SAFLIA: Hopefully the slide will be reversed
Jirka Vymĕtal…Import growth a bad sign.
Durban, KZN, SA – My forecast for 2024 is that production will be 12.5% down on last year. Meaning 41,690,000 pairs.
The last time we saw such low volumes was in 2007.
My forecast for next year is that production will be stabilised at the same level as this year – let’s say 42,000,000 pairs. However, with some serious interventions which I hope will take place W.E.F. January 2025, we hope to see a bit of growth again to hopefully at least the 2023 level, i.e. 45,000,000 pairs.
Imports (by volume) will grow again this year by about 15% (a bad sign) and my forecast for next year will be another 10% growth on this year if I follow the trend line.
The apparent end of load shedding has made a big difference to the productivity of manufacturers – that’s a positive.
The two-pot retirement system has been an unexpected benefit to manufacturers who have been unable to afford large-scale retrenchments. Because so many staff have resigned to be able to access their retirement funds, workforces have been ‘right sized’ by accident. And as some of those workers look to go back to work, manufacturers are able to pick only the people they really need.
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