Research on the performance of the manufacturing sector
Imports and exports in the manufacturing sector
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Imports and exports in the manufacturing sectorTable 7 shows the import and export activity in the SA manufacturing sector and the ratio of imports to exports for 2010. It is important to see what sectors are major net importers, major net exporters or are importing sectors. Some sectors also import large amounts, add some value and export large amounts. SMMEs can perform an important role in either supporting strong export driven sectors or can produce products to substitute imported products, if this can be done more competitively and at a better quality. Non-ferrous metal, motor vehicles and iron and steel products show the largest portion of exports at R52.7 billion (16.9% of total manufacturing exports), R44.9 billion (14.4%) and R43.3 billion (or 13.9% of total manufacturing exports) respectively. Basic chemicals at R27 billion (9% of total manufacturing exports) also contributed largely to export earnings. Looking at imports, motor vehicles and parts at R77.7 billion (or 14.7% of total manufacturing imports), special machinery (R40 billion or 7.7% of total manufacturing imports) and radio and televisions (at R40 billion or 7.1% of total manufacturing imports) contributed the most to imports. Other important import sectors are non-ferrous metal (R30.49 billion) petroleum products (R28 billion) and basic chemicals at R24.9 billion. Looking at exports as a percentage of total supply in the manufacturing industry, non-ferrous metals (61.4%), jewellery (53.9%) and general machinery (52.8%) shows large percentages. Bakery products (0.7%), tobacco products (0.8%) and footwear (0.8%) shows the lowest export percentages (as a percentage of total industry supply at purchases prices) in 2010. Office machinery (80.4%), aircrafts (75.3%), radio and televisions (62.4%) and engines and turbines (61.8%) shows the largest percentages of imported products as a percentage of total supply at purchases prices in 2010. Articles of concrete (0.6%), tobacco products (0.7%), bakery products (0.8%) and soft drinks (1.4%), show the lowest percentages of imports as a percentage of total supply at purchases prices. Looking at the ratio of imports to exports, footwear (at 40), wearing apparel (34.8), non-structural ceramic (18.7) and domestic appliances (16.6) shows the highest ratios (a ratio for example of 40 would imply that you import 40 times as much of the product as what you export). Sectors showing low ratios include fruit and nuts (0.2), fish (0.3), alcohol and beverages (0.3), jewellery (0.3) and iron and steel products (0.3). Table 7: Exports and Imports in the manufacturing sector (2010)
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