In the South African context , a review of the JSE-listed companies that form part of the heavy construction sector is illustrative of similar risk trends , as well as the following specific risks affecting the local sector , such as industrial action , community unrest , and compliance with complex regulatory frameworks .
SOUTH AFRICA ’ S UNIQUE POSITION
Apart from the aforementioned risk factors , the majority of JSElisted companies also noted cash flow / liquidity issues and the loss / shortage of critical skills as being of high significance . While economic factors continue to be the major contributors to a slower rebound in the sector , aspects such as the spate of looting and civil unrest that broke out in early 2021 continue to paint a more nuanced picture of what the future of construction will be within South Africa ’ s unique socioeconomic environment .
FUTURE FORECAST
With the global move from inoffice working to remote work culture , the reduction in office space requirements will serve as a compelling force for property and construction companies to pivot and adapt their growth strategies and operational process to thrive in the ‘ new normal .’
SA Real Estate Investor Magazine JUNE 2022 67