Plant Equipment and Hire August 2018 | Page 3

COMMENT Maintaining a standard S outh Africa is home to numerous manufacturers, whether local or international companies with a presence here. While the manufacturing sector is presently not at its zenith, an aspect that must be mandatory, regardless of economic standing, is that of maintaining standards within manufacturing. According to the Department of Science and Technology, “In a 1999 Organisation for Economic Cooperation and Development (OECD) study of standards and technical regulations, an estimated 80% of all goods traded globally were described by and affected USD4-trillion annually.” Standards play a substantial role in how products are designed, developed, and assembled as well as how they are introduced to the marketplace. For example, in the plant sector in South Africa, it diabeticspac.org by standards and technical regulations — an estimated is no secret that very cheap Chinese products are not seen to have Fin24 reports that SA Capital Equipment Export Council’s business the robustness of their European or American counterparts. There development manager, Carolien van der Horst, said that local is an aversion to ‘Asian goods’, as they are often regarded as being content of products supplied in government contracts was also of inferior quality, with ‘not doing the job they are designed to do’, failing to be audited by the SABS, as required in government’s being the main criticism. Industrial Policy Action Plan. This resulted in companies possibly (Although, to be fair, China’s shift from rapid growth supplying imported products when fulfilling tenders from state underscored by cheap exports, to more sustainable growth entities, as it appeared that no one was willing to pay for the supported by advanced technology, is also to be recognised.) SABS audits. South Africa cannot be isolated in its implementation of SABS CEO Boni Mehlomakulu pointed out that previously, from standards, as it is part of the global community and as such, needs the 2004 National Economic Development and Labour Council to assure that its products align with the international standards of (Nedlac) report, the SABS was the only testing entity, and business the countries wi th whom it trades. wanted policy changed to allow private testing laboratories to be This onus rests on the South African Bureau of Standards (SABS). According to the SABS website: ‘Standards may be thought able to compete with the SABS. However, where products had failed on the market, owing to of as the oil that lubricates the machinery of economic growth partial testing — up until then a norm — to protect the SABS from and international trade and are thus essential to international lawsuits, the practice had been stopped in 2015, which in turn, had competitiveness.’ prompted an outcry from industry. Therefore, the recent news that the business sector is strongly criticising the SABS, claiming that the entity is losing the country While infrastructure upgrades estimated to cost R1.6-billion were also being considered to enable the entity to conduct the at least R4-billion a year in exports in the manufacturing and full array of tests for all engineering sectors alone, is concerning. compulsory standards, But this is nothing new. The business sector has been on the the SABS falls within Trade SABS’s case for years now, complaining about a lack of testing by and Industry Minister Rob the entity, which has resulted in manufacturers losing contracts. Davies’s department, who, According to Fin24, Marique Kruger, economist for the Steel at the time of writing, and Engineering Industries Federation of Southern Africa, said the was weighing up why he lack of testing and certification by the SABS within the required should not put the entity time frames was a concern, as certification was often needed for under administration for not products to be sold locally and internationally. She pointed out that performing to its mandate. delays or cancellations in trade deals owing to a lack of testing caused a loss of billions in exports a year in the manufacturing and Kim engineering sectors. Editor AUGUST 2018 3