Reducing TCO will enable construction firms to remain competitive

With government infrastructure spending on large construction projects remaining subdued, Himoinsa Southern Africa MD Martin Foster warns against the short-sighted temptation by the South African construction industry to try and manage its power generation costs, stressing the importance of instead minimising the total cost of ownership (TCO). “One of the biggest challenges the industry faces . . . is a lack of government spend on new, large construction projects. In 2010, we saw countless projects for new stadiums, roads, airports and port upgrades. Unfortunately, since then, we have not seen that level of activity in the industry and the truth is growth in construction relies on government spend.”