“The progress shows that local businesses are gradually responding to the generally improving consumer and business confidence, which is characteristic of the Ramaphosa era. Hitherto, the concern had generally been that despite improving sentiments from the start of the year, supply-side data as evidenced by lead economic indicators were still nondescript.
“The output data for the M&E cluster is encouraging, considering its significance to gross domestic product and the fact that the economy cannot entirely depend on positive sentiments to expand,” said SEIFSA Economist Marique Kruger.
The latest preliminary seasonally-adjusted production data for the M&E sector published by Statistics South Africa (Stats SA) today indicated that output improved to 10,3 percent in March 2018, on a year-on-year basis, when compared to March 2017. The performance is recorded despite a reduction in production in the broader manufacturing sector, which decreased by 1,3 percent in March 2018, compared to March 2017. Similarly, the M&E sector performed well on a month-to-month basis, registering a growth of 9,0 percent in March 2018 when compared to February 2018, in line with the broader manufacturing which increased by 1,3 percent.

“Businesses in the cluster should build on this performance by capitalizing on existing initiatives aimed at igniting domestic growth by both the public and private sectors, expand output, boost sales and margins and possibly claw back lost jobs,” Kruger said.
She added that SEIFSA expects a continuous improvement in output in the M&E sector, given an up-tick in the composite purchasing managers index (PMI), which is a lead indicator for the sector. She said the constant improvement of the business activity subindex of the PMI also provides solace to potential investors and stakeholders.
“Accordingly, higher productivity and better capacity utilization is necessary for businesses to cushion the negative effects of volatile and increasing input costs,” said Kruger.











Following free-of-charge registration at www.clubofmetalworking.de, members receive an individual welcome package with their personal club card. A newsletter informs them every six to eight weeks about news from the sector and important trade fairs, while the club automatically provides freeof- charge season tickets for EMO Hannover and METAV. In addition to free use of the public transport network for visiting the fair, members can also use their club cards to enjoy numerous services free of charge, like a fast lane for accelerated admission, the cloakroom or the Club of Metalworking’s lounge. What’s more, exclusive club meetings provide ideal opportunities for networking, so as to give the club a personal face.
For example, after a successful first contact, the aim is also to place communication on a broader basis. The club is open to all metalworking experts, irrespective of their job descriptions and qualifications, emphasizes Schäfer, “what our members have in common is a passion for metalworking. From trainees to purchasers, from skilled workers to managing directors, every member is more than welcome.”




