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:
Is South Africa equipped to manufacture?
News
The upcoming Manufacturing Indaba, taking place on 14 to 15 July 2026 at the Sandton Convention Centre in Johannesburg, is Africa’s leading platform dedicated to advancing industrialisation. The two-day event will bring together policymakers, manufacturers, investors and technology leaders to explore practical solutions to strengthen local production, enhance competitiveness and accelerate Africa’s industrial transformation.
Read more...
Africa Automation Indaba 2026 announces influential speakers
News
Momentum is building for Africa Automation Indaba 2026, with the first wave of influential speakers now confirmed for the continent’s leading executive forum dedicated to automation, process control, smart manufacturing and industrial digitalisation.
Read more...
Experience the future of engineering
News
This year’s Eplan Next26 marks the premiere of a completely new event format; a global festival for visionaries, decision makers and users from various industries and engineering.
Read more...
Mining industry alignment will define Africa’s PDS journey
News
As African mines advance toward higher safety standards and respond to tightening regulations and rapid technological change, Booyco Electronics says the future of proximity detection systems will be shaped by strong long-term industry collaboration.
Read more...
RS South Africa launches student fund for future engineers
RS South Africa
News
RS South Africa has launched the Student Project Fund, an initiative designed to support engineering and technology students as they transform innovative ideas into practical solutions.
Read more...
Raysonics Industrial celebrates 6,5 million injury-free hours
News
Raysonics Industrial, formerly DEKRA Industrial, has achieved a significant safety milestone, recording 6,5 million lost-time injury-free hours across its national operations.
Read more...
SICK earns Great Place To Work certification
SICK Automation Southern Africa
News
Sensor specialist SICK South Africa has been awarded Great Place to Work certification recognising the positive working environment and strong workplace culture it has developed.
Read more...
Africa Prize for Engineering Innovation chooses finalists
News
The Royal Academy of Engineering has shortlisted 16 innovators for the 2026 Africa Prize for Engineering Innovation. This is the continent’s largest prize dedicated to stimulating, celebrating and rewarding engineering innovation and entrepreneurship across sub-Saharan Africa.
Read more...
From the Editor's desk: The AI paradox
Technews Publishing (SA Instrumentation & Control)
News
AI has only been around in everyday life for a couple of years, but it’s resulted in a huge need for data storage and processing. The race to plug it into everything means that data centres are being
...
Read more...
BMG supports rising racing motorsport star
Bearing Man Group t/a BMG
News
Backed by BMG and Liqui Moly, young South African racing driver, Karabo Malemela delivered a standout 2025 season in the BMW ///M Performance Parts Race Series, competing as part of the Pablo Clark Racing Motorsport Development Programme.
Read more...
printer friendly version