Plant Equipment and Hire May 2019 | Page 41

INSIGHT FACTORS DRIVING MARKET CONDITIONS By Ntsako Khosa The year 2019 is likely to be an interesting year for South Africa, both politically and economically. Allen Bodill, executive director at the Master Builders Association of the Western Cape (MBAWC), shares his outlook for 2019. B odill highlights certain factors that he believes are likely to affect the amount of work on offer in the Cape Peninsula region and the resultant profitability of the general building contracting industry. Election apprehension Allen Bodill, MBAWC executive director. www.plantonline.co.za Chief among the factors affecting the industry is likely to be the level of confidence leading up to the next general election. “As often displayed in previous cycles in the run-up to elections, many businesses and private individuals adopt a ‘wait and see’ attitude, leading to a general slump in demand for construction services. The rhetoric we may hear leading up to elections may inspire confidence, or it may detract from any residual confidence and, instead, create further uncertainty in some businesses, resulting in them holding MAY 2019 39