cidb sme busienss conditions survey; 2nd quarter … - sme business...confidence index of 90 implies...

cidb - S

ME Busin

ess Conditio

ns Surve

y

Quarter 2017

University of Stellenbosch

cidb Survey Results: 2017Q2

June 2017

Although reasonable professional skill, care and diligence are exercised to record and interpret all information correctly,

Stellenbosch University, its division BER and the author(s)/editor do not accept any liability for any direct or indirect loss whatsoever

that might result from unintentional inaccurate data and interpretations provided by the BER as well as any interpretations by third

parties. Stellenbosch University further accepts no liability for the consequences of any decisions or actions taken by any third party

on the basis of information provided in this publication. The views, conclusions or opinions contained in this publication are those

of the BER and do not necessarily reflect those of Stellenbosch University.

Summary

Building Contractors1

During the second quarter of 2017, business confidence for general builders (GB) dropped to

42 index points, from 46 points in 2017Q1. The renewed pessimism for GBs came against the

backdrop of a broad-based deterioration in underlying indicators. Profit margins endured a

greater squeeze, in line with weaker building activity growth.

Across all three grades, confidence levels came in below 50 index points in 2017Q2, which

spells out widespread pessimism. Confidence deteriorated the most (-14 points) among the

builders in Grades 3 & 4, while sentiment for Grades 5 & 6 was virtually unchanged. For Grades

7 & 8 building contractors, confidence ticked up slightly but remained at very low levels with

only 39% of respondents rating prevailing business conditions as satisfactory.

The provincial picture for general builders was also broadly pessimistic. Confidence deteriorated

sharply among Western Cape contractors to 47 points – its lowest level since 2014Q4 – from

64 previously. Nevertheless, confidence among these contractors remained higher compared to

the other provinces. Although building contractors in the Eastern Cape and KwaZulu-Natal saw

some improvement in business sentiment, confidence levels remained depressed.

Civil Contractors2

Contrary to the building sector, civil contractor confidence picked up to 43 points, from 37 in

2017Q1. Business conditions improved as profitability found support from a combination of

improved momentum in building activity and a less hostile tendering environment.

Confidence levels across all three grades remained below 50 points during 2017Q2. Grades

3 & 4 civil contractors were the only group which registered an uptick in confidence, from 33

points to 44. Conversely, confidence levels among Grades 5 & 6 and Grades 7 & 8 civil

contractors dropped by eight points each. For Grades 7 & 8, an overwhelming majority (83%)

1 During 2017Q2, 85 new building respondents were recruited for the cidb. While the inclusion of the new recruits made the overall results relatively more positive compared to the old panel (excluding the new recruits), it is regarded to be more representative of what is actually happening among cidb registered contractors. Nevertheless, confidence and underlying indicators remained relatively poor. 2 For the civil sector, 108 new respondents were recruited. The total results including new recruits also made the overall results relatively more positive compared to the old panel. In all, this sector also remained under pressure, as indicated by the confidence and activity levels.

of respondents rated prevailing business conditions as unsatisfactory. At this is level, confidence

is at its lowest since the start of the series in 2008Q3.

At a regional level, sentiment improved in all four provinces except for the Eastern Cape where

confidence dropped to 27 points, from 33 previously. Encouragingly, the majority of Western

Cape civil contractors were optimistic about business conditions, with confidence ticking up to

57 index points from 50.

In all, the cidb survey results suggest that building and civil sector contractors continued to face

challenging conditions during the second quarter of 2017. On average, headline confidence

indicators in both sectors registered pessimistic levels (below 50 index points), which suggests

that the building and construction industry remains under pressure. Unfortunately for building

contractors, sentiment remained downbeat across all three grades and the four provinces

surveyed. This is also mostly true for civil contractors, with the exception of the Western Cape

where confidence registered above the 50-point mark.

Table of contents

Introduction ...................................................................................................... 1

2017Q2 cidb Survey Results .............................................................................. 3

Building Industry ............................................................................................... 3

Total ...................................................................................................................... 3

Grades comparison ................................................................................................. 4

Grades 3 & 4 .................................................................................................... 5

Grades 5 & 6 .................................................................................................... 6

Grades 7 & 8 .................................................................................................... 7

Provincial comparison .............................................................................................. 8

Eastern Cape .................................................................................................... 9

Gauteng ......................................................................................................... 10

KwaZulu-Natal ................................................................................................ 11

Western Cape ................................................................................................. 12

Construction Industry...................................................................................... 13

Total .................................................................................................................... 13

Grades comparison ............................................................................................... 14

Grades 3 & 4 .................................................................................................. 15

Grades 5 & 6 .................................................................................................. 16

Grades 7 & 8 .................................................................................................. 17

Provincial comparison ............................................................................................ 18

Eastern Cape .................................................................................................. 19

Gauteng ......................................................................................................... 20

KwaZulu-Natal ................................................................................................ 21

Western Cape ................................................................................................. 22

cidb Building Contractor: Survey Results ......................................................... 23

cidb Civil Contractor: Survey Results ............................................................... 41

1

Introduction The cidb has contracted the Bureau for Economic Research (BER) at Stellenbosch University to

conduct a business tendency survey among registered cidb contractors (Grades 3 - 8) operating

in the building and civil engineering industries.

The 2017Q2 survey was carried out during the period 2 May to 6 June 2017.

The analysis that follows provides a synopsis of the survey responses received in 2017Q2,

according to grades and region from participating cidb registered building and civil contractors.

The detailed survey results can be found at the end of this report.

The main indicator used for analysis purposes is business confidence. The business confidence

index is based on the number of survey sample respondents indicating that they find current

business conditions satisfactory. It is calculated as a percentage. For example, a business

confidence index of 90 implies that 90% of the survey respondents regard prevailing business

conditions as satisfactory. The data series can therefore vary between 0 and 100, with 50 seen

as neutral. Business confidence, as measured by qualitative opinion surveys, has proved both

globally and domestically to be a reliable leading indicator of business activity. Similar to

business confidence, the responses relating to constraints are also presented as percentages.

For example, 50% of respondents rated a shortage of skilled labour as a constraint on their

activities.

The rest of the responses are converted into net balances. For example, if the percentage of

respondents rating building activity higher / the same / lower than a year ago is as follows;

Higher Same Lower

70 10 20

then we can conclude that the majority of participants experienced an acceleration in building

activity. A net majority (i.e. the percentage of respondents rating activity higher, less the

percentage rating activity lower) of 50% is registered in the above example. A net majority of -

10%, for example, indicates a slowdown in building activity compared to a year ago. A value of

zero therefore indicates no change, between 0 and 100 reflects a rise (or improvement) and

between 0 and –100 a decline (or deterioration) compared to the same quarter a year ago.

Note: A low number of responses cause the survey results to vary noticeably between consecutive

quarters. We recommend that users base their views on the trend and not on a single data point.

3

2017Q2 cidb Survey Results

Building Industry Total

During 2017Q2, building contractor confidence fell to 42 points, down from 46 in 2017Q1.

At this level, nearly 60% of respondents deemed business conditions unsatisfactory. Figure 1

below emphasises the pessimistic sentiment of respondents.

Figure 1: Total

Building contractor sentiment deteriorated on the back of weaker activity. During the quarter, a

higher net majority of 51% of respondents reported a deterioration in building activity, compared

to 39% in 2017Q1. Contrary to last quarter, the somewhat more benign tendering environment

failed to support profitability this time round. Indeed, a larger net majority of 56% of respondents

attested to lower profitability during 2017Q2, relative to 45% previously. This is the worst level

since 2012Q1.

Going forward over the near term, the picture for general builders looks murky. The indicator

rating insufficient demand for building work as a constraint to business operations increased

during the quarter, which bodes ill for future building activity.

0

25

50

75

100

2013 2014 2015 2016 2017

4

Grades comparison

During the second quarter of 2017, there was broad-based pessimism across all three grades

as confidence levels registered below the 50-point mark. Sentiment deteriorated mostly for

Grades 3 & 4. Grades 5 & 6 confidence barely changed. In contrast, Grades 7 & 8 contractor

confidence ticked up, but remained at depressed levels.

Figure 2: Business confidence per grade

0

25

50

75

100

% sa

tisfac

tory

2013 2014 2015 2016 2017

Grades 3 & 4 Grades 5 & 6 Grades 7 & 8

5

Grades 3 & 4

During 2017Q2, Grades 3 & 4 builders reported a deterioration in prevailing business

conditions. Confidence for this group of contractors dropped steeply to 41 index points, from

55 points in 2017Q1.

Figure 3: Grades 3 & 4

In all, Grades 3 & 4 had a challenging quarter, as building activity growth lost substantial

momentum. A significantly larger net majority of 60% of respondents reported weaker activity

(22% previously). This marked the worst outcome on record.

Disconcertingly, this big drop in activity materialised against the backdrop of a favourable

tendering environment. During 2017Q2, the indicator for tendering keenness fell to a record

low of a net 9%, down from 37% previously. In spite of this, profit margins for this group of

contractors endured an even greater squeeze. Indeed, the net majority of respondents reporting

weaker profitability worsened to 54%, compared to 40% previously.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

6

Grades 5 & 6

Among Grades 5 & 6 general builders, confidence was little changed during the quarter, at 43

index points – a one-point drop (see Figure 4).


Unfortunately for this group of building contractors, key indicators remained weak. Tendering

competition intensified during the quarter, putting even greater pressure on profitability. The

indicator measuring tendering competition picked up to a net 51% during 2017Q2, close to

the long-term average (52%) and above the net 34% registered in the prior quarter. It follows

that the net majority of respondents citing poorer profitability increased further to 51%, up from

a net 46% previously.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

7

Grades 7 & 8

Grades 7 & 8 building contractors were the only group that saw some improvement in

business sentiment in 2017Q2. Although it remains at suppressed levels, business confidence

ticked up to 39 index points, from 33 points previously.


Business conditions improved on the back of better building activity momentum. A lower net

majority of 58% of respondents cited weaker activity, compared to 66% previously.

Discouragingly, the improved activity momentum failed to lend support to overall profitability. A

net majority of 65% of respondents reported weaker profitability during the quarter, up from

50% previously.

Going forward, building activity will likely be constrained as is suggested by the indicator rating

insufficient demand for building work as a constraint. The indicator is currently at its long-term

average of 77%, up from 75% in 2017Q1.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

8

Provincial comparison

The theme of widespread pessimism in the building sector was unfortunately prevalent also at

the provincial level, with confidence levels below the 50-point mark across the board. Whereas

general builders in the Western Cape had held the fort of optimism over the last few quarters,

this changed during the second quarter (see Figure 6). Contractors lost confidence in the

Western Cape and in Gauteng, while there was some improvement in sentiment in KwaZulu-

Natal and the Eastern Cape.

Figure 6: Business confidence per province

0

25

50

75

100

% sa

tisfac

tory

2013 2014 2015 2016 2017

WC EC KN GP

9

Eastern Cape3

Following a relatively flat outcome of 35 index points in the previous quarter, Eastern Cape

general builder confidence ticked up to 40 points in 2017Q2.

Figure 7: Eastern Cape

The uptick in confidence was supported by a general improvement in the underlying indicators.

3 Volatility in indicators could be due to the relatively smaller number of respondents from the province.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

10

Gauteng

During 2017Q2, Gauteng building contractor confidence declined by 5 index points to 38. This

follows a notable 16-point jump to 43 points last quarter.

Figure 8: Gauteng

The loss in confidence came against the backdrop of weaker activity which had a knock-on

effect on profitability. Building activity disappointed notably, with a net majority of 64% of

respondents reporting poorer activity (negative 33% previously). This is the worst level since

2009Q4. The added pressure on profitability lifted the net majority of respondents reporting

lower profits to 49%, from 28% previously.

The percentage of respondents rating insufficient demand for building work as a constraint also

jumped significantly during the quarter. At 82% (previously 55%), this is the highest level since

2014Q4, and it suggests further weakness in future activity.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

11

KwaZulu-Natal

Building confidence picked up by a noteworthy 10 index points in KwaZulu-Natal to 37 during

2017Q2. Despite the uptick in confidence, the majority of respondents remained dissatisfied

with prevailing business conditions.

Figure 9: KwaZulu-Natal

During the quarter, building activity growth momentum improved to its best level since 2015Q4.

A significantly smaller net majority of 40% of respondents noted a slowdown in activity, down

from 62% in 2017Q1. Although the profitability indicator was supported by the uptick in activity,

it remained depressed and below its long-term average. The buoyancy in activity was, however,

supportive of the building sector labour market in the province. Indeed, the employment

indicator improved to its best level since 2016Q2. The net majority of respondents reporting job

cuts dropped steeply to 39% during 2017Q2, down from 74% previously.

Going forward, however, the abovementioned improvements are unlikely to be sustained, as is

highlighted by the further uptick in the proportion of respondents rating insufficient demand for

building work as a constraint.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

12

Western Cape

Business sentiment deteriorated significantly for general builders in the Western Cape in

2017Q2 to 47 index points (worst level since 2014Q4), from 64 in 2017Q1.

Figure 10: Western Cape

The sharp drop in confidence was in line with the broad-based deterioration in underlying

performance indicators, which reached multi-year lows. Building activity growth in particular,

slowed to its lowest level since 2011Q4. Indeed, a net majority of 48% of respondents saw a

slowdown in activity during the quarter, compared to 21% previously.

Weaker activity not only facilitated further pressure on profitability, but also led to further

curtailments in employment. Profitability growth deteriorated to its worst level in 13 quarters. The

net majority of respondents reporting lower profits jumped to 63% during the quarter, from 21%

previously.

The indicator rating demand for building work as a constraint also rose to its worst level since

2014Q2. At 73%, this bodes ill for the outlook on general building activity in the province in

the near term.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

13

Construction Industry Total

After starting 2017 on the back foot, civil contractor confidence picked up to 43 index points

during the second quarter, from 37 in Q1. At the grade level, sentiment improved among

Grades 3 & 4 contractors. Among the provinces, only civil contractors in the Western Cape

registered an uptick in confidence.

Figure 11: Total

At the aggregate level, business conditions in the civil sector improved in line with stronger

underlying performance indicators. Construction activity growth regained some momentum. A

smaller net majority of 39% of respondents reported weaker construction activity, from 48%

previously. On balance, the tendering environment was more benign during the quarter.

With more construction work available during the quarter, contractors retrenched workers at

lower rates. The net majority of respondents citing job cuts fell to 34%, from 41% in Q1. In

addition, the indicator rating insufficient demand for construction work as a constraint fell from

a multi-quarter high previously.

0

25

50

75

100

2013 2014 2015 2016 2017

14

Grades comparison

Business confidence in the civil sector remained below the neutral 50-point mark across all

grades in 2017Q2. Sentiment improved significantly for Grades 3 & 4 civil contractors, however

(+11 points). In contrast, confidence for Grades 5 & 6 and Grades 7 & 8 fell by eight points

each, with sentiment for Grades 7 & 8 currently at its worst historic level.

Figure 12: Business confidence per grade

0

25

50

75

100

% sa

tisfac

tory

2013 2014 2015 2016 2017

Grades 3 & 4 Grades 5 & 6 Grades 7 & 8

15

Grades 3 & 4 After dipping sharply to 33 points in 2017Q1, business confidence for Grades 3 & 4 civil

contractors improved to 44 points during Q2.


Business conditions for this group of contractors improved on the back of stronger underlying

indicators. During the quarter, the net majority of Grades 3 & 4 contractors reporting lower

construction activity improved sharply to 47%. In the previous quarter, the activity indicator was

at its all-time worst level of a negative net 71%. Given that June represents the end of the

municipal government financial year, it is likely that activity improved on the back of a “rush” to

spend on capex. Grades 3 & 4 civil contractors participate predominantly in municipal projects.

In addition to this, tendering keenness abated significantly. It follows that pressure on profitability

moderated, with a lower net majority of 47% attesting to a decline in profits (from a net negative

55% previously). Under these conditions, Grades 3 & 4 civil contractors managed to reduce

their retrenchment rates.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

16

Grades 5 & 6

During 2017Q2, business confidence for Grades 5 & 6 civil contractors fell by eight index points

to 37. At this level, 63% of respondents among this group of contractors were dissatisfied with

prevailing business conditions.


Growth in construction activity lost more steam during the quarter. A higher net majority of 54%

of respondents saw a decline in activity, from 31% in 2017Q1. Consequently, profitability came

under more pressure, with the net majority of contractors reporting lower profits ticking up to

44% (38% previously).

The proportion of respondents rating insufficient demand for construction work as a constraint

to business conditions eased somewhat, but remained elevated at 72%. This bodes ill for

construction activity prospects for Grades 5 & 6 contractors.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

17

Grades 7 & 8

Business confidence among Grades 7 & 8 civil contractors fell to 17 index points in 2017Q2,

from 25 previously. With 83% of respondents being dissatisfied with prevailing business

conditions, confidence for this group of contractors is at an all-time low.


In all, underlying indicators remained depressed and below their long-term averages.

Additionally, the tendering keenness indicator rose significantly to a net 83% during the second

quarter – its highest level since 2012Q1 – signalling scarcity of construction work. This is further

highlighted by the indicator rating insufficient demand for construction work as a constraint,

which remained elevated at 80% - well above the long-term average of 72%. This will likely

constrain construction activity for this group of contractors in the near-term.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

18

Provincial comparison

At the provincial level, business confidence picked up in all the provinces except for the Eastern

Cape. In the Western Cape, confidence registered above 50 index points at 57. Meanwhile in

KwaZulu-Natal and in Gauteng, confidence increased to 43 and 29 points, respectively.

Figure 16: Business confidence per province

0

25

50

75

100

% sa

tisfac

tory

2013 2014 2015 2016 2017

WC EC KN GP

19

Eastern Cape

Confidence among civil contractors in the Eastern Cape fell to 27 index points in 2017Q2,

down from 33 points previously.

Figure 17: Eastern Cape

During the quarter, both construction activity and profitability remained under pressure in the

province. The indicator rating insufficient demand for construction work as a constraint to

business operations also remained elevated above the long-term average. This implies that

activity could remain under pressure going forward.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

20

Gauteng

Business confidence picked up to 29 index points in 2017Q2, from 25 points previously. The

mild uptick in sentiment was broadly supported by underlying indicators.

Figure 18: Gauteng

Construction activity momentum improved notably to its best level since 2015Q1. A smaller net

majority of 30% of respondents reported a slowdown activity in 2017Q2, from 60% previously.

In response to this, pressure on overall profitability eased somewhat. Additionally, a significantly

lower net proportion of 29% of respondents cited job cuts, down from 50% in the first quarter.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

21

KwaZulu-Natal

In KwaZulu-Natal, confidence increased to 43 index points in 2017Q2, from 38 points

previously.

Figure 19: KwaZulu-Natal

Key underlying indicators deteriorated, however, contrary to the improvement in sentiment. The

increase in confidence was likely based on the positive near-term outlook on construction activity

and profitability.

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

22

Western Cape

After remaining unchanged at 50 index points during the first quarter, confidence increased to

57 points in 2017Q2.

Figure 20: Western Cape

Business conditions were somewhat better, in line with a broad-based improvement in underlying

indicators. After jumping to its highest level since 2011Q1 last quarter (87%), the tendering

keenness indicator dropped to 50%. This is below its long-term average. The combination of

better activity and a more benign tendering environment helped support profitability.

Furthermore, the employment indicator suggests that, on balance, jobs were retained in the

Western Cape civil sector during 2017Q2.

The indicator rating insufficient demand for construction work as a constraint to business

operations also eased, suggesting that more work was available during the quarter.

Matlhodi Matsei

Ntombizanele Bakaqana

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

23

cidb Building Contractor: Survey Results

24

Building Contractors : Total

16Q3 16Q4 17Q1 17Q2 17Q3*

Business confidence 3 41 45 46 42

Change in business conditions 1 -34 -29 -36 -32 -13

Growth in building activity 1 -41 -35 -39 -51 -26

Growth in number of people employed 1 -34 -27 -34 -41 -25

Growth in profitability of the business 1 -45 -50 -45 -56 -35

Tendering competition 1 54 51 44 36

Percentage rating shortage of skilled labour a constraint 2 45 55 46 46

Percentage rating inadequate supply of building materials a constraint 2 23 23 20 25

Percentage rating insufficient demand for building work a constraint 2 71 67 63 70

Percentage rating firm’s inadequate access to credit a constraint 2 29 36 24 39

* Expected.

1 Net balance.

2 The index is calculated as follows: The answers of respondents rating a particular constraint as “serious” is weighted by

0,67%; those rating it as “slightly” by 0,33% and those rating it as “not a constraint at all” is discarded. The results are then

multiplied by 100/67 = 1,49 to convert it to an index that can vary between 0 and 100.

3 Percentage gross rating prevailing business conditions as satisfactory.

Blank spaces indicate data not available or not asked for.

25

0

25

50

75

100

2013 2014 2015 2016 2017 -100

-50

0

50

100

2013 2014 2015 2016 2017

Change in business conditions

Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017

Growth in building activity

Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017

Tendering competition

-100

-50

0

50

100

2013 2014 2015 2016 2017

Growth in profitability

Expected

0

25

50

75

100

2013 2014 2015 2016 2017

Insufficient building work demand

26

Building Contractors : Grades 3 & 4

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






27

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


28


16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






29

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


30


16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






31

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


32

Building Contractors : Eastern Cape

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






33

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


34

Building Contractors : Gauteng

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






35

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


36

Building Contractors : KwaZulu-Natal

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






37

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


38

Building Contractors : Western Cape

16Q3 16Q4 17Q1 17Q2 17Q3*


Change in business conditions 1 -20 9 -22 -41 -20

Growth in building activity 1 -15 5 -21 -48 -31

Growth in number of people employed 1 -19 14 -8 -28 -16







* Expected.

1 Net balance.






39

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


41

cidb Civil Contractor: Survey Results

42

Civil Contractors: Total

16Q3 16Q4 17Q1 17Q2 17Q3*


Change in business conditions 1 -25 -34 -44 -27 4

Growth in construction activity 1 -31 -39 -48 -39 -6





Percentage rating inadequate supply of construction materials a constraint 2 28 21 20 31

Percentage rating insufficient demand for construction work a constraint 2 71 67 77 70


* Expected.

1 Net balance.






43

0

25

50

75

100

2013 2014 2015 2016 2017 -100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017

Growth in construction activity

Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017

Insufficient construction work demand

44

Civil Contractors : Grades 3 & 4

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






45

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


46


16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






47

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


48


16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






49

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


50

Civil Contractors: Eastern Cape

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






51

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


52

Civil Contractors : Gauteng

16Q3 16Q4 17Q1 17Q2 17Q3*











* Expected.

1 Net balance.






53

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


54

Civil Contractors : KwaZulu-Natal

16Q3 16Q4 17Q1 17Q2 17Q3*



Growth in construction activity 1 35 -38 -31 -50 0








* Expected.

1 Net balance.






55

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


56

Civil Contractors : Western Cape

16Q3 16Q4 17Q1 17Q2 17Q3*




Growth in number of people employed 1 -5 -31 -20 0 -5

Growth in profitability of the business 1 0 -26 -27 -18 -28






* Expected.

1 Net balance.






57

0

25

50

75

100

2013 2014 2015 2016 2017

Business confidence

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

-100

-50

0

50

100

2013 2014 2015 2016 2017


-100

-50

0

50

100

2013 2014 2015 2016 2017


Expected

0

25

50

75

100

2013 2014 2015 2016 2017


Blocks N&R, SABS Campus2 Dr. Lategan RdGroenkloofPretoriaSouth Africa

PO Box 2107Brooklyn Square0075

cidb - S

ME Busin

ess Conditio

ns Surve

y

Gauteng Provincial [email protected]

Western Cape Provincial OfficeCape [email protected]

Eastern Cape Provincial [email protected]

Northern Cape Provincial [email protected]

Free State Provincial [email protected]

KwaZulu-Natal Provincial [email protected]

Limpopo Provincial [email protected]

Mpumalanga Provincial OfficeNelspruit (Mbombela)[email protected]

North West Provincial [email protected]

cidb contact number: 086 100 2432

Anonymous Fraud Line: 0800 11 24 32

email: [email protected]

cidb sme busienss conditions survey; 2nd quarter … - sme business...confidence index of 90 implies...

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