A closer look at the pandemic’s effect on the alternative building solution sector
Our country has seen tremendous growth in the alternative building solutions sector and like most countries South Africa was hard hit by the COVID-19 pandemic. And all things being equal, we believe that the future of our business within this niche market looks bright and we are rearing to GO!!
The wake of the pandemic
When the pandemic hit the South African shores and our President announced its first lockdown effective 27 March 2020, the construction industry faced an unapparelled situation with a future that seemed very uncertain. The questioned most businesses were challenged with was,” When would we be able to resume and would be able to navigate through this uncertainty?”
During the next 6 weeks all sectors within the building industry were negatively impacted which included both the public and private sectors.
Furthermore, our desire and zeal to complete our existing and pipeline projects drew to a dead-halt and the relative demand for prefabricated products was also on the decline.
Having reflected on what had transpired 18 months ago; our biggest concern was the welfare of our staff and their inability to apply their skills towards securing their family livelihood. We are happy to report that our staff turnover rate remains single digits consistent with prior COVID-19 levels.
The prefabricated silver lining
We know that every dark cloud has a silver lining and the alternative building solutions sector is no different. The industry statistics analyst projects a positive Compound Annual Growth Rate of 5% year on year (CPI+0, 4%).
In shaping the future, the Building Information Modelling (BIM) process is described as digital tools that assist in the digital recreation of structures for architectural development and planning. Thus, the alternative building input material market is opening new and unprecedented doors for the future.
As the demand landscape radically changed, the resilience of the industry to diversify became more and more apparent. The demand for hospitals and COVID-19 treatment facilities increased and as ever RICTS Holdings was quick to respond to the alternative building solution market and responded with cost-effective and expeditious installations when needed most.
This being said and irrespective of the current economic turmoil, we will continue helping smaller businesses and NGO’s grown through our CSR partnerships and Enterprise Development Initiatives (EDI).
Until next time please visit our website at www.ricts.co.za or follow us on Facebook and LinkedIn.