Global Fastener News

South African Fastener Industry Expands

Jason Sandefur

Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts that show the industry what the public is reading or hearing about fasteners and fastener companies.

Increased construction and mining activity in South Africa have resulted in fastener industry growth of up to 15%, Engineering News of South Africa reports. “Conditions have been buoyant and I think all manufacturers and importers have enjoyed the growth,” stated Rob Pietersma, chairman of the South African Fasteners Manufacturers Association. “There is an expectation that these levels will be maintained for the foreseeable future because there is a lot of construction work being done at the moment, and even more in the pipeline.”
The largest percentage of growth is being fueled by expansions around such large capital projects such as the Gautrain rapid rail. The projected growth has spurred fastener manufacturers to undertake moderate capital expansion programs.
However, infrastructure capability from cash-strapped local governments could hinder expansion.
“Previously, we never saw the availability of electricity as a constraint to the industry; now, however, you have to incur the capital expenditure for the expansion itself as well as the (funding) to provide electrification to the area,” explained Pietersma.
Inflation and material shortages are also driving costs up by as much as 25% throughout South Africa, forcing fastener producers to raise prices.
Other workforce challenges include a shortage of skilled managers and HIV and AIDS in the workplace. The age level of competent technical staff tends to be above 50, with few new entries stepping onto the training field.
“HIV and AIDS are also closely related to the skills shortage, because as the level of infection goes up, the number of skilled staff able to perform goes down,” Pietersma noted.
South Africa’s fastener industry benefited from the decision by the Chinese government to cut export rebates to 5%, making locally produced fasteners more competitive. But imports from Thailand, Indonesia, Vietnam and India continue to keep price increases moderate.
Short lead times and consistent quality give local fastener producers an edge over importers, Pietersma stated.
“There have been a number of examples where fasteners generally pass the quality test, but they were found not to be of world-class standard.”
Certain local manufacturers have also begun exporting product, primarily specialty fasteners.
“South Africa definitely has export capabilities, but it is primarily from manufacturers such as CBC Fasteners and Nedschroef.” �2007 FastenerNews.com