Dublin, April 16, 2020 (GLOBE NEWSWIRE) -- The "Wholesale and Retail Trade of Construction Materials in South Africa 2020" report has been added to ResearchAndMarkets.com's offering.

This report examines the wholesale and retail trade of construction materials in South Africa and provides an analysis of several key products in the industry including cement, steel, glass, bricks, tiles, paint and wood.

There are profiles of 173 companies including retailers such as Italtile and Cashbuild and key wholesalers such as PPC, Afrisam, Macsteel, Afrimat and Corobrik. Other companies profiled include independent hardware companies such as Brights Hardware, which merged with Cape Engineering Supplies.

Wholesale and Retail Trade of Construction Materials

Building materials are a key input for residential and commercial building, as well as large civil engineering projects. The construction materials trade, with sales nearing R200bn in 2019, employs over 45,000 people and has important linkages with downstream mining and manufacturing. Players face rising competition and an increasingly challenging trading environment due to low economic growth and the decline of the construction sector.

Building and Construction Decline

The trade in construction materials has been affected by South Africa's prolonged economic stagnation and the ongoing weakness in the building and construction sectors. A number of construction companies applied for business rescue since 2018, including Basil Read, the Liviero Group, Esor Construction, and Group Five. Confidence among materials distributors, building contractors, and construction companies reached record lows in 2019 as building activity, and demand for key building materials such as cement, continued to decline.

Earnings Pressure

Revenue in the retail and hardware segments of the market has been affected by constrained consumer spending, while increasing costs have eroded profit margins, particularly among manufacturers. Import competition, particularly for cement and steel products, is also on the rise.

Building materials retailers have described their operating environment as very challenging and their revenue growth, which averaged over 10% in 2016, has declined markedly in the past two years. Operating margins are under pressure and organic growth at existing stores has fallen due to reduced contractor demand, low building activity, and constrained consumer spending.

Key Topics Covered

1. Introduction

2. Description of the Industry
2.1. Industry Value Chain
2.2. Geographic Position

3. Size of the Industry

4. State of the Industry
4.1. Local
4.1.1. Corporate Actions
4.1.2. Regulations
4.1.3. Enterprise Development and Socio-Economic Development
4.2. Continental
4.3. International

5. Influencing Factors
5.1. Economic Environment
5.2. Infrastructure Spending
5.3. Technology, Research & Development (R&D) and Innovation
5.4. Labour
5.5. Environmental Concerns
5.6. Cyclicality

6. Competition
6.1. Barriers to Entry

7. SWOT Analysis

8. Outlook

9. Industry Associations

10. References
10.1. Publications
10.2. Websites

Company Profiles

For more information about this report visit https://www.researchandmarkets.com/r/ye0xqd

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