Established to assist in increasing the global competitiveness of the South African automotive industry, the Automotive Industry Development Centre (AIDC) has demonstrated its positive socioeconomic effect on its key focus areas.

AIDC CEO Barlow Manilal says, "A recently completed economic impact assessment study of the AIDC concluded that the AIDC contributed favourably towards the automotive industry as well as to Government's national priorities, significantly delivering on the AIDC's triple bottom line of industry impact, social impact and improved sustainability as measured across the AIDC's key focus areas of supply chain development, supplier development, skills development and training and government programmes".

The study found that the AIDC's activities during 2007/8 directly contributed to Gauteng's Gross Domestic Product by Region growth by about R86,5-million and increased revenue due to tax income by R12,3-million. The study showed that for every Rand that BlueIQ invests into the AIDC, the government receives back R1,19 back in tax income. Tax income received provides the government with additional revenue of about R917,5-million a year.

The centre has also been pivotal in the creation of about 575 jobs, training a total of 1 395 people through formal training and experiential development through seven training programmes. The indirect jobs created resulted in an increased economic activity of R2,3-billion. At least 23 000 positions have been kept sustainable through the AIDC's initiatives and projects, such as the recently launched AIDC Enterprise Resource Planning (ERP) Simplified programme, which is supported by the Department of Trade and Industry (DTI)

The project aims to simplify the process of selecting and implementing a suitable ERP solution for Small Medium Enterprise (SME) automotive suppliers in the automotive industry, providing them with access to affordable systems that will allow them to integrate local supply chains and improve global competitiveness. AIDC's Supply Chain Development Manager Dineshan Moodley explains, "Put simply, for suppliers to competitively participate within the automotive supply chain, they must have the technology and communication tools to effectively link into their customers and supplier base." The DTI is a key sponsor of the programme and partially subsidises the cost of the selected ERP solution's implementation.

Another initiative is the quality management systems for lower tier SME and Black Economic Empowerment automotive suppliers planning to enter the automotive sector. The programme offers subsidised quality management systems at supplier companies. Initiated by the AIDC and subsidised by the DTI, it implements ISO 9001:2008 or ISO/TS 16949:2002 quality management systems at lower tier SME supplier companies.

The AIDC also manages the National Skills Fund (NSF) projects in Gauteng and North West Province, which accelerates the pace of skills development. The National Skills Fund provides access to finance for skills development initiatives in line with the National Skills Development Strategy II (NSDS II), and is coordinated nationally by the Department of Labour.

As part of the programme, unemployed and unqualified people are educated and trained through colleges and training institutes in line with the available job opportunities. The automotive industry has been identified as a key sector for skills development. AIDC Skills Development and Training Manager Rod Cham'mudzi notes, "The programme's benefit is its ability to engage employers who have not participated in regulated training activities in the past."

The AIDC has been appointed to implement the NSF skills development projects in Gauteng and the North West province over a three-year period. The value of the Gauteng project is R23-million and the North West Province project R45-million. Roll out of the projects will begin this year. The aim is to accelerate the pace of skills development by training 835 learners in North West Province and 600 in Gauteng through learnerships, artisan training programmes and internships.

Cham'mudzi further adds, "The project will also result in opportunities for entrepreneurs to launch their own businesses, through Manufacturing, Engineering and Related Services SETA (merSETA's) new venture creation project along with key stakeholders such as Gauteng Enterprise Propeller, SEDA, and municipalities".

The AIDC will be hosting its annual Automotive Conference at South Africa Automotive Week from October 7 to 10 this year. The conference will address the critical steps necessary to accelerate economic growth in the automotive industry and look at the motor industry's goal of producing one million cars a year by 2020, in terms of the current economic climate. This year's theme is Navigating the storm: A roadmap to vision 2020.

Supply Chain Development manager-Eastern Cape, Lance Schultz, who is the Conference Programme Manager, adds, " The event is the most authoritative of its kind on the continent and provides visitors with comprehensive analysis of the African automotive industry, as well as access to and understanding of opportunities on the continent".

The AIDC will also be staging a National Skills Indaba and Exhibition as part of the Automechanika South Africa Trade Fair to be held this year at Nasrec from March 18 to 21. The National Skills Indaba will reflect on the achievements of the past few years and identify strategies and collaboration opportunities to ensure that skills development within the automotive sector is accelerated.

AIDC Business Development Manager Fayaz Sacoor adds, "So much has been achieved in the field of skills development over the past seven years, yet there is still a lot more that needs to be done to achieve government and industry targets over the next 10 years".

The concept of a national skills indaba was proposed at the AIDC's Annual National Automotive Conference held in June last year. The Retail Motor Industry (RMI) organisation, which is a key partner in the aftermarket and retail industry has demonstrated its support of the National Skills Indaba and is part of the planning team.