Construction confidence at 5 year high

Good news for scaffolding companies in Cape Town and throughout South Africa! CFC welcomes this revelation and will continue to provide loyal clients with outstanding service for the remainder of 2014 and beyond. Upwards and onwards!

After increasing by 6 index points in 3Q2013, the FNB/BER construction confidence index rose a further 15 points to 66 in Q4 2013. This marks the highest level of the index since September 2008.

This is a clear sign that conditions in the construction sector are indeed getting better and most encouraging, however, was the rise in construction activity.

Respondents also reported a significant moderation in the level of tendering competition.

This could be as a result of the increase in construction activity and with more work available firms can now be more selective with the projects for which they tender. At the current level, tendering price competition is at its lowest level since mid-2007.

Input costs have slowly risen over the past few months, this could be weighing on profitability despite the improvement in activity and competition.

The pace of the recovery in the construction sector quickened during the quarter, especially in terms of construction work, which disappointed somewhat in Q3 2013.

Looking ahead, growth in construction activity is expected to continue at more or less the same pace as in the fourth quarter.