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January - June 2009. Biannual Economic and Capacity Survey. Firm distribution based on Annual Turnover based on responses received: Jan – June 2009. Salient Features. Economic Impact. Relationship to Gross Fixed Capital Formation. - PowerPoint PPT Presentation
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January - June 2009
Biannual Economic and Capacity Survey
CESA Biannual Economic and Capacity Survey January – June 2009
Firm distribution based on Annual Turnoverbased on responses received: Jan – June 2009
Category by gross annual income
% of firms
0 – R1,5m 14%
R1,5m – R11,5m 49%
> R11,5m 37%
Total 100.0%
Firm distribution based on turnover
0-1.510.8%
1.5-11.541.5%
>11.547.7%
Category by employment
% of firms % of industry employment
A > 100 (Large)
23.3% 81.8%
B 20 – 100(Medium)
34.9% 13.6%
C 10 – 20(Small)
23.3% 3.4%
D< 10 (Micro)
18.6% 1.2%
Firm distribution based on employment
>10083%
20 - 10012%
10 - 204%
<101%
CESA Biannual Economic and Capacity Survey January – June 2009
Salient Features
CESA Biannual Economic and Capacity Survey January – June 2009
Economic Impact
CESA Biannual Economic and Capacity Survey January – June 2009
Relationship to Gross Fixed Capital Formation
CESA Biannual Economic and Capacity Survey January – June 2009
2 0002 500
3 0003 5004 000
4 5005 0005 500
6 0006 5007 000
7 5008 000
8 5009 0009 500
10 00010 50011 000
11 50012 000
Rm
, 20
00 p
rices
Rm (Annualised) 4 502 4 323 3 598 3 558 3 212 3 259 3 395 3 719 3 562 3 922 3 725 3 593 3 426 3 666 3 692 3 957 4 330 5 954 5 983 6 771 7 183 9499 10407 9700
Dec-97
J un-98
Dec-98
J un-99
Dec-99
J un-00
Dec-00
J un-01
Dec-01
J un-02
Dec-02
J un-03
Dec-03
J un-04
Dec-04
J un-05
Dec-05
J un-06
Dec-06
J un-07
Dec-07
J un-08
Dec-08
J un-09
Consulting Engineering IndustryFee income, Rm Constant 2000 prices (CPI Deflated) Annualised
CESA Biannual Economic and Capacity Survey January – June 2009
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Survey period
PE
RC
EN
TA
GE
% 13% 12% 8% -20% -18% -11% -8% 6% 14% 5% 5% 5% -8% -8% 2% 8% 8% 17% 51% 38% 14% 20% 40% 43% 2.10%
Jun-
97
Dec-
97
Jun-
98
Dec-
98
Jun-
99
Dec-
99
Jun-
00
Dec-
00
Jun-
01
Dec-
01
Jun-
02
Dec-
02
Jun-
03
Dec-
03
Jun-
04
Dec-
04
Jun-
05
Dec-
05
Jun-
06
Dec-
06
Jun-
07
Dec-
07
Jun-
08
Dec-
08
Jun-
09
Consulting Engineering IndustryReal Fee income (CPI deflated), 2000 prices: Annual Change
CESA Biannual Economic and Capacity Survey January – June 2009
-60%
-40%
-20%
0%
20%
40%
60%
Jun
-95
Jun
-96
Jun
-97
De
c-9
7
Jun
-98
De
c-9
8
Jun
-99
De
c-9
9
Jun
-00
De
c-0
0
Jun
-01
De
c-0
1
Jun
-02
De
c-0
2
Jun
-03
De
c-0
3
Jun
-04
De
c-0
4
Jun
-05
De
c-0
5
Jun
-06
De
c-0
6
Jun
-07
De
c-0
7
Jun
-08
De
c-0
8
Jun
-09
De
c-0
9
Jun
-09
% Change fro
m p
revio
us
surv
ey
-10
10
30
50
70
90
110
% R
esp
ondents
sati
sfied
% Chg Index
CESAConfidence Index
CESA Biannual Economic and Capacity Survey January – June 2009
CESA Biannual Economic and Capacity Survey January – June 2009
20
30
40
50
60
70
80
90
100
110
Jun-
96
Jun-
97
Jan-
98
Jun-
98
Jan-
99
Jun-
99
Jan-
00
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
Dec
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
CO
NF
IDE
NC
E IN
DE
X
0
2 000
4 000
6 000
8 000
10 000
12 000
Fee
inco
me
(con
stan
t pr
ices
)
Confidence Fee income Constant prices
Consulting Engineering IndustryReal Fee income (CPI deflated) vs confidence
CESA Biannual Economic and Capacity Survey January – June 2009
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Per
cent
age
LCI 15.15% 11.35% 22.51% 21.88% 9.24% -1.92% 3.77% 15.00% 7.97% 2.88% 4.32% 14.26% 21.50% 11.30% 5.30% 7.20% 9.50% 10.60% 9.10% 10.20% 17.80% 25.50% 25.40%
Jun-98 Jan-99 Jun-99 Jan-00 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
CESA Labour Cost Indicator: Y-Y Change
CESA Biannual Economic and Capacity Survey January – June 2009
20
30
40
50
60
70
80
90
100
110
Jun-
96
Jun-
97
Jan-
98
Jun-
98
Jan-
99
Jun-
99
Jan-
00
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
Dec
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
CO
NF
IDE
NC
E I
ND
EX
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
15000
16000
17000
18000
19000
20000
Fee
in
com
e, R
mil
l, c
urr
ent
pri
ces
Confidence Fee income Current prices Trend
Consulting Engineering IndustryNominal Fee income vs confidence
CESA Biannual Economic and Capacity Survey January – June 2009
8 500
9 500
10 500
11 500
12 500
13 500
14 500
15 500
16 500
17 500
18 500
19 500
20 500D
ec-
97
Jun
-98
De
c-9
8
Jun
-99
De
c-9
9
Jun
-00
De
c-0
0
Jun
-01
De
c-0
1
Jun
-02
De
c-0
2
Jun
-03
De
c-0
3
Jun
-04
De
c-0
4
Jun
-05
De
c-0
5
Jun
-06
De
c-0
6
Jun
-07
De
c-0
7
Jun
-08
De
c-0
8
Jun
-09
Em
ploy
men
t
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
Fee
inco
me
(con
stan
t pr
ices
)
Employment Revised Income: CPI Income : CESA LCI
Consulting Engineering IndustryEmployment vs REAL fee income (CPI / LCI Deflated)
CESA Biannual Economic and Capacity Survey January – June 2009
9 500
10 500
11 500
12 500
13 500
14 500
15 500
16 500
17 500
18 500
19 500
20 500
Dec
-97
Jun-
98
Dec
-98
Jun-
99
Dec
-99
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
Dec
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Em
plo
yme
nt
0
300
600
900
1 200
1 500
1 800
2 100
2 400
2 700
3 000
3 300
3 600
3 900
4 200
4 500
4 800
5 100
5 400
Sa
lary
/Wa
ge
s (
R m
ill, 2
00
0 p
ric
es
)
Employment Revised Salary/Wage bill (Constant)
Consulting Engineering IndustryEmployment vs Salary / Wage bill
CESA Biannual Economic and Capacity Survey January – June 2009
Discounting
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
%
% 15.10% 16.62% 15.30% 15.30% 18.20%
JUN07 DEC07 JUN08 DEC08 JUN09
Question: What is the prevailing discount being offered in a tendering situation to clients by your firm, benchmarked against the ECSA Guideline Fee Scales?
37% of firmsdiscounted by more than 20%
CESA Biannual Economic and Capacity Survey January – June 2009
Disciplines
CESA Biannual Economic and Capacity Survey January – June 2009
Fee income earned by Sub-disciplines: % ShareJune 2008 to June 2009
0% 10% 20% 30% 40% 50% 60% 70%
Agricultural
Architecture
Mechanical building Services
Civil
Electrical / Electronic
Environmental
Facilities
Geotechnical
Industrial Process / Chemical
GIS
Hydraulics
Information Systems / Technology
Marine
Mechanical
Mining
Project Management
Quantity Surveying
Structural
Tow n planning
Jun-08 Dec-08 Jun-09
Question: What type of work did your company engage in during the past 6 months?
CESA Biannual Economic and Capacity Survey January – June 2009
Fee income earned by Sub-disciplines: % ShareJune 2008 to June 2009
0% 10% 20% 30% 40% 50% 60% 70%
Civil
Mining
Project Management
Structural
Jun-08 Dec-08 Jun-09
Question: What type of work did your company engage in during the past 6 months? 80% of fees are earned in four
disciplines namely civil, project management,
structural and mining
CESA Biannual Economic and Capacity Survey January – June 2009
Fee income earned by Sub-disciplines: % Market Share% point change in % share in the last 12 months
-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%
Agricultural
Architecture
Mechanical building Services
Civil
Electrical / Electronic
Environmental
Facilities
Geotechnical
Industrial Process / Chemical
GIS
Hydraulics
Information Systems / Technology
Marine
Mechanical
Mining
Project Management
Quantity Surveying
Structural
Tow n planning
Question: What type of work did your company engage in during the past 6 months?
Contribution of mining increased to 8,7% in June 2009 Survey
CESA Biannual Economic and Capacity Survey January – June 2009
0
200
400
600
800
1000
1200
1400
1600
2000 2001 2002 2003 2004 2005 2006 2007 2008 Jun-09
Oth
er,
R m
ill
2000
pri
ces
0
1000
2000
3000
4000
5000
6000
Civ
il,
R m
ill
2000
pri
ces
Structural Proj Mang Mining Civil
Fee income earned by Top four disciplines: R mill 2000 pricesAnnual average: 2000 – June 2009 (annualised)
Civil
CESA Biannual Economic and Capacity Survey January – June 2009
Economic Sector
CESA Biannual Economic and Capacity Survey January – June 2009
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Wat
er
Tra
nspo
rtat
ion
Ene
rgy
Min
ing/
Qua
rryi
ng
Edu
catio
n
Hea
lth
Tou
rism
Hou
sing
Com
mer
cial
Agr
icul
ture
Oth
er
Per
cen
tag
e sh
are
Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Fee income earned by economic sectorPercentage market share
June 2007 – June 2009
Section A General Questions: Question: Income distribution per economic sector 80% of fees earned in
transportation, water, commercial and housing sectors.
Mining sector increased its share to 10% in June 2009 survey
CESA Biannual Economic and Capacity Survey January – June 2009
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Oth
er,
R m
ill
2000
pri
ces
Water (Full water cycle) Transportation (land, air, road, rail, ports)
Energy (electricity, gas, hydro) Mining / Quarrying
Tourism / Leisure Housing (residential inc. land)
Commercial
Consulting Engineering IndustryFee income earned by key economic sectors
December 2005 – June 2009
Section A General Questions: Question: Income distribution per economic sector
CESA Biannual Economic and Capacity Survey January – June 2009
0
5
10
15
20
25
30
35
40
45
50
% S
ha
re (
ba
r)
-10
-5
0
5
10
15% Share
Change last 12 months
% Share 7.8 9.4 1.6 2.2 1.9 3.2 45.1 2.6 20.2 3.9 2.1
Change last 12 months -1 -3.9 -0.3 -1.9 -0.9 0.3 12.3 -0.6 6.3 -6.8 -3.5
E-Cape W-Cape N-Cape F State N-W Lim Gaut Mpu Kwaz Africa Int'l
Provincial Market Share: June 2009Vs change in market share from June 2008
GA
IN
mark
et
sh
are
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
0
5
10
15
20
25
30
35
40
45
% S
ha
re
2005
2006
2007
2008
Jun-09
2005 9.56 16.4 2.1 4.1 3.5 3.3 35 4.4 14.3 6.1 1.3
2006 9.8 19.5 2.2 4 4 3.2 32.7 3 12.7 7.5 1.5
2007 9.6 18 1.4 4.5 6 3 34.5 3.5 12.5 5.8 1.2
2008 7.1 13.1 1.5 3.3 3.2 2.9 35.9 3.3 13.1 11.6 5.4
Jun-09 6.6 11.2 1.3 2.3 2.7 3 42 3 16.3 8.2 3.7
E-Cape W-Cape N-Cape F State N-W Lim Gaut Mpu Kwaz Africa Int'l
Provincial Market Share2005 – June 2009 (Annual Avg)
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
0
500
1000
1500
2000
2500
3000
3500
4000
4500
R m
ill,
Co
nst
ant
2000
pri
ces
E-CAPE W-CAPE GAUT KWA-NAT
E-CAPE 277 252 266 243 176 192 278 289 288 353 344 388 450 400 395 465 588 655 667 750 694 654
W-CAPE 507 552 525 482 355 335 481 538 527 518 560 478 438 572 681 1058 1164 1077 1253 1285 1 303 1 127
GAUT 1 502 1 350 1 257 1 195 1 343 1 483 1 383 1 380 1 343 1 120 947 1 122 1 253 1 239 1 452 1769 1954 2113 2408 2813 3 582 4 212
KWA-NAT 591 453 427 409 362 336 375 393 387 379 473 436 420 535 591 688 756 839 871 1066 1 300 1 620
Dec-98 Jun-99 Dec-99 Jun-00 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Jun'03 Dec'03 Jun'04 Dec'04 Jun'05 'Dec'05 'Jun'06 'Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09
Fee income earned by province(High Capacity economies) – Annualised smoothed
Gauteng
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
0
50
100
150
200
250
300
Dec-98
Jun-
99
Dec-99
Jun-
00
Dec'00
Jun'0
1
Dec'01
Jun'0
2
Dec'02
Jun'0
3
Dec'03
Jun'0
4
Dec'04
Jun'0
5
'Dec
'05
'Jun'06
'Dec
'06
Jun'0
7
Dec'07
Jun'0
8
Dec'08
Jun'0
9
Ind
ex D
ec'9
8=10
0
High capacity Low capacity
Fee income earned (Constant 2000 prices)
High Capacity vs lower capacity provincial economies (Smoothed)
High Capacity: WC, EC, GAU, KZN = 80% of total fee earnings (December 2007 survey)
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
82.00%
84.00%
86.00%
88.00%
Per
cen
tag
e
% 79.65% 79.73% 81.59% 81.47% 76.04% 75.53% 80.12% 80.68% 80.70% 80.63% 80.07% 79.14% 78.25% 79.42% 81.27% 82.57% 82.07% 81.64% 80% 80.23% 83.25% 86.05%
Dec-98 Jun-99 Dec-99 Jun-00 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Jun'03 Dec'03 Jun'04 Dec'04 Jun'05 'Dec'05 'Jun'06 'Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09
Fee income earned (Constant 2000 prices)
% of RSA Earnings : High Capacity provincial economies (Smoothed)
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
Fee income earned : RSA vs EX-RSAR mill, 2000 prices (Annualised, smoothed)
Section A: General Questions: Question 10Income distribution per province
CESA Biannual Economic and Capacity Survey January – June 2009
Client
CESA Biannual Economic and Capacity Survey January – June 2009
0
10
20
30
40
50
60
% S
ha
re
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Jun-07 8.9 12.7 28.8 11.4 38.2
Dec-07 9.1 9.6 25.9 10.7 44.6
Jun-08 9.7 15.8 21 12.8 40.7
Dec-08 7 17.7 27.9 10.4 37
Jun-09 6.4 10.7 23 9.8 50.2
Central Provincial Local Parastatals Private
Fee income earned by type of client% Share
Section A: General Questions: Question 11Local (SA) Income distribution per fee paying client type, during the past 6 months
CESA Biannual Economic and Capacity Survey January – June 2009
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
DE
C98
JUN
99
DE
C99
JUN
00
DE
C00
JUN
01
DE
C01
JUN
02
DE
C02
JUN
03
DE
C03
JUN
04
DE
C04
JUN
05
DE
C05
JUN
06
DE
C06
JUN
07
DE
C07
JUN
08
DE
C08
JUN
09
R m
ill, C
on
sta
nt
20
00
pri
ce
s
Central
Provincial
Local
Parastatals
Private
Fee income earned by type of clientR mill 2000 prices
(Annualised, smoothed - avg over 2 survey periods)
Section A: General Questions: Question 11Local (SA) Income distribution per fee paying client type, during the past 6 months
CESA Biannual Economic and Capacity Survey January – June 2009
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Rm
, 20
00
pri
ce
s
Public
Private
Public 2 590 2 254 1 991 1 857 1 775 1 962 2 013 2 108 2 353 2 219 1 996 2 180 2 389 2 417 2 705 3 200 3 470 4 187 3979 5633 6556 4840
Private 1 371 1 324 1 394 1 379 1 553 1 595 1 627 1 634 1 471 1 440 1 513 1 366 1 290 1 407 1 437 1 941 2 498 2 587 3204 3866 3851 4870
DEC9
8
JUN9
9
DEC9
9
JUN0
0
DEC0
0
JUN0
1
DEC0
1
JUN0
2
DEC0
2
JUN0
3
DEC0
3
JUN0
4
DEC0
4
JUN0
5
DEC0
5
JUN0
6
DEC0
6
JUN0
7
DEC0
7
JUN0
8
DEC0
8
JUN0
9
Fee income earned by type of clientConstant 2000 prices
(Annualised, smoothed - avg over 2 survey periods)
Section A: General Questions: Question 11Local (SA) Income distribution per fee paying client type, during the past 6 months
Fees earned working in the public sector
fell by 14% y/y in the June 2009 survey
CESA Biannual Economic and Capacity Survey January – June 2009
Competition
CESA Biannual Economic and Capacity Survey January – June 2009
Competition in tendering
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% R
espo
nden
ts,
com
petit
ion
very
kee
n to
fie
rce
Jun-07 0.00% 2.42% 22.11% 56.29% 19.18%
Dec-07 0.00% 3.01% 17.55% 55.57% 23.86%
Jun-08 0.00% 1.40% 20.80% 48.70% 29.10%
Dec-08 0.00% 0.00% 21.42% 42.28% 36.29%
Jun-09 0.22% 0.51% 62.73% 28.36% 8.18%
Very Low Low Keen Very Keen Fierce
Section B: Business Cycle Indicators - Question 16During Jan – June 2008 competition for work was (Tick selection)
CESA Biannual Economic and Capacity Survey January – June 2009
Competition in tendering
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
% R
espo
nden
ts,
com
petit
ion
Kee
n to
Fie
rce
% 99.9% 99.9% 97.5% 98.9% 98.0% 99.3% 99.0% 98.2% 99.1% 97.8% 98.7% 97.1% 99.5% 99.1% 97.6% 96.9% 98.6% 100% 99.30%
Jun-
00
Dec-
00
Jun-
01
Dec-
01
Jun-
02
Dec-
02
Jun-
03
Dec-
03
Jun-
04
Dec-
04
Jun-
05
Dec-
05
Jun-
06
Dec-
06
Jun-
07
Dec-
07
Jun-
08
Dec-
08
Jun-
09
Section B: Business Cycle Indicators - Question 16During Jan – June 2009 competition for work was (Tick selection)
CESA Biannual Economic and Capacity Survey January – June 2009
Recruitment
CESA Biannual Economic and Capacity Survey January – June 2009
0
10
20
30
40
50
60
70
80
90
100
Eng O Tech Technologist Technicians Support staff
Jun'06 Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09
% of Firms wanting to increase staff
New June 2005 survey
CESA Biannual Economic and Capacity Survey January – June 2009
Engineering Skills Shortfall
-10
0
10
20
30
40
50
60
70
80
90
100
De
c-9
7
Ju
n-9
8
De
c-9
8
Ju
n-9
9
De
c-9
9
Ju
n-0
0
De
c-0
0
Ju
n-0
1
De
c-0
1
Ju
n-0
2
De
c-0
2
Ju
n-0
3
De
c-0
3
Ju
n-0
4
De
c-0
4
Ju
n-0
5
De
c-0
5
Ju
n-0
6
De
c-0
6
Ju
n-0
7
De
c-0
7
Ju
n-0
8
De
c-0
8
Ju
n-0
9
% o
f re
sp
on
de
nts
% Wanting to increase engineers Difficulties
% that want to increase
% Experiencing difficulties
CESA Biannual Economic and Capacity Survey January – June 2009
0
10
20
30
40
50
60
70
80
90
100E
ng
O T
ech
Tec
hn
olo
gis
t
Tec
hn
icia
ns
Oth
er
PD
I En
g
PD
I Tec
h
PD
I Tec
hn
o
% R
es
po
nd
en
ts
Jun'06 Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09
Recruitment problems
CESA Biannual Economic and Capacity Survey January – June 2009
Training / Bursaries
CESA Biannual Economic and Capacity Survey January – June 2009
Bursaries% of Salary / Wage bill
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
Dec
-96
Dec
-97
Jun
-98
Dec
-98
Jun
-99
Dec
-99
Jun
-00
Dec
-00
Jun
-01
Dec
-01
Jun
-02
Dec
-02
Jun
-03
Dec
-03
Jun
-04
Dec
-04
Jun
-05
Dec
-05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
CESA Biannual Economic and Capacity Survey January – June 2009
0
10
20
30
40
50
60
70
80
90
Dec
-96
Jun
-98
Jun
-99
Jun
-00
Jun
-01
Jun
-02
Jun
-03
Jun
-04
Jun
-05
Jun
-06
Jun
-07
Jun
-08
Jun
-09
R m
ill, 2
000
pri
ces
BursariesR mill 2000 prices (Annualised)
CESA Biannual Economic and Capacity Survey January – June 2009
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Jun
e 20
05
Dec
emb
er20
06
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Training (Salaries and Direct Training Costs) % of Payroll
Dat
a no
t ava
ilab
le
Large % of respondents did not complete information on salaries in December 2008 survey
CESA Biannual Economic and Capacity Survey January – June 2009
0
500
1000
1500
2000
2500
3000
jun
e 20
05
Dec
emb
er20
05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Training (Salaries and Direct Training Costs) Rand millions, Constant 2000 prices
Dat
a no
t ava
ilab
le
Large % of respondents did not complete information on salaries in December 2008 survey
CESA Biannual Economic and Capacity Survey January – June 2009
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%D
ec
-97
Ju
n-9
8
De
c-9
8
Ju
n-9
9
De
c-9
9
Ju
n-0
0
De
c-0
0
Ju
n-0
1
De
c-0
1
Ju
n-0
2
De
c-0
2
Ju
n-0
3
De
c-0
3
Ju
n-0
4
De
c-0
4
Ju
n-0
5
De
c-0
5
Ju
n-0
6
De
c-0
6
Ju
n-0
7
De
c-0
7
Ju
n-0
8
De
c-0
8
Ju
n-0
9
%Training (Direct costs only)
% of Payroll
CESA Biannual Economic and Capacity Survey January – June 2009
0
10
20
30
40
50
60
70
80
90
100D
ec-9
7
Jun
-98
Dec
-98
Jun
-99
Dec
-99
Jun
-00
Dec
-00
Jun
-01
Dec
-01
Jun
-02
Dec
-02
Jun
-03
Dec
-03
Jun
-04
Dec
-04
Jun
-05
Dec
-05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
R m
ill 2
000
pri
ces
Training (Direct costs)Rand millions, Constant 2000 prices
CESA Biannual Economic and Capacity Survey January – June 2009
0
50000
100000
150000
200000
25000020
01
2002
2003
2004
2005
2006
2007
Student enrolments in public higher education institutionsScience, Engineering & Technology
Increased by 39% between 2005 and 2007
214 341
Source: Department of Education
CESA Biannual Economic and Capacity Survey January – June 2009
Capacity
CESA Biannual Economic and Capacity Survey January – June 2009
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Jun-
98
Jan-
99
Jun-
99
Dec
-99
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
Dec
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Uti
lisa
tio
n
-30
-20
-10
0
10
20
30
40
50
60
70
80
Net
% c
han
ge
exp
ecti
ng
in
crea
se
Net % Change Utilisation
Industry Capacity UtilisationOf existing technical staff
CESA Biannual Economic and Capacity Survey January – June 2009
Delayed Payments
CESA Biannual Economic and Capacity Survey January – June 2009
Total fee income outstanding, by client Exceeding 90 days
0
2
4
6
8
10
12
14C
entr
al
Pro
vin
cial
Lo
cal
Par
asta
tals
Pri
vate
% o
f T
ota
l fe
e i
nc
om
e e
arn
ed
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
CESA Biannual Economic and Capacity Survey January – June 2009
Fee income outstanding for longer than 90 daysJune 2009
CESA Biannual Economic and Capacity Survey January – June 2009
Fees outstanding for more than 90 daysR mill, annualised, nominal prices
Client R mill (annualised)current prices
Central government R53
Provincial R132
Local R419
State Owned Enterprises R15
Private sector R801
Foreign R136
Total R1557
CESA Biannual Economic and Capacity Survey January – June 2009
Total fee income outstanding for longer than 90 days% of total fee income earned
0
2
4
6
8
10
12
14
16
18D
ec-9
9
Jun-
00
Dec
-00
Jun-
01
Dec
-01
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
Dec
-06
Jun-
07
Dec
-07
Jun-
08
Dec
-08
Jun-
09
% o
f T
ota
l fe
e i
nc
om
e e
arn
ed
Su
rvey a
men
ded
to
in
clu
de f
ore
ign
clien
ts
CESA Biannual Economic and Capacity Survey January – June 2009
Inflation
CESA Biannual Economic and Capacity Survey January – June 2009
Escalation trendsYear-on-Year % Change
0
2
4
6
8
10
12
14
An
nu
al C
han
ge,
%
% 8.7 6.9 5.8 5.3 5.7 9.2 5.9 1.4 3.4 4.6 6.6 11.6 7.13 5.6 5.3 5.4
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Based on headline consumer inflation (CPI)Forecasts Industry Insight Economist Poll
Source: ABSA
CPI Basket Revised in January 2009
CESA Biannual Economic and Capacity Survey January – June 2009
Consulting Engineering ProfessionLabour unit cost indicator: Year-on-Year % Change
(Smoothed)
-5%
0%
5%
10%
15%
20%
25%
30%
LUC 15.2% 11.4% 22.5% 21.8% 9.2% -1.9% 3.7% 15.0% 8.0% 2.88% 4.30% 14.30% 22% 11.30% 5.30% 7.20% 9.50% 10.60% 9.10% 10.20% 17.80% 25.50%25.40%
J un-98
Dec-98
J un-99
Dec-99
J un-00
Dec-00
J un-01Dec-
01J un-02
Dec-02
J un-03
Dec-03
J un-04
Dec-04
J un-05
Dec-05
J un-06
Dec-06
J un-07
Dec-07
J un-08
Dec-08
J un-09
CESA Biannual Economic and Capacity Survey January – June 2009
CESA LABOUR COSTS ESCALATION VS ECSA FEES (Average)Index 2003 = 100
0
20
40
60
80
100
120
140
160
180
200
ECSA 100 108.41 115.15 119.77 125.16 136.62
SAACE 100 111.26 119.25 131.88 145.35 182.48
2003 2004 2005 2006 2007 2008
Source: ECSA Fee Scales, CESA MIS
CESA Biannual Economic and Capacity Survey January – June 2009
Consulting Engineering ProfessionLabour unit cost indicator: Annual Average:
Year-on-Year % Change
0%
5%
10%
15%
20%
25%
LUC 22.2% 3.7% 9.4% 5.4% 9.3% 16.3% 6.30% 10% 9.65% 21.67%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
CESA Biannual Economic and Capacity Survey January – June 2009
Employment Profile
CESA Biannual Economic and Capacity Survey January – June 2009
Typical Employment BreakdownJanuary – June 2009
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Professional Engineer Pr.Eng
Professional Architects
Professional Quantity Surveyors
Professional Other
Technologists Pr TEchENg
Technicians PrTechni
Unregistered technical staff: Engineer
Unregistered technical staff: Technologist
Unregistered technical staff: Technician
Unregistered technical staff: Other
Technical Assistants
Draughtspersons
Laboratory / Survey Assistants
Administration / Support staff
Total
Black Coloured Asian White
CESA Biannual Economic and Capacity Survey January – June 2009
Typical Employment profile: January – June 2009
Total employment 19 596
CESA Biannual Economic and Capacity Survey January – June 2009
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
'Dec-03
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Dec-07
Jun-08
Dec-08
Jun-09
Black Coloured Asian White
Overall Employment Breakdown, by raceDecember 2003 – June 2009
CESA Biannual Economic and Capacity Survey January – June 2009
10%
15%
20%
25%
30%
35%
Dec
-99
Jun
-00
Dec
-00
Jun
-01
Dec
-01
Jun
-02
Dec
-02
Jun
-03
Dec
-03
Jun
-04
Dec
-04
Jun
-05
Dec
-05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
%Employment profile: Black only (excluding Asian / Coloureds) representation of total employment
% Share of total employment
CESA Biannual Economic and Capacity Survey January – June 2009
Professional Indemnity Insurance
-37% of firms pay less than 0,5% of their gross fee income on insurance- The average premium contribution was 0,6% of gross fee earnings in June 2009 Survey, with larger firms paying a lesser and smaller firms a higher contribution.-Over the last five years there have been on average 1,8 claims per firm, with an estimated average value per claim of R48 000. - the value of claims represented between 5% and 7% of total premiums paid over a five year period, yet some firms reported that up to 70% of their claims were not funded by the insurer. At an industry level this could be as much as 60%.-Limit of indemnity averaged 25% for the industry as a whole
CESA Biannual Economic and Capacity Survey January – June 2009
Professional Indemnity InsuranceRisk profile
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
%
Dec-07 65.2% 30.3% 4.6%
Jun-08 58.73% 39.68% 1.59%
Dec-08 65.80% 34.20% 0%
Jun-09 71.40% 28.60% 0.00%
Low Medium High
In terms of firm’s perceptions of risk, close over 70% of respondents said that their firm had a low risk exposure, compared to almost 30% saying it was regarded as medium.
CESA Biannual Economic and Capacity Survey January – June 2009
Equity / Ownership
CESA Biannual Economic and Capacity Survey January – June 2009
0%
10%20%
30%
40%50%
60%
70%
80%90%
100%
JU
N0
6
DE
C0
6
JU
N0
7
DE
C0
7
JU
N0
8
DE
C0
8
JU
N0
9
%
Pty Ltd CC Partnership
Distribution by firm type
CESA Biannual Economic and Capacity Survey January – June 2009
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
JU
N0
6
DE
C0
6
JU
N0
7
DE
C0
7
JU
N0
8
DE
C0
8
JU
N0
9
Ownership / Equity: % Share of total employmentPTY, CC & Partnerships
7% of people employed in the Consulting Engineering Professions held a position that includes some level of ownership or equity (as at June 2009)
CESA Biannual Economic and Capacity Survey January – June 2009
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
JU
N0
6
DE
C0
6
JU
N0
7
DE
C0
7
JU
N0
8
DE
C0
8
JU
N0
9
Bla
ck
eq
uit
y a
s %
of
tota
l Eq
uit
y
Black equity as % of total equity
Black Ownership / Equity: % Share of total ownership / equity
PTY, CC & Partnerships
Black, including Asian & Coloured
-Women represented 6% of total ownership / equity compared to 4,3% in the December 2007 survey-Black women represented 3,5% of total ownership / equity compared to 2,8% in the December 2007 survey
CESA Biannual Economic and Capacity Survey January – June 2009
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Pty_exec
Pty_nonexec
Member of CC
Partner
%
Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
Jun-09 14.20% 70% 20% 0%
Dec-08 13.50% 81.50% 36.80% 0%
Jun-08 18.5% 72.0% 41.2% 0.0%
Dec-07 16.9% 55.0% 24.1% 0.0%
Jun-07 21.9% 58.5% 32.5% 7.7%
Dec-06 25.3% 23.9% 29.0% 40.0%
Jun-06 25.6% 21.7% 31.7% 75.0%
Pty_exec Pty_nonexec Member of CC Partner
Black ownership / equity as % of total ownership / equity by type of company
June 2006 – December 2008
Black includes Asian and Coloureds
CESA Biannual Economic and Capacity Survey January – June 2009
Quality Management
CESA Biannual Economic and Capacity Survey January – June 2009
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
%
Dec-07 100.00% 74.20% 80% 62.50% 75.76%
Jun-08 100.00% 72.70% 94% 75% 84.00%
Dec-08 100% 93% 100% 75% 84.00%
Jun-09 100% 93% 100% 75.00% 93%
Large Medium Small Micro Total
Quality Management System
CESA Biannual Economic and Capacity Survey January – June 2009
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
%
Dec-07 66.70% 23.63% 30% 0% 24.60%
Jun-08 81.80% 36% 11% 0% 30.10%
Dec-08 87.50% 46.70% 20% 0% 42%
Jun-09 90% 20% 20% 12.50% 34.80%
Large Medium Small Micro Total
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