SA infrastructure plan causes manufacturing sector optimism

Speaking at the release of the Manufacturing Circle's first quarter 2012 Manufacturing Survey, Abedian stressed that it was critical, however, that implementation be visibly accelerated, or there was a real risk that the positive sentiments associated with the plan could be reversed.

The survey was compiled using information garnered from 49 CEOs representing manufacturing enterprises with yearly turnovers of between R300-million and R10-billion. While expected manufacturing value-added is to shrink by about 0.7% during 2012, confidence levels were stable, which, the survey said, was attributed primarily to the anticipated workflow arising from the public infrastructure drive.

Respondents highlighted the poor performance of municipalities as a key concern and a business inhibitor. This negative effect arose from the surge in rates and taxes over the past five years and from delays in issuing permits. "Municipalities have become, increasingly, a source of instability and are undermining the economy," Abedian argued, adding that in some instances poor local government service delivery had even led to the closure of small firms. He said municipal rates and taxes paid by his own consultancy, which is located in Johannesburg, had risen by 900% since 2008, Engineering News reports.

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