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Edition 3, 2020

As we come to the end of September, a month in which South Africa celebrates its rich heritage and diverse make up, one can reflect on a trait that is found in abundance in our country. Resilience. 

Resilience is what often sees us through challenging times, and economically and socially speaking there haven’t been too many worse than the COVID-19 pandemic affected 2020. Yet our sector, has found ways to deal with the situation and seems to be emerging slightly better than initially expected in the early days of South Africa’s lockdown.

Results of the fifth iteration from a rolling survey conducted into a sample of NAACAM members on the impact of COVID-19 on the automotive components sector is seemingly pointing to resilience. 

The report reflects the continuing easing of the lockdown, with companies on average increasing their production to within 60 to 80% of their pre-COVID influenced forecasts for August 2020. Most companies are anticipating that by the end of the calendar year, they will have produced 70% of their pre-COVID forecast for 2020. Additionally, at least 40% of respondents have resumed normal operational patterns, with the balance operating reduced days or shifts to account for reduced demand. 

The percentage of employees used between June and August has increased from May. There are employees who are still laid off and a greater proportion continue to work short-time, and we are aware of members who have unfortunately already had to implement restructuring processes. And while more are likely to have to do so in future, our recent research suggests there is some increased optimism across respondents that COVID-19 will not have a long-term impact on employee count and production. Most notably, there has been a large increase in the number of respondents that do not anticipate a long-term employee reduction – at the end of May, just 12% of respondents did not anticipate an employee reduction yet at the end of August, 48% of respondents do not expect retrenchment.

OEM demand stability and cash flow remain key challenges for respondents, as well as staff morale and supply chain management, particularly in relation to the logistics chain. Steel availability is increasingly being reflected as a raw material challenge. 

So, challenges remain, and at NAACAM we continue to try and find ways of supporting our membership. Coupled with the resilient trait we all have observed in daily life this year, let’s hope we continue to see more green shoots coming through into the last quarter of this year.

Renai Moothilal
Executive Director
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Insights

Business face consequences of lower activity

Sumitomo Rubber South Africa CEO, Riaz Haffejee unpacks the impact of COVID-19 on the tyre sector. Businesses is to face the consequences of lower human and commercial activity.

Eight commandments to digitise shop floor workforce

Lessons learned from PwC’s experience in digital transformation in an operations and supply chain environment.
 

Variable demand requires new strategy

Uncertain demand in the OEM and aftermarket environments is impacting short to medium-term capacity management decisions, says automotive parts manufacturer GUD Holdings CEO, Chris Haworth.

Short-term funding solutions that unlock business value

NAACAM Associate member, Nedbank CIB, presents a suite of financial support tools to support component suppliers navigate a COVID-19 environment.

Innovation to support COVID-19 screening and monitoring of employees

Jendamark has released its Odin Health app, which allows users to complete the required daily screening procedures, manage incidents and send and receive critical communications about their employees.

NAACAM Outreach

NAACAM members donate to maths and science NPO

An amount of R57 855, raised at NAACAM’s regional golf day, was donated to the Centre for the Advancement of Science and Mathematics Education.

SAVE-P ventilator manufacturing underway, showcases local capabilities

A consortium of South African manufacturers and engineers, led by Justin Corbett of NAACAM Member Rand York Castings, has commenced production of its first order of 2 000 CPAP 100 ventilators.

NAACAM, Proudly SA launch portal for face shield producers

NAACAM joins forces with Proudly SA to launch a Web portal listing manufacturers of locally-produced face shields and visors.

Jendamark breaks down barriers to help save SA school year

Jendamark’s Odin Education e-learning software solution is proving useful for rural and lower quintile schools.

NAACAM concludes #AutomotiveAllies campaign during Women’s Month

During August’s Women’s Month, NAACAM ran the #AutomotiveAllies campaign on its social media platforms.

Member Achievements

Member-to-member support: BSI assists Sintered Metals Products achieve IATF 16949

BSI’s effort to understand our business and how we do things made our certification journey smooth and efficient,” says Pierre Wentzel, Director at Sintered Metal Products.

Sealtron, supported by MAHLE Behr SA, makes good progress on ASCCI Black Supplier Programme

SEALTRON SA, based in Durban with its manufacturing site at Cornubia Industrial Estate, offers harnessing and injection moulding products.

Eberspächer awarded best exporter corporate winner 

Eberspächer Group, a NAACAM member, has been awarded Best Corporate Winner 2020 at the Eastern Cape Exporter of the Year Awards.

DHL launches Automotive Competence Centre

DHL Global Forwarding has launched a first-of-its-kind Automotive Competence Center in South Africa providing a comprehensive suite of reliant and compliant end-to-end logistics solutions.

CGI secures global branding contract for VW

CGI supplies DT Dobie in Kenya with graphics sets for developing limited edition packages for the VW Polo.

John Moffat Prolock awarded hospitals tender

John Moffat Prolock (JMP) has been awarded a contract to supply government hospitals in Gauteng with its locally manufactured face shields.

Member Gallery

NAACAM is pleased to welcome several new Manufacturing and Associate Members into the association. These members offer a variety of manufactured components and specialised support services. 
 

Industry 4.0 for the automotive industry 

VSC Solutions (VSC) is a level 1 BBBEE leading provider of supply chain technology and consulting solutions, which provides custom solutions that are scalable, with the key focus on delivering profits and enhancing competitive advantage.

Member Profile: East Cape Manufacturing (ECM)

ECM is a medium-sized, independent, value-added manufacturer and supplier of automotive stamped and assembled components in South Africa.

Member Profile: MCR Manufacturing

MCR Manufacturing specialises in the supply of precision-machined safety-critical general engineered components to IATF 16949 quality standards.

Member Profile: Steel Best Automotive

Steel Best Automotive is South Africa's largest high pressure die casting producer supplying the local and international market since 1970.

Member Profile: AIDC Eastern Cape

AIDC Eastern Cape provides dynamic and outcomes-driven skills training, technical support and market access programmes.

Member Profile: DHL

DHL offers logistics services ranging from parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air and ocean transport, to industrial supply chain management.
 

Member Profile: SMS Group

SMS group is a single source systems and processing technology provider to the iron, steel, aluminium, non-ferrous and ferro alloy industries.

Member Profile: KLT Automotive and Tubular Products

KLT Automotive and Tubular Products Ltd manufactures automotive chassis frame assemblies for MUVs, pick-ups and other light commercial vehicles.

Member Profile: AIDC Gauteng

AIDC Gauteng is a government support centre established to increase the local automotive industry’s global competitiveness and promote Gauteng as an investment destination.

Member Profile: Sasfin

Founded in 1988, Sasfin’s service offering focuses on assisting clients predominantly in the automotive sector to access APDP incentive benefits and customs duty refunds.

Member Profile: Jendamark South Africa

Jendamark specialises in the assembly of the automotive powertrain, from completely manual to fully-automated systems.

Upcoming Events

Register for Deloitte Alchemy’s Future of Mobility (FoM) Programme

The FoM programme is intended to contribute to the leadership abilities of executives in understanding their capabilities against the emerging needs of the ecosystem and to formulate strategies around which areas to focus on and how to be successful in them.

Multimedia

PwC hosts liquidity management webinar

PwC’s webinar covered the changing environment and the importance of cash and short-term liquidity management.
Contact NAACAM
Telephone : +27 (0)11 392 4060 / 5748 Email: info@naacam.co.za
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