South Africa’s mining industry continues to face a harsh economic reality as commodity prices remain weak and an oversupply of minerals forces it into a greater state of repression.
Despite this, ELB Engineering Services’ (ELB) business is growing. CEO DR. Stephen Meijers attributes this market-defying success to the company’s forward-thinking strategy which includes market adaption, industry diversification and the establishment of new partnerships and technologies designed to meet industry’s evolving needs. Laura Cornish writes.
“The South African economy is in a state of stagflation, suffering one of the lowest growth rates (<2%) across the African continent in 2014. Investor confidence has never been lower and we have had continual downgrades of our institutions since 2008 when the global recession started,” Meijers starts.
The resultant impact on foreign direct investment and capital projects is significant and has subsequently placed South Africa’s engineering fraternity under severe pressure. And the situation is not forecast to improve before 2017. “Companies will not survive this changing environment if they continue forward implementing ‘normal’ business strategies,” says Meijers. “Without a change in strategy and direction, longevity is not guaranteed.”
Fortunately, ELB has been preparing for this rapidly changing market for the last 18 months and has adapted its business strategy to provide solutions which will assist industry reduce costs, improve efficiencies and ultimately maintain profitability. “Coupled with our entrance and growth into new industry sectors, ELB is in a position of strength and is undertaking work which also adds value to…