Characteristics Of The Construction Industry In South Africa

1. Executive summary The purpose of this report is to outline the characteristics of the construction industry in South Africa with the use of a SWOT- analysis (strengths, weaknesses. Opportunities and threats). Summary The construction industry in South Africa is one of the significant contributors to employment and economic growth. This industry contributes a large part of the GNP (Gross National Product), plays an important role in development and also contributes substantially to South Africa’s GDP (Gross Domestic Product), it contributes a portion of 3.9% to the national GDP (PwC, 2016). According to stats SA, this industry employs more than 1.4 million people. Unfortunately, there are several challenges that the industry is facing. Challenges such as skills and labour unrest negatively affect the industry, thus causing delays on significant projects around the country. SWOT-analysis Strengths  Construction industry plays a significant role in development of the country.  Contributes to the national gross domestic product.  Contributes to the labour market (employment and increased household income).  Contributes to South Africa’s economic growth.  Creates growth for small businesses. Weaknesses  There is a decrease in market capitalisation for all top construction companies.  Collusion between construction companies, which lead to the competition’s commission charging them hefty fines.  Lack of mega projects leading to a lack of work.  Poor quality control due