Economic impact on the construction industry in S.A

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Sustainability in the building industry

Much has been said and written about the lack of sustainability in the building industry for many years, a condition that has been exacerbated by poor economic growth in general.

We also know that the investment in residential buildings was largely responsible for a measure of growth in the past years, but how do we build on this? What role can we play to maintained quality standard within the infrastructure and to improve investment in the non-residential sector of our industry and of our country? What is required to get this engine for growth into gear and to increase our contribution to the Gross Domestic Product? The construction equation over the last few years has read as follows: where rates have determined demand, the sector has been buoyant; in sectors where the exchange rate underpins demands, a downturn has been experience; and where government is the main driver, the scenario has been relatively flat.

It is the opinion of the author that the equation can charge because of the demand in the housing market, particularly as material cost rise on the back of tight supply and as it becomes increasingly difficult for those who have invested in rental stock to find tenants.

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