Introduction
This report examines the wholesale and retail trade in construction materials in South Africa and provides a disaggregated analysis of a number of key products within the industry. Building materials are a key input for residential and commercial building, as well as large civil engineering projects, and sales totalled over R198bn in 2019. The industry employs over 45,000 people and has important linkages with downstream mining and manufacturing. Players face rising competition and an increasingly challenging trading environment due to ongoing low levels of economic growth and the decline of the construction sector.
Strengths
• Despite facing huge challenges, South Africa’s construction and building sector is one of the most developed on the continent, providing building materials distributors with a large customer base.
• High levels of vertical integration drive efficiency across the value chain.
• Significant local manufacturing capacity for building materials, including a number of integrated manufacturer/wholesalers.
• Well positioned to distribute materials into regional Africa.
• Widespread retail and wholesale distribution footprint.
Weaknesses
• A shortage of managerial skills.
• Dependent on economic growth, building activity, and government infrastructure spending.
• Increasingly competitive retail trading environment.
• Manufacturing activities are capital- and energy-intensive.
• Production surplus and capacity underutilisation in key product categories such as cement.
• Significant logistics and transport costs can complicate distribution.
Opportunities
• Demand for sustainable building materials.
• Expansion of distribution capacity into Africa.
• Growing share of online trading and e-commerce.
• Proposed increases in government and private sector infrastructure spending.
Threats
• Cheap imports of bulk materials from China.
• Continued contraction of construction sector and business failures of construction companies.
• Load-shedding and increasing input costs.
• Ongoing economic headwinds.
• Policy uncertainty regarding expropriation may continue to undermine building activity.
• Poor governance and financial position of state-owned enterprises.
Outlook
Building materials distributors described 2019 as one of the most difficult trading years in the industry’s history and confidence levels across the value chain reached a number of record lows. Stagnant economic growth has pressured consumer spending while the ongoing contraction of the construction sector has resulted in job losses and a number of business failures that are expected to reduce demand for building materials in the future. The shaky financial position of many state-owned enterprises has resulted in frequent late or non-payment of suppliers, while increasing imports of cheap cement and steel products from China have pressured wholesalers. The major retail brands such as Cashbuild, Massbuild, and Italtile report that competition is on the rise and they do not expect a meaningful improvement in business conditions in the short-term. \r\n\r\nNevertheless, many players have delivered positive, if muted, results and have continued to invest in their retail footprint and manufacturing capacity. E-commerce is showing strong growth and distributors are investing in technology, value-added services and the in-store customer experience. The South African government has committed to ongoing infrastructure spending and the rehabilitation of state-owned enterprises. While welcoming the announcements, stakeholders stress than a potential recovery remains contingent upon the effective implementation of reforms, and is likely to take some time.\r\n
The Wholesale and Retail Trade in Construction Materials Industry in South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $107.74 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 75.42 (USD)*
Historical Reports
The Wholesale and Retail Trade in Construction Materials Industry in South Africa 2017-06-20
R 1 900.00(ZAR) estimated $107.74 (USD)*
View Report Add to CartThe Wholesale and Retail Trade in Construction Materials Industry in South Africa 2014-03-18
R 1 900.00(ZAR) estimated $107.74 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 4. | STATE OF THE INDUSTRY | 14 |
| 4.1. | Local | 14 |
| 4.1.1. | Corporate Actions | 26 |
| 4.1.2. | Regulations | 27 |
| 4.1.3. | Enterprise Development and Socio-Economic Development | 29 |
| 4.2. | Continental | 30 |
| 4.3. | International | 33 |
| 5. | INFLUENCING FACTORS | 33 |
| 5.1. | Economic Environment | 33 |
| 5.2. | Infrastructure Spending | 34 |
| 5.3. | Technology, Research and Development (R&D) and Innovation | 36 |
| 5.4. | Labour | 37 |
| 5.5. | Environmental Concerns | 40 |
| 5.6. | Cyclicality | 41 |
| 6. | COMPETITION | 41 |
| 6.1. | Barriers to Entry | 42 |
| 7. | SWOT ANALYSIS | 43 |
| 8. | OUTLOOK | 44 |
| 9. | INDUSTRY ASSOCIATIONS | 44 |
| 10. | REFERENCES | 45 |
| 10.1. | Publications | 45 |
| 10.2. | Websites | 46 |
| APPENDIX 1 | 48 | |
| Summary of Notable players | 48 | |
| COMPANY PROFILES | 69 | |
| A B BRICKWORKS (PTY) LTD | 69 | |
| A HOLMAN TRADING COMPANY (PTY) LTD | 71 | |
| ACTION BOLT (PTY) LTD | 73 | |
| AEROTON STEEL (PTY) LTD | 75 | |
| AFRIMAT LTD | 77 | |
| AFRISAM (SOUTH AFRICA) (PTY) LTD | 83 | |
| AKZO NOBEL POWDER COATINGS SOUTH AFRICA (PTY) LTD | 88 | |
| ALLIED STEELRODE (PTY) LTD | 90 | |
| ANDREW MENTIS (PTY) LTD | 93 | |
| ARCELORMITTAL SOUTH AFRICA LTD | 95 | |
| ARGENT INDUSTRIAL LTD | 100 | |
| ARTMAR NATURAL STONE TILES CC | 105 | |
| ASTRA FASTENERS (PTY) LTD | 107 | |
| AUGUSTA STEEL (PTY) LTD | 109 | |
| AUTOMATIC MASS PRODUCTION (PTY) LTD | 111 | |
| AVENG LTD | 113 | |
| AVLOCK INTERNATIONAL (PTY) LTD | 118 | |
| B E D HOLDINGS (PTY) LTD | 121 | |
| BALTIC TIMBER COMPANY (PTY) LTD | 123 | |
| BAMBALELA BOLTS (PTY) LTD | 124 | |
| BARNES REINFORCING INDUSTRIES (PTY) LTD | 126 | |
| BASF COATINGS SERVICES (PTY) LTD | 128 | |
| BASF SOUTH AFRICA (PTY) LTD | 130 | |
| BEN COR (PTY) LTD | 132 | |
| BIDVEST AFCOM (PTY) LTD | 133 | |
| BMI COVERLAND (PTY) LTD | 135 | |
| BOLT-TECH (PTY) LTD | 137 | |
| BOLTFAST (PTY) LTD | 138 | |
| BOLTLOCK MANUFACTURING AND SUPPLIES (PTY) LTD | 140 | |
| BRAKKEFONTEIN CLAY PRODUCTS (PTY) LTD | 142 | |
| BRANDCORP (PTY) LTD | 144 | |
| BRIGHTS HARDWARE (PTY) LTD | 147 | |
| BRIKOR LTD | 149 | |
| BSI STEEL (PTY) LTD | 153 | |
| BUILDING COMPANY (PTY) LTD (THE) | 156 | |
| CAP STAR STEEL (PTY) LTD | 162 | |
| CAPE GATE (PTY) LTD | 164 | |
| CAPITAL AFRICA STEEL (PTY) LTD | 167 | |
| CASHBUILD LTD | 169 | |
| CBC FASTENERS (PTY) LTD | 179 | |
| CHEMFIT (PTY) LTD | 181 | |
| CHROMAFLO TECHNOLOGIES SOUTH AFRICA (PTY) LTD | 183 | |
| CLOTAN STEEL (PTY) LTD | 185 | |
| COEGA STEELS (PTY) LTD | 187 | |
| COLUMBUS STAINLESS (PTY) LTD | 189 | |
| CONNECTCO FASTENERS (PTY) LTD | 191 | |
| CONSOLIDATED STEEL INDUSTRIES (PTY) LTD | 193 | |
| COROBRIK (PTY) LTD | 196 | |
| CREST OPERATIONS (PTY) LTD | 200 | |
| DEKRO PAINTS (PTY) LTD | 202 | |
| DIY DEPOT (PTY) LTD | 205 | |
| DURAM (PTY) LTD | 208 | |
| EAGLE ROOF TILES (PTY) LTD | 210 | |
| EAST RAND FORGING (PTY) LTD | 212 | |
| ECHO FLOORS (PTY) LTD | 213 | |
| ECHO PRESTRESS (DURBAN) (PTY) LTD | 215 | |
| ECHO PRESTRESS (PTY) LTD | 217 | |
| EMV AFRICA (PTY) LTD | 219 | |
| ESSENTRA COMPONENTS (PTY) LTD | 222 | |
| EVERITE (PTY) LTD | 224 | |
| FASTENER AND ALLIED (PTY) LTD | 227 | |
| FASTENER FACTORY (PTY) LTD (THE) | 229 | |
| FERRO SOUTH AFRICA (PTY) LTD | 231 | |
| FISCHER SOUTH AFRICA FACILITIES (PTY) LTD | 234 | |
| FONTANA MANUFACTURERS (PTY) LTD | 236 | |
| FORESTA TIMBER AND BOARD (PTY) LTD | 238 | |
| GARSIN STEEL TUBE AND PIPE (PTY) LTD | 240 | |
| GRAHAMSTOWN BRICK (PTY) LTD | 242 | |
| HALL LONGMORE HOLDINGS (PTY) LTD | 244 | |
| HAMMON FASTENERS (PTY) LTD | 246 | |
| HARLEQUIN PAINT CC | 248 | |
| HELLERMANNTYTON (PTY) LTD | 250 | |
| HILTI (SOUTH AFRICA) (PTY) LTD | 252 | |
| HUDACO TRADING (PTY) LTD | 254 | |
| ICI DULUX (PTY) LTD | 258 | |
| IMPALA BOLT AND NUT (PTY) LTD | 261 | |
| INCA CONCRETE PRODUCTS (PTY) LTD | 263 | |
| INDUSTRIAL METAL PROFILING CC | 265 | |
| INFRASTRUCTURE SPECIALIST GROUP (PTY) LTD | 267 | |
| INSIMBI INDUSTRIAL HOLDINGS LTD | 270 | |
| INVICTA HOLDINGS LTD | 275 | |
| ITALTILE LTD | 279 | |
| J J BRICKS (PTY) LTD | 284 | |
| JACK\'S PAINT AND HARDWARE (FRANCHISES) CC | 286 | |
| JAGUAR METALS (PTY) LTD | 288 | |
| JT AND T AGENCIES AND MAINTENANCE CC | 290 | |
| K AND K PAINT MANUFACTURERS CC | 292 | |
| KANSAI PLASCON AFRICA LTD | 294 | |
| KAYDAV GROUP LTD | 297 | |
| L K BRICK AND BLOCK MANUFACTURERS (PTY) LTD | 300 | |
| LAFARGE INDUSTRIES SOUTH AFRICA (PTY) LTD | 302 | |
| LAFARGE MINING SOUTH AFRICA (PTY) LTD | 306 | |
| LANGKLOOF STEENWERWE (PTY) LTD | 309 | |
| MACDONALD STEEL SA (PTY) LTD | 310 | |
| MACNEIL (PTY) LTD | 312 | |
| MACSTEEL SERVICE CENTRES SA (PTY) LTD | 314 | |
| MALLS TILES (PTY) LTD | 321 | |
| MARLEY (S A) (PTY) LTD | 323 | |
| MASSMART HOLDINGS LTD | 325 | |
| MAZISTA TILES (PTY) LTD | 330 | |
| MAZOR GROUP LTD | 332 | |
| MEDAL PAINTS (PTY) LTD | 335 | |
| MESHCO (PTY) LTD | 337 | |
| METROTILE (SOUTHERN AFRICA) (PTY) LTD | 339 | |
| MICA INVESTMENTS (PTY) LTD | 341 | |
| MITRE VENEERING CC | 343 | |
| MYLAW CHEMICAL AND COATINGS (PTY) LTD | 344 | |
| N J R STEEL HOLDINGS (PTY) LTD | 345 | |
| NATIONAL CERAMIC INDUSTRIES SOUTH AFRICA (PTY) LTD | 348 | |
| NATIONAL CONVERTING AGENCIES (PTY) LTD | 350 | |
| NGQURA BRICK (PTY) LTD | 352 | |
| NORCROS (S A) (PTY) LTD | 354 | |
| NORTHERN HARDWARE AND GLASS (PTY) LTD | 358 | |
| NPC INTERCEMENT (RF) (PTY) LTD | 361 | |
| NSS FASTENERS (PTY) LTD | 364 | |
| OOS-TRANSVAAL KALKVERSKAFFERS (PTY) LTD | 366 | |
| PEARLSTOCK 2 (PTY) LTD | 367 | |
| PERSIAN TILE CC | 369 | |
| PG BISON (PTY) LTD | 371 | |
| PG GROUP (PTY) LTD | 374 | |
| PICK N PAY STORES LTD | 378 | |
| POWDER-LAK (PTY) LTD | 383 | |
| PPC LTD | 385 | |
| PRO PAINT MANUFACTURING (PTY) LTD | 390 | |
| PRO ROOF STEEL AND TUBE (PTY) LTD | 392 | |
| PRO-TECH FASTENERS (PTY) LTD | 394 | |
| PROMAC PAINTS (PTY) LTD | 395 | |
| PROMINENT PAINTS (PTY) LTD | 397 | |
| QWA-QWA WIRE PRODUCTS (PTY) LTD | 399 | |
| R B FASTENERS (PTY) LTD | 401 | |
| RALPH\'S MIRROR AND GLASS (PTY) LTD | 402 | |
| RAYAL INDUSTRIAL (PTY) LTD | 403 | |
| RELIABLE BOLT (PTY) LTD | 404 | |
| RHEEBOK BRICK OPERATIONS (PTY) LTD | 405 | |
| RICKFORD INVESTMENTS (PTY) LTD | 407 | |
| RITZ TILES (PTY) LTD | 409 | |
| S A BLOCK (PTY) LTD | 411 | |
| S A BOLT MANUFACTURERS (PTY) LTD | 413 | |
| SA METAL GROUP (PTY) LTD | 415 | |
| SAFFER PLUMBING AND HARDWARE (PTY) LTD | 418 | |
| SAINT-GOBAIN CONSTRUCTION PRODUCTS SOUTH AFRICA (PTY) LTD | 420 | |
| SANDVIK (PTY) LTD | 422 | |
| SCAW SOUTH AFRICA (PTY) LTD | 424 | |
| SCREW MAN (PRETORIA) CC (THE) | 427 | |
| SHENKA INDUSTRIES CC | 429 | |
| SHOPRITE HOLDINGS LTD | 431 | |
| SIGMA COATINGS (PTY) LTD | 436 | |
| SIKA SOUTH AFRICA (PTY) LTD | 438 | |
| SPAR GROUP LTD (THE) | 440 | |
| STEWARTS AND LLOYDS HOLDINGS (PTY) LTD | 446 | |
| STONCOR AFRICA (PTY) LTD | 449 | |
| SUN CHEMICAL (SOUTH AFRICA) (PTY) LTD | 452 | |
| SWAGEFAST (PTY) LTD | 454 | |
| SWAN ELECTRICAL AFRICA CC | 456 | |
| SWARTLAND INVESTMENTS (PTY) LTD | 457 | |
| T AND I CHALMERS ENGINEERING (PTY) LTD | 459 | |
| T FERGUSON AND SONS (PTY) LTD | 461 | |
| TEL-SCREW PRODUCTS (PTY) LTD | 463 | |
| TOPFLOOR CONCRETE (PTY) LTD | 465 | |
| TRANSVAAL PRESSED NUTS BOLTS AND RIVETS (PTY) LTD | 467 | |
| TREATED TIMBER PRODUCTS (PTY) LTD | 469 | |
| TRELLIDOR INNOVATIONS (PTY) LTD | 472 | |
| ULTRALINE (PTY) LTD | 474 | |
| UNION TILES (PTY) LTD | 476 | |
| UNIVERSAL COATINGS (PTY) LTD | 479 | |
| VERSUS PAINT SPECIALISTS (PTY) LTD | 482 | |
| VOLTEX (PTY) LTD | 484 | |
| W G WEARNE LTD | 490 | |
| W P FASTENERS AND SERVICES CC | 493 | |
| WEST END CEMENT BRICKS (PTY) LTD | 495 | |
| WEST END CLAYBRICK (PTY) LTD | 497 | |
| WURTH SOUTH AFRICA CO (PTY) LTD | 499 | |
| YORK TIMBER HOLDINGS LTD | 501 |
