Island Products cramped for space
AT least one manufacturer is pleading for assistance to acquire land space to expand his factory operations.
“Right now I can safely say our growth is limited only by space,” said Earl Barry Martin, CEO of Island Products Manufacturing Limited.
During a tour of his factory, located along Ken Hill Drive in St Andrew, the company’s primary manufacturing plant, Martin explained that over the years, as the company grew, it had to find creative ways to make more space by rearranging equipment.
However, “there will come a day when it won’t be possible”, he told the Jamaica Observer.
Martin’s focus is on how he can acquire additional space in order to be able to experience growth.
“When we started in 1996, we started from what [you] will see as the retail outlet, with 2,300 square feet, over time, as we grew, with the number of products that we manufacture and the number of customers, we had to get additional space. Currently we occupy 30,000 square feet and we are bursting at the seams,” he explained.
He estimates that Island Products Manufacturing Limited would need 20,000 square feet more to allow them to expand operations.
Martin posed the question: “How can JMEA assist small and medium size manufacturers to lobby the Government?” to representatives from the Jamaica Manufacturing and Exporters Association (JMEA) who were also a part of the tour. His question stems from observations of previous lands that were seemingly targeted towards developers who would split the land into several pieces for housing units. “People like ourselves who are probably only interested in three to four acres, there’s no allowance for us,” he said.
Martin stressed that his company could have been expanded but it’s challenged with finding land in Kingston to do that, especially without any form of financial assistance.
“Buying real estate in the city of Kingston is prohibited,” he said sarcastically. “It is extremely expensive, so we are caught. Here we are and we have equipment that we have acquired and we are unable to position the equipment because we just don’t have the space,” He said.
Martin showed the Business Observer the empty containers from Colombia and Europe sitting in the lot. He explained that, for recycling purposes, he has to return them in order to collect the new containers that are sitting at the wharf. “Where am I going to put 28 containers?” he asked, while indicating the volume of business his company is forced to do in the limited space.
The issue of no space for manufacturers is one which the president of the Jamaica Manufacturers and Exporters Association (JMEA) John Mahfood has observed and has also taken issue with. He notes that a lot of factory space that was available is no longer available in the normal industrial areas in Kingston and Spanish Town. In addition, most of the properties along Spanish Town Road, from Six Miles to Three Miles, have been bought and are fully utilised.
“It is very difficult to find land space that one can buy and build on, and so what it means is that the Government has to make available land space that is between Three Miles and Downtown. There is still a lot of land space off the Spanish town Road, between Three Miles and Downtown Kingston, so the Government should really be looking to make those areas available,” Mahfood said while speaking with the Business Observer.
He also pointed to empty buildings in downtown Kingston along Harbour Street and Hanover Street that could be utilised. However, lack of parking facilities is a deterrent. He explained that it’s wide knowledge that the Corporate Area is expensive, and urges manufacturers to look at other areas that are developing.
“One has to also look outside of Kingston, one has to look at Clarendon, Old Harbour, Spanish Town. You have to make up your mind. You know it’s not going to be as convenient as in the past,” he advised.
In addition to those areas, he says St Thomas has now been reopened and with the south coast highway, it will be 15 minutes away from Downtown Kingston.
“What people are accustomed to is having their factories in Kingston and that’s no longer really possible, and St Thomas property is still available,” said Mahfood.
Although manufacturers receive no financial aid to acquire land, Mahfood is reminding manufacturers that other options exist, including renting warehouse space from the Factories Corporation of Jamaica (FCJ). Although the option exists, he acknowledges that, that solution might not be satisfactory for every manufacturer.
“It’s not the cheapest because their rate rates are roughly US$8-9 per square foot, so it’s not cheap, and for someone who wants to own their own facility, that’s not ideal because the Factories Corporation build the facilities and rent it out.”