Global manufacturing ‘performing well’

Despite fears of another recessionary dip, worldwide manufacturing continues to perform well, recently posting strong quarterly gains in major economies. That’s according to a report by credit insurer Coface which says South Africa proved its pliability and manufacturing potential by competing on this global platform. This continued persistence in global manufacturing indicates that a worldwide downturn in industrial production will hold its position dependent on the outcome of the Euro-zone crisis. “A major crisis undermines local exports as Europe purchases approximately a third of our manufacturing exports. Added to this, the uncertain global environment will possibly put some strain on local company earnings and job security,” the report states. Manufacturing accounts for a small proportion of GDP in most Sub-Saharan African countries. Produced goods currently constitutes only 14% of Africa’s exports. Even in South Africa, the continent’s industrial powerhouse, manufacturing has declined significantly since its peak in 1981. However, it remains the second largest sector, contributing over 15% of total output and consists of 13% non-farming jobs," says Coface. Although progressing at a tender pace, manufacturing can be seen as a stable industry in an otherwise uncertain economy.