Cape Town earns its place as an industrial heavyweight
Category Industrial News
Cape Town has cemented its place as a sought-after industrial city thanks to several suburbs that have built this sector from the ground up. Businesses renting properties in Cape Town have a choice of prime warehouses that range in size, are well-equipped, strategically located, and boast top-notch security.
A snapshot of the city
The city is the second-largest municipal economy in South Africa and it contributes 9.9% to the national economy. Statistics show that its per capita GDP is 32% higher than the national average. It is a financial and business hub, with a growing number of IT startups being established here. In terms of the industrial sector, there is strong activity in certain nodes that are close to the Cape Town International Airport and The Cape Town Harbour.
A closer look at the industrial market
There are various industrial sectors and sub-sectors in Cape Town, each showing different levels of growth. To start, construction and agro-processing are well-established industries in the city, and over the decades, both have been key players in the economy, helping to create sustainable employment. Today, both industries are still invaluable, but they share the industrial space with many other sectors that are showing incredible growth. These include international trade, manufacturing, and transport - all of which are driving industrial growth and substantially influencing the development pipeline.
Three biggest sectors
Manufacturing
Some of the biggest contributors to Cape Town's manufacturing sector are food, beverage and tobacco products - this makes up 27% of the sector. Some of the most notable names are; BM Food Manufacturers, Alpen Food Company, Crown Factory Mart and Unilever. Added to this are several other manufacturing sub-sectors such as electronic and electrical products, as well as metal and steel. In particular, the manufacturing of machinery and household appliances is pegged for major growth in the city and we can expect to see long-term diversification in this sub-sector.
International Trade
International trade involves importing and exporting capital, goods and services across international borders. In Cape Town, this industry is currently the fastest-growing owing to the harbour - which is the second busiest container port in the country, and the international airport - which is the country's second-busiest international airport.
The city's export list is substantial, with refined petroleum taking the lead at R14.4bn, followed by citrus fruit, wine and grapes.
Transport
Transport is another industrial sector that is showing positive growth in Cape Town owing to the sub-sectors of logistics and distribution. Companies in this sector typically work hand in hand with freight and cargo businesses. Their services are extensively used by manufacturing companies.
Logistics and distribution businesses require large warehouses for storing goods, enough space for delivery trucks and secure premises to protect their inventory.
In ending
Manufacturing, international trade, and transport are the heavyweights in Cape Town's industrial market. These sectors are driving the development pipeline for prime warehouses in industrial estates around the city. The most popular suburbs for warehouse properties are Epping Industrial, Observatory, Airport Industria, and Maitland. These suburbs are well located close to the airport and harbour.
If Cape Town sounds like your ideal location to start or grow your industrial business, speak to 3CUBE Property Solutions today. We are ready to help you find a warehouse that suits all your needs!
Author: 3CUBE Property Solutions
