Experts Warn of Looming Crisis in SA Building Industry

December 10 - The Master Builders South Africa (MBSA) group will convene an urgent building industry crisis meeting at the beginning of 2011 to discuss the looming crisis.

Jean-Marie Talbot, the President of the MBSA, said that there has been a significant drop in the number of non residential buildings constructed, leading to job losses.

He said that next year will see even more people losing their jobs in the building industry.

Compared to September last year, this year saw a drop of 38% in the number of non residential building plans passed.

There were several causes for this massive drop, including the recession, blockages in municipal infrastructure and a general lack of skills in municipalities.

"Without pre-empting the outcome, it is clear that the government - as a major supplier of work and with its stated capital expenditure budgets - will have to be engaged as a matter of urgency," said Talbot.

"The departments of human settlements, public works, finance and labour are key partners in the process, we are constantly reminded about extensive capital budgets, but now we need action."

The MBSA, which represents around 4,000 contractors in the country, also complained about late payment for work done and delays in resolving final accounts.

"If you look at the property market from various angles, in most instances you see some indication of stress be it in house prices, mortgage advances growth, building statistics," said Absa Home Loans property analyst, Jacques du Toit. "They all tell the same story."

12/10/2010 10:33:29 AM