The Civil Engineering Contractor September 2018 | Page 36

THOUGHT LEADERS
Construction
sector trends
Greg Ker-Fox, PwC associate director: Capital Projects and Infrastructure, gives a broad
overview of some of the key trends affecting the infrastructure construction industry over
the coming year.
T
he major players in the South
African construction industry,
with the exception of WBHO,
are in a weaker position than a decade
ago. This makes them potential
acquisition targets. An example is
German company Aton’s hostile
takeover bid for Murray & Roberts.
The result may be consolidation in
the market, reducing competition.
Another alternative could be the
entry of foreign heavy construction
companies into the South African
capital project and infrastructure
markets, with the resultant outflow
of revenues from our economy.
Bottlenecks in the
public sector
In the public sector, poor planning,
cumbersome procurement processes
and contracting up to appointment
stage contribute to low levels of
capital expenditure by provinces and
cities. Project execution management