“Some work has continued to flow from certain parts of the private sector,” continues Dr Bruggemans. “But in the case of the residential building sector it almost dried up completely due to the recession. As a result, civil construction companies have kept on retrenching staff on a large scale to contain costs and remain financially viable in this difficult environment.”
He thinks that conditions may improve in the year ahead if government starts to launch new projects.
Listen to Dr Cees Bruggemans, Chief Economist of FNB, talk on the trends that will affect South Africa’s economy over the next 18 months at the SmartProcurement World Conference where he will keynote speaker. SmartProcurement World will be held at Gallagher Convention Centre on November 16th – 18th. Dr Bruggemans holds a D.Com in Economics and an MBA from UCT.
Elaine Porteous is a freelance consultant and contributing editor to SmartProcurement. To contact her email her at firstname.lastname@example.org. See her webpage at www.elaineporteous.co.za