PERSPECTIVE
Despite experiencing a dip, the sector has taken it in their stride to see opportunity in these tough times.
other companies, and this has led to job
losses. In my opinion, government is
there to create an environment conducive
to attracting government and private
investment in the economy. We will have
to wait to see if the president’s new
initiative bears fruitful results, but this will
not rectify, overnight, the destruction that
has taken place over the past decade.
And lastly, operational costs — the
management of operational costs is crucial
to any company, and the rise in fuel, labour
cost, as well as compliance in legislation
make it very difficult.”
decreased the necessity for new spare
parts,” Smith shares. Wicks adds that
surviving the current cycle is a challenge
the industry faces. “We hope that we
see the return to tenders and jobs being
awarded to credible companies that can
actually complete contracts within budget
and on time. Payment of accounts on time
is most crucial, as a company without a
healthy cash flow cannot survive for very
long. While there is hope, one will always
be able to find opportunities, but the
trick is to choose the correct and ethical
opportunities to work with,” Wicks advises.
Some of the initiatives that Renico has
implemented in response to the downturn
are energy-efficient building techniques.
“More complexes are now being built
for the rental market. In many instances,
contracts have been secured from
investors for entire complexes and built
to their specifications. Where industrial
developments are concerned, these have
been restricted to specific clients and
Opportunities aplenty
Both Brian Smith,
Renico Plant Hire
manager, and Wicks
agree that with any
challenge there is an
opportunity. ”
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The ball is in your court
Ultimately, it boils down to how the
industry responds to economic reviews.
“It is up to this industry to prove to our
end users that members of the CPHA
have reliable, well-maintained, and up
to date equipment that will do the job.
Confidence in using a CPHA member is
the right thing to do. The hire industry
has a recognised professional body that
should be supported by the industry
players to ensure that we are recognised
as a professional industry, ensuring
that equipment is well maintained and
promoting integrity and reliability,” Wicks
says. “With our economy going the way
it is and with all the political uncertainty
as we head towards elections next year,
I foresee that things are only going to get
tougher — but we will face each challenge
as it arises,” says Louw. ■
Both Brian Smith, Renico Plant Hire
manager, and Wicks agree that with any
challenge there is an opportunity. The
lower demand for equipment from outside
companies has meant more equipment is
available for use by the Renico Earthworks
& Civils division. This has enabled them
to secure many favourable contracts
they could not tender for previously. “Our
workshops ensure that all equipment
is maintained in tip-top condition —
early detection of problems has greatly
constructed to their specifications,” Louw
says.
It is predicted that things will get tough, but Clive Wicks believes that challenges can be overcome.
NOVEMBER 2018
19