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Volume 3 - 3
| Contents | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 3. New Horizons for the South African Manufacturing
Sector By Pontsho Maruping   Dr Ben Ngubane and Dr Sibusiso Sibisi
launching the strategyIf it were possible to take a worker from the Mercedes Benz motor vehicle assembly plant in Port Elizabeth from fifteen years back and transplant him into the same plant today, he might well be baffled by his lack of skills and his inability to make any contribution. Manufacturing technologies advance rapidly, and today the whole process is automated and operated centrally from computer workstations. For this reason, the continuing advancement of skillsresearch and development in the manufacturing sector is absolutely essential to our progress as a competitive nation. You will remember the days when South Africa exported all its raw materials for other nations to turn into jewellery, motor cars, appliances and clothing, which were then returned to us, and which we bought, at great cost, and great profit to manufacturers in other countries. It placed our people at a huge disadvantage, and although we are well advanced in countering this trend, much remains to be done. The Advanced Technology Manufacturing Strategy was introduced in 2003. It aims to increase research and development in the manufacturing sector with particular stress on adding value. The strategy seeks to improve how the sector operates by encouraging investment in products created in this country, by South Africans, with South Africa’s raw materials. The Manufacturing Industry contributes around 18.5 % of national GDP, represents more than 50% of the country’s exports, and most significantly, is the nation’s 2nd largest employer. In addition, the industry is crucial to our country’s drive to beneficiate its mineral resources. The manufacturing sector is dominated by food-processing, the production of chemicals, iron and steel, metal products, and machinery. Important sub-sectors include beverages, electronic machinery, motor vehicles and vehicle parts, textiles, metalworking and fertilizers. The manufacture of wood and paper products is on the increase. Yet South Africa is facing serious challenges to its progress, including a decline in added-value initiatives, declining export growth in manufactured goods, a dramatic reduction in domestic capital investment, together with a drop in labour-intensity and employment figures. We now look to the Advanced Manufacturing Technology Strategy, (AMTS), an initiative of the National Advisory Council for Innovation, to boost delivery and promote economic growth and development. The initiative is founded on the National Research and Development Strategy and the Integrated Development Strategy, (IDS). It is enlightening to look, for example, at the practices of Japanese manufacturing companies. In that country they have reduced lead times, and consistently improved quality by building up and maintaining a strong manufacturing infrastructure. Japan has invested heavily in manufacturing, proportionately more than its competitors. A long-term partnership has been created between business, banks and government. With everyone working in harmony, it is not difficult to understand why Japanese manufacturing has been in such an advantageous position for some 35 years.  Left to Right: Mr Sushi Borde of the CSIR, Dr Ramesh
Mashelkar, President of CSIR India, Dr Ben Ngubane and Dr Sibusiso
Sibisi, President of the CSIR.The implementation of the strategy will gain momentum this year with direct investment from DST, and additional funding made available through the Innovation Fund. The Unit: Manufacturing Technology Mission will continuously engage with other relevant government departments to ensure alignment and synergy with AMTS. The strategic model will be implemented principally through two channels – Innovation Centres and Innovation Networks. The latter will provide strategic linkages to nodes and/or centres to optimise synergies. So what should South Africa’s innovative technological leaders aim for? The field is wide open, the possibilities immense. For example we could use our rich mineral resources to display creative designs, supported by appropriate technologies and domestic craftsmanship. We could look at manufacturing a demonstration vehicle to showcase our capacity for innovation and focus attention on the excellence of our automotive industry. Even the name Selahla for a car will be more meaningful. Now isn’t that an original concept! |
Nominations of potential candidates for the Technology Innovation Agency (TIA) Board of Directors
