The Concept of Clustering

BMA | Clustering 06 blog

Companies are under significant pressure to sustain, develop and grow their businesses within the context of ever-present market forces and competition. Similarly, policymakers are under pressure to create and sustain environments that encourage economic growth and the associated employment and transformation benefits that come from this.

A cluster is a geographic concentration of enterprises and suppliers who endeavour to operate collectively to address shared development concerns and collectively realise new growth opportunities to the benefit of the industry and value chain. Many of the challenges and opportunities that companies face are common to their industry and operating environment, and therefore clusters offer firms and government a powerful mechanism to meet growth objectives by addressing industry challenges and opportunities collectively. Globally, clustering has proven to be a powerful policy intervention to assist firms increase productivity and competitiveness.

At B&M Analysts, we provide cluster facilitation services to leading manufacturing sectors to assist them in addressing generic issues facing development. Our clusters are public-private partnerships that aid in providing improved competitiveness of cluster member firms, as well as supporting government in tackling the arduous task of promoting economic growth and transformation.

BMA | Block image

Together with partners in industry and government, B&M Analysts successfully facilitates six large scale and long-term industry clusters in South Africa:

  1. Durban Automotive Cluster (since 2002) representing 50 automotive manufacturers in the Durban and surrounding areas
  2. Cape Clothing and Textiles Cluster (since 2004) representing 40 CTF manufacturers in the Western Cape
  3. KZN Clothing and Textiles Cluster (since 2005) representing 40 CTF manufacturers in KwaZulu-Natal
  4. Durban Chemicals Cluster (since 2008) representing 80 chemicals manufacturers in the Durban and surrounding areas
  5. eThekwini Furniture Cluster (since 2018) representing 20 furniture manufacturers in the Durban and surrounding areas
  6. East Cape Automotive Industry Forum (since 2019) representing 25 automotive manufacturers in the Eastern Cape