Abstract
The performance of the manufacturing sector is significant given the key role that it plays in the reindustrialisation of the economy. Manufacturing contribution to Gross Domestic Product (GDP) and employment have been decreasing over time and these have been coupled with a decline in employment levels. Previous studies in the manufacturing sector have indicated that a lack of adequate skills, poor investment in machinery and equipment and unreliable infrastructure have had an adverse impact in the performance of firms, in addition to increased international competition. Given this backdrop, this dissertation endeavours to determine the factors that affect firm performance and competitiveness at a local level by examining manufacturing firms located in Industria West and Aeroton. The review analysed firm size, age of equipment, investment patterns, education and skills, exports, capacity utilisation, and growth of firms between 2012 and 2014. These survey results were then contrasted against a World Bank Enterprise Survey, which was conducted in 2007 on Johannesburg to account for the effects of prevailing economic conditions. The results from the two surveys showed dissimilar results. Firms in Johannesburg in 2007 performed better than firms in Industria West and Aeroton in 2014 due to prevailing economic conditions; however, there were some similar challenges that firms faced. Sector orientation and performance did not have a statistically significant relation, while the sector and size of the firms indicated a relationship. In addition to these findings, research and development (R&D), technology, skills, and public infrastructure had a noteworthy impact on the competitiveness of firms.
M.com. (Development Economics)