Is there a need for TES in SA’s construction industry?

8 February 2022

Press Release: TESD
Focus Area: Southern Africa

Is there a need for TES in SA’s construction industry?

It is without a doubt that many industries have taken a serious knock during the pandemic. Those involved in South Africa’s construction industry had their hands tied, especially at the onset of the pandemic when restrictions severely delayed and even terminated projects. When comparing GDP growth in the first quarter of 2021 to 2020’s fourth quarter, the construction industry landed at the bottom of the pile. Only beating the negatively contributing industries of electricity, gas & water as well as agriculture; the construction industry accounted for only a 0.8% contribution to South Africa’s GDP growth. This is no surprise when South African construction companies had no choice but to scale down on full-time employees in order to stay afloat. As government has changed their lockdown strategy and eased restrictions, a gap has formed in construction labour. The exciting news of developments in the industry, such as the planning of a new “smart” city located near Lanseria, Johannesburg, proves there is room for Temporary Employment Service (TES) providers to nurture the industry back to health.

Permanent, full-time employees are often ill-suited to project-based industries. While there is investment and stimulation in the construction industry, the labour force needs to expand fast while companies try to shield against the uncertainty of the pandemic and possible project disruptions or terminations. Therefore, the approach to employment needs to be carefully honed for optimal results. Time is money, especially when construction costs rack up daily with equipment and machine hiring. TES providers can support the construction industry by offering flexible employment solutions to get projects up and running quickly when time is of the essence. However, TES providers are only excellently positioned to supply blue- and white-collar workers efficiently to construction projects when they act within compliance.

The Temporary Employment Services Division (TESD) was established exactly for this purpose, to ensure good practice and compliance with SA labour regulations. While having members in various sectors, the TESD has a close connection to the construction industry, affiliated with the Constructional Engineering Association (CEA(SA). When construction companies chose TESD members for TES, they can be assured that they are putting their trust in a division who knows their industry and making use of TES providers who are invested in their growth.