By John Ackermann, founder of SARDA, and owner/editor The Cold Link newspaper
Climate, currency and cold chains: signs of a resilient economy.
The tempo of return to business after the annual summer closure of schools, colleges and the construction industry, appeared sluggish and could be attributed to the harsh climate conditions – floods and damage to infrastructure in north, and to lesser extent in KwaZulu-Natal. Even one of South Africa’s biggest tourist destinations, the Kruger National Park, sustained severe flood damage, while in the south the Western Cape experienced gale force winds, soaring daily temperatures exceeding 30oC and raging fires across Cape Town, the Boland and Overberg. The cost of repairing flood and fire damage, the loss of revenue from tourists, and the days lost in the shipment of perishables from Cape
Town harbour during the busy fruit season is expected to erode the financial reserves of many sectors of the economy.
On the bright side, amid global political turmoil and the rampage of Trump, the currency exchange rate with the US dollar dropped below R16.00 and the price of precious metals increased. The resultant drop on the retail price of diesel and petrol is a welcome boost to every business and household budget.
Resilience remains a distinguishing characteristic of the South African economy and is evident by the innovative conversions to renewable energy by many large corporations, the recovery of waste heat from refrigeration systems, and the conservation of water usage.
Large wind turbines have become a prominent feature as a form of renewable energy in parts of the country. It is interesting to note that there is concern about the lack of hands-on skills needed to maintain, repair and service large wind turbines. If made by man, man will be needed to repair and maintain. So, it is not only the HERVAC industry that has a skill shortage and requires ongoing recruitment.
The changing landscape in the retail food industry bodes well for the refrigeration industry in the year ahead. The battle between supermarket groups, and even convenience stores on petrol station forecourts, has intensified as each try to capture every rand available by the consumer for spending on food.
Store layouts have undergone appealing changes with the aim of making shopping an adventure for the whole family. Seems somewhat contrary to the promotion of online shopping. The entry of Walmart retail supermarkets can best be termed as ‘putting a cat among the pigeons’.
Store owners are becoming more aware of the energy costs of refrigeration systems in the form of vending cabinets and cold stores. Proactive suppliers and contractors are staying ahead with energy saving features, innovative designs and live monitoring of energy usage. Indications are that operating costs and life cycle costs have overtaken what was the prime consideration before – capital first cost.
The expansion in the number of operators of refrigerated road vehicles, is a positive indicator of the health of our economy. Long standing operators are investing in energy efficient vehicles, hybrid refrigeration and some have gone the route of solar panels on the roof of semi-trailers to reduce diesel consumption.
Two well-known foreign operators, DP World and Petit Forestier, are making a positive impact on refrigerated distribution. Diesel gen-sets on trailers transporting marine reefer containers is now the norm as logistics service providers promote a seamless cold chain from pickup to final delivery. The explosion in the national fleet of air-conditioned luxury coaches is a welcomed boost for the refrigeration industry.
Growth in the number of refrigeration systems in retailing, transport and distribution, mitigates the demand for competent hands- on persons to install, maintain and service the afore-mentioned systems. The basic principles of refrigeration have not changed for centuries. Admittedly, electronic controls, types of refrigerants, design techniques, etc, have changed and yet the curriculum in training basic refrigeration has undergone many changes, and is about to change again in South Africa. So, let’s hope it is for the better, sustainable, and will attract the desired level of new entrant to the industry.
Until next time, I hope to share some more thoughts.
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