Nedbank partners with the automotive industry to drive competitiveness

The SA automotive industry, which generates around 18.7% of domestic manufacturing output, plays a significant role in SA's economy, with a GDP contribution comparable to that of mining and agriculture.

The 2022 Automotive Export Manual released by the Automotive Industry Export Council earlier this year also revealed that vehicle and automotive component exports increased by 18.1% in 2021 to comprise 12.5% of total SA exports. 

Unfortunately, the industry has been hit hard by recent global and local events, including global supply chain disruptions and operational efficiencies at SA ports that are well below international standards, further worsened by riots and cyberattacks.

More recently the flooding in automotive-intensive KwaZulu-Natal and onerous load-shedding schedules resulted in the manufacturing production figures released for April 2022 showing a substantial decline of 7.8% year on year. 

With most of these setbacks hopefully behind us, and the efforts being made to stabilise electricity supply and improve the situation at the ports, savvy automotive manufacturing firms should consider the top industry trends pinpointed in Deloitte’s 2022 Manufacturing Industry Outlook report.

With business agility critical for organisations to operate through unprecedented turbulence, the report identifies key strategies to drive competitiveness. These include embracing technology to create more connected, reliable, efficient and predictive processes; carefully reviewing cyberdefences and resilience in the event of cyberattacks; and closely monitoring the fast-evolving environmental, social and governance (ESG) landscape and adjusting operations accordingly.

Proactive approaches to these challenges will help automotive manufacturers mitigate setbacks while creating a competitive advantage.  

Nedbank’s Commercial Banking division has an extensive understanding of the manufacturing industry, which has enabled it to develop tailor-made solutions in this field, making it the expert strategic banking partner to grow its clients’ businesses.

The bedrock of its manufacturing portfolio is the deep, lasting and value-adding relationships it develops with its clients and key industry stakeholders.

These solutions are underpinned by the bank's continuous drive to innovate its financial and administrative functions, enabling clients to take their businesses to the next level. 

Nedbank's expert insight enables it to provide bespoke, innovative financial solutions to help grow its clients’ businesses and strengthen their competitiveness in the market.

For example, because the bank knows that the present macroeconomic challenges, coupled with power supply issues, can lead to businesses having cash flow constraints that could prohibit delivery and growth, it has developed a range of solutions to mitigate that risk.

Similarly, as the green bank, it offers a comprehensive range of solutions to promote the sustainability of clients’ businesses, giving them the competitive advantage that is so vital in the market. 

Nedbank's vast experience in global trade enables quicker, more efficient cross-border transactions when importing and exporting, and easy access to funds smooths out cash flow fluctuations between production cycles, enabling clients to take advantage of discounts and bulk offers. 

But the real value Nedbank offers is its partnership approach, which means clients benefit from a committed partner with industry expertise, who will advise on growth, investment and financial strategies, based on its deep insight into each client’s unique financial situation. 

For more information about Nedbank's specialist manufacturing services, email manufacturing@nedbank.co.za. 

• About the author: Amith Singh is Nedbank Commercial Banking’s national manager for the manufacturing sector.

This article was paid for by Nedbank.