Lack of infrastructure maintenance a ‘serious problem’
The Cesa Aon Engineering Excellence Awards showcase the thought that goes into the end product and functionality of the infrastructure SA’s consulting engineers deliver, says Cesa CEO Chris Campbell.
He says engineers change the world by conceptualising practical solutions while inspiring people to create and design solutions for problems faced by modern societies.
“Engineers are the main role players in the delivery of infrastructure, the development and maintenance of which is a key ingredient for sustained economic growth that leads to job creation and poverty alleviation,” says Campbell.
“The fact Cesa members continue to support the awards during these tough economic times is a clear indication of the commitment and passion they share for infrastructure and it underscores the value of the awards as a platform for industry recognition.
“We all know SA has a significant backlog to address in critical areas such as housing, road maintenance, and water and sanitation. As an association, we work closely with government entities to effect the changes we need.
“However, Cesa’s most recent Biannual Economic and Capacity Survey (Becs) for the period July to December 2016 indicates that lack of attention to maintain infrastructure poses a serious problem for the industry. Not only is it more costly to build new infrastructure, but dilapidated infrastructure hampers economic growth potential. In many cases, infrastructure is left to deteriorate to such a state that maintenance becomes almost impossible.”
Campbell says in 2016 the South African economy grew by the slowest rate since the 2009 recession. Growth was well below government expectations and therefore has a significant impact on expected revenue collection and expenditure plans. Business confidence remained weak in Q1 2017 as political turmoil and instability weighed heavily on the South African economy and business sentiment.
“At the current rate, investment levels will remain poor, contributing to constraints in SA’s economic growth as well as investment in construction. All economic indicators suggest investment in relation to GDP is likely to slow over the medium term, due to slower government spending, financial constraints experienced by state-owned enterprises and continued weak private sector confidence.
“Considering trends in industry indicators, as reported by our member firms in our latest Becs survey, there are signs that earnings have reached an upper turning point with a softer growth outlook in the medium term for the industry. Business confidence levels first need to be restored to encourage higher levels of investment and kick-start the beleaguered economy.”
Campbell says service delivery, especially at municipal level, remains a burning issue. The consulting engineering industry is threatened by incapacitated local and provincial governments. As major clients to the industry, it is important these institutions become more effective, more proactive in identifying needs and priorities and more efficient in project management.
With the transformation of the industry high on Cesa’s agenda Campbell reports the appointment of black executive staff has steadily increased.
“Our Becs for the July to December 2016 period definitely indicates a positive industry trend with the appointment of black executive staff (including black, Asian and coloured staff) increasing to 45.7% from 40.8% and 39.5%, respectively, when compared to the previous two surveys.
“Considering that the figure was about 28.1% in the June 2012 survey, one realises that real progress. Further, Cesa will be launching a women’s forum, with a key focus on attracting and retaining women in the consulting engineering industry. That is a key driver for change since women in Africa are widely recognised as the backbone of our communities.”