FLOORING FOCUS
The South African flooring industry faces some formidable challenges
in 2015, says Neil Duncan, Chief Financial Officer of Kevin Bates Albert
Carpets (KBAC).
D
uncan, a past president of Master Builders Association (MBA) North, says
2014 has been a difficult year with a slowdown in business and margins under
pressure. “Although the flooring industry has not experienced direct labour
unrest, extended strikes and labour unrest in other sectors have impacted
negatively on South Africa’s growth rate which, in turn, impacts on the volume
of business available in flooring. The withdrawal of Quantitative Easing by
the USA has also impacted negatively on South Africa and other emerging
markets.”
Duncan says there is no indication that 2015 will be any easier than 2014
for the entire building and construction industry. “There are some large new developments
underway, particularly in the Sandton area, but consumers and the government’s income
streams will remain under pressure with tax increases expected in the 2015 budget. The new
Construction Regulations, stricter enforcement of Construction Health and Safety, and the new
BBBEE codes applicable from May 2015, will all add pressure to companies operating in the
flooring industry.
“The flooring sector’s ageing workforce will further reduce the pool of skilled artisans, and
skills training is of utmost importance to ensure the sustainability of the industry and address
job creation. The flooring industry has taken positive steps in this regard with the formation
of the Flooring Industry Training Association (FITA) which has led to several previously
unemployed young people receiving training as installers to enter the industry during 2015.
FITA also plans on introducing a Recognition of Prior Learning (RPL) programme in 2015 and
establishing a register of flooring installers currently working in the industry.
“An improvement in South Africa’s growth rate, combined with a positive economic climate,
is essential to ensure the sustainability of the flooring industry. This will unlock growth
opportunities for existing and new companies which in turn will lead to job creation. A
dramatic increase in the number of tax- paying individuals and companies is required to
stimulate growth. This has to be the most important challenge for our government and the
private sector in 2015,” Duncan adds. AD
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