ONE of the Caribbean’s leading CEOs Douglas Orane of GraceKennedy, is calling for efforts to be made to reignite Jamaica’s manufacturing sector. Speaking earlier this week at the Scotiabanksponsored Caribbean-Canada Emerging Leaders Dialogue (CCELD) roundtable discussion on the Jamaican economy, moderated by Dr Nigel Clarke, the Chairman and CEO of GraceKennedy called for the re-introduction of the apprenticeship system and the grooming of future managers and leaders in the manufacturing sector. He noted that the sector has always been a significant contributor to the Jamaican economy and that in fact it contributes more in taxes than both the tourism and agriculture sectors despite the fact that they both receive greater tax concessions.

Role models

“Perhaps the most important catalyst for our young people is for them to become excited about manufacturing, to observe and understand the success stories that surround us. I believe that we have underestimated ourselves as a country in this regard. If we look around our society there are many successful small and medium-sized manufacturers that have had tremendous growth in recent times. We need to hold up the founders and owners of these businesses as positive role models, in much the same way as the sporting world and the music industry make much of their stars. The manufacturing sector has its stars also, and young people should be aware of their achievements.

“For example, in chemicals, personal care and pharmaceuticals, we have people like Doreen Frankson at EdgeChem, Jennifer Samuda, Jamie Chang at Star Fish Oils. In the electric, electronic and automotive field, we have Rose Dietrich at Nicorp, making surge protectors and casings. There is Milverton Smith at Turbolife Manufacturing. In construction fixtures, there is Alex Dougall at Dougall Floorings; in bedding there is the Morgan family at Morgan Industries and Omar Azan at Boss Furniture. In textiles, sewn products and leathercraft there is Bill Edwards at Bill Edwards Casual Wear and Barclay Ewart at Leder Mode,”said Orane. He singled out the Mahfoods at Wisynco, noting how the company had morphed from being manufacturers of rubber water boots and plastic foam food containers to become the largest beverage manufacturer one million cases per month, on par with some of the biggest plants in the region.

Orane declared: “One thing which I am sure the heroes of manufacturing have discovered is that productivity is key in this industry. I don’t need to spend a lot of time on the fact that internal processes must be very efficient. One needs to pay attention to a number of factors, in this respect. We have to:

• use the most appropriate technologies available;

• ensure that team members are well trained and have the right equipment

• demand excellence in product quality as well as in cost management; most importantly, we need to find a way to free our people to improve their own productivity.”

Lack of private/public sector collaboration

The chairman and CEO of one of the largest conglomerates in the region believes that probably the biggest issue facing the sector is the lack of private sector/ public sector collaboration on the major issues facing the industry, which has led to an antagonistic way of doing business.

“There is an absence of trust and a cohesive and focused effort. Many of our Latin American neighbours and some of our Caribbean ones have much to teach us in this area. They have found a way for their public sectors, their private sectors, trade unions and the creators of their countries’ foreign and trade policies to work together for the benefit of their manufacturing sectors. I could point to many Latin American countries which have been successful in this regard. Here in the Caribbean we have seen this approach in the Dominican Republic and Trinidad & Tobago.”

The cost of energy

The high cost of energy in Jamaica has made many Jamaican companies uncompetitive and continues to be a major debilitating factor. Although this has been noted, year in year out, nothing ever seems to be done to address this issue. This fact has not escaped Orane’s attention and he is calling for a decision to be taken shortly as to what energy policy the country will be following.

In Jamaica we are paying US 31 cents per kilowatt hour versus Barbados, which is in a similar position to ourselves as a small island economy, pays US 12 cents per kilowatt hour. Then we look at Trinidad & Tobago. Yes, they are oil and gas producers but they are still part of CARICOM and are paying US 6 cents per kilowatt hour. When we compare these energy costs and the toll it takes on the progress of manufacturing, it is clear that we have taken far too long to make a decision as to which route to go in terms of reducing energy costs, particularly since there is such a wide array of choices available.”

Orane is of the view that the first choice is to make more efficient use of Jamaica’s existing resources, which means energy conservation.

“Then we have the choices between oil and LNG, coal, nuclear and renewables. What we must do is make a decision, and to make one which is based on complete transparency and an understanding by the country at large as to the profound importance of this decision and its consequences.”

Part III next week