This industry, which is at the core of South Africa’s capital goods industry, contributed 5,2% of total manufacturing production in the third quarter of 2015, down from 5,5% in the third quarter of 2013 and around the same share in 2010. But production had fallen by 2,9% from third quarter 2013 to third quarter 2015, compared to an increase of 8,4% from the third quarter of 2010 through the third quarter of 2013. The decline presumably resulted largely from reduced demand from mining as a consequence of the sharp fall in global metals prices. From the second to the third quarter of 2015, however, production reportedly rose by 2,8% in seasonally adjusted terms.
Employment in the industry saw a fairly steady fall from a high of 140 000 in 2008 to around 75 000 in mid-2015. It then reportedly recovered to just over 100 000 in the third quarter of 2015.
Capacity utilisation rose in the past quarter, from 82% in the second quarter of 2015 to 83% in the third quarter. It had been 83,6% two years earlier, in the third quarter of 2013, having peaked at 88% in early 2008.
The most up-to-date trade data do not break out general and specialised machinery, which constitutes the bulk of the industry, from a broader group that includes electrical equipment, appliances and consumer electronics. Exports of these products came to 18% of total manufacturing exports in the third quarter of 2015, up from 20% two years earlier. These sales equalled around 62% of total production of machinery and appliances in the third quarter of 2015, compared to 61% two years earlier.
In dollar terms, exports of capital goods, appliances and consumer electronics totalled US$2,1 billion in the third quarter of 2015, around the same as two years earlier. Compared to the second quarter of 2015, they had climbed from US$2 billion. In rand terms, they rose from R20,5 billion in the third quarter of 2013 to R24,3 billion in the second quarter of 2015, then increased to R26,9 billion in the third quarter. That said, the quarterly trade data are not seasonally adjusted, so the changes are not necessarily very meaningful.
Imports of machinery, appliances and consumer electronics came to 31% of all manufactured imports in the third quarter of 2015, compared to 34% in the third quarter of 2013. They were around 60% higher in rand terms than local production of machinery and appliances in the third quarter of 2015 – but the figure had dropped from 100% in the third quarter of 2013. In rand terms, they had fallen from R67,3 billion in 2013 to R66,1 billion in the second quarter of 2015, but climbed to R70,0 billion in the third quarter.