Company Announcement - Master Builders South Africa has welcomed the unexpectedly high levels of building industry confidence reflected in the FNB/BER Building Confidence Index for the final quarter of 2014, and says it augurs well for a much improved 2015 for the beleaguered building sector.
The FNB/BER Building Confidence Index, released yesterday (1 Dec) showed the highest level of  confidence among building industry players since the beginning of 2008 and, according to the Index, confirmed that the building sector was now in the midst of a revival. The Index jumped up 15 points during the past quarter with main contractors’ confidence 13 index points higher, and sub-contractors’ confidence up by three index points.

Tumi Dlamini, Executive Director of MBSA, says the confident outlook of contractors approached for the final quarter of 2015 Index showed that, although the industry still faced formidable challenges, the small reprieve experienced in the third quarter of the Index was gaining momentum. “There is now certainly potential for a much improved 2015. With this indication of higher hopes for the future, we expect that 2015 could be a turnaround year for the industry with an increase in building activities around the country. MBSA is also further encouraged by the fact that renewed confidence is now permeating across the rest of the building value chain, with the sub-contractors’ confidence also having risen. Retailers have also benefitted from this recovery.”

Dlamini said for an industry that had traded under extremely difficult conditions in 2014, with low margins and significantly decreased building activities throughout the country, the Index’s findings came at an opportune time just before the industry’s end-of-year shutdown. “Based on the urgency that we have seen from government to deliver the long-awaited infrastructural projects from its budget allocation of R847 billion, MBSA fervently hopes that 2015 will be the year in which this growth momentum for the industry is carried through.  A re-energised and focussed commitment by government to deliver on these vital infrastructure projects will augment the gains now reported in this Index. “MBSA believes that the recovery is sustainable and that the building and construction industry will in 2015 realise its potential to create and maintain increased levels of employment, and continue to play a significant role in the economy of the country,” Dlamini added.