Surge in construction sector

Business Reporter
LISTED building material producer, Willdale, says it will capitalise on the surge in the construction sector to push more volumes and widen earnings.

The firm sees various construction projects such as housing development projects, schools, and shopping malls as huge present opportunities for growth.

In its trading update for the quarter ended 31 December 2022, Willdale said several projects planned for the foreseeable future will provide the critical mass for the business.

“The firm demand for housing development, shopping mall and school infrastructure construction presents opportunities, which the company will exploit throughout the year, provided stock availability is not significantly affected by electricity shortages,” it said.

“The recent investment in improving the crushing capacity will result in better product quality and improved competitiveness.”

The construction sector is projected to continue growing largely due to demand for offices, industrial and retail buildings, as well as houses across the country.

The real estate sector in the country is offering a great investment opportunity for both corporates and individuals.

Housing delivery is one of the 14 national priorities under the National Development Strategy (NDS1), and the key result for the housing thematic area is the delivery of affordable and quality settlements in urban and rural areas.

To reduce the national backlog, the Government, and the private sector are working together to roll out construction projects, which also entails provision of onsite developments such as roads, water and sewer reticulation services at existing projects.

This is aimed at reducing the national backlog, which stands at 1,5 million.

Meanwhile, Willdale has reported that sales volumes for the first three months were two percent below the same period in the prior year. The decline in volume is attributed to low product uptake caused by liquidity shortages.

“Production levels in the quarter declined in line with available working capital. The scheduled maintenance programme has progressed well and the plant is expected to meet targeted efficiencies during the coming peak production season,” it said.

“Demand for bricks remains high for various projects such as housing developments, schools and shopping malls.”