1. Presentation to the Parliamentary Portfolio Committee on Finance
Overview of the Metal and Engineering Industry and Contributions made by the sector to the South African Economy
Presentation to the Parliamentary Portfolio Committee on Finance
Friday, 13 February 2007

2. STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA
(SEIFSA)
National employer federation for the metal and engineering industry
Umbrella body for 37 independent sectoral employer associations
More than 2300 member companies

3. STEEL AND ENGINEERING INDUSTRIES FEDERATION OF SOUTH AFRICA
(SEIFSA)
SEIFSA’S mission is to represent and promote the interests of its
members by negotiating collective agreements with trade unions
and providing its members with other services in the areas of
social policy, skills development and economic and commercial
services on both a collective and individual basis.

4. METALS AND ENGINEERING
CONTRIBUTION TO GDP
Turnover R252 billion in 2006
Up 14% over R21 billion in 2005
Represents approximately 6% of total GDP
30% of all manufacturing in South Africa
hourly paid shop floor workers
Additional managerial and support staff
Growth in real GDP domestic steel consumption in 2007 up by 9.9%

5. METALS AND ENGINEERING LABOUR ABSORPTION POTENTIAL
Limited potential for job creation
Even with major increases in production for domestic or export
Growth possible for skilled workers
Little or no potential for lower skilled workers
However, wage levels have increased above inflation for all workers

6. METALS AND ENGINEERING CONTRIBUTION TO EXPORT MARKET
Major exporters are primary metals producers
Limited local capacity has reduced exports and increased imports
Capacity requirements are being addressed
SA metals producers are internationally competitive
Exports will improve considerably once capacity problems increased

7. METALS AND ENGINEERING CHALLENGES IN ENHANCING ECONOMIC GROWTH
Improving competitiveness of industry
Metals Sector Development Strategy
National Logistics Programme
Improve ability to compete with imports ( especially China and India)
Address skills shortages

9. METALS AND ENGINEERING Overview and Challenges for Economic Growth
Any questions or comments would be welcomed

10. Economic and Commercial Services
Thank you!
Michael McDonald
Economic and Commercial Services
Tel
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