Headwinds face metals and engineering sector
September 2022
News
The Steel & Engineering Industries Federation of SA (SEIFSA) has warned that the outlook for the metals and engineering sector has shown a marked deterioration after a strong start to the year.
The performance of this sector is indicative of the prevailing economic fundamentals. “It is also extremely sensitive to these prevailing global and domestic economic events. In fact, our estimates already point to production contracting by between 1,1% and 1,3% in the second quarter, with notable downside risks for the full-year outlook,” says SEIFSA COO, Tafadzwa Chibanguza.
“During the first quarter, inflationary pressures were already building in the global economy. However, this was initially driven by aggregate demand increasing faster than supply chains could respond. The invasion of Ukraine by Russia on 24 February set the proverbial cat among the pigeons in economic and inflationary terms,” he says.
Chibanguza has identified the themes behind global and domestic economic fundamentals at present, which include the aggressive monetary policy tightening in the US in response to multiyear record inflation; the effect of the Russia-Ukraine war on the EU economy; and China’s aggressive zero-Covid-19 policy, which has impacted the country’s economic hubs of Shanghai and Beijing.
“These themes will dominate the global economic narrative and the slowing of global economic growth. Steel production is highly correlated to growth and the early warnings signs of a slowing growth rate are evident in the decline in iron ore prices, a key ingredient in steel production,” he says.
“A rising tide lifts all boats, but the inverse is also true. In a less supportive global economic environment, and with headwinds intensifying, domestic economic policy and reform have to do a lot of heavier lifting to support the economy. Domestic intervention to counter these headwinds and support the metals and engineering sector is essential,” concludes Chibanguza.
Further reading:
What to expect at Africa Automation Indaba 2026: From AI readiness to bankable automation projects
RX Africa
News
Africa Automation Indaba 2026 will give delegates a practical view of what it takes to move automation from ambition to implementation with a two-day programme focused on industrial readiness, skills development, policy alignment, investment realities and the future of intelligent operations.
Read more...
SKF achieves SaiMechE CPD accreditation
SKF South Africa
News
SKF South Africa has achieved SaiMechE CPD accreditation, a decisive step that empowers the next generation of engineers.
Read more...
Elevating artisanal skills is key to revitalising South Africa’s economy
ACTOM Electrical Machines
News
We need to challenge the stigma attached to artisanal and technical careers, and we also need a mindset shift supported by the schooling system so that young people understand future career pathways, choose subjects accordingly, and recognise that artisanal and technical skills carry equal value in a modern economy.
Read more...
40 years of PC-based control
Beckhoff Automation
News
When Beckhoff elevated the industrial computer to the status of a central control system four decades ago, a paradigm shift occurred.
Read more...
One visit, five shows: practical solutions for safer, smarter operations
News
Five co-located shows will bring together the full picture of how organisations manage risk, compliance, infrastructure and energy.
Read more...
From the editor's desk: A little bit of magic
Technews Publishing (SA Instrumentation & Control)
News
Whatever your view is of America today, the Artemis II mission showed the world that it can still deliver moments of wonder. For a few days, the chaotic headlines gave way to something more. Who could
...
Read more...
Electra Mining Africa 2026
News
Electra Mining Africa will take place at Nasrec, Johannesburg from 7 to 11 September 2026.
Read more...
Woman of Stature Awards South Africa
News
In a powerful recognition of excellence in a traditionally male-dominated industry, Thabisile Phumo won the Woman in Mining and Engineering award at the 2026 Woman of Stature Awards South Africa.
Read more...
AVEVA to spotlight industrial intelligence at AVEVA Day
News
AVEVA will host AVEVA Day South Africa 2026 on 22 April with the theme ‘Accelerating Africa’s Industrial Future: Harnessing AI, Digital Twins and Data-Driven Operations for Sustainable Growth’.
Read more...
Toolbox on the Move brings critical components and support right to your door
Bearing Man Group t/a BMG
News
BMG has expanded its service to businesses operating in remote areas in the Eastern Cape with the launch of a new mobile sales and support initiative.
Read more...
printer friendly version