Bryn
Doubleplusgood
- Joined
- Oct 29, 2010
- Messages
- 16,894
Would be cool if South Africa manufactured more products locally than what we import. There's a huge gap in the market there.
It's not up to manufacturers. It's up to the government to make South Africa less terrible to manufacture in.
The number of manufacturers has sharply declined in recent years. The margins are ridiculously thin thanks to having to compete with the price of cheap substitute products from overseas sweatshops, which our top retailers are more than happy to switch to if they would save so much as 50 cents per item. And they hold that over their suppliers constantly, and everyone lives in fear at being dropped suddenly. If you so much as miss a delivery slot you'll be fined R50k, but they can scale back their orders to almost zero without warning or just drop you altogether.
And the reason manufacturers are so vulnerable is because of the cost of what unions get up to, the damage caused during strikes, BEE requirements, the cost of massive generators, the cost of importing so many materials due to local producers going out of business, the holdups at customs, generally unproductive labour, the fluctuating exchange rate, the cost of security etc. It's just endless crap that mostly doesn't apply if you just move your business out of SA. Which is why so many have, and why most of those that did not regret it desperately.

