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TSE analyses SA electronics sector

21 July 2010 News

The Technology Station in ­Electronics (TSE) recently conducted a survey and market analysis of the South African electronics sector (targeting the Gauteng province), with the ­objective of appraising its innovation levels and ­competitiveness.

The evaluation process involved an array of stakeholders including designers, manufacturers, suppliers, supporters and customers, and took the form of participatory workshops and interviews.

An initiative of the Department of Science and Technology (DST), the TSE’s stated goal is to assist SMEs to become global competitors through product design and development (prototyping), electronic assembly (with an emphasis on surface mount technology) and small-scale production. However, this ambitious survey saw the TSE looking to take on the role of facilitator, by engaging with interested parties in order to advance the South African electronics sector as a whole.

The TSE’s rapid diagnosis involved more than 65 participants, mainly in the Gauteng area, and pursued four lines of inquiry: the firm environment (inter and intra); the role of technology related organisations; the role of educational and training organisations; and framework conditions that affect innovative behaviour. The analysis covered the length of the electronics value chain, from design and development, through procurement of components and equipment, prototyping, production, assembly, maintenance and reworking, to specialised private and public expertise and services.

Emerging themes

Amongst the broad themes that emerged, South African companies’ global competitiveness was a hot topic, with designers and developers finding themselves in competition with European firms, while manufacturers are squaring off against the Asians. There is a general sentiment that many local firms prioritise quality and flexibility over price, but also concern that this situation could change.

SA’s electronics sector is in a strong position, given that it maintains a diverse range of competencies while also supporting extensive specialisation, with defence-related work remaining an important source of skills and ideas. Many firms have either direct or indirect international customers, and the lack of a formal industry association is seen as a limiting factor to industry development and coordination. Although the SAEEC (South African Electrotechnical Export Council, a public-private partnership with the DTI) plays a role in this regard, it is not seen to serve that needs of electronics companies in the way that a representative industry association would.

‘Skills shortage’ is and has been a phrase on many lips in the electronics sector (and the broader engineering industry) for some time now, and the issue was raised repeatedly during the survey. The pervasive feeling is that, while there is a strong engineering and development skills base, there are too few new entrants. Most firms are satisfied with interns and recent graduates, but cite the difficulty of retaining younger technical staff as a challenge, as many want to pursue careers in management. As a result of these factors, few companies are willing to send their staff on formal training, preferring in-house training and short courses instead. There also continues to be a shortage of black engineers and managers with industry experience.

Future developments

The TSE believes that it learned much from the survey and will look to use the exercise to better understand and develop its role within the sector. The recommendations that it is considering include targeting of development and prototyping services, with emphasis on concept development or applied research. It will also aim to assist with research projects that solve problems or create opportunities for industry, in the form of new technology and applications, as well as helping industry to understand trends and technology shifts. On the student side, more experiential learning and short learning programmes, as well as internships, will be considered, in addition to aiding students and academia to better understand opportunities in the electronics sector.

For more information contact Dr SJ Jacobs, director of Technology Station in Electronics, +27 (0)12 382 5039.



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