SAISC Breakfast Feb 2012 J Guild

8/10/2019 SAISC Breakfast Feb 2012 J Guild

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Welding Industry in

ou r ca........................................................

Jim GuildFebruary 2012


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What do we mean by the welding industry

For todays purpose only the production part of the

industry:

Manufacturing including welding fabrication

Metal construction


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What do we mean by Gross Domestic Product?

and services produced by a country in a given year, plus the

, .

We can think of it as our national net turn-over.


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South Africas GDP - the importance of manufacturing

South Africas GDP (national turn-over)

US$ 364 Billion in 2010 R 2548 Billion in 2010

What proportion came from manufacturing?

. .vehicle trade and the metal fabrication portion of

construction.


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South Africa GDP - manufacturing contribution

GDP Sectors

300

350

400

200

250

Billion Manufacturing

50

100

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010


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South Africas GDP - growth and the importance of manufacturing

Recent and future growth:

10 year growth and current growth about 3% per annum

in real terms

Target growth 7% per annum because of need to

Growth in the manufacturin sector about 2.5% erannum over a 10 year period (major knock in 2009)


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Growth in the manufacturing contribution to GDP

GDP Growth in Constant 2005 Prices

10.0

5.0

thon

Year

-5.0

.

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

%o

fGro

Previous

-15.0

- .

ManufacturingTotal GDP


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South Africas GDP - growth and the importance of manufacturing

Is Manufacturin central to rowin GDP and creatin obs what are the alternatives?

Can we switch to being a knowledge based economy? Can we be an international financial services hub?

prospects?

If we can increase growth in the manufacturing sector by 10%

over a ten year period GDP increases by about R 600 Billionan ere s an emp oymen ga n o a ou o s.


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South Africas GDP - the importance of welding

What role does welding play in manufacturing?

processes.

Obvious implicationWelding is a critical technology for our manufacturing

industry.

Higher level of imported products and labour with negative

effect on rowth and GDP further lowerin of em lo ment.


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South Africas GDP - what are the challenges in welding?

We must at least match the standards of our international-

economically which means access to essentialre uirements:

Consumables and equipment

Skilled personnel at all levels Technology development and application

The welding industry needs to have adequate capacity and

must be able to combine the essential re uirements toachieve consistent quality.


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ow s ou

r ca o ng


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onsuma es

an equ pmen


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Consumables and equipment - challenges in welding

Access to most requirements through competitive local andinternational suppliers but:

Need to encourage local equipment and consumable

subsidised imports

Appreciate the difficulties for fabricators to invest in newequipment technology when obliged to work in survival

of the markets


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e

personne


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Skilled personnel at all levels - challenges in welding

Employs a full spectrum of people with all levels of education and

Offers a wide variety of careers with progression opportunities

Generally the employment profile is well suited to South Africa


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Where are new jobs arising? - welders

New jobs arise where money is being spent e.g. Eskom

power generation, Transnet transportation and pipelines etc

Eas to forecast the skill re uirements of welders

Jobs are arising at the high end of the skills spectrum


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New jobs - welders

Why at the high end of the welder skills spectrum?

Complexity of welding (many tube and pipe welds in many positions)

Multi le rocesses used to make welds e. . ti root welds and mmafill and cap the weld)

temperature grades of steel which require careful control of thewelding process

The hazard category of the plant (plant failure has high financial

consequences and there is high risk to people)


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Skills issues - challenges at welder artisan level

It is widel acce ted that South Africas artisan shorta e is a chronicproblem

National training programmes are focused on basic skill levels and

Newly trained welders emerging FET colleges and acquiring NQFqua ca ons ave a cre y ssue


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Imported Welders

are currently working in SA?

welders but this has been relaxed to some extent at least this decisionhelps secure the jobs of the already employed workforce even if it doesnt

Safe to assume that the number of imported welders working inSafe to assume that the number of imported welders working in

working on long term jobsworking on long term jobs


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Imported Welders

Between 30% and 40% of the welders on working power stations areimported

U to 80% of the welders workin on the new ro ects - Medu i and Kusile- are imported

Importation of welders no longer restricted to construction and short termcontracts and the numbers are larger - commonplace in all areas ofindustrial activity including fabrication shops with long term contracts


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Skills issues - challenges at higher level

Since 2003, when SAIW became the Authorised National Body of IIW inSouth Africa, only 20 International Welding Engineers (IWEs) and 17

International Welding Technologists (IWTs) have been registered inSouth Africa:

over the last 10 years


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Skills issuesSkills issues -- challenges at higher levelchallenges at higher level

The IWE and IWT programmes are additive courses which assumerior knowled e at en ineer and technolo ist level.

In the case of the IWE programme it makes more sense for SAIW to

structure.

limited staff capacity has meant that output has been very low.

e n vers ty o retor a as recent y ma e a s gn cant ntervent onwhich will significantly increase the numbers of IWEs and IWTs.


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Skills issues - solutions and challenges

In terms of training programmes and qualifications for improving skilleve s ere s a s mp e so u on us ng e sys em:

Developed by the best experts from more than 50 countries Covers the full spectrum of welding personnel South Africa has the accreditation needed to use the IIW courses Ensures that Learners are trained b knowled eable trainers in

suitable facilities Ensures learners are trained according to a credible programme that

The IIW qualifications are referenced in international standards andare used by international end users and project houses


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Skills issues - solutions and challenges

At the level of supervisory and management welding personnel the IIWsys em s a rea y w e y use y ou r can n us ry e gremaining challenge is at the level of welders.

There are some bright spots:

Eskom training 700 welders using the IIW system over the next 6 years.


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MERSETA - Institute of Sectoral Occupational Excellence Project

grea ea no carr e roug o comp e on


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Technology development - challenges

Ver little weldin -related research is currentl erformed at SouthAfrican academic and research institutions

research programmes addressing welding and fabrication issues andthese are modest!

Very little technology development work is currently undertaken inUniversities or Technical Institutes


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Other challenges facing metal fabricators?

Recently a Metal Fabricators Group identified the following as justsome of the factors affecting its sustainability and growth:

Rapidly rising administered prices (power, rail, ports etc)

Skills shorta es

Poor control over imported products

,

Poor export incentives

Labour relations and labour productivity

oom or us economy


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ChallengesChallenges what can the Universities and the Technicalwhat can the Universities and the Technicalns u es ons u es o

world

ac a e an suppor e access o we ng a r ca ors o e qua ycertification programmes ( IIW ISO 3834 programme) used ascontract or order entry requirements by purchasers

Partner in the development of centres of expertise for thedevelopment of wider application of modern welding processes andovercoming technical barriers arising in new projects andmaintenance activities SAIW Centre of Welding Technology at

Universit of Pretoria SAIW su orted chair at Wits UniversitSAISC and SAISI university activities


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Challenges what can the welding fabricators do?

Address factors impacting on productivity and quality issues

use the ISO 3834 certification system for effective quality

management programmes sw c rom a cu ure o nspec ng qua y n o a pro uc o a cu ure

of right first time increase the numbers of skilled personnel usingthe IIW qualifications

Use technology centres for the technical support needed to ensure theycan compete in new projects with new welding challenges

Form a representative body to communicate and interact with

overnment on issues which ne ativel im act on the abilit of theindustry to grow


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Challenges what can government do?

Recognise the potential of the welding fabrication industry for thesignificant impact it can make on GDP growth and employment

Appreciate that money spent on the welding and fabrication industry islow risk and will deliver a high return on the growth and employment

oals uickl

Government should be involved in funding in all the areas we have

Training at all levels of personnel Technology centres

Overcoming barriers identified by metal fabricators, and

Especially it should have a vehicle in which it meets with the weldingand fabrication industry to achieve development goals

Concluding remarks


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Concluding remarks

South Africa has not encouraged the metal fabrication industry asmuch as it should have and this needs correctin

Universities and the technical Institutes such as SAIW, SAISC and

manufacturing and welding to improve growth and reduceemployment by working on improving skills and providing access to

much more support is needed from industry and government

C l di k ( )


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Concluding remarks (cont.)

The approach of Germany in 2009 at the height of the recession inEurope was enlightening

DVS the German Welding Institute was upskilling and re-skilling welders

b trainin on double shifts aid for b the German overnment Germany knows the value of manufacturing to its national well-beingand the contribution needed by the welding industry!


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Concluding remarks (cont.)

We all have to remember that every welded vessel or structurewhich is im orted and ever welder im orted has a ne ative im acton GDP and employment.

and skilled human resources. These sometimes have a beneficialeffect overall but every importation should be questioned not by

the agent who places an order for fabricated equipment overseas by the fabricator or constructor who imports labour.

WE NEED A WINNINGWE NEED A WINNING


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WE NEED A WINNINGWE NEED A WINNING

AFRICAAFRICA

Documents

SAISC Breakfast Feb 2012 J Guild