Focus

Urban-Econ considers the industrial sector a critical area of economic activity within South Africa, and notably, one that has high potential for new job creation in the economy. This high potential is a result of the multiplier effect evident from an increase in efficiency in production due to aspects such as economies of scale (or agglomeration advantages).

The importance of stimulating industrial development has been re-emphasised by the recent government policy statements. Urban-Econ’s considerable experience with applying a wide range of industrial promotion and analysis techniques and methods has positioned the firm ideally to respond to this strategic shift. An integral part of Urban-Econ’s approach is to follow a sectorally disaggregated analysis to allow for an in-depth evaluation of local industrial activity.

Approach

Urban-Econ’s approach hinges on the fact that sustainable and competitive industrial development relies on the notion to not only focus on the core industry but to incorporate a holistic and integrated systematic analysis by applying the following techniques:

• Linkages and agglomeration economies
• Complex and cluster analysis
• Value chain analysis

At the core of Urban-Econ’s Industrial Analysis focus is the concept of industrial linkages. This notion gives rise to highly influential tools such as the industrial complex or cluster. The benefit of emphasising industrial linkages is that it increases the local economic output through the multiplier effect.