Manufacturing is often associated with large factories, assembly lines, and industrial emissions. While these images reflect part of the reality, they overlook the sector’s far greater significance. Manufacturing is not just about production – it is a critical driver of employment, innovation, exports, and long-term economic stability. From vehicles and infrastructure to medical equipment, electronics, and energy systems, nearly every industry depends on manufacturing to operate, grow, and compete.
Manufacturing’s Role in South Africa’s Economy
Manufacturing in South Africa is a sector of immense economic significance. It contributes approximately 12–13% of GDP, making it the fourth-largest sector after finance, government services, and trade. The industry is labour-intensive, employing around 1.6–1.8 million people, and each job supports multiple additional roles across supply chains, logistics, maintenance, and services, creating a strong multiplier effect. Productivity gains in manufacturing ripple across these sectors, driving wages, tax revenue, and economic growth. Manufacturing is also vital for exports and foreign earnings, sustaining key sectors such as automotive, metals, machinery, chemicals, and food processing. Since the emergence of Industry 4.0 in 2011, leading economies have rapidly adopted automation, advanced robotics, AI, and data-driven production to improve productivity, reduce costs, and strengthen competitiveness. These capabilities are no longer future-focused innovations, they are fast becoming the global standard.
“Manufacturing is not just another sector, it is the foundation that supports almost every other industry,” says Ruan Cowley, Managing Director of KNUTH South Africa and President of KNUTH USA. “When manufacturing is strong, supply chains are reliable, businesses grow, and economies become more resilient. “South Africa has enormous potential to become a global manufacturing hub, but that potential will only be realised by optimising processes, upskilling staff, and modernising operations to overcome challenges such as legacy equipment, energy constraints, fragmented supply chains, and slow adoption of advanced production techniques.”
“Every advancement in this industry strengthens the entire value chain, from suppliers to service providers to industries that rely on manufactured products,” Cowley explains. “Manufacturing is both an engine and a multiplier for the economy.”
Unlocking South Africa’s Manufacturing Potential
South Africa has unique advantages: abundant natural resources, a strong industrial base and proximity to African markets. If these strengths are leveraged, and a greater focus is placed on improving production processes, the right equipment investment and closing of the trade skills gap, the country could compete with the world’s most advanced manufacturing nations.
“South Africa has all the ingredients to be a manufacturing powerhouse,” Cowley says. “KNUTH has been part of this industry for over a century. We are more than a machine partner - we understand the industry, the trends, and the challenges manufacturers face. Supplying machinery and service across diverse industries and regions has given us insight into what it takes to adapt and grow in a rapidly evolving manufacturing landscape.”
Enabling Industries
Even in service-focused economies, manufacturing is essential. Healthcare relies on medical devices and equipment, technology depends on hardware and components, construction needs machinery and materials, and transportation depends on vehicles and infrastructure.
“Services cannot exist in isolation,” Cowley notes. A strong, modern manufacturing base allows all industries to operate efficiently, innovate, and expand, and South Africa cannot afford to fall behind. With all this growth potential, and the right focus in the right areas, South Africa can deliver the kind of manufacturing the global market is pushing - faster, bigger, better, cheaper, and greener.
Securing South Africa’s Economic Future
“Looking at the bigger picture, investing in manufacturing is an investment in South Africa’s economic resilience, innovation, and long-term growth,” Cowley concludes.
