Members of Master Builders Association North agree that there is now renewed confidence about the future of the Gauteng construction sector.

Mohau Mphomela, executive director of MBA North, says input received from the association’s members seems to endorse the findings of the FNB/Bureau for Economic Research Construction Confidence Index which increased by six points in a 100-point index scale to 51 in the third quarter, compared with 45 in the previous quarter of 2013. “It is clear that our members generally believe that the future now looks more promising than in mid-2013, but it is also clear that they still do not believe the industry is on a sustained path of growth. Several factors beyond the construction industry’s control will determine that,” Mphomela stated.

MBA North member, Tiber Bonvec Construction, is generally confident that the increased confidence of the last few months will continue into 2014. The company’s MD, Jose Correia, says Tiber Bonvec can only comment on the private sector activity in the Johannesburg area’s industrial and commercial development market but there seems to be a lot of activity in these sectors at present although profit margins are still under pressure. “This situation is likely to remain - specifically because of some of the wage agreements concluded in the building industry which we believe to be on the higher end of the market.”

Correia adds that the increased activity noted could be the result of businesses relocating and positioning themselves better geographically for the future in more prominent nodes, and not necessarily an indication of real growth.

Charl Venter, director of Pretoria contractors, J.C. van der Linde & Venter Projects, says his company has been busy this year and is fairly confident about the future. “But contractors working in more rural areas such as North West Province and Limpopo, still seem to be struggling to maintain momentum and secure work. Many tenders seem to get shelved because of budget constraints which shows that clients/investors do not have faith in the current economic conditions and are still unsure about the future.”

Venter, who is vice-president of MBA North, says profit margins are still very low but it is hoped that the Government will start spending its budgets on infrastructural development early next year. “This would represent a huge boost for the industry,” he adds.

Hennie Bester, MD of Gauteng Piling and past president of MBA North, says the rising number of shopping centres being built in Gauteng at present seems to reflect confidence in the future in the commercial development sector. “Government spending also seems to be increasing slowly but surely and, with elections looming in 2014, is likely to continue next year. Government also seems determine to combat corruption which will substantially benefit the construction sector.”

Bester feels that, with the negative publicity and damage to the industry’s image inflicted by the recent collusion incidents now a thing of the past, MBA North and rest of South Africa’s Master Builder association have a major role to play in boosting and preserving the image of the construction industry in this country.