Manufacturing

The manufacturing sector contributed 17.6% of the Western Cape’s gross domestic product in 2007, according to a survey done by the Bureau for Economic Research (BER), Stellenbosch University. There is no one major industry that dominates, a positive factor in encouraging innovation and investment.

The greater Cape Town region makes up the bulk of manufacturing capacity in the Western Cape. An SA Cities Network study lists these key manufacturing subsectors:
Petroleum products, chemicals, rubber and plastic 21.7%
Food, beverages and tobacco 18.6%
Metals, metals products and machinery 16.8%
Wood and paper, publishing and printing 12.3%
Clothing and textiles 9.2%

Other significant contributors are furniture and other manufacturing (8.9%) and transport and equipment (5.3%). Electrical machinery and equipment accounts for 2.7%.

Because of the relatively large proportion of food and beverages in the manufacturing mix, and this sector’s relative immunity to the global downturn, Western Cape manufacturing weathered the storm quite well. The BER study reported only 2% of surveyed companies cutting production in the second quarter of 2009

Capacity ranges from heavy industry associated with the oil and gas sectors and the boat-repair industry to niche manufacturing on a much smaller scale. Strassberger of Clanwilliam is one such company, manufacturing handmade leather shoes with a staff complement of 50.

At the other end of the scale is Mossop- Western Leathers, located in Wellington, which is a major supplier of bovine leathers to the footwear and leather goods sectors. The Western Cape accounts for about 23% of footwear production in South Africa.

Investment-promotion agency Wesgro is doing what it can to attract manufacturing investment to the Western Cape. In July 2009, Wesgro announced that it expected some R23‑billion to flow into the province within a few years, with more than 60% of this being in manufacturing.

A 2009 highlight was the decision by General Electric to commit R92-million for an expansion programme at the company’s Maitland plant. This will create 120 jobs.

The shift away from textiles in the profile of the Western Cape manufacturing sector has been quite marked. This is part of a national trend whereby, according to the SA Textile Federation, 20 000 jobs were lost nationwide between 2003 and 2006, textile imports grew by 500% and clothing imports by 300%. The Industrial Development Corporation has acted to reverse this trend; its wholly owned subsidiary Prilla 2000 showing a R4.6-million profit for the year to March 2008. Five hundred people are employed by the company which has two spinning mills, one of which is in Atlantis.

ONLINE RESOURCES
Cape Initiative in Materials and Manufacturing: www.cimm.co.za
Cape Town Regional Chamber of Commerce: www.capetownchamber.com
National Department of Trade and Industry: www.dti.gov.za
South African Textile Federation: www.texfed.co.za