Improved conditions expected for 2021

By Stefan Sander, Managing Director, Two Oceans Air Conditioning

The year that is nearing the end was characterised by stops, re-starts and operational challenges as the impact of the COVID-19 pandemic swept around the world, South Africa included.

Activity in the construction industry, as in many other industries came to a halt on 27 March this year as strict lockdown measures were introduced in an attempt to limit the spread of the virus and only restarted significantly in June when the regulations were changed.

According to analytics and consulting company GlobalData there was a sharp decline in construction output in South Africa in the second quarter of 2020 amid the Covid-19 pandemic. Its forecast is that the SA construction industry will end the year with a contraction of 14.3% for the full year.

Against the backdrop of the government’s renewed commitment to drive infrastructure development as a key component to drive economic growth the outlook for 2021 is positive. In a recent report on SA Construction news, the Master Builders and Allied Trades Association Western Cape (MBAWC) said government’s prioritization of the construction industry, given the labour-intensive nature of the construction industry and its ability to reinvigorate the economy is encouraging news. The MBAWC also noted and welcomed the government’s renewed commitment to regulatory reforms and its efforts to ease and reduce the cost of doing business.

The TOAC team is very positive about a promising 2021, as we wrap up projects for 2020 at several sites. Construction in the Western Cape, where TOAC is very active, has recovered well in the last quarter of the current year and many new projects are in the pipeline. Apart from the number of projects in the works for next year, many are of substantial scale, which will secure growth for ourselves and our associates in the industry in the medium term.

Despite the many unexpected events of 2020 and the impact thereof on our industry, we were fortunate to have been engaged for emergency projects related to the management of HVAC and ventilation at medical facilities in preparation for expected higher than usual patient numbers. Our deep expertise in this field stood us in good stead and we successfully, adhering to strict health and safety protocols, completed five installations, modifications and upgrades at medical facilities during the strict lockdown period. These include projects at Sonstraal Hospital in Paarl, Netcare Christiaan Barnard Hospital, and Groote Schuur.

We are especially proud of the commitment of our teams across all divisions and their seamless adoption of new operational requirements as we remain vigilant about protecting our employees, and business associates when on-site, against the spread of COVID-19. Notable achievements for TOAC in 2020 include obtaining level 3 B-BBEE status at the beginning of the year as well as receiving a level 8ME grading from the Construction Industry Development Board (CIDB) in September, which qualifies TOAC to tender for projects with a maximum value of up to R200m.

TOAC 2020 project highlights: