printer friendly version

The fire protection engineering industry in 2012

The year 2012 I am sure will be remembered as a year where the ability to do business has been tough. Global economic recession has had a crippling effect on southern African exports, and in particular our platinum industry has been hard hit, resulting in the platinum price declining significantly and therefore making profitability in this sector harder to achieve.

In South Africa, the goose that has laid South Africa’s economic golden egg is under threat of being cooked for Christmas dinner. The mining industry is battling with increased uncertainty over its future direction. There have been calls for the nationalisation of mining within the ANC structures, lengthy moratoriums from government and demands for violence made by certain individuals on mining rights. These are compounding the problem of a global economic recession further.

Ultimately, without speculating on the cause and fully endorsing anyone’s right to participate legally in the mining industry, one can only say that violent protest within the mining sector has taken place that regrettably ended in people being killed, property being destroyed and a major fallout between stakeholders. The uncertainty continues and a gloomy end of year ensues for all those affected.

The fire protection engineering industry predominantly services the mining industry and the forward integrated industrial manufacturing industries and therefore is heavily exposed to it. High risk assets and processes that are critical to the performance of mining and industrial companies are all serviced with fire protection systems. These include electrical reticulation equipment, bulk handling machinery such as conveyors and large 100 tonne plus vehicles, and other critical information control mechanisms such as server rooms and data stores. Key buildings generally have water sprinkler systems and the list continues.

Fire protection manufacturers, merchant importers, fire engineering consultants, installation contractors and service companies face the issue of how to tackle this uncertain sector for 2013 and going forward in the longer term considering the inherent exposure to risk within this sector. Ultimately, it is a state of mind and a willingness to adapt to the changing landscape that inevitably yields new opportunities. Development of better technology and increased value for money is critical.

Gangnam Style

Knowledge based companies that can invent and develop new strategies and products fundamentally are in the strongest position looking ahead. Companies who cannot develop their business strategy and become irrelevant will no doubt fail. Glitzy ‘Gangnam Style’ sideshow marketing will not save them.

2012 has been a year whereby the government’s continued investment in infrastructure has been of great benefit to the fire industry as a whole. Investment in the construction of new courts, hospitals, police stations, ministerial buildings has driven significant spending on fire protection systems. The recent budget speech by Pravin Gordhan has promised continued spending in this area in spite of belt tightening in some other areas. This has been a strong positive for the industry, and no doubt will continue to be in 2013. Likewise, the fire protection industry has served the ITC sector very well in 2012, and shows no sign of abating.

With the business climate as it is, the fire industry is not without its own misrepresenting evangelical elements that threaten the consumer. South Africa has many highly skilled people but a wider population that requires major attention in developing its potential. Similarly the fire protection engineering industry replicates this scenario. It has a few highly skilled and knowledge intensive individuals, and many wishing to be in this group. The intent by those less skilled is commendable, however a formalised framework is required to enable this to happen. What is not wanted, and is happening in some cases are less skilled companies and individuals performing work that they are not competent at doing. In spite of this, there are many reputable companies that offer very good products and services.

Particularly the Engineering Council of South Africa (ECSA) is making an admirable effort to create a ‘Fire Systems Inspector’ category within its structures. The purpose of this is to register individuals of merit that have the body of knowledge with the ethical conduct required to ensure the quality of an inspector. This is an important positive step for the South African consumer and the insurance industry. A customer requiring an inspection of a fire protection system is just as much at risk of an inspector as they are of the fire installation company. Misconduct or lack of competence of the inspector can result in catastrophe for the end user. Currently, the South African consumer could, for example, have a furniture salesman purporting to be an expert on fire engineering.

Hopefully in 2013 this important step will come to its conclusion with this category being successfully implemented and registrations being carried out. Currently, the advice for companies requiring an inspection is to use a professionally registered engineer or engineering technologist with ECSA to perform the task, since these individuals are bound by the rules of this organisation and recourse can be sought against this individual if needed via ECSA. Furthermore, as per the new OHSA:PER 2009, anyone undertaking to inspect a gaseous fire extinguishing system must be registered via SAQCC GAS as per the Department of Labour.

Having a gas

The Southern African Compressed Gas Association September 2012 Newsletter ‘Gas Focus’ recently revealed that there has been a recent spate of explosions in cylinders containing refrigerants in China, Brazil and Vietnam. It is known that hydrofluorocarbons are used in both refrigeration and in fire extinguishing systems. The suspected cause of the explosions and death of workers was the use of pure R134a containing methyl chloride (R40) in a cocktail refrigerant. The Southern African Compressed Gas Association recommends that customers should “purchase from reputable suppliers and insist on certificates of analysis/conformance with these purchases, so as to ensure first and foremost their safety and, secondly, that the products are indeed what is being paid for.”

The fire protection industry as a whole is currently in good shape. Compared to 10 years ago, there is increased emphasis on designing and installing to internationally recognised standards. In 2012, there have been fires where gaseous fire extinguishing systems have extinguished them across the ITC and mining sectors, thus saving millions of rands in losses and highlighting the benefit of having such systems installed.

There is an increased emphasis on using reputable products by fire installation contractors and fire engineering consultants. Within the 2012 South African market there has been the emergence of increased choice and competition of products offering the latest technology that can only benefit the end-user.

The insurance industry is playing an increased role in driving the awareness of the need for fire protection measures. This is probably an outcome of the King III Report. This level of awareness is an important step to enable greater safety and risk aversion for South African business and thereby puts us on a level footing internationally.

We are also seeing South African fire protection companies taking great strides to compete internationally. Primarily with the growth in the African economy there is a great demand for South African fire companies to offer their products and services in this geographical region where local expertise is not yet available. Furthermore, we are seeing more and more South African developed technology being exported to Australia, Asia, Europe and Latin America. This can only be a positive sign enabling foreign currency imports and job creation.

Share this article:

Further reading: