creamer media

Construction is a $7,5-trillion industry, accounting for 13,4% of the world’s gross domestic product. The industry is a driver of economic development, providing both private and public infrastructure. However, the recent slump in the global economy – said by many commentators to be the worst since the Great Depression of the 1930s – had a severe impact on the construction sector more so than other sectors of the economy, with developed countries experiencing a $650-billion slump in yearly construction output, while emerging markets simply slowed down from growth rates of as high as 11% a year in 2006 to a modest average of 0,6% in 2009.

During the global economic downturn South Africa's construction sector managed, on the whole, to avoid some of the worst effects of the crisis, as a result of the many projects being implemented, including those related to South Africa’s hosting of the 2010 FIFA World Cup. However, the hangover from the World Cup has caused a slump in construction activity and according to ratings firm Fitch this sector will only start to “significantly improve” from 2012 onwards, owing to deferral of government infrastructure spending.

Published: 06 June 2011.

TABLE OF CONTENTS

List of abbreviations 1

Key developments 2

Global market 3–4

South African market 5–9

• Employment
• Residential building
• Nonresidential building
• Civil construction works
• Public infrastructure programme
• Collusion

Main participants 10–38

• Basil Read
• Grinaker-LTA
• Group Five
• Murray & Roberts
• Raubex
• Sanyati
• Sea Kay
• Stefanutti Stocks
• Wilson Bayly Holmes-Ovcon

Construction outlook 39

Main sources 40–42