Companies that buy goods from manufacturers are facing cash-flow problems to such an extent that they have to postpone payment by up to three months.
The National Industrial Chamber (NIC), an association of 3 000 small black manufacturers, revealed the news to Sowetan.
"The tough economic climate has affected a lot of our clients such that they struggle to pay us as manufacturers on time for goods that have already been produced," said NIC president Sonyosi Sikhosana, saying 60% of the organisation's members were affected.
He said the manufacturers faced the payment challenge from both the public and private sector.
"It is very inconveniencing for a manufacturer to produce and hand over goods to a customer but only to be paid after three months."
Sikhosana's comments came after South Africa's manufacturing production figures rose by 1.5% to R164-billion in March compared to the same month last year.
Culprits for the poor sales figures included basic iron and steel, non-ferrous metal products, metal products and machinery, furniture, motor vehicles, parts and accessories and other transport equipment and food and beverages.
Said Sikhosana: "When there is a cash-flow crisis, our members struggle to buy material and produce for the next orders.
"Those with loans are required to pay a higher price as they are unable to service their debt on time and this results in jobs being lost," he said.
The report said: "Significant positive contributions were made by the wood and wood products, paper, publishing and printing division and the petroleum, chemical products, rubber and plastic products division."
Meanwhile, a mining production and sales report showed that the sector was also hit, with the production levels falling by 18% in March.
The decline was due to the platinum group of metals, coal, iron ore, manganese ore and gold.
The production decline came when the sector's sales rose by 1.6% to R30.8-billion.
South African Mining Development Association president Peter Temane said there was a huge disjuncture between what had been produced and the value of the mineral resources that had been sold.
"I cannot comment on the figures because each mining house has a different way of doing costing and we do not agree on how each company does costing," he said.
Manufacturers hard hit by business slump
Companies that buy goods from manufacturers are facing cash-flow problems to such an extent that they have to postpone payment by up to three months.
The National Industrial Chamber (NIC), an association of 3 000 small black manufacturers, revealed the news to Sowetan.
"The tough economic climate has affected a lot of our clients such that they struggle to pay us as manufacturers on time for goods that have already been produced," said NIC president Sonyosi Sikhosana, saying 60% of the organisation's members were affected.
He said the manufacturers faced the payment challenge from both the public and private sector.
"It is very inconveniencing for a manufacturer to produce and hand over goods to a customer but only to be paid after three months."
Sikhosana's comments came after South Africa's manufacturing production figures rose by 1.5% to R164-billion in March compared to the same month last year.
Culprits for the poor sales figures included basic iron and steel, non-ferrous metal products, metal products and machinery, furniture, motor vehicles, parts and accessories and other transport equipment and food and beverages.
Said Sikhosana: "When there is a cash-flow crisis, our members struggle to buy material and produce for the next orders.
"Those with loans are required to pay a higher price as they are unable to service their debt on time and this results in jobs being lost," he said.
The report said: "Significant positive contributions were made by the wood and wood products, paper, publishing and printing division and the petroleum, chemical products, rubber and plastic products division."
Meanwhile, a mining production and sales report showed that the sector was also hit, with the production levels falling by 18% in March.
The decline was due to the platinum group of metals, coal, iron ore, manganese ore and gold.
The production decline came when the sector's sales rose by 1.6% to R30.8-billion.
South African Mining Development Association president Peter Temane said there was a huge disjuncture between what had been produced and the value of the mineral resources that had been sold.
"I cannot comment on the figures because each mining house has a different way of doing costing and we do not agree on how each company does costing," he said.
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