INDUSTRY INSIGHTS
SMEs remain resilien impact of July unrest While previous data by Skynamo’s Industry Thermometer revealed that political turmoil in South Africa in July 2021 did not have as big an impact on sales as expected, the organisation’s August data is showing that the unrest is having a long term effect on small and medium enterprises (SMEs).
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FIRST SIGNS OF SLOWDOWN
MEs are essential to the economy’s health and predicted to lead an economic recovery post-COVID. However, many of these businesses are fighting to keep their doors open since the onset of the pandemic, with 89% impacted by the recent rioting and looting in KwaZulu-Natal and Gauteng, according to research by BeyondCovid. Zane van Rooyen, product marketing manager at Skynamo, South Africa’s leading field sales app, says that data from the Industry Thermometer, which benchmarks
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Zane van Rooyen product marketing manager at Skynamo industry sales activity and sector health, showed decreased sales in previous months, but not as much as had been anticipated. “It does indicate though that there might be a bigger longer-term impact on the recovery that SMEs are working so hard to achieve post the pandemic.” “When comparing July with June orders, we see technology, accessories, sporting goods and pharmaceuticals taking the biggest knocks, with these sectors showing lower combined ordering values,” adds van Rooyen. “However, the ordering demands of our services customers increased by more than 500%.” He believes this could be linked to the urgent need to restock after supply disruptions in July. “Encouragingly, our usual steady growth frontrunners like food and beverages, electronics, building materials and hardware, waste management, health and safety and others have maintained the steady month-on-month growth we’ve seen throughout the year so far,” he says.
INDUSTRIAL BUYER SEPTEMBER/OCTOBER 2021
Van Rooyen says that unfortunately the company’s Industry Thermometer data for August 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 so slight 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.”
IMPACT WILL BE FELT FOR SOME TIME 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 says. “I am cautiously optimistic that the South
