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:
RS South Africa retains Level 2 B-BBEE status
RS South Africa
News
RS South Africa has once again achieved Level 2 B-BBEE verification.
Read more...
SEW-EURODRIVE unveils world class facility in Gqeberha
News
In a landmark event in the Eastern Cape attended by key customers and industry leaders, SEW-EURODRIVE officially opened its expanded state-of-the-art facility in Gqeberha, marking a major milestone in its strategy to strengthen regional support and deepen its footprint in the region.
Read more...
Africa’s brightest young battery innovators
Schneider Electric South Africa
News
Schneider Electric and Enactus, the international NGO dedicated to inspiring students through entrepreneurial action, have announced the winners of the 2025 Energy Transition Battery Innovation Challenge, funded by the Schneider Electric Foundation. It empowers young innovators to design battery solutions addressing the region’s most pressing energy challenges.
Read more...
Africa’s strategic role in powering the global clean energy future
News
The 2026 Africa Energy Indaba is to spotlight Africa’s mineral wealth, industrialisation potential and the urgent need for sustainable value chain development.
Read more...
The road to the Indaba
News
The Africa Automation Indaba 2026 is set to become a landmark gathering for Africa’s automation, process control and manufacturing community.
SA Instrumentation and Control will be running a dedicated editorial series spotlighting the voices, ideas and debates shaping Africa’s industrial future.
Read more...
Crash reconstruction tests advance vehicle safety research
News
The University of KwaZulu-Natal’s Scientific Multidisciplinary Advanced Research Technologies (SMART) Lab recently participated in a series of collaborative crash reconstruction tests held at the Toyota Test Track.
Read more...
Siemens and HD Hyundai to accelerate revitalisation of USA shipbuilding
News
Siemens Digital Industries Software has signed a memorandum of understanding with HD Hyundai to drive the revitalisation and modernisation of the commercial shipbuilding industry in the USA.
Read more...
SKF launches the Patent Bay
SKF South Africa
News
SKF is launching The Patent Bay, a new platform open to companies that aim to accelerate technologies with the potential to advance sustainability, by making selected patents freely available to others.
Read more...
SAIMC Zambia
SAIMC
SAIMC News
SAIMC Zambia marked its 21st anniversary with the annual SAIMC Banquet, held on 29 November 2025 at Mukwa Lodge in Kitwe, Zambia.
Read more...
Accelerating Africa’s smart manufacturing future
News
Automation Day, a dedicated one-day conference within the Manufacturing Indaba 2026, will bring together industry leaders, innovators and policymakers for an in-depth exploration of how automation is reshaping Africa’s manufacturing landscape.
Read more...
printer friendly version