The manufacturing sector in South Africa holds a vital position within the nation’s economy, making a substantial contribution to the growth of the GDP. As of the 2023’s third quarter, Statistics South Africa recorded 535348,41 million ZAR contributing to the country’s GDP.
The ongoing issue of load shedding has presented considerable obstacles for manufacturing activities. Manufacturers have been navigating through these challenges and implementing strategies to minimize the adverse effects of load shedding.
According to research conducted by the Council for Scientific and Industrial Research, the manufacturing sector is estimated to consume approximately 52% of the country’s electricity production.
Allocating resources towards backup power solutions is a prudent investment decision.
To guarantee seamless operations in the face of power outages, numerous manufacturing firms have acknowledged the significance of allocating resources towards backup power alternatives. By implementing generators or solar power systems, these companies are diminishing their dependence on the national power grid and fortifying themselves against any potential disruptions to their production processes.
We spoke with Johannes Holtzhausen, from Rockent Industrial Services, an industrial cleaning company, who had completely transitioned to solar a year ago.
“I would say our production has gone up by 60 percent, if a client needs a job done and do not have to rely on Eskom, they will choose us”.
Holtzhausen says that the decision to invest around R2.8 million in solar has paid off in abundance.
Although investing in power alternatives is a solution, the price tag that is attached is not a viable option for many companies. In an interview with MoneyWeb, Amith Singh, national manager for manufacturing at Nedbank, explains that unfortunately, solar is not the ‘silver-bullet’. Companies across the manufacturing sector are having to diversify their strategies and adapt to loadshedding’s new normal.
As South Africans, we have first-hand experience on how Eskom’s notifications on when and how long our power outages are, are subject to change. To address the uncertainty of load shedding timetables, certain manufacturers have been compelled to modify their production methods. This could entail rearranging manufacturing procedures to align with periods of electricity accessibility or implementing lean manufacturing strategies to maximize resource utilization during power interruptions.
“Unscheduled blackouts and loadshedding has very negatively impacted our employees as they work on an hourly rate”, owner of Prompt Die & Pressing Co, Dino Spinazze, explains. “We are having to adjust our schedules around this and it leaves our employees working less hours therefore making less money”.
The effects of load shedding go beyond just individual factories and have a much broader reach throughout the entire supply chain. Manufacturers are currently reassessing their supply chain approaches to mitigate any disruptions caused by power outages. This could entail diversifying their pool of suppliers, storing essential materials in advance, or developing backup plans for transportation and logistics.
Across South Africa we have seen companies battle with the on-going short fallings of our electricity provider. With small businesses closing in every industry, the manufacturing industry continue to adapt, forge ways to maintain production and supply the on-going demand.
