PODCAST | Survey shows pessimism around manufacturing in SA

Confidence in SA’s manufacturing industry is the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by Justin Schmidt, head of manufacturing at Absa Relationship Banking. 

According to Absa, confidence levels among manufacturers dropped 2 points to 26 (out of 100) in the third quarter. This is based on findings from its Manufacturing Survey for the third quarter.

Schmidt explains this means seven out 10 of people surveyed were pessimistic about prospects for local manufacturing.

Join the discussion: 

Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm

The quarterly survey, which covers approximately 700 businesspeople in the manufacturing sector, was conducted by the Bureau for Economic Research at Stellenbosch University between August 10 and 29. The confidence index ranges between zero and 100, with zero reflecting an extreme lack of confidence and 100 extreme confidence where all participants are satisfied with current business conditions, says Absa.

Schmidt says the two biggest drags on the sector continue to be global supply chain constraints which results in unavailability of certain inputs and raw materials required in the production of goods. This situation is compounded by growing energy uncertainty due to rolling blackouts across the country that have resulted in more than 100 days of load-shedding so far in 2022. 

Topics of discussion include: results of Absa’s Manufacturing Survey for the third quarter, issues affecting local production, and ways in which load-shedding is impacting the sector. 

Schmidt also discusses how manufacturers are responding to the energy crisis, options for independent power generation and funding for equipment necessary for such activity.