1. January - June 2009 Biannual Economic and Capacity Survey

2. CESA Biannual Economic and Capacity Survey January – June 2009 Firm distribution based on Annual Turnover based on responses received: Jan – June 2009 Category by gross annual income % of firms 0 – R1,5m 14% R1,5m – R11,5m 49% > R11,5m 37% Total 100.0% Category by employment % of firms% of industry employment A > 100 (Large) 23.3% 81.8% B 20 – 100 (Medium) 34.9% 13.6% C 10 – 20 (Small) 23.3% 3.4% D < 10 (Micro) 18.6% 1.2%

3. CESA Biannual Economic and Capacity Survey January – June 2009 Salient Features

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

5. CESA Biannual Economic and Capacity Survey January – June 2009 Relationship to Gross Fixed Capital Formation

6. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Fee income, Rm Constant 2000 prices (CPI Deflated) Annualised

7. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Real Fee income (CPI deflated), 2000 prices: Annual Change

8. CESA Biannual Economic and Capacity Survey January – June 2009 CESA Confidence Index

9. CESA Biannual Economic and Capacity Survey January – June 2009

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

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

12. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Nominal Fee income vs confidence

13. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Employment vs REAL fee income (CPI / LCI Deflated)

14. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Employment vs Salary / Wage bill

15. 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? 37% of firms discounted by more than 20%

16. CESA Biannual Economic and Capacity Survey January – June 2009 Disciplines

17. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Share June 2008 to June 2009 Question: What type of work did your company engage in during the past 6 months?

18. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Share June 2008 to June 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

19. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Sub-disciplines: % Market Share % point change in % share in the last 12 months Question: What type of work did your company engage in during the past 6 months? Contribution of mining increased to 8,7% in June 2009 Survey

20. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by Top four disciplines: R mill 2000 prices Annual average: 2000 – June 2009 (annualised) Civil

21. CESA Biannual Economic and Capacity Survey January – June 2009 Economic Sector

22. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by economic sector Percentage market share June 2007 – June 2009 Section A General Questions: Question: Income distribution per economic sector 80% of fees earned in transportation, water, commercial and housing sectors. Mining sector increased its share to 10% in June 2009 survey

23. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Industry Fee income earned by key economic sectors December 2005 – June 2009 Section A General Questions: Question: Income distribution per economic sector

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

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

26. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned by province (High Capacity economies) – Annualised smoothed Gauteng Section A: General Questions: Question 10 Income distribution per province

27. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned (Constant 2000 prices) High Capacity vs lower capacity provincial economies (Smoothed) High Capacity: WC, EC, GAU, KZN = 80% of total fee earnings (December 2007 survey) Section A: General Questions: Question 10 Income distribution per province

28. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned (Constant 2000 prices) % of RSA Earnings : High Capacity provincial economies (Smoothed) Section A: General Questions: Question 10 Income distribution per province

29. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income earned : RSA vs EX-RSA R mill, 2000 prices (Annualised, smoothed) Section A: General Questions: Question 10 Income distribution per province

30. CESA Biannual Economic and Capacity Survey January – June 2009 Client

31. 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

32. 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

33. 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 Fees earned working in the public sector fell by 14% y/y in the June 2009 survey

34. CESA Biannual Economic and Capacity Survey January – June 2009 Competition

35. CESA Biannual Economic and Capacity Survey January – June 2009 Competition in tendering Section B: Business Cycle Indicators - Question 16 During Jan – June 2008 competition for work was (Tick selection)

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

37. CESA Biannual Economic and Capacity Survey January – June 2009 Recruitment

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

39. CESA Biannual Economic and Capacity Survey January – June 2009 Engineering Skills Shortfall % that want to increase % Experiencing difficulties

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

41. CESA Biannual Economic and Capacity Survey January – June 2009 Training / Bursaries

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

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

44. 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 2008 survey

45. 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

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

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

48. 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 2007 214 341 Source: Department of Education

49. CESA Biannual Economic and Capacity Survey January – June 2009 Capacity

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

51. CESA Biannual Economic and Capacity Survey January – June 2009 Delayed Payments

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

53. CESA Biannual Economic and Capacity Survey January – June 2009 Fee income outstanding for longer than 90 days June 2009

54. CESA Biannual Economic and Capacity Survey January – June 2009 Fees outstanding for more than 90 days R mill, annualised, nominal prices ClientR mill (annualised) current prices Central governmentR53 ProvincialR132 LocalR419 State Owned EnterprisesR15 Private sectorR801 ForeignR136 TotalR1557

55. 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

56. CESA Biannual Economic and Capacity Survey January – June 2009 Inflation

57. 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

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

59. CESA Biannual Economic and Capacity Survey January – June 2009 CESA LABOUR COSTS ESCALATION VS ECSA FEES (Average) Index 2003 = 100 Source: ECSA Fee Scales, CESA MIS

60. CESA Biannual Economic and Capacity Survey January – June 2009 Consulting Engineering Profession Labour unit cost indicator: Annual Average: Year-on-Year % Change

61. CESA Biannual Economic and Capacity Survey January – June 2009 Employment Profile

62. CESA Biannual Economic and Capacity Survey January – June 2009 Typical Employment Breakdown January – June 2009

63. CESA Biannual Economic and Capacity Survey January – June 2009 Typical Employment profile: January – June 2009 Total employment 19 596

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

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

66. CESA Biannual Economic and Capacity Survey January – June 2009 Professional Indemnity Insurance -37% of firms pay less than 0,5% of their gross fee income on insurance - The average premium contribution was 0,6% of gross fee earnings in June 2009 Survey, with larger firms paying a lesser and smaller firms a higher contribution. -Over the last five years there have been on average 1,8 claims per firm, with an estimated average value per claim of R48 000. - the value of claims represented between 5% and 7% of total premiums paid over a five year period, yet some firms reported that up to 70% of their claims were not funded by the insurer. At an industry level this could be as much as 60%. -Limit of indemnity averaged 25% for the industry as a whole

67. CESA Biannual Economic and Capacity Survey January – June 2009 Professional Indemnity Insurance Risk profile In terms of firms 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.

68. CESA Biannual Economic and Capacity Survey January – June 2009 Equity / Ownership

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

70. CESA Biannual Economic and Capacity Survey January – June 2009 Ownership / Equity: % Share of total employment PTY, CC & Partnerships 7% of people employed in the Consulting Engineering Professions held a position that includes some level of ownership or equity (as at June 2009)

71. 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

72. CESA Biannual Economic and Capacity Survey January – June 2009 Black ownership / equity as % of total ownership / equity by type of company June 2006 – December 2008 Black includes Asian and Coloureds

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

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

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

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