January – June 2014 Biannual Economic and Capacity Survey 1

Firm distribution based on Annual Turnover (based on responses received) Category by gross annual income % of firms 0 – R1,5m 5% R1,5m – R11,5m 42% > R11,5m 52% Total 100.0% Category by gross annual income % of firms 0 – R1,5m 35% R1,5m – R11,5m 46% > R11,5m 19% Total 100.0% July – December 2013January – June

Profile of respondents – by firm size Based on full and part time employment 3

Economic Impact Stable contribution of CESA Membership earnings as percentage of GDP Source: RBQN, CESA BECS, Industry Insight 4

Fee earnings vs Gross Fixed Capital Formation (Res, NonRes, Construction works) | Rbn, Constant 2005 prices Source: RBQN, CESA BECS, Industry Insight 5

Consulting Engineering Earnings Percentage of GDP / GFCF construction 6

Fee income, R billions Real 2000 prices Annualised | Deflator = CPI Source: CESA BECS 7

Real Fee income, Real prices Annual Change | Deflator = CPI Source: CESA BECS 8

CESA Confidence Index Source: CESA BECS 9

Business confidence vs CESA confidence Source: CESA BECS, BER 10

Real Fee income vs Industry confidence Income deflated using CPI Source: CESA BECS 11

Real Fee income vs Industry confidence Income deflated using CPI Source: CESA BECS 12

CESA Labour Cost Indicator vs CPI Year on Year percentage change Source: CESA BECS 13

Employment vs REAL fee income (Rbn) (Deflated using the CPI & LCI) Source: CESA BECS CPI: Consumer price index LCI : Labour Cost Indicator 14

Salary and wage bill slow amidst stable employment Source: CESA BECS 15

Salary and wage bill | Percentage of gross fee earnings Source: CESA BECS 16

Average Discounting rate Source: CESA BECS 17

Fee income earned by Sub-disciplines: % Share Source: CESA BECS 18

Fee income earned by Sub-disciplines: % Share Change in market share in the last 6 months Source: CESA BECS 19

Fee income earned by TOP THREE disciplines: R bn Real 2000 prices Moving average (2 survey period): 2002 – June 2014 Source: CESA BECS 20

Fee income earned by economic sector Percentage market share June 2013 – June 2014 Source: CESA BECS 21

Profile of earnings by sector R22bn annualised current prices 22

Fee earnings by selected sector R billions, Real 2000 prices | Smoothed |2 survey average Source: CESA BECS 23

Fee income (Rm, Real prices) earned by key economic sectors June 2005 – June 2014 Source: CESA BECS 24

Provincial Market Share: June 2014 Vs change in market share from June 2013 GAIN market share GAIN market share Source: CESA BECS 25

Fee income earned by province (Rbn, real prices) High Capacity economies |TREND Annualised smoothed, average over 2 past surveys Source: CESA BECS 26

Fee income earned by province June 1999– June 2014| Rm real prices Source: CESA BECS 27

Fee income earned by province June 1999– June 2014| Rm real prices Source: CESA BECS 28

Provincial profile by economic sector where fee earnings >50% of total earnings Source: CESA BECS 29

Fee income earned (Real 2000 prices) High Capacity vs lower capacity provincial economies |Smoothed 82% of fees were earned in high capacity provinces Source: CESA BECS 30

Contribution of high capacity provinces to total fee earnings Source: CESA BECS 31

Fee income earned : RSA vs EX-RSA R mill, Real 2000 prices | Annualised, smoothed 85% of fees were earned in South Africa Source: CESA BECS 32

Fee income earned by type of client Percentage share as at June 2014 Source: CESA BECS 33

Fee income earned by type of client Percentage share Source: CESA BECS 34

Fee income earned by type of client R billion Real 2000 prices | Annualised, smoothed - avg over 2 survey periods Source: CESA BECS 35

Fee income earned by type of client R billions Real 2000 prices | Annualised, smoothed - average over 2 survey periods Source: CESA BECS 36

Competition in tendering Percentage of respondents that reported “Keen to Fierce” vs Fierce competition Source: CESA BECS 37

% of Firms wanting to increase staff Source: CESA BECS 38

Engineering Skills Shortfall Source: CESA BECS 39

Recruitment problems Source: CESA BECS 40

% of firms that reported experiencing problems recruiting the right people Source: CESA BECS 41

Bursaries Stabilized back to 0.4% in June 2014 Survey Source: CESA BECS Trend line – 2 year average 42

Bursaries R mill Real 2000 prices (Annualised) Source: CESA BECS 43

Training (Salaries and Direct Training Costs) Percentage of Payroll Data not available Source: CESA BECS Trend line – 2 year average 44

Training (Salaries and Direct Training Costs) Rbn, Real 2000 prices Data not available Source: CESA BECS Trend line – 2 year average 45

Training (Direct costs) Direct training costs as a percentage of payroll increased to 0.8 percent Source: CESA BECS Trend line – 2 year average 46

Training (Direct costs) Rand millions, Real 2000 prices Source: CESA BECS Trend line – 2 year average 47

Industry Capacity Utilisation Of existing technical staff Source: CESA BECS 48

Summary of selected indicators by firm size category 49 Firm Size Category Capacity Utilisation of existing technical staff during the past 6 months % of Respondents that expect capacity utilisation of technical staff to increase over the next 6 months Average discount being offered by respondents in tendering situation to clients, benchmarked against the ECSA guideline fee scales % of Respondents that reported FIERCE Competition for work during the last six months Large Medium Small Micro Industry Average (Weighted) (Weighted) Source: CESA BECS

Total fee income outstanding for longer than 90 days Percentage of total fee income earned Source: CESA BECS Trend line – 2 year average 50

Escalation trends: CPI Year-on-Year Percentage Change CPI Basket Revised in January 2013 Forecasts based on latest Treasury estimates (Budget 2014/15 Source: Treasury estimates Budget

Labour unit cost indicator Year-on-Year % Change (Smoothed) Source: CESA BECS 52

Labour unit cost indicator Annual Average Year-on-Year Percentage Change Source: CESA BECS 53

CESA labour costs outpace CPI 54

Profile by Race 55

Profile of Professional Engineers by Race 56

Typical Employment Breakdown January – June 2014 Source: CESA BECS 57

Overall Employment Breakdown, by race December 2007– June 2014 Source: CESA BECS %

59 Employment profile Black only (excluding Asian / Coloureds) representation of total employment % Share of total employment

Changing profile of female engineers 60

Executive Staff: % Share of total employment PTY, CC & Partnerships Source: CESA BECS 61

Executive Staff profile Source: CESA BECS 62

Black Executive Staff : (including Asian and Coloured) % Share of total Executive Staff Source: CESA BECS 63

African (Black) Executive Staff as % of total Executive | December 2008 – June 2014 Source: CESA BECS 64

Quality Management System Source: CESA BECS 65

ISO 9001:2008 Certificate Source: CESA BECS 66

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