Dust settles over the South African gravel groupet industry.
And it’s not the first time.
In the mid-1990s, South Africa was struggling to stay competitive with China.
The new gravel industry took off and created an even more profitable business model.
Now, it’s struggling to keep up with the competition.
This is what happens when you put people in charge of the system, writes Michael J. Leach, a professor at Johns Hopkins University and author of The New Frontier of Africa: How We Got Here and What’s Next.
A new era in gravel production and production of new, premium products “It’s like a new wave of innovation in the industry,” said James R. Smith, president of the South Africa-based World Gravel Group.
New brands, new products.
The companies, which have been around for years, have started with the basics.
Smith and others have long believed that the gravel business in South Africa has been a bit of a bubble, built on the belief that it can be done better than China.
But now, he said, it has reached a tipping point.
“They have a very clear idea that there’s an opportunity to do things better than they are,” Smith said.
That’s because, increasingly, South Africans are looking for better ways to get to work and live their lives.
But it’s also about finding new ways to earn revenue, he added.
There’s a new breed of gravel businesspeople, who have been able to take advantage of what is happening in China.
And there are also new companies that are starting to take a bigger bite out of the market.
Rising demand and growing profits is a new and exciting time for gravel, Smith said, and it could spell the end of the bubble.
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