By: Tommy Strydom

June is celebrated as Youth Month in South Africa because June 16 is commemorated as Youth Day and is a public holiday. The idea is to perpetuate the memory of those who died and suffered in 1976 and thereafter, as well as to support their legacy and uphold the principles of selfless action and dedication that are necessary for success and growth in any society.

Inyatsi Construction Group Holdings’ theme for June is Young Talent Brings Innovation to the Construction Industry. The construction sector contributes significantly to the country’s economy and provides much-needed employment. This is especially significant, given that South Africa has slipped into a recession; the country’s gross domestic product (GDP) declined 0.7% during the first quarter of 2017, after contracting by 0.3% in the fourth quarter of 2016. Unemployment currently stands at more than 27%.

This affects all sectors, including construction. It has been reported that a large number of young construction professionals are exiting the industry too soon because of insufficient opportunities and growth within the sector. This does not augur well for the industry, as our future leaders are leaving way too early.

The construction industry, a significant contributor to employment and growth in South Africa, has been in a slump since 2009. The 2016 financial year got off to a poor start, with margins under pressure, tight liquidity and decreasing order books. There has been some improvement in companies’ performance since the beginning of the year, with signs of an increase in profitability and market performance.

In South Africa, succession planning in the construction industry must go hand in hand with transformation. Serious transformation is needed in the construction sector. We therefore welcomed the October 2016 announcement that six of the large construction companies in the country had agreed to contribute R1.25-billion to a transformation fund.

We believe the transformation fund is a step in the right direction. It will accelerate opportunities for black-owned construction companies, small businesses and young entrepreneurs who have struggled to gain access. Transformation is not only about opening up opportunities for black people to lead and contribute to the growth of the construction industry and the economy, but also about socioeconomic development and the uplifting of communities near which construction projects are implemented.

A promising development for the industry is government’s infrastructure plan, which aims to address South Africa’s infrastructure needs over the next few years. However, it will require input from, and coordination with, the construction sector for it to be successful.

In October 2016, following an investigation by the Competition Commission into collusion in the industry, seven of the nine listed construction companies entered into an agreement with government. This demonstrates their commitment to transformation in the industry. It is hoped that this agreement will resolve the perceived mistrust between the big construction companies and government.

The lack of qualified built environment professionals is one of the many challenges that the construction industry in South Africa is facing. For example, there are currently fewer than 1 900 qualified quantity surveyors working in the industry, fewer than 25% of whom are black.

The South African government has committed R847-billion in infrastructure development through the strategic integrated projects and other programmes which form part of the National Infrastructure Development Plan. This massive build programme requires highly skilled professionals and capacity for it to be executed properly. The lack of qualified construction professionals could derail the programme.
The Construction Industry Development Board (CIDB) register shows that, of 130 000 or so contractors, the majority are black. This clearly shows that there are more opportunities for participation by black contractors in the industry than before 1994. However, the majority of black-, women- and youth-owned companies remain largely concentrated at the lower levels of the CIDB register, which begs the question: Are the playing fields indeed level? Access to higher education could play a fundamental role in addressing this issue at structural level.

We need a structural solution: a public higher education system that is free or at least poses no financial or other barriers for deserving students. The construction industry would benefit from this, as the fees for most built environment degrees are very high, relative to other professions. The success of the call for free higher education could ultimately answer a fundamental question posed by the CIDB on how to drive social transformation – ensuring that economic growth is inclusive and addresses the triple crisis of unemployment, poverty and inequality and that the benefits are enjoyed by all.

Two young professionals in the sector, Bandile Bennett and Wheatly Orwin, subagent and site agent respectively at Inyatsi Construction, have shared some of their experiences in the construction sector with us.

Bennett says it is a trend that companies will hire experienced personnel, but some construction companies now realise the importance of talent groomed in-house. This new trend offers employment opportunities for young graduates who go through a training programme and gain technical expertise while learning the culture of the company. He adds that the Big Brother programme within the construction industry facilitates the professional and personal development of graduates through the experience and expertise of senior staff.

Orwin says mentorship is key to becoming skilled and truly experienced. Big Brother means a senior professional in your company watches over you and guides you. Inyatsi has had this mentorship programme since Bennett joined the company but really started taking off and becoming more structured in recent years. Orwin remarks: “The difficulty [is] that construction companies want people with experience. This presents a challenge for juniors and graduates entering the workplace, as job openings are limited. Try to get your foot in the door early! Get vacation work and attend seminars or events that construction companies present.”

Orwin also believes in the right educational policies, with a focus on science and maths. “This would include early career guidance and earlier job-shadowing in construction firms to expose young people to the industry.”

Strydom is Inyatsi Construction Group CEO