RUMOURS OF SOUTH AFRICAN MANUFACTURING'S DEMISE

have been greatly exaggerated. Things are obviously on a downturn right now, but automakers alone account for about seven per cent of the country’s gross domestic product, and a third of our overall manufacturing output. And government has big plans for expansion. The target output for 2030 is 1,5 million units per year, with a healthy portion of that going to the export market.

There’s only one problem, though: The industry is currently hitting production highs of 600 000 units per year, and while demand isn’t exactly falling, global economic pressures have seen customers hang on to their vehicles for longer. There’s also the improvements in public transport to contend with. It seems that South Africa is making carts to illicit a horse response.

That said, things aren’t bad right now. Investment is pouring in and international brands are expanding operations. Ford Motor Company South Africa was among the first to invest billions. The money went mostly to its Silverton assembly plant in Pretoria and Struandale engine plant in Port Elizabeth. This move was to feed southern-hemisphere demand for the Ranger, which stretched to 6 391 export units in July 2018.

Mercedes-benz boasts the latest high-profile investment, expanding C- Class production at its East London assembly plant. The C- Class is by far the biggest export car made in South Africa (9 179 units in July) and R10 billion is money well spent to increase production of the popular C43 and C63 performance families alongside the standard models.

But that’s only one sector of local manufacturing that’s currently on a good wicket. It may not seem like it because most of your clothes and shoes were made in the East, but those industries are also experiencing a bit of an upswing. Interestingly, there are far fewer government incentives for these companies to do so; it’s more innovation out of necessity. K-way, for example, has taken a commanding lead in its market through quality enhancements and efficient practice. Bolton Footwear is starting to turn things around in what has long been considered a dying industry. But I’m getting ahead of myself. Let’s lift the curtain on what is going on in the factories.