cape (R55.3 billion or 14.6%), followed by Mpumalanga (R45.6 billion or 12%) and KwaZulu-Natal (R45.6 billion or 12%).

In terms of employment, Gauteng was still the largest contributor with 180 000 (36%) employees, followed by KwaZulu-Natal with 80 000 or (15.9%). – SAnews.gov.za