The present challenges affecting the growth of the construction industry

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New Web Hosting Pioneer Emerges, Offering Affordable Hosting Solutions Coupled with…The construction industry has contributed 2.7% to this country’s overall gross domestic product despite its challenges. However, the industry continues to grapple with the following challenges: shortage of skilled labour, public sector capacity to deliver infrastructure projects, loadshedding, slow adoption of technology, business confidence in South Africa, and construction mafias.

This challenge can also be addressed through improved and inclusive procurement practices that will empower and uplift small and medium enterprises . SMMEs play a significant role in the South African economy, contributing to job creation, economic growth, and poverty alleviation. SMMEs contribute 40 percent of the GDP, and they span various sectors in construction, manufacturing, services, and agriculture. They are also crucial for promoting inclusive economic development.

The construction industry relies heavily on electricity to generate power for machinery during construction and also for the production of materials. Loadshedding has thus disrupted work schedules, caused delays, increased costs, and forced contractors to reschedule their projects. Loadshedding has caused instability and unreliability of power, which has resulted in decreased investor confidence and hindered businesses throughout value chains.

Infrastructure challenges: Inadequate infrastructure, such as limited access to high-speed internet or power outages, may inhibit the implementation of technology-driven solutions.

 

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