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South Africa in focus A fast-growing construction sector, popular with Gen Z
01 Construction
Navigating the talent crisis 02 Employment growth
A reputation for physical work. Despite the outlook being generally positive overall, when South African students think about work in the construction industry, they overwhelmingly think of it as physical and dangerous: 94% agree that working in construction requires physical effort, and 86% cite the risk of injury as one of the biggest drawbacks to working in the sector. Climate change a priority for Gen Z. Over a third (37%) of South African students indicate that it is very important to have a career in an industry that positively impacts climate change, compared to 26% globally. This is good news for the construction sector in South Africa because 47% believe the sector can positively impact climate change.
The construction sector is bouncing back following difficult years and heavy impact on profits 03 Gen Z Understanding what motivates the workforce of tomorrow 04 Closing the gap Aligning the construction industry with Gen Z’s aspirations 05 Proactively altering Gen Z’s perceptions Addressing the construction industry’s image problem 06 Refreshing the industry’s
Our construction research in South Africa spans 50 corporate respondents and 51 Gen Z respondents. Highlights from our research in South Africa include:
Staffing difficulties overtaken by other concerns. 42% of South African corporates confirm shortage of employee talent in the construction industry to be a top factor negatively impacting their profit in the last 12 months, compared to 49% globally. This is a lower proportion than most other factors listed by decision-makers in the region. This is despite 62% of corporate respondents anticipating that the size of their workforce will increase over the next six months. Construction is a popular choice for students. Almost half (49%) of South African students say they have considered a job in the construction industry. This compares to 28% globally. The construction industry ranks as the second most popular overall among students in South Africa, just behind the Technology, Media and Telecommunications (TMT) sector.
“The evolution of the construction industry can be traced from its initial use of sticks, branches, grass, and mud to the more sophisticated permanent structures designed and built by engineers, architects, contractors, subcontractors, and with the use of specialised materials. The industry’s progress has created exciting opportunities for both small and large-scale infrastructure projects. However, the industry is not without its challenges. One of the most significant challenges is the shortage of skilled labour, which has led companies to seek productivity and innovation as a way of gaining an advantage. Other firms are looking to expand through strategic acquisitions, while some are facing a transition in ownership, with owners from the boom era of the mid- 20th century reaching retirement age.
aspect of the industry, with South Africa adopting this approach and making it a priority. Consequently, there are a wide range of job opportunities in the construction sector in South Africa, with a positive outlook on skilled employment, due to growth in the industry. Climate change has also become an agenda item, prompting awareness and demand for prioritisation. However, political instability remains a challenge, with corruption, high costs of living, and high unemployment rates all contributing to the situation. As a result, many young people have been forced to relocate to other countries in search of opportunities.”
approach to recruitment, retention and diversity
07 Conclusion
BDO’s message to Gen Z Practical lessons for construction executives Countries in focus
Australia Belgium Brazil Canada Latin America The Netherlands New Zealand Norway South Africa USA 09 About BDO’s research 10 How BDO can help
Political affiliation less important to the younger generation. 46% of South African corporates think that regional political affiliation is an essential factor for young adults when assessing their future career options, but only 10% of students agree.
Wynand Botha Construction Industry Leader, BDO in South Africa
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Sustainability has become an essential
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