The manufacturing industry in South Africa demonstrated resilience and steady growth in 2021, with total income reaching R2 631.6 billion. This represents a 1.2% increase per annum compared to the income reported in the corresponding survey of 2017, which amounted to R2 512.5 billion. The data, based on a recent press release by the Department of Trade, Industry, and Competition, sheds light on the industry’s performance and highlights significant shifts over the past decade.
Comparing data from 2017 and 2021, the report indicated substantial increases in income for three key divisions: ‘food products and beverages,’ ‘coke, petroleum, chemical products, rubber and plastic,’ and ‘metals, metal products, machinery, and equipment.’ The ‘food products and beverages’ division reported the most significant increase, with an impressive R90.7 billion surge. It was followed by the ‘coke, petroleum, chemical products, rubber and plastic’ division, which reported a notable increase of R28.1 billion. Lastly, the ‘metals, metal products, machinery, and equipment’ division saw an increase of R19.1 billion.
However, the industry also faced challenges, as indicated by the largest decreases in income for certain divisions during the same period. The ‘transport equipment’ division experienced the most significant decline, reporting a decrease of R8.6 billion. This was followed by the ‘glass and other non-metallic mineral products’ division with a decrease of R6.9 billion, and the ‘telecommunication, medical and optical equipment and watches and clocks’ division with a decrease of R6.7 billion.
One of the most notable trends observed over the past decade is the shift in income distribution among divisions. Between 2011 and 2021, the ‘food products and beverages’ division gained the most substantial percentage share of income, with an increase of 5.5 percentage points. In 2011, this division contributed 17.1% to the total income, while in 2021, it surged to 22.6%. On the other hand, the ‘coke, petroleum, chemical products, rubber and plastic’ division experienced the largest percentage share loss, decreasing by 4.1 percentage points. In 2011, it contributed 29.9% to the total income, which reduced to 25.8% in 2021.
The press release also revealed significant insights into employment trends within the manufacturing industry. As of the end of June 2021, the total number of persons employed in the industry was 1,092,417. This marked a decrease of 2.0% per annum compared to the number employed at the end of June 2017, which was 1,183,506.
A closer look at the employment data by divisions indicated the largest decrease in the number of persons employed in the ‘wood, wood products, paper, publishing, and printing’ division, which saw a reduction of 30,639 employees. Following closely were the ‘metals, metal products, machinery, and equipment’ division (-26,565), ‘glass and other non-metallic mineral products’ (-17,653), ‘coke, petroleum, chemical products, rubber, and plastic’ (-16,944), and ‘textiles, clothing, leather, and footwear’ (-14,385) divisions. In contrast, there were increases in the number of persons employed in the ‘food products and beverages’ (+19,220) and ‘transport equipment’ (+8,718) divisions.
The overall trend in employment over the decade also showed a decline, with the total number of persons employed in the manufacturing industry decreasing from 1,295,049 in 2011 to a low of 1,092,417 in 2021—a loss of 202,632 employees. Among the divisions, the ‘metals, metal products, machinery, and equipment’ division experienced the most substantial loss in the number of persons employed (-67,378), followed by ‘textiles, clothing, leather, and footwear’ (-52,820), ‘wood, wood products, paper, publishing, and printing’ (-38,953), and ‘furniture, other manufacturing, and recycling’ (-24,106) divisions. The ‘food products and beverages’ division was the only one that saw a gain in the number of persons employed (+26,393) during the same period.
Looking into average salaries and wages within the manufacturing industry, the total average for 2021 was R248,276. The division with the highest average salaries and wages was ‘coke, petroleum, chemical products, rubber, and plastic,’ with an average of R338,828. It was followed by the ‘transport equipment’ division (R316,670) and the ‘telecommunication, medical, and optical equipment and watches and clocks’ division (R284,372). In contrast, the division with the lowest average salaries and wages was ‘textiles, clothing, leather, and footwear’ with an average of R132,485.
The average salaries and wages in the manufacturing industry have shown positive growth over the past decade. From R142,697 in 2011, it increased to R248,276 in 2021—an annualized growth rate of 5.7%.
Despite challenges in employment, the manufacturing industry’s consistent growth in total income and average salaries and wages paints a promising picture for the sector. As technology continues to shape the industry’s landscape, it remains vital for stakeholders and policymakers to address employment concerns and support further innovation in this critical economic pillar.
