Construction industry income up 12.2%

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27 Nov 2012

The total income for the construction industry in South Africa 2011 was R268 100 million, an increase of 12.2 percent from R169 249 million in 2007.

Stats SA says 89 percent of workers were male and the industry with the highest proportion of males employed was site preparation (94 percent).

According to the Statistics South Africa (Stats SA) Construction Industry 2011 report, the largest contributor to the total income was construction of civil engineering structures (R104 646 million or 38 percent), followed by construction of buildings (R68 758 million or 26 percent), other building installation (R20 129 million or 8 percent) and other building completion (R15 198 million or 6 percent).

The profit margin for the construction industry was 2.8 percent in 2011 while site preparation had the highest profit margin at 5.7 percent followed by electrical contractors at 5.2 percent.

Stats SA's report reveals that renting of construction or demolition equipment with operators had the lowest profit margin of -4.4 percent and expenditure in the construction industry in 2011 amounted to R257 157 million.

The largest contributor to total expenditure was purchases (R113 242 million) followed by payments to construction sub-contractors and labour brokers (R52 200 million), salaries and wages (R48 020 million) and depreciation (R6 804 million).  .

According to Stats SA, the total capital expenditure on new assets in the construction industry in 2011 was R10 828 million and the largest category of capital expenditure was plant, machinery and equipment (R5 945 million), followed by vehicles (R3 086 million) and land, buildings and construction (R790 million).

As at the end of June 2011, the number of people employed in the construction industry was 479 700.

Of that number, construction of civil engineering structures employed the largest number of persons (154 018), construction of buildings (117 495), electrical contractors (39 305) and other building completion (34 487).

Employment in the construction industry decreased by 2.9 percent per annum compared with the number of employees reported in the corresponding survey of 2007 (540 581).

Stats SA says 89 percent of workers were male and the industry with the highest proportion of males employed was site preparation (94 percent). – Denise Mhlanga

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