New mega housing projects announced by the government stand to boost the concrete products manufacturing industry, which has seen many cement suppliers drop their prices due to decreased demand and excess cement supply.
The government’s launch of 101 ‘catalytic projects’ in terms of its Breaking New Ground housing policy are likely to reduce any imminent retrenchments from the concrete products sector, says PMSA MD Walter Ebeling.
The current housing projects underway are too small and dispersed to make a significant impact, whereas the latest tranche of 101 projects, of which 94 are ready for implementation, range across all nine provinces, with a combined value of over R300 billion. They are expected to generate 20 000 additional jobs in the construction and ancillary industries.
“With a stagnant growth rate, these housing mega projects will generate much needed demand side stimulus in the local economy which, in turn, drives supply from the private sector and new investment into capital equipment,” Ebeling points out.
Concrete is used in all aspects of a housing development project, from roof tiles to bricks, blocks, paving for roads, concrete pipework for stormwater and sewage, road kerbstones and drainage, foundations and concrete floor slabs.
Having celebrated its 40th anniversary with the unveiling of a new range of products and technology at Totally Concrete 2016, PMSA boasts a comprehensive range of equipment that can be used to manufacture every one of these products used in housing developments.