JULY 2004

Macro economy stabilises

In April, Intelligence reported on record levels of business and consumer condence. Since then, the Rand Merchant Bank/ Bureau for Economic Research (RMB/BER) business condence index (BCI) rose by a further 2 index points to 71 points, a new 15-year high. This rise in business condence was underpinned by political and economic stability.
The world economy grew at an average of 4.6% over the past year and ination is rising in most regions. In South Africa, economic growth accelerated from 1.3% during the fourth quarter of last year to 3.3% in the first quarter of 2004. The South African Reserve Bank (SARB) expects economic growth to pick up speed this year, supported by consumer spending and xed investment. The BER has predicted the real economic growth rate at around 4% for the remainder of the year. According to the Reserve Bank, gross domestic expenditure increased 4.5% in the rst quarter, boosted by rising consumer spending and capital investment. CPIX (consumer ination excluding mortgages) has remained within the 3% to 6% ination target for nine consecutive months, and is expected to stay within the target range for the next two years. The 0.25% hike in short-term interest rates by the United States Federal Reserve on 30 June is regarded as the rst in a series of increases that could take the fed funds rate to 2.25% by the end of the year and, according to some analysts, to 3% or 4% next year. Other economies are also expected to increase their interest rates. Even before the Fed announced its rst interest rate hike in four years, the SARB had indicated that it may increase interest rates at some point to relieve inationary pressure caused by strong domestic demand. Business condence in the residential and non-residential sectors increased during the rst two quarters of 2004. The building sector is showing signs of further future growth driven by relatively low and stable interest rates, the appreciation of the rand
continued on page 2

In this issue
Economic Outlook
1 2 Partner Statistics Macro economy stabilises

SmartGlass Programme Update From the desk of Rob Curle SmartGlass Marketing
4 4

5 5

SmartGlass Innovator Challenge SmartGlass Partners promoted to 50 000 Nedbank customers New SmartGlass website SmartGlass Partner supplies double glazing for Marion Island New SmartGlass Partner System Governments energy efciency strategy New building regulations coming soon Latest Partner Rewards

Partner Success Story Systems

6 7 7 8

Wright on Glass SmartPlay

Business Condence First Quarter 2003 to First Quarter 2004

SmartGlass Distributors
SmartGlass is proud to be associated with the following Distributors: AF&FSL Ariston Glasshopper Glassll McCoys GSA

Intelligence | The SmartGlass Partner Newsletter

continued from page 1 and the high and increasing levels of business and consumer condence. The property boom is driving increased residential and non-residential building activity, as reected in the BER Composite Business Condence Index for the Building Industry, which recovered from an index value of 59 to 67 in the rst quarter of 2004. The rise in business and consumer confidence in the building sector is mainly due to a sharp recovery in the condence of retailers and wholesalers of building materials. The net increase in building costs, as measured by the BER Building Cost Index, also moderated in the rst quarter of 2004. The BER predicts that building costs will only rise by 8% on average this year. During the second quarter, the growth in building activity speeded up and the condence of building contactors increased from 74 to 78 points.

Residential Building Plans (m) % Change ( January-December 2003 vs. January-December 2002)

Sources: Bureau for Economic Research (University of Stellenbosch); Bloomberg; Moneyweb; Business Day; CNN

SmartGlass Programme Update Partner Statistics

Total number of SmartGlass Partners: 378
7% 15%

SmartGlass Partners per region

18% 10%

13%

20%

16%

Leads per region

Enquiries for SmartGlass Partners (cumulative)

July 2004

New SmartGlass website

The SmartGlass website has been extensively redesigned and updated to align with the current SmartGlass advertising campaign. The site is also much faster! Visit www.smartglass.co.za to experience the improvements rst-hand.

SmartGlass Partner supplies double glazing for Marion Island

SmartGlass Partner Jorgensen uPVC (based in Port Elizabeth) has completed a R1.5 million contract for the manufacturing of 200 weatherproof doors and windows for the South African meteorological base on Marion Island.
The frames are manufactured out of unplasticised PVC (uPVC), which is stronger and more rigid than normal PVC. All of the windows and doors are glazed with 25 mm SmartGlass InsulVue double glazing comprising 6.38 mm Solarvue Neutral XHL NS and 6 mm clear Armourplate separated by a 12 mm air gap. The windows and doors were specically designed for the cold, wet and windy weather conditions on Marion Island. It rains an average of 317 days per year up to 28 days a month during winter. The mean monthly air temperature of the island closely tracks that of the ocean, which ranges from 3.6 C in August to 7.9 C in February. It also snows 80 days a year, and the sunshine duration averages 3.6 hours a day. According to Jorgensen uPVC sales manager Jason Jorgenson, the exibility of their framing system was ideally suited to this double glazing application. With our uPVC framing it is possible to glaze from 3 mm up to 28 mm without changing the thickness of the frame, says Jorgensen.

Marion Island, the larger of the Prince Edward Islands group, lies approximately 1770 km south east of Port Elizabeth. The island group was formally annexed by South Africa in 1947 and since then has been permanently occupied by South Africans. The research station built on the eastern coast houses a weather ofce and runs a variety of research programmes in the natural sciences.
Source: Department of Environmental Affairs and Tourism

July 2004

Wright on Glass Governments energy efficiency strategy

The Department of Minerals and Energy published the Draft Energy Efciency Strategy of the Republic of South Africa during April 2004. This document was published at the same time as the government white paper on renewable energy policy. SmartGlass is participating in research to establish new mandatory standards for commercial buildings and energy efcient housing that will meet the objectives of government policy. According to the draft strategy, government will contribute towards affordable energy for all, and minimize the effects of energy usage upon human health and the environment. This will be achieved by encouraging sustainable energy development and energy use through efcient practices. The strategy aims to achieve a 12% energy efciency improvement by 2014. Target energy demand reduction is 15% for commercial and public buildings and 10% in the residential sector. Energy efciency standards will be an important part of the strategy. The new standards for commercial buildings (SANS 204) and energy efcient housing (SANS 288) will become deemed to satisfy rules when they are incorporated into the National Building Regulations. SmartGlass is contributing to the research that will be used to create these standards. The energy efciency legislation is expected to become law in 2007.
Source: Department of Minerals and Energy, Draft Energy Efciency Strategy of the Republic of South Africa, April 2004

from the desk of Nick Wright

Expert Services Manager, GSA

Product news
Coloured laminates reorganised
Vanceva coloured laminates have been incorporated into the ColourVue range. ColourVue with Vanceva Design Color interlayers is made under license from Solutia, the world leaders in polyvinyl butyral interlayer technology. Colours include light and dark shades of red, yellow, blue, black, and varying levels of translucent white. Patterns are available on request. The previous large price differential between Vanceva and ColourVue has been eliminated. Please contact your GSA branch manager for details.

New building regulations coming soon

The new National Standard for the application of the National Building Regulations concerning glass and glazing (SANS 10400 part N) is expected to be published within the third quarter of 2004. This replaces the current SABS 0400 Part N. As reported in the November 2003 edition of Intelligence, SANS 10400 sets out rules that will make it easier for SmartGlass Partners to design sophisticated building glass solutions. The new standard contains design tables for glass supported on all four edges, and glass supported on two opposite edges, under both internal and external conditions. SANS 10400 Part N has been expanded to cover patterned glass, laminated safety glazing and toughened safety glazing materials. There are also design charts for nned glazing, and frameless shower door enclosures. These tables can be used by anyone to design glazing.
Compliance with the National Building Regulations can be achieved by either:

New SolarVue coatings

Three new coating densities (UHL, MHL and SHL) have been added to the SolarVue range. SolarVue laminated coated solar control safety glass is now available with the following coating densities: High Light (HL) Extra High Light (XHL) Super High Light (SHL) Mega High Light (MHL) Ultra High Light (UHL)

applying the design and construction rules set out in SANS 10400 Part N appointing a Competent Person (Glazing) or a professional engineer to prepare a design in accordance with SANS 10137 standards appointing a suitably qualied and experienced professional engineer to perform a rational assessment and design

There are currently only seven Competent Persons (Glazing) in South Africa. Two of these Competent Persons are employed by PG Group companies. SmartGlass is involved in the formation of the South African Glass Institute, which will in future be responsible for appointing Competent Persons (Glazing). The new body is being established because, in terms of the law, Competent Persons can only be appointed by an institution, and not by an association such as SAGGA (the South African Glass and Glazing Association).

These have been developed to give maximum visibility whilst providing a certain amount of light and heat control ideal for projects such as car showrooms.