Can local manufacturing save our economy?

[roryf]

I run a manufacturing company and I am wanting to automate as much as I possibly can.I have tried and am still trying to create employment but it is not easy. The two major problems for me are:


Labour
The labour laws need to be relaxed.Just about every time I dismiss an employee I get taken to the CCMA.This is after following every procedure,getting in an outside Chairperson,having an appeal process.

Productivity is not nearly what it should be,despite tasking work and adding incentives.

Sick leave and just not pitching on the day.

TB and AIDs is a major problem too.

Government
We are inspected by Dept of Environmental Health/SARS/Dept of Labour at our various outlets and are often criticized for not having enough plasters in the First Aid box or the Fire extinguisher is almost out of date.All petty stuff! When you ask about the person/company that are really taking chances across the road,you get attitude.We need to have a system that is more fair.

The local service providers Eskom and Telkom also need mentioning as their service leave a lot to be desired.



I have considered getting all my product made overseas and then just shipping it in on demand.It would be risky for me to do that at the moment but could be a reality soon.For my short term planning I will be automating more.

[Incentive]

The DTI has made various incentive schemes available for manufacturers, where they can improve their competitiveness and sustain employment numbers, such as Manufacturing Competitiveness Enhancement Programme (MCEP), Export Marketing and Investment Assistance (EMIA) and Manufacturing Investment Programme (MIP). These incentive schemes are actually well-run and extremely well-funded, unlike the National Jobs Fund that was managed by the Developmental Bank of SA. With the abovementioned DTI incentives, you can get up to 50% of your funds back from the DTI.

The problem with the incentive schemes is two-fold:
1.) Most people are not aware of them, and applying for them is quite technical. Most smaller manufacturers cannot afford to employ a dedicated person to manage the application and the claims.
2.) Many people misinterpret the incentives as funding that will allow them to expand/invest in new plant & machinery, where in reality the incentives is a facility to get money back after your expenditure. You just need to apply for the incentives at least 3 months prior to taking the new machines into production.

If you are interested in applying for these incentives, it is best to make use of third-party consultants, due to the amount of work involved. Just be careful when choosing a consultant, as some consultants charge a very big fee upfront, with no guarantee of success, whilst others charge a small fee for the application, and will only charge a percentage of what you get back from the DTI, once you actually receive money back. This leaves the motivation with them to ensure you get money back, while you focus on managing your company.

[Blurock]

I have considered getting all my product made overseas and then just shipping it in on demand.It would be risky for me to do that at the moment but could be a reality soon.For my short term planning I will be automating more.

Very, very risky as you will be exposed to currency risk, as well as performance risk from the manufacturer. The sad thing is that you will be exporting jobs and technical skills that is sorely needed in this country.

I understand your plight, but we have to start somewhere. Remember the story about the boy and the starfish. It made a difference to the ones that he saved.

[adrianh]

People in this country seem to think that they are owed jobs and once they have they jobs they are free to abuse the employer and his business to their delight through strikes etc. My view is that business generally takes the path of least resistance. Why in the world would anybody put up a factory in this country and deal with the daily labour nonsense if they could put the same factory up in India or simply import from China.

The locals are simply incapable of understanding that people are in business to make money, they are not in business to employ hundreds of lazy ass strikers who do as little s possible. I will employ people as long as its productive and cost effective to do so.

The masses need to learn that nobody owes them, they need to get off their asses and work for a living, like we all do. The fact that I make X amount because I spent 40 years learning how to run my business gives them no right to demand and destroy.

What they don't understand is that many skilled employers can pack up and go to another country and start afresh. If I were to go to OZ today I could earn a living and start a business fairly quickly because my skillset is in my head. The masses are knocking nails into their employment coffin every day that they demand and destroy. When skilled people leave the masses will be left with nothing but industries that they destroyed themselves.

[Justloadit]

How long can the bully(NUMSA) continue his reign?

Are we beginning to see the cracks with the petrol attendants strike?
Most people are quite happy to pump their own petrol and if is a cheaper price all the better.


I heard an interesting caller on 702 radio yesterday, which was about the forced retirement of the Prisons commissioner, where an oldish gentlemen, over 60 years old called the radio station and commented that whilst he understands that you retire people to give the youngsters employment, that they have no skills due the poor education, or lack there off, and that he had been at a construction site, in which all the attendees, from quantity surveyor, engineers, were all over the 60 year age. And that the reason that they were currently employed was due to the years of accumulated knowledge, and that the older people tended to make far less mistakes.

A few years back I was very concerned due to the lack of young engineers, but after this comment, I am very chuffed, it simply means that I have protected employment for at least another 20 or 30 years, well into my retirement age


Well done to our current government, ensuring my continued employment for many many years to come.

[desA]

South Africa is fast faiding off the international radar screen:

1. A criminal justice system that has a conviction success rate, for commercial crime, of less that 1%!
2. A criminal justice system where a consultant has to walk the matter through the system until prosecution - due to lack of interest, lack of expertise, total case over-load (some > 120 new cases per detective/month)...
3. A civil legal system which protects the rich criminals.
4. A civil legal system where the thief can use stolen funds to pay attorneys to protect him from the person he stole the money from.
5. No justice for the common man/woman.
6. An education system fast slipping off the lowest rungs of accepted standards.
7. A totally dysfunctional government, run by dishonest, greedy fat-cats.

Can local manufacturing save our economy?

Of course not!

[Phil Cooper]

desA - one point you missed.

8. A government who pays millions to defend employees who are drunk / abusive / criminals IN THEIR PRIVATE TIME WHEN NOT ON DUTY.

[adrianh]

Don't forget that when the South African governmust tried to tell Egypt how to solve their problems they all bust out laughing!