BUILDING: Builders Report Slow Growth
Recent Western Cape Business News
The Cape Bargaining Council for the Building Industry (BIBC) has made known a decrease in industry contributions, indicating a slowdown, for the period November 2009 to August 2010 compared to a similar period the previous years.
“When comparing year on year contributions for the same period, we have observed a definite decline,” explained Henry Strydom, Secretary for Building Industry Bargaining Council (Cape of Good Hope). However, over the immediate past eight week period the decrease of 19%, has stabilised and the Council believes that the industry is seeing a slowdown due to a tapering-off of Soccer World Cup contracts which has led to increased unemployment.
The BIBC has, however, advised that although there is a definite slowdown in employer contributions, the industry will once again see a turn around. “The building industry is a cyclical sector, so it is just a matter of time before things pick up again,” added Strydom. In support of this, Strydom explained that the decrease seems to have stabilised over the last few weeks. The Council has indicated that although there is most definitely a decline, the growth may be decreasing at a reduced rate.
“We are hoping that the substantial budget that government has earmarked to spend on infrastructure, will see us entering into a new bullish cycle, bringing about a renewed phase of employment,” concluded Strydom.
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