Biannual Economic and Capacity Survey July December2017 1
Firm distribution based on Annual Turnover (based on responses received) July December 2017 Full survey Category by gross annual income % of firms 0 R1,5m 11,5% R1,5m R11,5m 54,1% > R11,5m 34,4% Total 100.0% January June 2017 Full Survey Category by gross annual income % of firms 0 R1,5m 7% R1,5m R11,5m 35% > R11,5m 57% Total 100.0% Firm distribution based on turnover 0-1.5 11,5% Firm distribution based on turnover 0-1.5 7,4% >11.5 34,4% 1.5-11.5 54,1% >11.5 57,4% 1.5-11.5 35,2% 0-1.5 1.5-11.5 >11.5 0-1.5 1.5-11.5 >11.5 2
Profile of respondents by firm size Based on full and part time employment Micro (< 10) 21% Large (>100) 18% Medium (20-100) 26% Small (10-20) 35% Large (>100) Medium (20-100) Small (10-20) Micro (< 10) 3
Fee earnings vs Gross Fixed Capital Formation (Res, Non-Res, Construction works) Rbn, Constant 2010 prices Source: RBQN, CESA BECS, Industry Insight 4
Consulting Engineering Earnings Percentage of GDP / GFCF construction Source: RBQN, CESA BECS, Industry Insight 5
Fee income, R billions Real 2000 prices Annualised Deflator = CPI 12,0 10,0 8,0 6,0 4,0 2,0 0,0 Dec-96 Jun-98 Dec-99 Jun-01 Dec-02 Jun-04 Dec-05 Jun-07 Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec-17 6
Real Fee income, Real prices Annual Change Deflator = CPI Y-Y Per. Change 4 per. Mov. Avg. (Y-Y Per. Change) 60,0% 50,0% 40,0% 50,5% 38,2% 40,3% 44,9% 30,0% 20,0% 14,1% 17,3% 13,7% 20,1% 10,0% 0,0% -10,0% 5,7% -8,4% 7,8%7,9% 4,9%5,5% 4,6% 2,0% -8,4%-8,0% 2,1% -9,8% 0,5% 9,5%9,5% 8,4% 0,4% -4,3% 10,3% 8,7% -0,70% -3,60% 2,30% -0,50% -5,20% 0,20% 2% -20,0% -16,9% -30,0% JUN00 JUN01 JUN02 JUN03 JUN04 JUN05 JUN06 JUN07 JUN08 JUN09 JUN10 JUN11 JUN12 JUN13 JUN14 JUN15 JUN16 JUN17 7
Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 CESA Confidence Index Index 4 per. Mov. Avg. (Index) 120 100 80 60 40 20 0 8
Jun-98 Jan-00 Jun-01 Dec-02 Jun-04 Dec-05 Jun-07 Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec-17 CESA Labour Cost Indicator vs CPI Year on Year percentage change 30% 25% 20% 15% 10% 5% LCI CPI 4 per. Mov. Avg. (LCI) 0% -5% -10% 9
Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Employment vs REAL fee income (Rbn) (Deflated using the CPI & LCI) CPI: Consumer price index LCI : Labour Cost Indicator Employment Revised (right axis) Income: CPI 2000 prices Income : CESA LCI 2005 prices 12,0 30 000 10,0 25 000 8,0 20 000 6,0 15 000 4,0 10 000 2,0 5 000 0,0 0 10
Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Salary and wage vs Employment Salary/Wage bill (Rbn, Real prices) Employment - right axis 8,0 30 000 7,0 25 000 6,0 5,0 20 000 4,0 15 000 3,0 10 000 2,0 1,0 5 000 0,0 0 11
Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Salary and wage bill Percentage of gross fee earnings 70% 65% 60% 55% 50% 45% 40% 35% 30% 12
11 12 15 20 Average Discounting rate BY FIRM CATEGORY 35% 30% 25% 20% 15% 10% 5% 0% A B C D 13
Fee income earned by Sub-disciplines: % Share 2-year average 5-year average Jun-17 Town planning Structural Quantity Surveying Project Management Mining Mechanical Marine Information Systems / Hydraulics GIS Industrial Process / Chemical Geotechnical Facilities Environmental Electrical / Electronic Civil Mechanical building Services Architecture Agricultural 0% 10% 20% 30% 40% 50% 60% 14
Fee income earned by Sub-disciplines: % Share Change in market share in the last 6 months Town planning Structural Quantity Surveying Project Management Mining Mechanical Marine Information Systems / Technology Hydraulics GIS Industrial Process / Chemical Geotechnical Facilities Environmental Electrical / Electronic Civil Mechanical building Services Architecture Agricultural -6% -4% -2% 0% 2% 4% 6% 15
Fee income earned by TOP THREE disciplines: R bn Real 2000 prices Moving average (2 survey period): 2002-June 2017 Structural Proj Mang Civil - right axis 2,0 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Structural 0,5 0,5 0,6 0,6 0,8 1,2 1,5 1,3 1,6 1,9 1,3 1,3 1,4 1,3 1,4 1,4 Proj Mang 0,5 0,3 0,3 0,4 0,4 0,5 0,7 0,8 0,8 1,3 1,3 0,7 1,0 0,9 0,7 0,6 Civil - right axis 1,9 1,7 1,9 2,0 2,4 3,2 5,6 4,8 3,8 3,3 4,5 5,4 4,6 5,3 5,2 5,8 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 16
Fee income earned by economic sector Percentage market share 2-year average 5-year average Dec-18 Other Agriculture / Forestry / Fishing Commercial Housing Tourism/Leisure Health Education Mining / Quarrying Energy Transportation Water 0% 5% 10% 15% 20% 25% 30% 35% 17
Profile of earnings by sector Agriculture / Forestry / Fishing 0% Other 9% Water (Full water cycle) 20% Commercial 20% Housing (residential inc. land) 5% Tourism/Leisure Education Health 0% 1% 0% Mining / Quarrying 8% Energy (electricity, gas, hydro) 6% Transportation (land, air, road, rail, ports) 31% 18
Fee earnings by selected sector R billions, Real 2000 prices Smoothed 2 survey average 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 JUN0 7 DEC0 7 JUN0 8 DEC0 8 JUN0 9 DEC0 9 JUN1 0 DEC1 0 JUN1 1 DEC1 1 JUN1 2 DEC1 2 JUN1 3 DEC1 3 JUN1 4 DEC1 4 JUN1 5 DEC1 5 JUN1 6 DEC1 6 JUN1 DEC1 7 7 Water 1,3 1,3 1,5 1,9 1,9 1,6 1,3 1,2 1,1 1,1 1,4 1,4 1,2 1,3 1,6 1,7 1,6 1,8 1,8 1,9 2,0 2,1 Transportation 1,8 2,0 2,9 3,6 3,0 2,8 3,1 3,1 2,5 2,4 2,8 2,7 2,8 2,9 2,9 2,9 2,8 2,9 3,3 3,5 3,7 3,2 Energy 0,4 0,3 0,3 0,4 0,5 0,3 0,2 0,2 0,5 1,1 1,3 0,9 0,9 1,2 1,0 0,7 0,6 0,6 0,5 0,5 0,5 0,6 Housing 0,5 0,7 0,8 0,7 0,8 1,1 1,1 1,3 1,3 1,0 0,7 0,6 0,7 1,1 0,9 0,6 1,0 1,0 0,9 0,7 0,8 0,5 Commercial 1,2 1,7 1,8 2,1 2,1 2,0 2,2 1,8 1,8 1,8 1,6 1,6 1,3 1,6 2,4 2,5 2,5 2,6 1,9 1,6 2,2 2,1 19
Fee income (Rm annualised, Real prices) earned by key economic sectors 20
E-CAPE W-CAPE N-CAPE FS N-W N-PROV GAUT MPU KWA-NAT African INT'L % SHARE (BAR) Provincial Market Share 35,0 Dec-17 5-year average 2- year average 30,0 25,0 20,0 15,0 10,0 5,0 0,0 21
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Fee income earned by province (Rbn, real prices) High Capacity economies TREND Annualised smoothed, average over 2 past surveys 4,5 Eastern Cape Western Cape Gauteng Kwazulu Natal 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 22
Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Fee income earned by province June 1999 December 2016 Rm real prices 1 000 900 800 700 600 500 400 300 200 100 0 Eastern Cape Western Cape 2 500 2 000 1 500 1 000 500 0 350 300 250 200 150 100 50 0 Northern Cape 600 500 400 300 200 100 0 Free State 450 400 350 300 250 200 150 100 50 0 North West 450 400 350 300 250 200 150 100 50 0 Limpopo 23
Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Fee income earned by province June 1999 December 2016 Rm real prices 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Gauteng 600 500 400 300 200 100 0 Mpumalanga 3 000 2 500 2 000 1 500 1 000 500 0 Kwazulu Natal 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Africa 1 200 1 000 800 600 400 200 0 International 12 000 10 000 8 000 6 000 4 000 2 000 0 Total Fee Earnings 24
Fee income earned (Real 2000 prices) High Capacity vs lower capacity provincial economies Smoothed Index Dec-98=100 300,00 Lower Capacity High Capacity: Gauteng, Western Cape, Eastern Cape, Kwazulu Natal Low capacity: North West, Free State, Northern Cape, Limpopo, Mpumalanga High Capacity 250,00 200,00 150,00 100,00 50,00 83.4% of fees were earned in high capacity provinces 0,00 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 25
Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 17-Dec Fee income earned (Real 2000 prices) Contribution to Higher Capacity provinces (Gauteng, Western Cape, Eastern Cape and KZN) Percentage of earnings 90,00% 88,00% 86,00% 84,00% 82,00% 80,00% 78,00% 76,00% 74,00% 72,00% 70,00% High Capacity: Gauteng, Western Cape, Eastern Cape, Kwazulu Natal Low capacity: North West, Free State, Northern Cape, Limpopo, Mpumalanga 68,00% 26
Dec-00 Jul-01 Feb-02 Sep-02 Apr-03 Nov-03 Jun-04 Jan-05 Aug-05 Mar-06 Oct-06 May-07 Dec-07 Jul-08 Feb-09 Sep-09 Apr-10 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 May-14 Dec-14 Jul-15 Feb-16 Sep-16 Apr-17 Nov-17 Fee income earned : RSA vs EX-RSA R mill, Real 2000 prices Annualised, smoothed 3 000 2 500 Rm, constant prices 13% 87% Ex-RSA - left axis RSA - right axis 10 000 9 000 8 000 2 000 RSA EX-RSA 7 000 6 000 1 500 5 000 1 000 4 000 3 000 500 2 000 1 000 0 0 27
Fee income earned by type of client Percentage share as at June 2017 Central 10% Private 40% Provincial 17% Local 18% Parastatals 15% 28
Fee income earned by type of client Percentage share Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 17-Dec 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Central Provincial Local Parastatals Private Jun-14 5,4 13,5 27,6 15,8 37,7 Dec-14 11,4 12,6 20,9 16,0 39,1 Jun-15 4,7 13,0 25,4 13,8 43,1 Dec-15 5,9 19,9 20,8 13,1 40,3 Jun-16 4,0 15,0 23,0 16,0 41,0 Dec-16 10,0 14,0 25,0 18,0 33,0 Jun-17 10,0 7,0 18,0 16,0 49,0 17-Dec 10,0 17,0 18,0 15,0 40,0 29
Fee income earned by type of client R billion Real 2000 prices Annualised, smoothed - avg over 2 survey periods 5,0 4,5 4,0 3,5 Central Provincial Local Parastatals Private 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 30
Fee income earned by type of client R billions Real 2000 prices Annualised, smoothed - average over 2 survey periods 8,0 Public Private 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 31
Competition in tendering Percentage of respondents that reported Fierce competition 80% 70% 60% 50% Fierce 40% 30% 4 per. Mov. Avg. (Fierce) 20% 10% 0% Jun-00 02-Jun 04-Jun 06-Jun 08-Jun 10-Jun Jun-12 Jun-14 Jun-16 32
% of Firms wanting to increase staff 100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Eng O Tech Technologist Technicians Support staff Dec'13 32,0 36,0 23,0 22,0 28,0 Jun'14 86,2 3,4 26,7 12,9 2,10 Dec'14 48,0 13,0 39,0 35,0 3,8 Jun'15 69,3 51,1 68,2 5,2 2,9 Dec'15 40,0 4 3 5 0,00 Jun'16 32,0 38,0 15,0 20,0 18,0 Dec'16 44,9 72,0 5,0 10,7 0,0 Jun'17 67,3 75,2 71,8 73,4 35,3 Dec'17 51,4 3,7 44,2 1,9 2,3 33
Bursaries % of Salary / Wage bill 1,8% 1,6% Trend line 2 year average 1,4% 1,2% 1,0% 0,8% 0,6% 0,4% 0,2% 0,0% Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 34
Bursaries R mill Real 2000 prices (Annualised) 250 200 150 100 Trend line 2 year average 50 0 Rm Jun-01 Dec-02 Jun-04 Dec-05 Jun-07 Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec'17 35
Data not available Data not available Training (Salaries and Direct Training Costs) Percentage of Salaries/Wages 40% 35% Trend line 2 year average 30% 25% 20% 15% 10% 5% 0% Jun'05 Jun'06 Jun'07 Jun'08 Jun'09 Jun-102 Jun-11 Jun-122 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 36
Data not available Data not available Training (Salaries and Direct Training Costs) Rbn, Real 2000 prices 4,00 3,50 3,00 Trend line 2 year average 2,50 2,00 1,50 1,00 0,50 0,00 Jun'05 Jun'06 Jun'07 Jun'08 Jun'09 Jun'10 Jun'11 Jun'12 Jun'13 Jun'14 Jun-15 Jun-16 Jun-17 37
Training (Direct costs) % of Salary/Wage bill 3,5% 3,0% 2,5% Trend line 2 year average 2,0% 1,5% 1,0% 0,5% 0,0% Jun-98 Dec-99 Jun-01 Dec-02 Jun-04 Dec-05 Jun-07 Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec'17 38
Training (Direct costs) Rand millions, Real 2000 prices 250,0 200,0 150,0 100,0 Trend line 2 year average 50,0 0,0 Jun-98 Dec-99 Jun-01 Dec-02 Jun-04 Dec-05 Jun-07 Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec'17 39
Net % Change Utilisation Industry Capacity Utilisation Of existing technical staff 80,0 Net % Change of respondents expecting an increase in capacity utilisation Average Utilisation Rate 120% 60,0 100% 40,0 80% 20,0 60% 0,0 40% -20,0 20% -40,0 Jun-99 Dec-00 Jun-02 Dec-03 Jun-05 Dec-06 Jun-08 Dec-09 Jun-11 Dec-12 Jun-14 Dec-15 Jun-17 0% 40
Total fee income outstanding for longer than 90 days Percentage of total fee income earned 30 Excluding foreign clients Including foreign clients 25 20 Trend line 2 year average 15 10 5 0 Dec Jun -99-00 Dec Jun -00-01 Dec Jun -01-02 Dec Jun -02-03 Dec Jun -03-04 Dec Jun -04-05 Dec Jun -05-06 Dec Jun -06-07 Dec Jun -07-08 Dec Jun -08-09 Dec Jun -09-10 Dec Jun -10-11 Dec Jun -11-12 Dec Jun -12-13 Dec Jun -13-14 Dec Jun -14-15 Dec Jun -15-16 Dec Jun Dec -16-17 '17 % 7,9 12 12 6,8 9,5 7,9 8,4 16 16 15 17 16 13 13 11 10 11, 11 13, 9,5 19 23, 16 18 24 9,4 8,3 9,9 22 17 24 25 23 25 23 24 28 41
Escalation trends: CPI Year-on-Year Percentage Change 14,0 CPI Basket Revised in January 2013 Forecasts based on latest Treasury estimates (Budget 2017) 12,0 10,0 8,0 6,0 4,0 2,0 0,0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % 8,7 6,9 5,8 5,3 5,7 9,2 5,9 1,4 3,4 4,6 6,6 11,6 7,1 4,3 5,0 5,7 5,7 6,2 4,6 6,4 4,8 4,9 5,4 4,9 Source: Treasury estimates Budget 2015 42
Labour unit cost indicator Year-on-Year % Change (Smoothed) Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec'17 % 17,60% 24% 7% 0% 9,30% 5,60% -4,90% -7,70% -5,70% 0,90% 12,50% 43
Labour unit cost indicator Annual Average Year-on-Year Percentage Change 25% 22,20% 21,67% 20% 15% 16,30% 15,64% 15,60% 10,90% 10% 9,40% 9,30% 10,00% 9,65% 5% 3,70% 5,40% 6,30% 6,05% 5,00% 4,80% 6,68% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0,40% -5% -6,70% -10% 44
CESA labour costs outpace CPI, Statistics South Africa 45
Profile by Race Black 29% White 54% Coloured 9% Asian 8% 46
Profile of Professional Engineers by Race Black 7% Coloured 3% Asian 5% White 85% 47
Typical Employment Breakdown January June 2017 Total Administration / Support staff Laboratory / Survey Assistants Draughtspersons Technical Assistants Unregistered technical staff: Other Unregistered technical staff: Technician Unregistered technical staff: Technologist Unregistered technical staff: Engineer Technicians PrTechni Technologists Pr TEchENg Professional Other Professional Quantity Surveyors Professional Architects Professional Engineer Pr.Eng 0% 20% 40% 60% 80% 100% Black Coloured Asian White 48
Overall Employment Breakdown, by race December 2013 June 2017 Black Asian Coloured White Dec'17 Jun-17 Dec-16 Jun-16 Dec-15 Jun-15 Dec-14 Jun-14 Dec-13 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 49
Dec-99 Jun-00 Dec-00 01-Jun 01-Dec 02-Jun 02-Dec 03-Jun 03-Dec 04-Jun 04-Dec 05-Jun 05-Dec 06-Jun 06-Dec 07-Jun 07-Dec 08-Jun 08-Dec 09-Jun 09-Dec 10-Jun 10-Dec 11-Jun 11-Dec 12-Jun Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec'17 Employment profile Black only (excluding Asian / Coloured) representation of total employment % Share of total employment 40,00% 35,00% 30,00% 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% 50
Changing profile of female engineers 51
Executive Staff: % Share of total employment PTY, CC & Partnerships 12,00% 10,00% 8,00% Trend Line June 2014: Shift in respondent profile 6,00% 4,00% 2,00% 0,00% JUN06 JUN07 JUN08 JUN09 JUN10 JUN11 JUN12 JUN13 JUN14 JUN15 JUN16 JUN17 52
Black Executive Staff : (including Asian and Coloured) % Share of total Executive Staff Black executive as % of total executive Black executive as % of total employment - right axis 50% 3% 45% 40% 2% 35% 30% 2% 25% 20% 1% 15% 10% 1% 5% 0% JUN06 JUN07 JUN08 JUN09 JUN10 JUN11 JUN12 JUN13 JUN14 JUN15 JUN16 JUN17 0% 53
Black (including Asian and Coloured) Executive Staff as % of total Executive December 2008 June 2016 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% Pty_exec Pty_nonexec Member of CC Partner Dec-11 20,8% 85,7% 36,5% 14,3% Dec-12 22,6% 75,0% 62,0% 11,1% Dec-13 29,8% 58,0% 65,0% 25,0% Jun-14 29,2% 82,0% 66,7% 30,0% Dec-14 27,3% 55,0% 78,2% 54,6% Jun-15 28,4% 64,0% 70,0% 46,7% Dec-15 29,5% 73,0% 71,4% 63,6% Jun-16 32,0% 67,6% 75,0% 20,0% Dec-16 29,7% 100,0% 85,7% 66,7% Jun-17 29,7% 64,3% 50,0% 62,5% Dec-17 15,3% 78,5% 50,0% 79,4% 54
Quality Management System 105% 100% 95% 90% 85% 80% 75% Large Medium Small Micro Total Dec-13 100% 91% 100% 86% 96% Jun-14 100% 100% 100% 88% 96% Dec-14 100% 100% 100% 90% 98% Jun-15 100% 98% 97% 84% 94% Dec-15 100% 97% 97% 88% 95% Jun-16 100% 96% 100% 93% 97% Dec-16 100% 100% 100% 85% 96% Jun-17 100% 100% 100% 85% 96% Dec-17 100% 100% 100% 92% 96% 55
ISO 9001:2008 Certificate 120% 100% 80% 60% 40% 20% 0% Large Medium Small Micro Total Dec-13 85% 39% 21% 7% 32% Jun-14 86% 55% 36% 6% 40% Dec-14 90% 53% 9% 20% 43% Jun-15 100% 48% 13% 6% 32% Dec-15 100% 46% 21% 15% 34% Jun-16 89% 60% 13% 7% 41% Dec-16 90% 58% 19% 14% 42% Jun-17 92% 91% 20% 0% 47% Dec-17 100% 69% 11% 8% 42% 56
Thank you www.cesa.co.za Tel: 011 463 2022 57