Results 1 to 8 of 8

Thread: Companies taking a knock

  1. #1
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts

    Companies taking a knock

    Are we starting to see the aftermath of covid ... the reason I say this ... people keep commenting about "how lucky I am to have so much work" ... today I had to attend to a breakdown in the factory (breakdowns take priority over all projects) ... as I left the factory I noticed one of the biggest panel building/ installation companies doors were closed and what seemed like all the vehicles parked outside ... never seen that in 4 years of passing the building.

    Then just further down the road ... one of the bigger electrical contractors vehicles also still parked in the driveway this morning and for the past few morning ... maybe he is ducking or on leave.

    I ask the question ... is the industry taking a knock ... are the big companies feeling it ... I have watched many companies grow too quickly and fold ... but the 2 companies mentioned above are well established companies ... is it due to non payments (I hear this is huge problem at the moment) ... not enough work to go around for the big companies ?
    Comments are based on opinion...not always facts....that's why people use an alias.

  2. #2
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    My one customer now owes me R32k for laser cutting over the past year. I let her pay me when she can. The laser cut stuff parts form part of her kits. This is her only income to feed herself, her useless husband and her two kids. She is up to her neck in debt. I charge her for labor only (I NEVER PAY FOR CUSTOMER MATERIALS FOR THIS EXACT REASON) so if I had to write the income off it wouldn't be a SUNK COST loss for me. They are in the process of selling her mother's house (she passed away 2 years ago without a will - which turned into a total mess) so there will be money to cover some of her debt (we hope)

    Covid KILLED HER BUSINESS along with hundreds of thousands of cottage industries reliant on Craft markets and Flea Markets. She used to teach Arts n Crafts at schools (Covid killed that entire industry as well) The Christmas markets are starting soon and we hope that things pick up.

  3. #3
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,480
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    Quote Originally Posted by ians View Post
    Are we starting to see the aftermath of covid ... the reason I say this ... people keep commenting about "how lucky I am to have so much work" ... today I had to attend to a breakdown in the factory (breakdowns take priority over all projects) ... as I left the factory I noticed one of the biggest panel building/ installation companies doors were closed and what seemed like all the vehicles parked outside ... never seen that in 4 years of passing the building.

    Then just further down the road ... one of the bigger electrical contractors vehicles also still parked in the driveway this morning and for the past few morning ... maybe he is ducking or on leave.

    I ask the question ... is the industry taking a knock ... are the big companies feeling it ... I have watched many companies grow too quickly and fold ... but the 2 companies mentioned above are well established companies ... is it due to non payments (I hear this is huge problem at the moment) ... not enough work to go around for the big companies ?
    Do note that there is a NUMSA strike, which may be impacting the industries you mentioned.
    In Jhb all metal working industries are closed. been going on now for 3 weeks.
    As if it is not difficult to be in business as it is right now, it is compounded by the unions making demands again.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  4. Thanks given for this post:

    Andromeda (21-Oct-21)

  5. #4
    Full Member
    Join Date
    Sep 2021
    Location
    cape town
    Posts
    46
    Thanks
    0
    Thanked 2 Times in 2 Posts
    32K ...project managers/clients are not paying R100's of thousands and cash flow drying up but hey bargaining council still want their money and so do sars want their vat etc and staff wages
    A industry without flexibility like what we have in sa with the restrictive labour laws and being told to pay a 16 day bonus every year for nothing ,will not be a long term sustainable industry.All you see now is single bakkies driving around and big companies due to red tape trying to down size...so yes the affects are being felt.How will it get better.???.Houses etc will be very expensive to build,and no electrical company will want to grow is some of the affects.This is first hand knowledge from one of cape town biggest electrical companies.I am not even mentioning the environment of issues that things like load shedding causes,public holidays,guys being off,clients messing you around and not paying.Essentially you would need to see a shrink if want to employ lots of people in sa.

  6. #5
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    18 October - Via FlyAfrica

    Massive fuel prices coming in South Africa and Africa in general - this is going to have a significant effect on the cost of flying & travel. No aviation product pricing available but here’s how much extra it’s going to cost you just to get to the airport.
    Petrol 95: increase of 98 cents per litre;
    Petrol 93: increase of 96 cents per litre;
    Diesel 0.05%: increase of R1.41 per litre;
    Diesel 0.005%: increase of R1.42 cents per litre;
    Illuminating Paraffin: increase R1.42 per litre.
    Another punch in the stomach for the consumer.

  7. #6
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    It sad to see so many burnt out factory premises ... still burnt ... and nobody repairing them ... then there are the ones just standing empty in one place I visited yesterday ... the entire block is empty ... with "to let" signs ... then today I noticed the one empty building is being looted ... the windows ... the copper water pipes ... the electrical.

    Most of the people I have been chatting to lately have had enough ... with the UK open again ... it seems the people leaving ... some will say yipee we dont need them ... well I cant see any else creating employment ... unless its happening and I just dont know about it.
    Comments are based on opinion...not always facts....that's why people use an alias.

  8. #7
    Diamond Member
    Join Date
    Apr 2010
    Location
    planet earth
    Posts
    3,943
    Thanks
    153
    Thanked 317 Times in 287 Posts
    I laugh at my assistant ... he thinks he doesnt pay taxes ... so it doesnt affect him ... yet he cries about the taxi fee ... when I pointed out to him that the petrol price increase will result in a taxi fee price increase ... then you see the smile disappear ... people are as ignorant as f%^k.

    When I tell him that certain parties are offering free electricity ... he smiles again ... then when I tell him the price of electricity has already increased by 30 % in the past 2 years ... to cover for all the lost ... stolen and free electricity ... suddenly the smile is gone again
    Comments are based on opinion...not always facts....that's why people use an alias.

  9. #8
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    There has been a significant decrease in the number of employees in the electrical contracting industry this year. There was some shrinkage happening in KZN before Covid-19 struck, and TERS delayed some retrenchment decisions. However this year has been a jobs bloodbath for the sector so far.

    From what I hear, projects are completing and there are not a lot of new projects coming on stream.
    The optimists say it is temporary and next year things will start catching up.
    Who knows for sure

    For my part we are doing rather well just at the moment for which I am very grateful. But I don't operate in that large-project new-build space that seems to be worst hit.

Similar Threads

  1. Knock Knock:D - Add-ons
    By pmbguy in forum Administrative issues
    Replies: 7
    Last Post: 18-May-13, 01:36 PM
  2. The FICA knock-on effect.
    By Dave A in forum Business Finance Forum
    Replies: 3
    Last Post: 12-Jun-07, 02:25 PM
  3. Reckless lending could knock property market
    By Dave A in forum National Credit Act Forum
    Replies: 0
    Last Post: 13-Mar-07, 08:37 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •