South Africa’s manufacturing sector is under severe strain. Although output increased by a marginal 0.5%, over 1.2 million direct jobs and millions more in linked sectors still hang in the balance. While signs of recovery are flickering, the fragile gains could be snuffed out by impending US tariffs of 30% on key exports, taking effect from 1 August. Now, more than ever, supporting local is an economic imperative.
A Sector Fighting for Survival
Dr Andrew Dickson, engineering executive at CBi-electric: low voltage, explains that beneath the headline decline lies a more nuanced picture. “The latest Absa Purchasing Managers’ Index (PMI) shows new sales orders rising by 7.8 points to 46.1, marking the first meaningful uplift in domestic demand since the downturn began. This has had a positive knock-on effect on employment, offering hope that the worst may be behind us.”
Yet, he warns that South Africa’s recovery remains fragile, and the looming impact of new US tariffs threatens to derail progress. “Export volumes are already at their lowest this year. Now, as the US prepares to impose an additional 30% tariff on selected imports, South African manufacturers risk being priced out of a crucial market. It’s a blow the industry can ill afford.”
The Ripple Effect Across the Economy
Manufacturing’s impact extends far beyond the factory floor – every job creates another two more across logistics, supply chains, retail, and other related services. “Local manufacturers source materials and services from domestic suppliers, creating demand across industries,” explains Dr Dickson. “The success of the manufacturing industry strengthens the entire industrial ecosystem, building widespread economic stability.”
He adds that manufacturing facilities also serve as skills development centres. “They train artisans, technicians, and engineers, many of whom go on to work across a variety of industries. If we lose that pipeline, we lose long-term capability.”
Moreover, Dr Dickson highlights that these plants serve as economic anchors in smaller towns and cities, providing stable employment that sustains local businesses and entire communities. “When a facility closes, it can decimate an entire local economy – businesses fold, unemployment rises, and property values fall. The ripple effects are immediate and long-lasting.”
Beyond employment and community stability, he notes that manufacturing companies drive innovation through research and development investments, unlocking competitive advantages that can elevate multiple industries and position South Africa more strongly on the global stage.
The Power of Buying Local
With the sector facing unprecedented headwinds, Dr Dickson stresses that consumers can play a pivotal role in stabilising demand and safeguarding jobs. “For every Rand invested in manufacturing, R1.30 is generated in the wider economy. A small shift in buying habits can drive real, measurable change.”
He encourages South Africans to:
- Look for “Made in South Africa” labels when shopping for appliances, clothing, food, and household goods
- Support retailers that highlight local products, especially those with dedicated “Proudly South African” sections
- Choose homegrown brands in categories such as building materials, electrical components, and automotive parts
- Encourage employers and procurement teams to prioritise local suppliers when possible
“The decision between a local or imported product is a direct vote for South African jobs and economic resilience,” he says.
The Path Forward
Dr Dickson acknowledges that revitalising manufacturing will take coordinated action from government, industry, and consumers alike. “Policy interventions, like addressing skills shortages and improving infrastructure, are essential. But consumer behaviour can provide immediate relief. The recent uptick in local demand shows that recovery is possible with adequate support.”
“Behind every manufacturing job is a family, a community, and South Africa’s economic potential. Every local purchase is an investment in that,” he concludes.
