Through skills development we could grow “SAAM”
18 Sep 2019 - by
The metals and engineering (M&E) sector could benefit from the newly launched South African Automotive Masterplan (SAAM) – which is set to replace the current Automotive Production and Development Programme (APDP) – provided that companies operating in the sector put competitive measures in place to take advantage of the opportunities provided by the plan.
So said Renai Moothilal, the executive director of National Association of Automotive Component and Allied Manufacturers, during the Southern African Metals and Engineering Indaba, held at the IDC Conference Centre recently.
Moothilal said that, given the fact that the SAAM places local content at the centre of any future support for the industry – with government having set a target of raising local content from less than 40% currently to 60% by 2035 – the M&E sector could expect positive outcomes as a major supplier to the automotive industry.
“Component manufacturing is currently dominated by multinational manufacturers. Going forward, these companies will be compelled to contribute towards the growth of smaller local manufacturers by sourcing certain components from them, thus making them part of the value chain,” said Moothilal, noting that the outlook was therefore positive.
“Yes, there will be challenges but there are companies in the M&E sector which are doing well, in spite of the current challenges facing the economy, because they have adopted a positive mindset and have invested in skills development,” he commented.