As on-going retrenchments in the mining industry continue, artisan training appears to be in a downward spiral, according to at least one private artisan training company.
Sean Jones, a co-founder and director of Artisan Training Institute (ATI), says bookings for first-year apprentices at ATI have dropped by 18% this year. This is the first drop in training numbers for ATI in the past five years.
“I believe a drop off in training numbers will be echoed throughout the artisan training industry – and this at a time when we need to train more artisans to meet future industry demands.,” he says.
Ironically, the drop in the fuel price is providing many people with a larger disposable income, which will have a knock-on effect on the economy. More people will purchase items like cars and jewellery, which will have a positive spin off for the mining industry as well.
“The oil price is expected to hover around $50 dollars for quite some time. But while this could potentially spark off growth in consumer spending – which could benefit the mining industry – the mines are unlikely to do any re-hiring.
Many jobs lost will be lost forever and we will see mines increasingly using high-end equipment to pick up the slack.
“The damage that has been done – in part by last year’s platinum strikes and a soft economy – is unlikely to be rectified. It is incredibly sad that the mining industry has not been able to benefit from the low oil price at this stage,” says Jones.
“However, when it comes to South Africa, any growth that may be possible for companies is also being muted by the rolling Eskom load shedding. Those companies that are in a growth cycle – and want to grow – are being hamstrung due to the parlous situation at Eskom, who is expected to resort to load shedding for at least the next five years due to serious strains on the power grid.”
The South African economy grew by 1,4% in the third quarter and the country may possibly still meet its growth forecast of 1,4% for the year – but the outlook for 2015, though better than 2014, is not looking that rosy. The economy experienced negative 0,6% growth in the first quarter and positive growth of 0,5% in the second.
The figure of 1,4% growth for the third quarter, released by Statistics South Africa, was largely owed to increased economic activity in finance, real estate, business services and the wholesale, retail and motor trade. But South Africa’s growth figures are lagging behind their contemporaries in the African continent.
Despite weaker than expected global growth and stable or declining commodity prices, African economies continue to expand at a moderately rapid pace, with regional GDP growth projected to strengthen to 5,2% percent yearly in 2015/16 from 4,6% in 2014, according to the World Bank’s new Africa’s Pulse.
