Moneyweb writes that there appears to be little light at the end of the tunnel for SA’s beleaguered construction industry, with many major listed construction companies still fighting for their survival.
Basil Read, Group Five, Esor Construction and Liviero Group are in business rescue, while others, such as Aveng, have been forced to downscale their operations to strengthen their balance sheets and improve their liquidity. Industry Insight has described this as “an absolute destruction of a sector never before seen on the JSE”. The problems in the industry have been largely attributed to a combination of a lack of large government infrastructure contracts because of government’s strained financial resources and problematic and loss-making contracts. This resulted in construction industry employment dropping by 3.6% year-on-year in the first quarter to an estimated 618,000 as the industry shed a further 23,000 jobs in the quarter. This report goes on to examine the individual circumstances of Group Five, Aveng and Basil Read.
- Read the full original of Roy Cokayne’s report in the above regard at Moneyweb
Get other news reports at the SA Labour News home page