From The Editor’s Desk
Over the past few weeks, I have been privileged to be exposed to three ‘manufacturing’ successes in our trucking industry – two of which are reported on in this newsletter. The first was the celebration of the 12 000th locally assembled commercial vehicle to roll off Tata’s production plant in Rosslyn. The second was the Isuzu Motors South Africa (IMSAf) manufacturing plant celebrating its highest ever annual production – up 21% over last year. The third was just yesterday with Scania starting assembly at its plant of the new Scania Super – more on this later.
Just these three alone gives good reason for pride to shine but when one adds the manufacturing and assembly plants of the other OEMs like Daimler Truck, Hino, Volvo to mention just three – as well as those across the entire trucking sector – the pride shines even brighter in the realisation of the great contribution our trucking sector makes to the South Africa economy – and particularly to employment. But just as you’re polishing that pride, in comes a ‘whammy’ that shows the underlying threats to the sustainability of this success imposed by the political ranks that have a habit of impeding rather than encouraging growth.
These ‘threats’ were recently highlighted by Busisiwe Mavuso, CEO of Business Leadership South Africa, who said that while manufacturing contributes roughly 12% of GDP and supports more than 1.5-million jobs directly – with multiples of that in supply chains – “we are watching this foundation erode” adding that “in the last two years alone, Bridgestone and 13 other automotive component manufacturers have shut down operations.”
She pointed to the proposed amendments to B-BBEE regulations as an example of where Minister Parks Tau’s department – the Department of Trade, Industry and Competition – is seemingly becoming a source of policy uncertainty that is actively driving investment away and called for the DTIC to withdraw the proposed B-BBEE amendments and commit to regulatory stability. “The DTIC’s proposed B-BBEE amendments would strip many companies of BBBEE status because suppliers aren’t 100% black-owned, despite years of building these supply chains. The good work done by companies to help build majority black-owned businesses could be undone.”
She also called for Minister Tau to establish a ‘manufacturer task force’ with monthly reporting directly to the President. “We need a macro-level understanding of obstacles and coordinated government action to remove them,” she said, adding that we have manufacturers operating here who want to succeed. In essence, she said that Government needs a clear plan to “save our industrial base” and to recognise manufacturing as a whole-of-cabinet responsibility spanning energy, logistics, ports and security. “The question is whether government will be their partner or their obstacle. Minister Tau must make his department the manufacturer champion it should be. The industrial base we still have depends on it.”
We have many manufacturing ‘champions’ within the ranks of the trucking industry and the long-term sustainability – and indeed growth – of these entities must be nurtured and encouraged rather than hindered. As a start, Mavuso’s suggestion of the establishment of a ‘manufacturer task force’ is a constructive one and should be followed up on and pushed for. As she states: “Every month without action means more boardroom decisions in Detroit, Tokyo, Stuttgart and Shanghai choosing Egypt, Vietnam and Mexico over South Africa, with more factories closing, jobs lost and supply chains dismantled.” South Africa cannot afford for this to happen.
Patrick O’Leary
Managing Editor, FleetWatch
