Cape Town tops the country in manufacturing

26 September 2016 - 17:02 By Tmg Digital

The City of Cape Town topped the country in the income produced by the manufacturing sector ahead of Ekurhuleni and Johannesburg.

This was contained the Manufacturing Industry report released by Statistics SA on Monday which showed that showed that that the total income for the manufacturing industry increased by 9.4% per annum‚ from R1.68 trillion in 2011 to R2.20 trillion in 2014.

Cape Town contributed R366.2 billion (17.3%) of the total income produced by the manufacturing industry. This was higher than Johannesburg which had R342 billion (16.2%) and the country’s manufacturing hub Ekurhuleni R268.8 billion (12.7%).

In the increases which compared the year 2011 and 2014‚ large growth was reported for coke‚ petroleum‚ chemical products‚ rubber and plastic (R248.1 billion)‚ food products and beverages (R88.6 billion) and transport equipment (R81.3 billion).

But the increase in income was not enough to create the much needed jobs.

Between 2005 and 2014‚ employment declined from a high of 1.43 million to a low of 1.19 million. This was a loss of 246 000 jobs.

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The biggest loss in employment was in textiles‚ clothing‚ leather and footwear (91 000)‚ food products and beverages (52 000)‚ metals‚ metal products‚ machinery and equipment (35 000)‚ furniture‚ other manufacturing and recycling (32 000) and transport equipment (30 000).

Jobs were only gained in coke‚ petroleum‚ chemical products‚ rubber and plastic sector where 20 000 new jobs were recorded between 2005 and 2014.

Also‚ large enterprises contributed only 46.4% of employment whereas the small‚ medium and micro enterprises created 53.6% of employment.

The manufacturing industry large sample survey is a periodic survey conducted every three to five years covering business enterprises registered for tax in South Africa. Results of the survey are used within Stats SA for benchmarking national accounts such as the gross domestic product GDP.

These statistics are also used by the private sector in analyses of comparative business and industry performance. Since 1996‚ the survey was previously conducted for the reference years 2001‚ 2005‚ 2008‚ 2011 and 2014.

Here is how other cities performed with the largest income from sales of goods and services: -eThekwini with R228.7 billion (10.8%)‚ -Tshwane had R145.7 billion (6.9%)‚ -Gert Sibande had R135.9 billion (6.4%); and -Nelson Mandela Bay had R111.3 billion (5.3% of the industry total).

However‚ Johannesburg had the highest employment (312 000 or 26.1%)‚ followed by Cape Town (157 000 or 13.2%)‚ eThekwini (156 000 or 13.1%)‚ Ekurhuleni (115 000 or 9.7%)‚ Nelson Mandela Bay (61 000 or 5.2%) and Cape Winelands (51 000 or 4.3%).

- TMG Digital

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