July - December 2009 Biannual Economic and Capacity Survey

CESA Biannual Economic and Capacity Survey January – June 2009 Firm distribution based on Annual Turnover based on responses received: July - December 2009 Category by gross annual income % of firms 0 – R1,5m 38% R1,5m – R11,5m 43% > R11,5m 19% Total 100.0%

CESA Biannual Economic and Capacity Survey January – June 2009 Economic Impact

Relationship to Gross Fixed Capital Formation

Consulting Engineering Industry Fee income, Rm Constant 2000 prices (CPI Deflated) Annualised

Consulting Engineering Industry Real Fee income (CPI deflated), 2000 prices: Annual Change

CESA Confidence Index

Industry Confidence

Consulting Engineering Industry Real Fee income (CPI deflated) vs confidence

Consulting Engineering Industry Nominal Fee income vs confidence

CESA Biannual Economic and Capacity Survey January – June 2009 CESA Labour Cost Indicator: Y-Y Change

Consulting Engineering Industry Employment vs REAL fee income (CPI / LCI Deflated)

Consulting Engineering Industry Employment vs Salary / Wage bill

CESA Biannual Economic and Capacity Survey January – June 2009 Discounting Question: What is the prevailing discount being offered in a tendering situation to clients by your firm, benchmarked against the ECSA Guideline Fee Scales? 43% of firms discounted by 20% or more

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Share December 2009 Question: What type of work did your company engage in during the past 6 months?

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Share December 2008 to December 2009 Question: What type of work did your company engage in during the past 6 months? 80% of fees are earned in four disciplines namely civil, project management, structural and mining

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Share Change in the last 12 months Question: What type of work did your company engage in during the past 6 months?

Fee income earned by Top four disciplines: R mill 2000 prices Annual average: 2000 – 2009 (annualised) Civil

Fee income earned by economic sector Percentage market share June 2008 – December 2009 Section A General Questions: Question: Income distribution per economic sector

Fee income earned by key economic sectors December 2005 – December 2009 Section A General Questions: Question: Income distribution per economic sector

CESA Biannual Economic and Capacity Survey January – June 2009 Provincial Market Share: December 2009 Vs change in market share from December 2008 GAIN market share Section A: General Questions: Question 10 Income distribution per province

CESA Biannual Economic and Capacity Survey January – June 2009 Provincial Market Share 2005 – 2009 (Annual Avg) Section A: General Questions: Question 10 Income distribution per province

Fee income earned by province (High Capacity economies) – Annualised smoothed Gauteng Section A: General Questions: Question 10 Income distribution per province

Fee income earned (Constant 2000 prices) High Capacity vs lower capacity provincial economies (Smoothed) Section A: General Questions: Question 10 Income distribution per province

Fee income earned (Constant 2000 prices) % of RSA Earnings : High Capacity provincial economies (Smoothed) Section A: General Questions: Question 10 Income distribution per province

Fee income earned : RSA vs EX-RSA R mill, 2000 prices (Annualised, smoothed) Section A: General Questions: Question 10 Income distribution per province

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by type of client % Share Section A: General Questions: Question 11 Local (SA) Income distribution per fee paying client type, during the past 6 months

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by type of client R mill 2000 prices (Annualised, smoothed - avg over 2 survey periods) Section A: General Questions: Question 11 Local (SA) Income distribution per fee paying client type, during the past 6 months

CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by type of client Constant 2000 prices (Annualised, smoothed - avg over 2 survey periods) Section A: General Questions: Question 11 Local (SA) Income distribution per fee paying client type, during the past 6 months

CESA Biannual Economic and Capacity Survey January – June 2009 Competition in tendering Section B: Business Cycle Indicators - Question 16 During Jul – Dec 2009 wor work was (Tick selection)

CESA Biannual Economic and Capacity Survey January – June 2009 Competition in tendering Section B: Business Cycle Indicators - Question 16 During Jul – Dec 2009 competition for work was (Tick selection)

CESA Biannual Economic and Capacity Survey January – June 2009 % of Firms wanting to increase staff New June 2005 survey

CESA Biannual Economic and Capacity Survey January – June 2009 Engineering Skills Shortfall Fewer firms want to increase engineers % Experiencing difficulties

CESA Biannual Economic and Capacity Survey January – June 2009 Recruitment problems

CESA Biannual Economic and Capacity Survey January – June 2009 Bursaries % of Salary / Wage bill

CESA Biannual Economic and Capacity Survey January – June 2009 Bursaries R mill 2000 prices (Annualised)

CESA Biannual Economic and Capacity Survey January – June 2009 Training (Salaries and Direct Training Costs) % of Payroll Data not available Large % of respondents did not complete information on salaries in December 2009 survey Data not available

CESA Biannual Economic and Capacity Survey January – June 2009 Training (Salaries and Direct Training Costs) Rand millions, Constant 2000 prices Data not available Large % of respondents did not complete information on salaries in December 2008 survey Data not available

CESA Biannual Economic and Capacity Survey January – June 2009 Training (Direct costs only) % of Payroll

CESA Biannual Economic and Capacity Survey January – June 2009 Training (Direct costs) Rand millions, Constant 2000 prices

CESA Biannual Economic and Capacity Survey January – June 2009 Student enrolments in public higher education institutions Science, Engineering & Technology Increased by 39% between 2005 and Source: Department of Education

CESA Biannual Economic and Capacity Survey January – June 2009 Industry Capacity Utilisation Of existing technical staff

CESA Biannual Economic and Capacity Survey January – June 2009 Total fee income outstanding, by client Exceeding 90 days

Fee income outstanding for longer than 90 days December 2009

CESA Biannual Economic and Capacity Survey January – June 2009 Total fee income outstanding for longer than 90 days % of total fee income earned Survey amended to include foreign clients

CESA Biannual Economic and Capacity Survey January – June 2009 Escalation trends Year-on-Year % Change Based on headline consumer inflation (CPI) Forecasts Industry Insight Economist Poll Source: ABSA CPI Basket Revised in January 2009

CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Profession Labour unit cost indicator: Year-on-Year % Change (Smoothed)

CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Profession Labour unit cost indicator: Annual Average Y-Y Chg

CESA Biannual Economic and Capacity Survey January – June 2009 Typical Employment Breakdown July – December 2009

Typical Employment profile: July - December 2009 Total employment

CESA Biannual Economic and Capacity Survey January – June 2009 Overall Employment Breakdown, by race December 2003 – December 2009

CESA Biannual Economic and Capacity Survey January – June 2009 Employment profile: Black only (excluding Asian / Colourds) representation of total employment % Share of total employment

CESA Biannual Economic and Capacity Survey January – June 2009 Professional Indemnity Insurance Risk profile In terms of firm’s perceptions of risk, close over 70% of respondents said that their firm had a low risk exposure, compared to almost 30% saying it was regarded as medium.

CESA Biannual Economic and Capacity Survey January – June 2009 Equity Distribution by firm type

CESA Biannual Economic and Capacity Survey January – June 2009 Ownership / Equity: % Share of total employment PTY, CC & Partnerships

CESA Biannual Economic and Capacity Survey January – June 2009 Black Ownership / Equity: % Share of total ownership / equity PTY, CC & Partnerships Black, including Asian & Coloured -Women represented 6% of total ownership / equity compared to 4,3% in the December 2007 survey -Black women represented 3,5% of total ownership / equity compared to 2,8% in the December 2007 survey

CESA Biannual Economic and Capacity Survey January – June 2009 Black ownership / equity as % of total ownership / equity by type of company June 2007 – December 2009 Black includes Asian and Coloureds

CESA Biannual Economic and Capacity Survey January – June 2009 Quality Management System

CESA Biannual Economic and Capacity Survey January – June 2009 ISO 9001:2000 Certificate

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