Kris Kibble | Managing Director | IRP Engineering Plastics | mail me |
Formula One (F1) leaves no room for error. At 300km/h, a component tolerance measured in microns can mean the difference between a podium finish and a wreck.
The machines that make this precision possible do not remain on the racetrack. Eventually, they find their way into the wider world of advanced manufacturing. This year, three of them arrived at our organisation in Lanseria, Gauteng.
Earlier this year, we invested more than R10 million in three new Computer Numerical Control (CNC) machines. The investment includes a state-of-the-art multi-axis unit from Haas Automation, a manufacturer with a 40-year heritage in precision engineering and the technology of choice in the F1.
The same brand and class of machine now operate on our factory floor. For us, this investment is not about keeping pace. Instead, it is about pulling ahead. It also reflects the F1 effect in advanced manufacturing.
The case for investing
Many business leaders believe South Africa is too uncertain, unstable or difficult to justify major capital investment. I understand that perspective. However, I do not share it.
We have operated through political transitions, load shedding, Rand volatility, a global pandemic and repeated supply chain crises. We are still here, and we continue to grow. We also continue investing because we believe South African manufacturing has a future worth building. This latest investment is not blind optimism. Instead, it reflects a calculated assessment of where the country is heading.
The data increasingly support that assessment. According to the National Treasury’s 2026 Budget Review, South Africa exited the Financial Action Task Force grey list in October 2025. In November 2025, S&P Global Ratings upgraded South Africa’s sovereign credit rating. It was the country’s first credit rating upgrade by a major agency in more than 16 years.
Fitch Ratings followed with its own upgrade in June 2026. That marked its first upgrade in almost 21 years. Therefore, two different agencies upgraded South Africa within seven months.
The National Treasury’s 2026 Budget Review also notes that load shedding has remained suspended since May 2025. Furthermore, Statistics South Africa’s Q1 2026 GDP release recorded year-on-year growth of 1.9%, the strongest reading in several quarters. The National Treasury’s 2026 Budget Review projects average growth of 1.8% through 2028.
None of this removes the real challenges that South African manufacturers face every day. These include energy costs, infrastructure constraints and currency volatility. However, together they do not describe a country in freefall. Instead, they reflect an economy finding its footing. For manufacturers willing to invest through uncertainty rather than waiting for perfect conditions, that is precisely where opportunity emerges.
The import dependency problem
South Africa’s food, beverage and packaging industries remain heavily dependent on imported industrial components and equipment. According to World’s Top Exports, machinery is the country’s largest import category by value. From my experience, European manufacturers, particularly those from Germany and Italy, remain the primary OEM suppliers of specialist conveyor components to this market.
The cost of that dependency is significant, although it often goes unnoticed until a production line fails. A plant manager facing a breakdown cannot wait two or three weeks for replacement parts to arrive by air freight. They need a solution immediately. That is the challenge our team solves every day.
F1 tech on the factory floor
On the factory floor, the practical benefits include better components, faster turnaround times and the ability to reverse-engineer and replicate spare parts for OEM equipment that original manufacturers no longer support.
In an industry where production lines often operate for decades, this capability matters far more than many people realise. In effect, it provides insurance against the obsolescence strategies of global suppliers. It also allows us to benchmark ourselves against the best manufacturers in the world.
People, not just machines
Capital investment without investment in skills is a short-term strategy. The new machinery requires highly skilled operators. Fortunately, that expertise exists within our team of more than 70 people.
Deep technical knowledge remains a competitive advantage that no catalogue can replicate.
The question worth asking
I am not naive about the challenges facing South Africa. However, I believe the manufacturers that will still be operating in another 40 years are those investing today rather than waiting for ideal conditions. They are building capability, developing people, and making long-term commitments that strengthen genuine industrial competitiveness.
Our investment in F1-derived CNC technology represents our commitment to the future of local manufacturing. We have backed that commitment with capital rather than sentiment. Ultimately, the F1 effect is about applying world-class engineering to local manufacturing excellence.
The question I would ask other business leaders is simple – are you willing to make the same bet?
