AT a time when it is crucial that Jamaica exhibit revenue growth and extend its export capacity, the manufacturing sector should be given even greater support and businesses encouraged to flourish. So said the president of the Jamaica Manufacturers’ Association (JMA), Omar Azan, at Wealth Magazine’s Corporate Mingle which took place at Fiction Lounge.

Azan bemoaned the impediments put before manufacturers: namely, high energy costs, a fluctuating currency, exorbitant utility costs, an excess of bureaucracy, and the inability to access credit. He pointed to the Government having to go to the IMF for a standby arrangement of US$1.3 billion, plus loans from other multilateral agencies to meet its obligations and keep the country on an even keel.He said the Government had trumpeted a rallying cry calling for export growth and that if it was serious it would look increasinglty to the country’s manufacturing sector and take steps to ensure its viability.

“We need a government that stands up for Jamaican businesses, or the global forces will continue to erode our economy. The government must demand a level playing field for Jamaicans to trade within CARICOM as well as create a more enabling environment for manufacturers to operate,” said the JMA boss. He took the opportunity to stress that he was not anti-CARICOM but simply wanted to see that all players came to the game in boots and not bare-footed, as was proving the case with Jamaica. With Jamaican manufacturers having to operate at energy costs of 32 cents per kilowatt whereas Trinidad works to 3 cents per kilowatt, the discrepancy is plain to see.

Azan continued: “If you are part of a family and you are short of something that you desperately need, then you would expect to count on a family member to come through for you, particularly knowing that they have it in abundance. When you join an organisation there is an element of give-and-take and Jamaica should benefit somehow as part of CARICOM. We open our markets up readily and we should expect the same courtesy from our sister-members.”

He underscored the importance of manufacturing to the Jamaican economy by pointing out that it contributes 8.5 per cent of the country’s total GDP (Jamaica’s total GDP is around US$12 billion) and employs over 80,000 persons and earns approximately US$1 billion in exports and approximately $13 billion in taxes.

The president of the JMA, who also happens to be the CEO of Boss Funiture noted that traditionally tourism and bauxite were viewed as the country’s leading foreign-exchange earners and main drivers of the economy with agriculture now getting a lot of attention, but manufacturing continues to take a back seat. In light of the barren state of the economy and its lack of productivity, now is the time to bolster the manufacturing sector and position it as a main driver of revenue.

“Over the last year our main earners, namely tourism, bauxite/alumina and remittances have taken a severe hit. Rather than relying on a few sectors we should give all sectors due consideration and ensure that we are a multi-faceted economy. In addition, the Government may say, we support tourism, manufacturing and the agricultural sector, but which sectors provide the highest government revenues and create the most jobs?

“More has to be done for manufacturing, so that there is investment in more factorties and more employment created. We talk about new hotels, but how much of the money generated remains in Jamaica, and how much of their inputs are imported? A master plan needs to be developed for a phased reduction of inputs imported for the hotel sector. However, that means focusing on matching supply with demand and working on consistency throughout the entire value chain,” declared Azan.

Using Wealth Magazine’s Corporate Mingle event, the president of the JMA called for:

* Implementation of one-stop shops to lessen transportation costs and the need to visit multiple agencies to carry out a single transaction

* Provision of affordable factory space.

* Greater monitoring of the ports and enforcement of standards to prevent dumping and inferior products from entering the market.

* Provision of a tax credit for overseas marketing.

* An Industrial Plant Modernisation Fund to assist manufacturers with installing modern technology to improve productivity.

* A comprehensive energy strategy with incentives provided for those who convert to renewable energy sources.

* An Industrial Security Policy and Action Plan with appropriate police support implemented.

* Implementation of the Procurement Policy, as this will stimulate expansion and job creation. Incentives should also be provided for companies that create jobs and earn foreign exchange.

* Lower interest rates. The debt exchange programme is a good start and interest rates are trending downwards but are still uncompetitive.

This initiative, while allowing the Government to borrow, needs to be coupled with increased production and export to earn and pay for the country’s debt.

Azan also called for Jamaicans to support and buy local products and believes that this will go some way in addressing Jamaica’s trade imbalance. Addressing the issue of supporting Jamaican goods, he said: “We need to support the “Buy Jamaican… Build Jamaica” campaign thrust, to boost the economy. As Jamaicans we need to be patriotic, which means more than just waving a Jamaican flag. We must also make a choice to support our local manufacturers, whose products are of comparable price and quality, in order to achieve economic prosperity.

“At present Jamaica is experiencing a trade imbalance. As of November 2009, the trade deficit stood at US$3.3 billion. To counteract this problem, we have to reduce our dependence on imports by increasing our consumption of local products and becoming more export-driven. In essence, as a country, our goal must be to “Produce, Export and Prosper.”