cidb sme busienss conditions survey; 2nd quarter … - sme business...confidence index of 90 implies...
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cidb - S
ME Busin
ess Conditio
ns Surve
y
Quarter 2017
University of Stellenbosch
cidb Survey Results: 2017Q2
June 2017
Although reasonable professional skill, care and diligence are exercised to record and interpret all information correctly,
Stellenbosch University, its division BER and the author(s)/editor do not accept any liability for any direct or indirect loss whatsoever
that might result from unintentional inaccurate data and interpretations provided by the BER as well as any interpretations by third
parties. Stellenbosch University further accepts no liability for the consequences of any decisions or actions taken by any third party
on the basis of information provided in this publication. The views, conclusions or opinions contained in this publication are those
of the BER and do not necessarily reflect those of Stellenbosch University.
Summary
Building Contractors1
During the second quarter of 2017, business confidence for general builders (GB) dropped to
42 index points, from 46 points in 2017Q1. The renewed pessimism for GBs came against the
backdrop of a broad-based deterioration in underlying indicators. Profit margins endured a
greater squeeze, in line with weaker building activity growth.
Across all three grades, confidence levels came in below 50 index points in 2017Q2, which
spells out widespread pessimism. Confidence deteriorated the most (-14 points) among the
builders in Grades 3 & 4, while sentiment for Grades 5 & 6 was virtually unchanged. For Grades
7 & 8 building contractors, confidence ticked up slightly but remained at very low levels with
only 39% of respondents rating prevailing business conditions as satisfactory.
The provincial picture for general builders was also broadly pessimistic. Confidence deteriorated
sharply among Western Cape contractors to 47 points – its lowest level since 2014Q4 – from
64 previously. Nevertheless, confidence among these contractors remained higher compared to
the other provinces. Although building contractors in the Eastern Cape and KwaZulu-Natal saw
some improvement in business sentiment, confidence levels remained depressed.
Civil Contractors2
Contrary to the building sector, civil contractor confidence picked up to 43 points, from 37 in
2017Q1. Business conditions improved as profitability found support from a combination of
improved momentum in building activity and a less hostile tendering environment.
Confidence levels across all three grades remained below 50 points during 2017Q2. Grades
3 & 4 civil contractors were the only group which registered an uptick in confidence, from 33
points to 44. Conversely, confidence levels among Grades 5 & 6 and Grades 7 & 8 civil
contractors dropped by eight points each. For Grades 7 & 8, an overwhelming majority (83%)
1 During 2017Q2, 85 new building respondents were recruited for the cidb. While the inclusion of the new recruits made the overall results relatively more positive compared to the old panel (excluding the new recruits), it is regarded to be more representative of what is actually happening among cidb registered contractors. Nevertheless, confidence and underlying indicators remained relatively poor. 2 For the civil sector, 108 new respondents were recruited. The total results including new recruits also made the overall results relatively more positive compared to the old panel. In all, this sector also remained under pressure, as indicated by the confidence and activity levels.
of respondents rated prevailing business conditions as unsatisfactory. At this is level, confidence
is at its lowest since the start of the series in 2008Q3.
At a regional level, sentiment improved in all four provinces except for the Eastern Cape where
confidence dropped to 27 points, from 33 previously. Encouragingly, the majority of Western
Cape civil contractors were optimistic about business conditions, with confidence ticking up to
57 index points from 50.
In all, the cidb survey results suggest that building and civil sector contractors continued to face
challenging conditions during the second quarter of 2017. On average, headline confidence
indicators in both sectors registered pessimistic levels (below 50 index points), which suggests
that the building and construction industry remains under pressure. Unfortunately for building
contractors, sentiment remained downbeat across all three grades and the four provinces
surveyed. This is also mostly true for civil contractors, with the exception of the Western Cape
where confidence registered above the 50-point mark.
Table of contents
Introduction ...................................................................................................... 1
2017Q2 cidb Survey Results .............................................................................. 3
Building Industry ............................................................................................... 3
Total ...................................................................................................................... 3
Grades comparison ................................................................................................. 4
Grades 3 & 4 .................................................................................................... 5
Grades 5 & 6 .................................................................................................... 6
Grades 7 & 8 .................................................................................................... 7
Provincial comparison .............................................................................................. 8
Eastern Cape .................................................................................................... 9
Gauteng ......................................................................................................... 10
KwaZulu-Natal ................................................................................................ 11
Western Cape ................................................................................................. 12
Construction Industry...................................................................................... 13
Total .................................................................................................................... 13
Grades comparison ............................................................................................... 14
Grades 3 & 4 .................................................................................................. 15
Grades 5 & 6 .................................................................................................. 16
Grades 7 & 8 .................................................................................................. 17
Provincial comparison ............................................................................................ 18
Eastern Cape .................................................................................................. 19
Gauteng ......................................................................................................... 20
KwaZulu-Natal ................................................................................................ 21
Western Cape ................................................................................................. 22
cidb Building Contractor: Survey Results ......................................................... 23
cidb Civil Contractor: Survey Results ............................................................... 41
1
Introduction The cidb has contracted the Bureau for Economic Research (BER) at Stellenbosch University to
conduct a business tendency survey among registered cidb contractors (Grades 3 - 8) operating
in the building and civil engineering industries.
The 2017Q2 survey was carried out during the period 2 May to 6 June 2017.
The analysis that follows provides a synopsis of the survey responses received in 2017Q2,
according to grades and region from participating cidb registered building and civil contractors.
The detailed survey results can be found at the end of this report.
The main indicator used for analysis purposes is business confidence. The business confidence
index is based on the number of survey sample respondents indicating that they find current
business conditions satisfactory. It is calculated as a percentage. For example, a business
confidence index of 90 implies that 90% of the survey respondents regard prevailing business
conditions as satisfactory. The data series can therefore vary between 0 and 100, with 50 seen
as neutral. Business confidence, as measured by qualitative opinion surveys, has proved both
globally and domestically to be a reliable leading indicator of business activity. Similar to
business confidence, the responses relating to constraints are also presented as percentages.
For example, 50% of respondents rated a shortage of skilled labour as a constraint on their
activities.
The rest of the responses are converted into net balances. For example, if the percentage of
respondents rating building activity higher / the same / lower than a year ago is as follows;
Higher Same Lower
70 10 20
then we can conclude that the majority of participants experienced an acceleration in building
activity. A net majority (i.e. the percentage of respondents rating activity higher, less the
percentage rating activity lower) of 50% is registered in the above example. A net majority of -
10%, for example, indicates a slowdown in building activity compared to a year ago. A value of
zero therefore indicates no change, between 0 and 100 reflects a rise (or improvement) and
between 0 and –100 a decline (or deterioration) compared to the same quarter a year ago.
Note: A low number of responses cause the survey results to vary noticeably between consecutive
quarters. We recommend that users base their views on the trend and not on a single data point.
2
3
2017Q2 cidb Survey Results
Building Industry Total
During 2017Q2, building contractor confidence fell to 42 points, down from 46 in 2017Q1.
At this level, nearly 60% of respondents deemed business conditions unsatisfactory. Figure 1
below emphasises the pessimistic sentiment of respondents.
Figure 1: Total
Building contractor sentiment deteriorated on the back of weaker activity. During the quarter, a
higher net majority of 51% of respondents reported a deterioration in building activity, compared
to 39% in 2017Q1. Contrary to last quarter, the somewhat more benign tendering environment
failed to support profitability this time round. Indeed, a larger net majority of 56% of respondents
attested to lower profitability during 2017Q2, relative to 45% previously. This is the worst level
since 2012Q1.
Going forward over the near term, the picture for general builders looks murky. The indicator
rating insufficient demand for building work as a constraint to business operations increased
during the quarter, which bodes ill for future building activity.
0
25
50
75
100
2013 2014 2015 2016 2017
4
Grades comparison
During the second quarter of 2017, there was broad-based pessimism across all three grades
as confidence levels registered below the 50-point mark. Sentiment deteriorated mostly for
Grades 3 & 4. Grades 5 & 6 confidence barely changed. In contrast, Grades 7 & 8 contractor
confidence ticked up, but remained at depressed levels.
Figure 2: Business confidence per grade
0
25
50
75
100
% sa
tisfac
tory
2013 2014 2015 2016 2017
Grades 3 & 4 Grades 5 & 6 Grades 7 & 8
5
Grades 3 & 4
During 2017Q2, Grades 3 & 4 builders reported a deterioration in prevailing business
conditions. Confidence for this group of contractors dropped steeply to 41 index points, from
55 points in 2017Q1.
Figure 3: Grades 3 & 4
In all, Grades 3 & 4 had a challenging quarter, as building activity growth lost substantial
momentum. A significantly larger net majority of 60% of respondents reported weaker activity
(22% previously). This marked the worst outcome on record.
Disconcertingly, this big drop in activity materialised against the backdrop of a favourable
tendering environment. During 2017Q2, the indicator for tendering keenness fell to a record
low of a net 9%, down from 37% previously. In spite of this, profit margins for this group of
contractors endured an even greater squeeze. Indeed, the net majority of respondents reporting
weaker profitability worsened to 54%, compared to 40% previously.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
6
Grades 5 & 6
Among Grades 5 & 6 general builders, confidence was little changed during the quarter, at 43
index points – a one-point drop (see Figure 4).
Figure 4: Grades 5 & 6
Unfortunately for this group of building contractors, key indicators remained weak. Tendering
competition intensified during the quarter, putting even greater pressure on profitability. The
indicator measuring tendering competition picked up to a net 51% during 2017Q2, close to
the long-term average (52%) and above the net 34% registered in the prior quarter. It follows
that the net majority of respondents citing poorer profitability increased further to 51%, up from
a net 46% previously.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
7
Grades 7 & 8
Grades 7 & 8 building contractors were the only group that saw some improvement in
business sentiment in 2017Q2. Although it remains at suppressed levels, business confidence
ticked up to 39 index points, from 33 points previously.
Figure 5: Grades 7 & 8
Business conditions improved on the back of better building activity momentum. A lower net
majority of 58% of respondents cited weaker activity, compared to 66% previously.
Discouragingly, the improved activity momentum failed to lend support to overall profitability. A
net majority of 65% of respondents reported weaker profitability during the quarter, up from
50% previously.
Going forward, building activity will likely be constrained as is suggested by the indicator rating
insufficient demand for building work as a constraint. The indicator is currently at its long-term
average of 77%, up from 75% in 2017Q1.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
8
Provincial comparison
The theme of widespread pessimism in the building sector was unfortunately prevalent also at
the provincial level, with confidence levels below the 50-point mark across the board. Whereas
general builders in the Western Cape had held the fort of optimism over the last few quarters,
this changed during the second quarter (see Figure 6). Contractors lost confidence in the
Western Cape and in Gauteng, while there was some improvement in sentiment in KwaZulu-
Natal and the Eastern Cape.
Figure 6: Business confidence per province
0
25
50
75
100
% sa
tisfac
tory
2013 2014 2015 2016 2017
WC EC KN GP
9
Eastern Cape3
Following a relatively flat outcome of 35 index points in the previous quarter, Eastern Cape
general builder confidence ticked up to 40 points in 2017Q2.
Figure 7: Eastern Cape
The uptick in confidence was supported by a general improvement in the underlying indicators.
3 Volatility in indicators could be due to the relatively smaller number of respondents from the province.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
10
Gauteng
During 2017Q2, Gauteng building contractor confidence declined by 5 index points to 38. This
follows a notable 16-point jump to 43 points last quarter.
Figure 8: Gauteng
The loss in confidence came against the backdrop of weaker activity which had a knock-on
effect on profitability. Building activity disappointed notably, with a net majority of 64% of
respondents reporting poorer activity (negative 33% previously). This is the worst level since
2009Q4. The added pressure on profitability lifted the net majority of respondents reporting
lower profits to 49%, from 28% previously.
The percentage of respondents rating insufficient demand for building work as a constraint also
jumped significantly during the quarter. At 82% (previously 55%), this is the highest level since
2014Q4, and it suggests further weakness in future activity.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
11
KwaZulu-Natal
Building confidence picked up by a noteworthy 10 index points in KwaZulu-Natal to 37 during
2017Q2. Despite the uptick in confidence, the majority of respondents remained dissatisfied
with prevailing business conditions.
Figure 9: KwaZulu-Natal
During the quarter, building activity growth momentum improved to its best level since 2015Q4.
A significantly smaller net majority of 40% of respondents noted a slowdown in activity, down
from 62% in 2017Q1. Although the profitability indicator was supported by the uptick in activity,
it remained depressed and below its long-term average. The buoyancy in activity was, however,
supportive of the building sector labour market in the province. Indeed, the employment
indicator improved to its best level since 2016Q2. The net majority of respondents reporting job
cuts dropped steeply to 39% during 2017Q2, down from 74% previously.
Going forward, however, the abovementioned improvements are unlikely to be sustained, as is
highlighted by the further uptick in the proportion of respondents rating insufficient demand for
building work as a constraint.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
12
Western Cape
Business sentiment deteriorated significantly for general builders in the Western Cape in
2017Q2 to 47 index points (worst level since 2014Q4), from 64 in 2017Q1.
Figure 10: Western Cape
The sharp drop in confidence was in line with the broad-based deterioration in underlying
performance indicators, which reached multi-year lows. Building activity growth in particular,
slowed to its lowest level since 2011Q4. Indeed, a net majority of 48% of respondents saw a
slowdown in activity during the quarter, compared to 21% previously.
Weaker activity not only facilitated further pressure on profitability, but also led to further
curtailments in employment. Profitability growth deteriorated to its worst level in 13 quarters. The
net majority of respondents reporting lower profits jumped to 63% during the quarter, from 21%
previously.
The indicator rating demand for building work as a constraint also rose to its worst level since
2014Q2. At 73%, this bodes ill for the outlook on general building activity in the province in
the near term.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
13
Construction Industry Total
After starting 2017 on the back foot, civil contractor confidence picked up to 43 index points
during the second quarter, from 37 in Q1. At the grade level, sentiment improved among
Grades 3 & 4 contractors. Among the provinces, only civil contractors in the Western Cape
registered an uptick in confidence.
Figure 11: Total
At the aggregate level, business conditions in the civil sector improved in line with stronger
underlying performance indicators. Construction activity growth regained some momentum. A
smaller net majority of 39% of respondents reported weaker construction activity, from 48%
previously. On balance, the tendering environment was more benign during the quarter.
With more construction work available during the quarter, contractors retrenched workers at
lower rates. The net majority of respondents citing job cuts fell to 34%, from 41% in Q1. In
addition, the indicator rating insufficient demand for construction work as a constraint fell from
a multi-quarter high previously.
0
25
50
75
100
2013 2014 2015 2016 2017
14
Grades comparison
Business confidence in the civil sector remained below the neutral 50-point mark across all
grades in 2017Q2. Sentiment improved significantly for Grades 3 & 4 civil contractors, however
(+11 points). In contrast, confidence for Grades 5 & 6 and Grades 7 & 8 fell by eight points
each, with sentiment for Grades 7 & 8 currently at its worst historic level.
Figure 12: Business confidence per grade
0
25
50
75
100
% sa
tisfac
tory
2013 2014 2015 2016 2017
Grades 3 & 4 Grades 5 & 6 Grades 7 & 8
15
Grades 3 & 4 After dipping sharply to 33 points in 2017Q1, business confidence for Grades 3 & 4 civil
contractors improved to 44 points during Q2.
Figure 13: Grades 3 & 4
Business conditions for this group of contractors improved on the back of stronger underlying
indicators. During the quarter, the net majority of Grades 3 & 4 contractors reporting lower
construction activity improved sharply to 47%. In the previous quarter, the activity indicator was
at its all-time worst level of a negative net 71%. Given that June represents the end of the
municipal government financial year, it is likely that activity improved on the back of a “rush” to
spend on capex. Grades 3 & 4 civil contractors participate predominantly in municipal projects.
In addition to this, tendering keenness abated significantly. It follows that pressure on profitability
moderated, with a lower net majority of 47% attesting to a decline in profits (from a net negative
55% previously). Under these conditions, Grades 3 & 4 civil contractors managed to reduce
their retrenchment rates.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
16
Grades 5 & 6
During 2017Q2, business confidence for Grades 5 & 6 civil contractors fell by eight index points
to 37. At this level, 63% of respondents among this group of contractors were dissatisfied with
prevailing business conditions.
Figure 14: Grades 5 & 6
Growth in construction activity lost more steam during the quarter. A higher net majority of 54%
of respondents saw a decline in activity, from 31% in 2017Q1. Consequently, profitability came
under more pressure, with the net majority of contractors reporting lower profits ticking up to
44% (38% previously).
The proportion of respondents rating insufficient demand for construction work as a constraint
to business conditions eased somewhat, but remained elevated at 72%. This bodes ill for
construction activity prospects for Grades 5 & 6 contractors.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
17
Grades 7 & 8
Business confidence among Grades 7 & 8 civil contractors fell to 17 index points in 2017Q2,
from 25 previously. With 83% of respondents being dissatisfied with prevailing business
conditions, confidence for this group of contractors is at an all-time low.
Figure 15: Grades 7 & 8
In all, underlying indicators remained depressed and below their long-term averages.
Additionally, the tendering keenness indicator rose significantly to a net 83% during the second
quarter – its highest level since 2012Q1 – signalling scarcity of construction work. This is further
highlighted by the indicator rating insufficient demand for construction work as a constraint,
which remained elevated at 80% - well above the long-term average of 72%. This will likely
constrain construction activity for this group of contractors in the near-term.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
18
Provincial comparison
At the provincial level, business confidence picked up in all the provinces except for the Eastern
Cape. In the Western Cape, confidence registered above 50 index points at 57. Meanwhile in
KwaZulu-Natal and in Gauteng, confidence increased to 43 and 29 points, respectively.
Figure 16: Business confidence per province
0
25
50
75
100
% sa
tisfac
tory
2013 2014 2015 2016 2017
WC EC KN GP
19
Eastern Cape
Confidence among civil contractors in the Eastern Cape fell to 27 index points in 2017Q2,
down from 33 points previously.
Figure 17: Eastern Cape
During the quarter, both construction activity and profitability remained under pressure in the
province. The indicator rating insufficient demand for construction work as a constraint to
business operations also remained elevated above the long-term average. This implies that
activity could remain under pressure going forward.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
20
Gauteng
Business confidence picked up to 29 index points in 2017Q2, from 25 points previously. The
mild uptick in sentiment was broadly supported by underlying indicators.
Figure 18: Gauteng
Construction activity momentum improved notably to its best level since 2015Q1. A smaller net
majority of 30% of respondents reported a slowdown activity in 2017Q2, from 60% previously.
In response to this, pressure on overall profitability eased somewhat. Additionally, a significantly
lower net proportion of 29% of respondents cited job cuts, down from 50% in the first quarter.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
21
KwaZulu-Natal
In KwaZulu-Natal, confidence increased to 43 index points in 2017Q2, from 38 points
previously.
Figure 19: KwaZulu-Natal
Key underlying indicators deteriorated, however, contrary to the improvement in sentiment. The
increase in confidence was likely based on the positive near-term outlook on construction activity
and profitability.
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
22
Western Cape
After remaining unchanged at 50 index points during the first quarter, confidence increased to
57 points in 2017Q2.
Figure 20: Western Cape
Business conditions were somewhat better, in line with a broad-based improvement in underlying
indicators. After jumping to its highest level since 2011Q1 last quarter (87%), the tendering
keenness indicator dropped to 50%. This is below its long-term average. The combination of
better activity and a more benign tendering environment helped support profitability.
Furthermore, the employment indicator suggests that, on balance, jobs were retained in the
Western Cape civil sector during 2017Q2.
The indicator rating insufficient demand for construction work as a constraint to business
operations also eased, suggesting that more work was available during the quarter.
Matlhodi Matsei
Ntombizanele Bakaqana
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
23
cidb Building Contractor: Survey Results
24
Building Contractors : Total
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 41 45 46 42
Change in business conditions 1 -34 -29 -36 -32 -13
Growth in building activity 1 -41 -35 -39 -51 -26
Growth in number of people employed 1 -34 -27 -34 -41 -25
Growth in profitability of the business 1 -45 -50 -45 -56 -35
Tendering competition 1 54 51 44 36
Percentage rating shortage of skilled labour a constraint 2 45 55 46 46
Percentage rating inadequate supply of building materials a constraint 2 23 23 20 25
Percentage rating insufficient demand for building work a constraint 2 71 67 63 70
Percentage rating firm’s inadequate access to credit a constraint 2 29 36 24 39
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
25
0
25
50
75
100
2013 2014 2015 2016 2017 -100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
26
Building Contractors : Grades 3 & 4
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 52 35 55 41
Change in business conditions 1 -26 -41 -29 -38 -6
Growth in building activity 1 -34 -44 -22 -60 -22
Growth in number of people employed 1 -30 -37 -30 -43 -22
Growth in profitability of the business 1 -38 -60 -40 -54 -28
Tendering competition 1 45 36 37 9
Percentage rating shortage of skilled labour a constraint 2 44 57 41 45
Percentage rating inadequate supply of building materials a constraint 2 29 22 25 29
Percentage rating insufficient demand for building work a constraint 2 69 71 58 71
Percentage rating firm’s inadequate access to credit a constraint 2 31 50 30 52
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
27
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
28
Building Contractors : Grades 5 & 6
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 48 55 44 43
Change in business conditions 1 -33 -7 -30 -28 -18
Growth in building activity 1 -47 -19 -41 -39 -19
Growth in number of people employed 1 -34 -9 -28 -31 -21
Growth in profitability of the business 1 -53 -29 -46 -51 -33
Tendering competition 1 52 55 34 51
Percentage rating shortage of skilled labour a constraint 2 46 59 50 45
Percentage rating inadequate supply of building materials a constraint 2 17 23 16 24
Percentage rating insufficient demand for building work a constraint 2 69 58 61 67
Percentage rating firm’s inadequate access to credit a constraint 2 31 35 26 33
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
29
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
30
Building Contractors : Grades 7 & 8
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 16 41 33 39
Change in business conditions 1 -45 -50 -65 -37 -25
Growth in building activity 1 -35 -52 -66 -58 -44
Growth in number of people employed 1 -40 -44 -55 -47 -35
Growth in profitability of the business 1 -37 -70 -50 -65 -46
Tendering competition 1 70 61 83 67
Percentage rating shortage of skilled labour a constraint 2 45 48 47 56
Percentage rating inadequate supply of building materials a constraint 2 27 23 19 17
Percentage rating insufficient demand for building work a constraint 2 78 75 75 77
Percentage rating firm’s inadequate access to credit a constraint 2 22 23 9 23
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
31
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
32
Building Contractors : Eastern Cape
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 40 36 35 40
Change in business conditions 1 -33 -47 -38 -11 -17
Growth in building activity 1 -50 -73 -59 -37 -22
Growth in number of people employed 1 -56 -53 -59 -50 -33
Growth in profitability of the business 1 -47 -80 -65 -50 -39
Tendering competition 1 75 43 47 32
Percentage rating shortage of skilled labour a constraint 2 43 50 38 44
Percentage rating inadequate supply of building materials a constraint 2 25 18 12 23
Percentage rating insufficient demand for building work a constraint 2 69 72 64 66
Percentage rating firm’s inadequate access to credit a constraint 2 18 21 3 28
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
33
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
34
Building Contractors : Gauteng
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 28 27 43 38
Change in business conditions 1 -47 -44 -35 -27 -26
Growth in building activity 1 -39 -48 -33 -64 -38
Growth in number of people employed 1 -22 -43 -11 -43 -28
Growth in profitability of the business 1 -39 -61 -28 -49 -40
Tendering competition 1 66 73 63 47
Percentage rating shortage of skilled labour a constraint 2 44 43 44 42
Percentage rating inadequate supply of building materials a constraint 2 16 17 13 19
Percentage rating insufficient demand for building work a constraint 2 72 72 55 82
Percentage rating firm’s inadequate access to credit a constraint 2 25 30 21 41
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
35
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
36
Building Contractors : KwaZulu-Natal
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 25 38 27 37
Change in business conditions 1 -52 -42 -61 -38 -8
Growth in building activity 1 -63 -41 -62 -40 -15
Growth in number of people employed 1 -35 -33 -74 -39 -21
Growth in profitability of the business 1 -65 -61 -83 -67 -33
Tendering competition 1 33 27 22 29
Percentage rating shortage of skilled labour a constraint 2 43 57 48 53
Percentage rating inadequate supply of building materials a constraint 2 21 22 19 26
Percentage rating insufficient demand for building work a constraint 2 76 63 66 73
Percentage rating firm’s inadequate access to credit a constraint 2 26 41 31 37
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
37
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
38
Building Contractors : Western Cape
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 62 67 64 47
Change in business conditions 1 -20 9 -22 -41 -20
Growth in building activity 1 -15 5 -21 -48 -31
Growth in number of people employed 1 -19 14 -8 -28 -16
Growth in profitability of the business 1 -34 -9 -21 -63 -32
Tendering competition 1 43 57 46 60
Percentage rating shortage of skilled labour a constraint 2 47 72 52 39
Percentage rating inadequate supply of building materials a constraint 2 24 36 27 20
Percentage rating insufficient demand for building work a constraint 2 69 64 60 73
Percentage rating firm’s inadequate access to credit a constraint 2 45 45 35 33
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
39
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in building activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
40
41
cidb Civil Contractor: Survey Results
42
Civil Contractors: Total
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 40 41 37 43
Change in business conditions 1 -25 -34 -44 -27 4
Growth in construction activity 1 -31 -39 -48 -39 -6
Growth in number of people employed 1 -24 -34 -41 -34 -12
Growth in profitability of the business 1 -35 -40 -47 -45 -15
Tendering competition 1 56 42 52 37
Percentage rating shortage of skilled labour a constraint 2 45 47 45 48
Percentage rating inadequate supply of construction materials a constraint 2 28 21 20 31
Percentage rating insufficient demand for construction work a constraint 2 71 67 77 70
Percentage rating firm’s inadequate access to credit a constraint 2 35 32 33 40
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
43
0
25
50
75
100
2013 2014 2015 2016 2017 -100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient construction work demand
44
Civil Contractors : Grades 3 & 4
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 30 43 33 44
Change in business conditions 1 -45 -45 -50 -35 -4
Growth in construction activity 1 -42 -50 -71 -47 -12
Growth in number of people employed 1 -38 -32 -50 -30 -8
Growth in profitability of the business 1 -52 -46 -55 -47 -23
Tendering competition 1 35 9 39 0
Percentage rating shortage of skilled labour a constraint 2 43 47 44 50
Percentage rating inadequate supply of construction materials a constraint 2 38 27 14 37
Percentage rating insufficient demand for construction work a constraint 2 69 61 66 63
Percentage rating firm’s inadequate access to credit a constraint 2 50 48 30 45
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
45
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
46
Civil Contractors : Grades 5 & 6
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 40 49 45 37
Change in business conditions 1 -14 -27 -35 -42 -12
Growth in construction activity 1 -32 -38 -31 -54 -17
Growth in number of people employed 1 -26 -26 -32 -39 -25
Growth in profitability of the business 1 -26 -34 -38 -44 -25
Tendering competition 1 57 46 51 39
Percentage rating shortage of skilled labour a constraint 2 50 52 49 42
Percentage rating inadequate supply of construction materials a constraint 2 28 17 24 23
Percentage rating insufficient demand for construction work a constraint 2 77 67 78 72
Percentage rating firm’s inadequate access to credit a constraint 2 37 28 39 29
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
47
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
48
Civil Contractors : Grades 7 & 8
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 47 26 25 17
Change in business conditions 1 -23 -35 -54 -50 0
Growth in construction activity 1 -20 -31 -61 -54 -24
Growth in number of people employed 1 -13 -50 -48 -48 -18
Growth in profitability of the business 1 -32 -48 -56 -52 -23
Tendering competition 1 66 66 61 83
Percentage rating shortage of skilled labour a constraint 2 42 37 40 48
Percentage rating inadequate supply of construction materials a constraint 2 21 20 17 25
Percentage rating insufficient demand for construction work a constraint 2 64 72 81 80
Percentage rating firm’s inadequate access to credit a constraint 2 22 24 23 35
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
49
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
50
Civil Contractors: Eastern Cape
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 20 46 33 27
Change in business conditions 1 -35 -29 -54 -46 -23
Growth in construction activity 1 -23 -31 -62 -61 -27
Growth in number of people employed 1 -17 -7 -61 -50 -25
Growth in profitability of the business 1 -53 -43 -54 -61 -27
Tendering competition 1 50 21 46 6
Percentage rating shortage of skilled labour a constraint 2 44 61 54 37
Percentage rating inadequate supply of construction materials a constraint 2 23 18 15 13
Percentage rating insufficient demand for construction work a constraint 2 74 64 81 77
Percentage rating firm’s inadequate access to credit a constraint 2 38 40 42 50
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
51
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
52
Civil Contractors : Gauteng
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 45 47 25 29
Change in business conditions 1 -37 -53 -44 -32 -15
Growth in building activity 1 -42 -50 -60 -30 -26
Growth in number of people employed 1 -31 -47 -50 -29 -35
Growth in profitability of the business 1 -36 -43 -67 -62 -29
Tendering competition 1 72 67 19 40
Percentage rating shortage of skilled labour a constraint 2 29 23 28 32
Percentage rating inadequate supply of building materials a constraint 2 24 30 25 25
Percentage rating insufficient demand for building work a constraint 2 68 66 82 67
Percentage rating firm’s inadequate access to credit a constraint 2 42 33 37 43
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
53
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
54
Civil Contractors : KwaZulu-Natal
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 37 40 38 43
Change in business conditions 1 -22 -29 -41 -39 0
Growth in construction activity 1 35 -38 -31 -50 0
Growth in number of people employed 1 -40 -24 -33 -49 -13
Growth in profitability of the business 1 -45 -38 -37 -56 -22
Tendering competition 1 55 38 52 53
Percentage rating shortage of skilled labour a constraint 2 58 50 44 59
Percentage rating inadequate supply of construction materials a constraint 2 42 21 22 38
Percentage rating insufficient demand for construction work a constraint 2 78 67 78 79
Percentage rating firm’s inadequate access to credit a constraint 2 32 33 29 41
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
55
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
56
Civil Contractors : Western Cape
16Q3 16Q4 17Q1 17Q2 17Q3*
Business confidence 3 56 50 50 57
Change in business conditions 1 -11 -21 -46 -31 -10
Growth in construction activity 1 -28 -48 -53 -33 -25
Growth in number of people employed 1 -5 -31 -20 0 -5
Growth in profitability of the business 1 0 -26 -27 -18 -28
Tendering competition 1 61 42 87 50
Percentage rating shortage of skilled labour a constraint 2 55 50 56 59
Percentage rating inadequate supply of construction materials a constraint 2 25 17 17 17
Percentage rating insufficient demand for construction work a constraint 2 58 58 66 59
Percentage rating firm’s inadequate access to credit a constraint 2 14 22 33 21
* Expected.
1 Net balance.
2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by
0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then
multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.
3 Percentage gross rating prevailing business conditions as satisfactory.
Blank spaces indicate data not available or not asked for.
57
0
25
50
75
100
2013 2014 2015 2016 2017
Business confidence
-100
-50
0
50
100
2013 2014 2015 2016 2017
Change in business conditions
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in construction activity
Expected
-100
-50
0
50
100
2013 2014 2015 2016 2017
Tendering competition
-100
-50
0
50
100
2013 2014 2015 2016 2017
Growth in profitability
Expected
0
25
50
75
100
2013 2014 2015 2016 2017
Insufficient building work demand
Blocks N&R, SABS Campus2 Dr. Lategan RdGroenkloofPretoriaSouth Africa
PO Box 2107Brooklyn Square0075
cidb - S
ME Busin
ess Conditio
ns Surve
y
Gauteng Provincial [email protected]
Western Cape Provincial OfficeCape [email protected]
Eastern Cape Provincial [email protected]
Northern Cape Provincial [email protected]
Free State Provincial [email protected]
KwaZulu-Natal Provincial [email protected]
Limpopo Provincial [email protected]
Mpumalanga Provincial OfficeNelspruit (Mbombela)[email protected]
North West Provincial [email protected]
cidb contact number: 086 100 2432
Anonymous Fraud Line: 0800 11 24 32
email: [email protected]