• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Factory sales pick up

Jul 15 2011 14:14 Sapa

Company Data

PPC Limited [JSE:PPC]

Last traded 30.54
Change 0.04
% Change 0.00
Cumulative volume 781285
Market cap 18.49bn

Last Updated: 24/04/2014 at 04:27. Prices are delayed by 15 minutes. Source: McGregor BFA

ARCELORMITTAL SOUTH AFRICA LIMITED [JSE:ACL]

Last traded 38.09
Change -0.76
% Change -0.02
Cumulative volume 825404
Market cap 16.98bn

Last Updated: 24/04/2014 at 04:24. Prices are delayed by 15 minutes. Source: McGregor BFA

SABMILLER PLC [JSE:SAB]

Last traded 553.32
Change 10.62
% Change 0.02
Cumulative volume 617976
Market cap 925.51bn

Last Updated: 24/04/2014 at 04:29. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Factory activity gains momentum

SA factory output picks up

SA, global factory orders hit by slowdown

PMI drop an omen for weaker growth

Lower oil tames SA factory gate prices

Surprise as US factory activity rises

 
Johannesburg - Sales of manufactured goods rose in the first quarter of the year although the strong rand was worrying the sector, the Manufacturing Circle said on Friday.

"The relatively strong performance of the manufacturing sector made a significant contribution towards overall economic growth in quarter one 2011," it said.

The Manufacturing Circle is a group of 26 major manufacturing companies including SABMiller [JSE:SAB], ArcelorMittal SA [JSE:ACL], Pretoria Portland Cement [JSE:PPC], Hulamin [JSE:HLM], Mondi, BMW and Altron.

A member survey found that the sales increase in the first quarter was driven by the continued recovery in the global economy, higher commodity prices and stronger domestic demand.

The percentage of members surveyed experiencing growth in sales volumes increased to 63%, from the previous quarter's 60%.

However, the number experiencing growth in value declined to 75%, from 80% in the previous quarter.

"Despite robust manufacturing production figures, the persistently strong and volatile rand remains a major concern for manufacturers, eroding margins on exports and reducing competitiveness," said Stewart Jennings, Manufacturing Circle chairperson and PG Group CEO.

"Local manufacturers also find it difficult to compete in the domestic market due to increased competition from cheap imported products."

Last month, the Manufacturing Circle held talks with Finance Minister Pravin Gordhan to discuss interventions to weaken the rand.

Manufacturing confidence was down in the first quarter, with no CEOs surveyed saying they would characterise their current business environment as strong.

In the fourth quarter of 2010, 1% of respondents did so.

Those CEOs who felt that the current outlook for domestic manufacturing was weak increased from 30% in the previous quarter to 44%.

Employment levels remained the same over the quarters.

Iraj Abedian, economist and adviser to the Manufacturing Circle, said the manufacturing sector was among the top four economic sectors that generate wealth and create decent jobs in South Africa.

"The promotion and expansion of the sector needs to be a top national priority and government intervention is required to provide the correct incentives to boost the productive capacity of these industries," he said.

"These incentives should focus on achieving a relatively stable and more accommodative interest rate environment, providing specialised export support measures and achieving a realistic exchange rate that will keep the manufacturing sector at a competitive edge globally."

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Police allowed to become brutal - DA lawyer

A DA election advert depicts how the government has allowed the police to become brutal, Icasa's complaints and compliance committee has heard.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...