The large-scale looting and burning in KwaZulu-Natal in July 2021 damaged business confidence and led to one of the country’s largest truck and trailer building companies starting this year with its lowest order book since the 2008 financial crisis.
Serco CEO and President of the Durban Chapter of Entrepreneurs Organisation, Clinton Holcroft, said 2021 had been a tough year for business in KZN.
“I believe the unrest took the wind out of our company’s sails, evident in that our usual end-of-year peak period failed to materialise. I attribute this to a large extent to the loss of business confidence and the extensive property damage which resulted in many businesses not being able to resume trading by the end of the year, if at all,” Holcroft said.
“Restoring confidence through introducing and announcing steps to prevent a reoccurrence of the violence and theft should be a priority for creating growth in KZN.”
Russia’s invasion of Ukraine would harm the SA economy as it would lead to further increases in the price of fuel and raw materials for key components, he added.
“Price increases will put added pressure on business, and to some extent be passed on to the already stretched consumer.”
He said there was a lot of uncertainty about the year ahead in terms of business prospects in the transport industry. Companies that had delayed capital expenditure over the past two years would experience mounting pressure to replace older equipment due to higher maintenance and breakdown costs.
“Clients wanting to replace vehicles have however had some difficulty in securing truck chassis as suppliers are still battling to keep up with demand due to global shortages of silicone chips. Unfortunately, I think the war in Ukraine will put further pressure on supply chains and prolong the parts shortages.
“Planning at least six months in advance will help alleviate some of the challenges when sourcing new commercial vehicles, including truck bodies, fridges, tail lifts and similar items, as well as help ensure on-time delivery,” Holcroft said.
On a positive note, there had been a promising increase in inquiries for new vehicles during March and into April as customers re-examined their vehicle replacement programmes, which augured well for a better year ahead, he added.
