A YEAR OF VOLATILITY AND COLLABORATION

The year 2016 was defined by economic volatility and a resulting sense of insecurity through the economy and, of course, our industry.
Linked to this, however, was an extremely positive development – of how business collaborated with the other role players to increase stability, for both our broader economy, and within the timber treatment sector.
This year the Rand-Dollar exchange rate plummeted to values not seen since the global markets collapsed in 2008, and after the 9/11 terrorist attacks in 2001. The Rand’s depreciation this year was due largely to political events including the NPA’s charges against Minister of Finance Pravin Gordhan and reports of state capture. The ratings agencies’ threat of downgrading our economy to junk status has been a constant and very dark cloud on the near horizon.
“These events knocked us at Dolphin Bay out of our comfort zone,” said Bertus. “The consequences within our own company were that we had to streamline and prioritise some sections of our business, to make sure that we were always top of our game, in all that we do.
“The results of these efforts have been good. We have grown as a team, expanding our technical capabilities and focusing on East Africa, a region showing promise of considerable growth. We also launched our Quality Pledge Programme to show our commitment to our industry, which we believe will prove a constructive step. And we have played a role in facilitating the potential turn-around in Tanzania.
“The success of the year was as a result of the fact that we and our clients worked alongside each other every step of the way, taking on unprecedented challenges in many cases, and in every instance proving their dedication to providing top-quality treated timber, in order to ensure the optimal future for our entire industry.
“There is a theme to 2016: a leap in the scale of the challenge, and a leap in the response,” says Bertus. “We have faced enormous challenges to our economy and our industry, and in both cases, there have been concerted efforts to turn things around. The outlook is now much more positive than it was a few months ago.
“There are reasons for optimism from our own markets, too. The market for structural timber is stabilising and the demand for transmission poles, which declined during the year, is picking up again.”
The most important message of this newsletter is a heartfelt thanks, from all of us at Dolphin Bay, to every one of our partners.
“It has been a great pleasure doing business with each one of you,” says Bertus. “We have been encouraged by our growing relationships of trust, which are helping both you and us, to continually grow and improve our businesses.
“We look forward to continuing to build our partnership with you next year as, together, we take on the opportunities and challenges that our companies face.
“Be assured, as always, that we shall continue to do our utmost to serve you in order to add value to your business, and to ensure a sustainable timber industry in South Africa and the rest of Africa.”