BySamkelo Mchunu
As South Africa grapples with the equivalent of 170 days of rolling blackouts by early July, the construction sector finds itself in the throes of significant challenges. Rising energy costs, intermittent power supply, and the necessity for alternative energy sources are reshaping the landscape for construction companies, affecting project costs, timelines, and overall business strategies.
Morag Evans, CEO of Databuild, comments on the impact of these challenges: “The repercussions for construction have been significant. Costs for fuelling machinery, lighting sites, heating, and transportation have ballooned and contributed to higher construction costs. Beyond that, investors have become more cautious to take on new construction projects. This has not only resulted in a decline of construction investments but also seen a reduction in job opportunities in the sector.”
Energy shortages and intermittent power supply disrupt construction activities, leading to delays in project completion and potential cost overruns. Interruptions halt critical operations, including machinery operation, equipment maintenance, and site facility upkeep, resulting in decreased productivity and efficiency across the sector.
Rising energy costs necessitate a shift in construction practices and the adoption of new technologies. Construction companies may increasingly incorporate energy-efficient designs, sustainable materials, and technologies into their projects to mitigate costs and improve sustainability.
Evans emphasizes the critical role of government bodies in addressing these challenges: “Government can introduce regulations and incentives, such as energy efficiency standards and financial rewards for implementing energy-saving practices. But to benefit from these, construction companies must stay abreast of the evolving regulatory environment to plan and execute their projects more effectively.”
With a global push towards carbon neutrality, clients and investors favor energy-efficient buildings, driving the adoption of sustainable building practices in the industry. Companies that can deliver on energy-efficient solutions, encompassing renewable energy sources, efficient insulation, and smart technologies, gain a significant competitive advantage.
The South African construction sector must adapt to increasing costs, project delays, and the demand for energy-efficient practices. Evans suggests that companies need to be agile, embracing advancements in design, technology, and compliance with new government regulations. Diversification of energy sources is also anticipated to grow, with construction companies tapping into innovative opportunities to build and maintain renewable energy installations.
