PESTLE analysis of the factors affecting the sustainability and competitiveness of the South African sawmilling industry

Abstract

The sawmilling industry in South Africa consists of both formal and informal sawmills. The operation of these sawmills and their associated operational costs often differ from one another. There is an urgent need to improve the competitiveness of the sawmilling industry; however, despite the various efforts from multiple stakeholders, the industry remains globally and even locally uncompetitive. Therefore, the study aimed to investigate the factors affecting the competitiveness of the South African sawmill industry and how those factors impact the industry’s sustainable development. The study followed a qualitative approach, utilising semi-structured interviews with seven personnel from the South African sawmill industry. A non-probability purposive sampling method was used to choose participants for the study based on their positions. The study systematically applied the PESTLE framework. By examining the strengths, weaknesses, opportunities, and threats of the PESTLE factors affecting the competitiveness of the South African sawmilling industry, several key factors influencing the industry were identified. The findings highlighted that by examining the sawmilling industry holistically, stakeholders (including private, public, community, government, and academic sectors) can collaborate to address the challenges affecting the sawmilling industry. This can be achieved by incentivising compliance with the regulations that support sustainability and competitiveness in the sawmilling industry. Sawmills can examine the PESTLE factors and implement strategies accordingly. Actions that can be taken to improve the competitiveness of the industry include investing in advanced machinery and technology, strengthening regulatory oversight of informal sawmills, promoting forest management and certification and supporting SMEs with training and access to finance.