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The State of the Nation Interviews: Part One

Thu, 28 Oct 2010 12:47

The State of the Nation Interviews: Part One

 

After an adrenalin-fuelled cycle of work, under unsustainable pressure, South Africa’s construction industry is heading into troubled waters. ISIZA looks to a few of the industry’s leading minds for their opinions on today’s most pertinent issues.

 

The Skills Challenge

 

There was significant concern about a skills shortage during the construction boom – which was overcome. The industry is now in decline and there are significant job losses, so do we have a skills crisis, and is the industry taking ownership of skills development? What are the future challenges?

 

Ronnie Khoza (CEO: cidb)

 

I want to emphasise the need for skilled artisans because they are the ones responsible for delivering the projects. We need qualified project managers, as people with holistic vision and planning skills better manage most projects. South Africa needs these skills across the private and public sectors.

 

Skills development needs to extend beyond the construction site. It must be for people who work for Government to manage the service providers. They must have either worked for the private sector, or understand how the sector operates. You can’t manage people performing work that you don’t understand. We can’t rely on consultants to tell us what to do, or we’ll just end up signing cheques without realising any value for money.

 

Adding unnecessary middlemen into the equation only causes confusion and undue expenses. When decision-makers lack confidence, they turn to consultants, who then manage more consultants, who are in turn supposed to manage the contractor. If we had qualified people within the departments, they would be able to make effective decisions and tell the client exactly what needs be done.

 

I see a lack of control in many areas. Project requirements are left up to the consultant, whose words people blindly follow, and to me this is embarrassing. Government and the private sector should both have adequate capacity, like it happens in countries around the world where people within government understand how things work.

 

Take, for instance, Public Works and municipalities, through which many civil engineers and an inherent stability were developed. However, far too many of those engineers have since resigned, not to mention the architects and land surveyors as well. Our municipalities are desperately short of capacity, which is a deeply concerning situation.

 

So while I don’t believe we must do away with consultant’s altogether, we should use them for very specific purposes. If a unique situation demands extra capacity, use it, but don’t rely on it permanently or we’ll end up paying far too much for every project. 

 

 

Elsie Snyman (CEO – Industry Insight)

 

There is a global shortage of skills for engineers, plumbers, and electricians, among others. So no, I don’t think we have overcome our skills dilemma, and no, I don’t think we are taking ownership of skills development. There are great initiatives taken by the private sector, but as an industry, and here I have to refer to the Construction Education & Training Authority (CETA), there is much work still to be done.

 

However, skills development is a process that takes years to implement and has to be sustained on a continuous basis. The challenge is to deploy skills where they are needed, and to have sufficient data to understand “where the demand is, and where it’s going to be” and what the available skill pool is.

 

Many people may be looking for work in one concentrated area (like Cape Town or Johannesburg), while there are initiatives that focus greatly on rural development. We are busy looking at the Integrated Development Planning (IDP) documents of the Western Cape area, to see exactly what the plans are (or should be) for the next three years.

 

 

Mike Upton (CEO – Group Five)

 

Jobs are being shed, but the industry has upskilled during the delivery of the projects that were timed around 2010. However, the level of skills is still sub-optimal, as is the quantity of experienced technical and managerial personnel. But I feel the extreme shortage that was felt a few years ago has abated.

 

 

 

 

 

Mike Wylie (Chairman: WBHO)

 

I feel there is something of a logic problem here. Five years ago, before the World Cup, everyone said we didn’t have the skills to build the stadiums. But now that the stadiums have been built, I don’t understand why ‘skills’ is still on the table.

 

Everything learned through building the stadiums can be transferred into the areas where we need them now. All the elements of construction are the same, including the skills. It’s simply the combinations that vary with each project. I honestly don’t feel there is a problem with skills.

 

The only big problems we had were with specialists like electricians and IT technicians, but we got through it. We felt the strain on specialist skills but we pulled them in from all over the place, and combined with our continuous training programmes, we made it happen.

 

It will be a long time before we have that demand on our specialised skills base again, and even if we do, we‘ve proven we can get through it. Skills must simply be put in the hands of the people doing the job. It is our responsibility, as contractors, to deliver a job and to deliver it to the right quality. Therefore, the responsibility for skills is upon us. So we’ve shown our ability to overcome the skills shortage.

 

When we started those stadiums, not only were there shortages in the artisan level, but the engineers had left the country as well. Between England, Ireland, Dubai, and Australia, everyone was pulling our skills away. With virtually no international interest and severe economic conditions, along we came with five stadiums, finished with six months to spare – produced better than anyone else in the world.

 

Think about it. Wembley Stadium was finished 2 years late and is still embroiled in legal battles, while the Millennium Stadium bankrupted John Laing plc, and almost the Welsh Rugby Union as well. Yet South Africa comes along, with its specialist skills spread across the world, and we achieved the impossible.

 

Polokwane Stadium was built entirely by black engineers, black foreman, and black artisans. Everyone was black, save for two or thee white faces. It’s a pity people don’t understand that.

 

But make no mistake; it’s going to be very tough going forward. We’re concerned about 2011 and 2012. I think there‘ll be more capacity than work delivered, and Government contracts are going to come slowly.

 

As always, we’ll have to operate very effectively and very efficiently, without any waste. The bigger companies will be bolstered by international projects, but for the local South African construction company to survive in this market its managers will have to be pretty smart.

 

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