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STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA (SEIFSA)

Overview of the Metal and Engineering Industry and Contributions made by the sector to the South African Economy Presentation to the Parliamentary Portfolio Committee on Finance Friday, 13 February 2007. STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA (SEIFSA).

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STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA (SEIFSA)

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  1. Overview of the Metal and Engineering Industry and Contributions made by the sector to the South African Economy Presentation to the Parliamentary Portfolio Committee on Finance Friday, 13 February 2007

  2. STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA (SEIFSA) • National employer federation for the metal and engineering industry • Umbrella body for 37 independent sectoral employer associations • More than 2300 member companies

  3. STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA (SEIFSA) SEIFSA’S mission is to represent and promote the interests of its members by negotiating collective agreements with trade unions and providing its members with other services in the areas of social policy, skills development and economic and commercial services on both a collective and individual basis.

  4. METALS AND ENGINEERING CONTRIBUTION TO GDP • Turnover R252 billion in 2006 • Up 14% over R21 billion in 2005 • Represents approximately 6% of total GDP • 30% of all manufacturing in South Africa • 275 000 hourly paid shop floor workers • Additional 50 000 managerial and support staff • Growth in real GDP domestic steel consumption in 2007 up by 9.9%

  5. METALS AND ENGINEERING LABOUR ABSORPTION POTENTIAL • Limited potential for job creation • Even with major increases in production for domestic or export • Growth possible for skilled workers • Little or no potential for lower skilled workers • However, wage levels have increased above inflation for all workers

  6. METALS AND ENGINEERING CONTRIBUTION TO EXPORT MARKET • Major exporters are primary metals producers • Limited local capacity has reduced exports and increased imports • Capacity requirements are being addressed • SA metals producers are internationally competitive • Exports will improve considerably once capacity problems increased

  7. METALS AND ENGINEERING CHALLENGES IN ENHANCING ECONOMIC GROWTH • Improving competitiveness of industry • Metals Sector Development Strategy • National Logistics Programme • Improve ability to compete with imports ( especially China and India) • Address skills shortages

  8. METALS AND ENGINEERING Overview and Challenges for Economic Growth Any questions or comments would be welcomed

  9. Thank you! Michael McDonald Economic and Commercial Services Tel 011 298 9413 Fax 011 298 9513 michael@seifsa.co.za

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