/ 11 November 2008

Infrastructure sector faces skills shortage

More needs to be done to stop a skills shortage from jeopardising crucial infrastructure projects, a survey has found.

”A creative and comprehensive approach is needed by the sector if it is to deliver on local projects against the backdrop of the global skills shortage,” said Sandra Burmeister, chief executive of Landelahni Business Leaders, the research firm that conducted the survey.

”Globally, research shows that skills shortages are the biggest constraint on construction growth, with project and contract managers, tradesman and engineers cited as the scarcest of all skills,” she said.

”South Africa is well known for its engineering skills, and the infrastructure sector is competing for skills in the global resourcing market.”

The survey found that employment in the infrastructure sector had doubled from 4% of total employment, at 634 000 in 2001, to 8%, at 1,2-million, in 2007 — 44% of this was permanent staff.

However, although 35 511 engineers graduated across all disciplines in South Africa between 1998 and 2006, only 14 234 professional engineers were registered, 1 100 fewer than 10 years ago.

There was a severe shortage of well-qualified, competent and experienced artisans.

”The Joint Initiative for Priority Skills Acquisition [Jipsa] suggests that at least 12 500 artisans should be produced each year over the next four years to meet demand, making a total of 50 000 over four years,” the survey noted.

”The number of artisans tested across all trades increased from 15 000 in 1970 to 26 500 in 1986, while those who passed trade tests increased from 6 000 to 13 500.

”From 1986, however, the numbers tested dropped to 9 041, and those who passed dropped to a low 3 222, or 42%.”

This had far-reaching cost implications, said Burmeister.

She said R14,4-billion was needed to train the number of artisans required to meet the country’s needs, but that the training levy generated only R6-billion a year.

”Artisan training requires a significantly increased investment by both government and private sector. The current artisan population is ageing, with an average age of 50 to 55 years.

”So we should not merely be training for current needs, but also to replace the ageing workforce.”

The skills challenge was exacerbated by significant numbers of small and medium contractors with little capacity to train and develop staff

The lack of delivery at the Construction, Education and Training Authority has compounded the problem, especially in respect of artisan training, and most firms are experiencing hiring issues as a result of the skills shortage.

Burmeister said that while the return of retired and offshore contractors or foreign nationals to run infrastructure projects or act as coaches and mentors to up-and-coming young recruits should be pursued, it was a short-term solution for the development of critical projects.

”We need to guard against short-term delivery at the expense of long-term skills development,” she said.

The survey involved 82 companies with 214 268 employees, representing 40% of the permanent employment in the infrastructure sector.

The sectors covered included electricity, water, waste, road, rail and ports, consulting engineers, major construction companies, large JSE-listed construction companies and suppliers to the construction industry.

The survey found that the number of black people in top management in the sector had significantly increased from 16,2% in 2005 to 28,8% in 2007. Black people in senior management increased from 12% to 32,4% and black professionals from 20,6% to 41,3%.

However, this was considerably behind the all-industry average, as was the increase in the number of women in top management, which had also significantly increased from 4,3% in 2005 to 12,9% in 2007 despite the industry’s male-orientated nature.

Female senior management increased from 6,4% in 2005 to 19,5% in 2007 and female professionals from 10,1% to 22%.

Burmeister said the positive trends had been brought about by black economic empowerment legislation and tender criteria for government-spend on infrastructure, and had been influenced by gender equity programmes in parastatal power, water, road and rail utilities. — Sapa