Electricity + Control December 2016

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ENERGY + ENVIROFICIENCY
Times tough for the consulting engineering industry
The Consulting Engineers South Africa
(CESA) Bi-annual Economic and Capacity
Survey for the period January to June 2016,
just released indicates that times remain
tough. Confidence levels amongst firms
have deteriorated over the last few years,
alongside modest increases in fee earnings.
The outlook for gross fixed investment has
deteriorated and expected to fall behind
GDP growth in the next three years. Over
537 firms employing just over 24 315 staff,
who collectively earn a total fee income
of R2 billion per annum, are members of
CESA.
Three key factors continue to influence
the global outlook – these are the gradual
slowdown and rebalancing of the Chinese
economy; lower prices for energy and other
commodities; and the gradual tightening of
US monetary policy.
The South African economy has faced
several headwinds in 2016, some of which
were expected, while others were not.
Global factors play a much bigger role than
may be suggested, with the sluggish global
economy offering little relief in the demand
for SouthAfrican goods and services which
has waned considerably over the last two
to three years. Contractors have for some
time reported on the slow pace by which
contracts are awarded, as well as the slow
roll out of government projects.This creates
disconnect between opinions expressed by
engineers and contractors, where projects
are in planning stages, supporting earnings
in the consulting engineering industry, but
implementation is slow.
With industry confidence levels well
below average, there are many challenges
to overcome. Regulation issues, including
the procurement of consulting engineer-
ing services, remain one of the biggest
challenges faced by the industry. Unreal-
istic tendering fees remain a concern for
members, while the extended time it takes
in which to finalise a proposal is affecting
profitability in the industry. The quality of
technical personnel is argued by some firms
to have deteriorated, putting greater risk on
the built environment sector. Skills short-
age is regarded as one the most significant
institutional challenges faced by the private
and the public sector. The involvement of
non-CESAmembers in government tenders
and procurement continues to threaten the
standard and performance of the industry.
Firms from across South African borders
are tendering at rates that are not competi-
tive for local firms.
Unlocking greater private sector partici-
pation is seen as a critical element to fast
track delivery, service delivery, especially
at municipal level remains a critical burn-
ing issue, fraud and corruption is affecting
the ethos of our society, with a lot of talk
and little action accompanying the growing
evidence of corruption.
Enquiries: Dennis Ndaba.Tel. +27 (0) 11 463
2022 or email
Reliable electric power generation
Vert Energy has positioned itself at the forefront of the energy sec-
tor in Southern Africa.The company offers solutions for traditional
petrol and diesel power generation and also has a range of prod-
ucts for renewable energy sources, such as hydro, wind, natural
gas and solar.
“This range of premium branded products, which ensures reli-
able electric power generation solutions, is enhanced by a technical
advisory and support service, to ensure there is no interruption in
power supply, as a result of load shedding or mains failure,” says
Vert Energy’s managing director, Grant Robertson. “The company’s
focus on renewable energy sources to produce ‘green’ energy as
a reliable source of electricity, encompasses sustainable solutions
for wind power, hydroelectricity, photovoltaic (solar) and natural
gas energy production.
“Vert Energy’s extensive range of power generation components
for the production of wind power caters primarily to domestic and
light commercial applications using the NSM range of low voltage
permanent magnet generators (PMG), to full scale power plant
production for independent power producers and utilities, incor-
porating low, medium and high voltage Leroy Somer alternators
and DEIF generator controls for wind
applications.”
Leroy Somer alternators – which are
available exclusively throughout Sub
Saharan Africa fromVert Energy – are
known in the wind power generation
sector for high electrical efficiency,
reliability and strict compliance with
environmental constraints. (Leroy-
Somer is ISO 14001 and ISO 9001
certified).
Enquiries: Ryan Robertson.
Tel. +27 (0) 11 453 9669 or email
ROUND UP
CESA CEO, Chris Campbell.
31 December ‘16 Electricity+Control