This post presents a deep dive into the performance of the manufacturing sector, including production, wage developments and profit margins.
The motor vehicle, parts and accessories and food and beverage sub-sectors have had the fastest growth in the value of its output since 2010, with nominal growth of slightly below 10% per year. Volume growth has been very low, with several sub-sectors have seen production volumes fall since 2010, such as textiles and footwear, metal products and furniture.
Real wage growth has slowed in manufacturing in South Africa. Average wages grew faster between 2005 and 2011 in all sub-divisions of manufacturing, with the only exception being wood products and paper.
Profit margins in South Africa’s manufacturing industry declined from 7% in 2005 to 2% in 2021. The Telecommunications division had the highest profit margins in 2021.