24 July 2023 - 10:37The manufacturing sector has been one of the hardest hit in recent years as it struggles to address a multitude of challenges including the persistent power crisis, disrupted global supply chains, inflation, rising fuel and energy prices and logistics.
Most manufacturing businesses have tried to work around load-shedding, but anything above level 4 is crippling for many businesses, he says. “If manufacturers are constantly not able to meet production outputs, this could lead to disinvestment in the country and severe impact on the economy.” Singh says many local manufacturers remain reliant on local and global supply chains and efficient road networks and ports. “SA’s largely non-functioning rail network means that more freight is being transported by road, which is expensive. Add to this clogged and inefficient ports, and it’s clear that logistics has become an obstacle. The more expensive it is to transport goods — and the longer it takes — the less competitive an economy becomes.
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