A Constructable Future

Construction forecasts in the past few months have been contradictory.

There have been statements of a decline in the construction industry, while some pointed to the stagnation of jobs and resources. Most recent reports following the start of the new 2020 quarter have called for growth in the period 2020 ‘til 2022. Positivity for the infrastructure industry started to show around the middle of 2019, as President Cyril Ramaphosa worked tirelessly for budget reallocations.

The construction industry has faced numerous challenges over recent years. With worldwide economic uncertainty following Brexit, market uncertainty was sure to follow. The Glenigan forecast for 2020 ‘til 2022 called for companies to fight market uncertainty by investing time into fine-tuning their market plan by simplifying their various procedures, as well as increasing work by utilising both skilled and unskilled labour. By measuring input and output an increase in efficiency is to be expected. According to Glenigan, increasing digitization in the construction industry will lead to fewer costs and more customer satisfaction. We at GAST are continuously working on being more efficient, employee- and client-friendly in our different industries. The GAST Yellow Plant Technology will ensure an almost completely autonomous plant, managed by a single Site Manager from an AI (artificial intelligent) device. This movement will speak to job creation across the board.

Global Construction identified emerging markets as the leading economic trend for growth in the global construction industry. A challenge that will always loom on the horizon with regards to infrastructure budgets, is the assessment of need done by the various world governments to allocate budgets to the different industries.

In South Africa, the construction industry has always endured a varying amount of pressure, because of a stagnant economy and low infrastructure spending by the government. In the third quarter of 2019, we saw the construction GDP decrease to 105755.19 ZAR Million from 106483.38 ZAR Million in the second quarter. However, estimations from the Trading Economics global macro models and analysts’ expectations predict growth to 107278.00 ZAR Million by the end of this quarter. Further growth to follow with 107024.00 in 12 months.

The State of the Nation Address by President Cyril Ramaphosa on 13 February 2020 shed new light on the current economic- and market uncertainty. Ramaphosa gave reassurance that budget reallocation will favour the South African infrastructure and education systems. The structural change in the economy will essentially lead to sustainable investments in infrastructure as a result of a rise in investor confidence.

We believe that the construction industry will see a positive turnaround in the coming quarters. At GAST we give our guarantee on the developments and success of all projects. We believe in providing premium, eco-friendly products at an affordable rate to all consumers. With our manufacturing facilities, we can sustainably manufacture specific products, like our premium waterproofing paints and coatings. Building lasting relationships based on mutual respect sets us apart.

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