SPECIAL REPORT

Industry Thermometer results reveal long-term impact of unrest in July

Recent data released by Skynamo’s Industry Thermometer has revealed that the unrest which took place in South Africa in July 2021 is having a long-term impact on local businesses. This follows on previously recorded signs of strong sales growth which were heading towards pre-pandemic figures.

Zane van Rooyen, Product Marketing Manager at Skynamo.

The Skynamo Industry Thermometer is a free-to-access resource that benchmarks industry sales activity and sector health on a monthly basis. It reports average order values and volumes from over 500 South African manufacturers, wholesalers and distributors in 26 industries using the Skynamo field sales app.

Zane van Rooyen, Product Marketing Manager at Skynamo says that – unfortunately – the company’s Industry Thermometer data for August 2021 has shown the first slowdown of the growth pattern this year. “Optimistically, only eight out of the 26 industry groups monitored have shown negative growth when compared with the previous month. This negative, or stalling, is small compared to the big drop experienced in 2020 as a result of the pandemic.”

“Apparel, such as clothing and shoes, as well as packaging, were amongst the industries that struggled in August,” he adds. “However, looking at the combined total of all the industries monitored together, the graph still shows an ever-soslight outcome in the right direction. Order volumes were lower than the previous months this year, but August managed to still hold its own, if only just.”

These results mirror the sentiment of Finance Minister Enoch Godongwana, who recently said that the economic impact of the recent unrest would not be quickly resolved and would persist beyond 2021. He said that while early estimates of the economic impact were about R50 billion, the impact would be felt for some time.

“However, the 1.2% economic growth recorded in the second quarter this year, as mentioned by the National Treasurer, has been encouraging to witness in our data,” says van Rooyen.

Only time will tell what the tight rope of the next few months will look like, he adds. “I am cautiously optimistic that the South African resilience will shoulder this wave and that local business will emerge wiser and stronger at the other end.”

About Skynamo

Established in Stellenbosch, South Africa, in 2012, Skynamo is a leading field sales technology provider with close to 10,000 users at nearly 1,000 companies across a wide range of industries in Southern Africa, Australasia, the UK, Europe and the US. Skynamo’s field sales mobile app and cloud-based management platforms are used by manufacturers, wholesalers and distributors, with sales teams in the field selling products to an existing base of customers. Skynamo was named Sage ISV Partner of the Year for 2019 (Africa and the Middle East) and an Acumatica Certified Application and Customer Verified Application. Skynamo received $30 million in funding from US-based software investment firm Five Elms Capital in 2020 and forms part of the Stellenbosch-based Alphawave group of software and electronics companies, with more than 100 employees in South Africa, the UK and the US.

The following sectors are tracked:

• Accessories (fashion)

• Advertising, marketing and media

• Agriculture

• Apparel (clothing and shoes)

• Automotive

• Beauty and cosmetics

• Beer, wine and spirits

• Building material and hardware

• Chemicals and paints

• Cleaning products and waste management

• Electronics and computers

• Food and beverage

• Freight and logistics

• Health and safety

• Homeware

• Machinery

• Minerals and mining

• Office supplies

• Oil and gas (energy)

• Oil and lubricants (industrial) • Packaging

• Pet food and supplies

• Pharmaceuticals

• Services

• Sporting goods

• Technology and education