Conundrum for SA industries
[caption id="attachment_92904" align="alignright" width="247"] MICHIEL JONKER[/caption]
Businesses face automation/jobs dilemma
SOUTH African industries and the general economy are faced with something of a catch-22 situation. They must choose either to compete with the rest of the world through mass automated production or lag behind in an effort to curb unemployment, which is proving to have an inhibiting effect on economic progress in the country.
Research among some of the major global institutions indicates that while most organisations worldwide are planning to automate business practices, with some jobs being discontinued as a result, fewer than a third of South African businesses are considering this.
Nelson Mandela Bay’s economy has a high industrial and manufacturing base.
Industrialists based in Port Elizabeth have recently highlighted that the region has sufficient skills to meet production demands.
They said a greater emphasis needed to be placed on investing in the right enterprises that would unearth those skills and bring skilled people into the lucrative economic development framework that the Eastern Cape had to offer.
But, the Grant Thornton International Business Report indicates that 56% of firms globally, and 31% of South African companies, are already automating or may do so in the coming 12 months.
This leaves South Africa’s business and economic landscape stuck in a paradox because organised business in the country is of the view that SMMEs are the answer to its job creation woes.
In an interview with The Herald on the broader findings of the research, Grant Thornton’s IT advisory director, Michiel Jonker, said the situation in South Africa was different because of the high number of unskilled people, making it difficult for employees to operate more advanced machines or computers.
There were several factors that would start driving automation in South Africa, including high labour costs, low productivity and high entry salaries for young people, he said. -Ayanda Mdluli
