BUILDING: Demographics Change With Emerging Market Growth
Recent Western Cape Business News
The demographics of the Western Cape building industry are shifting with the definite growth of an emerging sector. Not only is the industry growing its number of smaller traders, but the building industry is also seeing a significant growth in the previously disadvantage areas, in particular the predominantly ‘black’ zones. The Bargaining Council for the Building Industry (BIBC) has released figures showing that new registrations within the Black and PDI areas is up to over 32% of overall registrations within the industry. “2009 showed the biggest percentage of new black employers registration ever at over 32%, a significant jump compared to just 13% in 2006,” explained Henry Strydom, Secretary for Building Industry Bargaining Council (Cape of Good Hope).
Last year saw a total number of 235 business registrations, with a far greater number of these businesses coming from areas such as Langa and Gugulethu, than PDI areas such as Athlone. Combined these sectors grew from 19% to 32% in just a year, a trend that the BIBC don’t expect to see declining. Coupled with this is a significant rise in small businesses that employ five or fewer employees making up over 40% of new registrations year-to-date. “In the category of employers employing 101 or more employees, in 2008 we had 4.1%, and this year these larger companies make up just over 3% of our registrations,” added Strydom.
The BIBC believe that the smaller companies are predominantly owned by individuals previously employed by larger companies and who have subsequently taken advantage of the benefits and opportunities that the industry offers to entrepreneurs. “We are pleased that these small businesses are registered and compliant, as it helps to ensure that the industry as a whole continues to be regulated,” concluded Strydom.
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