Winterveldt Enterprise Hub: AutomotiveNewsletter“Launch Edition”

February 2014

The Winterveldt Enterprise Hub: Automotivewas officially opened on the 11th February 2014 by Gauteng Premier Ms Nomvula Mokonyane

Automotive Industry Development CentreYour partner in becoming globally competitive

Specific demand driven programmes have been conceptualised and developed as interventions in the provision of enabling strategic infrastruc-ture, which act as a catalyst for economic growth.

Process improvements in the supplier base that enhance competitiveness and capability of the value chain as well as facilitating a coordinated approach between the various key stakeholders within the three spheres of government, labour and industry, are also important outputs of the AIDC’s sector focused mandate. As a project driven organization with a focus on technical excellence and delivery, the AIDC provides accessible and affordable world class services and infrastructure that not only enhanc-es the local automotive industry’s global com-petitiveness but also seeks to ensure its future sustainability.

he Automotive Industry Development Centre (AIDC) is a subsidiary of the Gauteng Growth and Development Agent (GGDA), an entity owned by

Gauteng Provincial Government’s Department of Economic Development. The AIDC primarily supports the Gauteng Province’s industrial developmental aims and objectives.

Its vision is to be the “Leading implementation agency delivering creative, efficient, best prac-tice and value based solutions in support of governments programmes related to the auto-motive and allied sectors”.

The mission is to “develop the automotive and allied sector to globally competitive standards of excellence through a world-class value prop-osition which enables effective and sustainable socio-economic growth” in the province of Gauteng.

The AIDC was established to increase the level of global competitiveness of the South African automotive industry whilst developing the Gauteng Province as an automotive industry investment destination of choice.

The AIDC works in partnership with all tiers of government, industry leaders or representative bodies in the sector, organised labour and other non-governmental agencies to unlock economic growth within the automotive indus-try.

Amongst its service areas are Supply Chain Logistics including related special projects, Enterprise Development, Skills Development and Training, Incubation Programmes and the management of incentive programmes.

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AIDC Company ProfileIntroduction:

Winterveldt Enterprise Hub: Automotive Launch Edition Newsletter | 1

The Winterveldt Enterprise Hub: Automotivewas officially opened on the 11th February 2014 by Gauteng Premier Ms Nomvula Mokonyane

Above: AIDC Office, Central Hub Building, Automotive Supplier Park, Rosslyn

According to an International Labour Organisa-tion (ILO) study conducted in 2004, youth between ages 15-24 years make up nearly half (47%) of the world’s unemployed, 88 million of 186 million, even though youth are only 25% of the world’s working age population.

In South Africa the unemployment rate is extremely high, currently estimated to be 25, 2% (2010), comprising approximately 4,2 million people. While the problem applies to all age groups it affects youth more than others.

In 2010 the unemployment rate for the 20-24 age group was 48,7% and for the 15-19 age group 63,7% amounting to 1.37 million unem-ployed amongst 15-24 year olds.

In Gauteng, youth between the ages 15-35 years constitute 37.2% of the total population. The rate of youth unemployment is higher in Gauteng because young people are attracted by the availability of opportunities and pros-pects of cracking it in Maboneng, Johannes-burg.

Various studies have indicated that unemploy-ment in the province increased and in 2010 about 55% of 15-24 year olds were unem-ployed as compared to 51% nationally. The majority of those who are employed are either employed in the informal sector or as part-time workers.

In addition, the fact that the majority of our youth is concentrated in the townships also is a cause for this challenge. Townships are far from many job opportunities because of their location outside the urban edge or economic nodes. Most of the unemployed in these areas are unskilled and semi-skilled who are unable

to be absorbed by the formal sector because the Gauteng economy is largely concentrated in tertiary sectors which require knowledge work-ers.

In light of this situation, as Gauteng Provincial Government we resolved to develop and imple-ment the Youth Employment Strategy. We decided to respond directly to the plight of young people in townships and semi-rural areas by seeking to develop Youth-owned Economic Hubs.

The identification of these hubs as centres of business exchange is through the municipalities and community members including young people in the main with the view of uplifting young business owners and entrepreneurs that reside and originate from the area. These Eco-nomic Hubs are based on the following six key pillars:

• The accessibility of the Economic Hub in rela-tion to geography and tenant mix.

• The financial sustainability of the business ventures.

• The overt expression of youth, innovation and technological advancement.

• The tacit eco-friendly consideration of the day-today operations.

• The cashless system that needs to be implicit in the day to day operation and management of the hub itself.

• Strong Brand positioning and association of Economic Hub.

Through the Gauteng Department of Economic Development, which is the driver of our strategy, we plan to develop three types of hubs in the first phase. These will include Automotive Hubs, Enterprise Hubs and Industrial Hubs.

Excerpts from the Address by Gauteng Premier, Ms Nomvula Mokonyane, on the occasion of the launch of the Youth Enterprise Hubs, Wintervelt

Excerpts from the Address by Gauteng Premier, Ms Nomvula Mokonyane, on the occasion of the launch of the Youth Enterprise Hubs, Wintervelt 20 June 2012

2 | Winterveldt Enterprise Hub: Automotive Launch Edition Newsletter

The Winterveldt Enterprise Hub: Automotive Facility

The Winterveldt Hub is one of Government’s flagship projects, which is purely designed and configured to address the socio-economic chal-lenges within Winterveldt.

It will play a catalytic role for development within the community by up-skilling individuals and supporting the growth of local SMMEs, with a particular focus on automotive services and enterprises.

The Automotive Industry Development Centre (AIDC) is the custodians of this Hub and will remain responsible for its mobilisation and day-to-day operations.

This site is one of numerous other project sites of the AIDC’s which are the:

• Automotive Supplier Park in Rosslyn, Pretoria • Automotive Incubation Centre at Ford in Silver-

ton, Pretoria• Gauteng Automotive Learning Centre in Ross-

lyn, Pretoria – due for launch by March 2014

• 2nd Automotive Incubation Centre at Nissan in Rosslyn, Pretoria – due for launch mid 2015

• Winterveldt Township Enterprise Hub : Auto-motive, in Winterveldt, Pretoria – launched in February 2014

The Gauteng Provincial Government is respon-sible for the establishment of six Enterprise Hubs around Gauteng with Winterveldt being the first one to be officially opened.

Winterveldt Enterprise Hub: Automotive Launch Edition Newsletter | 3

How does the Hub work?

The Winterveldt Hub consists of a state-of-the-art autobody repair workshop, with highly qualified AIDC mentors who are quali-fied Master Artisans.

These artisans have achieved the highest recognition in their trades and are well known individuals who produce the highest quality of autobody repair work in this sector. The illustration below is an overview of how the Hub’s business model works which is

thereafter broken down further.

What training will the Hub offer?

The Hub will offer amongst others, the following training programmes for the com-munity:

• Spray Painting techniques • Metal Prep techniques• Polishing and Paint finishing techniques• Paint mixing and colour matching• Business acumen with quotation accruacy• Community Centre with Adult Basic Education

Training (ABET) being offered

4 | Winterveldt Enterprise Hub: Automotive Launch Edition Newsletter

an overview of how the Hub’s business model works which is thereafter broken down further

an illustration of the Hubs’ enterprise support model within the community

an illustration of the Hubs’ individual support model within the community

HUB Support Centre

HUB Technical

Centre

SMME application

to HUB

Evaluation of SMME by

HUB

Development Plan for SMME

SMME to schedule usage of

HUB

•SMME brings repair order to

HUB •HUB repairs

with mentoring approach

•Skills transfer •Nominal cost

Increased Job

Creation

Increased business/ revenue

Happy customer

Improved quality product

HUB Support Centre and Classroom

Training

HUB Technical/

Centre

Individuals register

with HUB

Evaluation of individual’s

skills by HUB

Customised Up-skilling

Development Plan

Attending planned

classroom training

•Job shadowing programme •On-the-job

training •Training

monitoring and evaluation •No charge

Facilitate employment

Job placement/ matching

Database listing of skilled

individuals

Up-skilling of

community

SMME

SMME

SMME

SMME

SMME

SMME

SMME

SMME

HUB

• All SMME companies to be assessed and recorded on database

• SMME companies will utilise hub facilities and access specialised equipment under the guidance of master artisans who are part of the incubator core team

• Incubator will be managed by the AIDC on a self sustainable basis

• Incubator established in accordance with BMW, Toyota, VW & AUDI standards

• Facility has its own logistics capability to transport vehicle and components from SMME’s site to hub

• Business, technical & Environmental training and coaching will be managed from Hub and AIDC’s network of training facilities

• Training to also include ABET training to support community

• Hub will provide supply capability consumables, paint, etc

The Winterveldt Enterprise Hub: Automotive Facility Launch Event

• The objective of this launch is to share this innovative community supporting concept with all our stakeholders and for the Winterveldt community.

• The launch will also demonstrate the success-es of the Gauteng Provincial Government in its approach to the skills challenge within the Province.

• The launch will also provide the necessary awareness required to attract learners and autobody companies to the facility.

How does the community access the benefits of the Hub?

1. The Hub has its own application form which needs to be completed and returned to the Hub.

2. Details of the enterprise or individual requesting support from the Hub would need to be captured and a detailed needs analysis would be conducted.

3. Thereafter the training required to address the need would be scheduled and imple-mented.

Winterveldt Enterprise Hub: Automotive Launch Edition Newsletter | 5

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Winterveldt Enterprise Hub: Automotive

M A P

Directions from AIDC, Automotive Supplier Park, Offices or R80 Mabopane High Way to Winterveld Enterprise Hub.

2013 January

AIDC was handed theWinterveld Enterprise

Hub

2013 April

AIDC started withrefurbishing the

WinterveldEnterprise Hub

2013 September

AIDC continueswith building and

installing the paint booth

2013 November

AIDC completes the final touches of the building and testing

all the machinery

2014 January The Automotive

Enterprise Hub is nowready fo launch

2014 January

VW Polo Vivo was taken into

the Hub for inspection

TIMELINE OF THE HUB’S DEVELOPMENT

Physical Address:Winterveldt Enterprise Hub corner Bushveld Road (M39) & Mole� Makinta Road (M21)Winterveldt Pretoria Gauteng

GPS Co-ordinates: Latitude: - 25°28'22.66"S | Longitude: - 28° 3'41.94"E

Enquiries:AIDC012 564 5001