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• Create Date July 3, 2023
• Last Updated July 3, 2023

PULSE - Construction profitability improve in 2023Q1

• Nominal turnover generated in construction increase by 7.9 percent y-y in the 1^st quarter of 2023 to R72.5bn
• Turnover generated by larger firms rose 6.6 percent y-y, with average margins recovering to 4.1 percent.
• Turnover by medium-sized firms contracted by 3.8 percent y-y in Q1, with margins lower at an average of 1.1 percent.
• Smaller firms continue to buck the trend, with margins rising to 10.6 percent and an 18.6 percent y-y increase in nominal turnover.
• The contribution to turnover by smaller firms rose to 34 percent.
• Overall loss of R2bn in 2022Q1 was reversed to a R4.1bn profit in Q1.
• Expenditure towards employment fell 12.2 percent y-y, representing an average of 18.3 percent of turnover.
• Expenditure by the construction sector towards hiring and leasing of equipment decreased by 4 percent y-y to R1.5bn in Q1. Smaller firms contributed 56 percent to total expenditure on equipment.
• The closing value of work in progress improved notably to 8.2 percent of turnover, from an average of 24 percent in 2021.

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