BASSETERRE, St. Kitts – REPRESENTING about eight percent of the Federation’s gross domestic product (GDP), President of the Manufacturing Council of the Chamber of Industry and Commerce Jose Rosa has highlighted the importance of the manufacturing sector to the sustainability of the country’s economy.
In late 2008, countries the world over began experiencing the impact of the world economic and financial crisis, and in recent years the recession had led to many problems including loss of jobs and closure of businesses.
The manufacturing sector within the Federation however, though experiencing potentially devastating difficulties, has managed to maintain its place within the economic landscape.
Rosa – in an exclusive interview with this publication – explained that the manufacturing sector within St. Kitts-Nevis exports more goods that all of the other OECS territories combined, even more than Barbados.
And with a workforce approximately 2100-strong, Rosa expressed that the sector has a significant socio-economic impact on the Federation, especially on St. Kitts.
He explained that some of the challenges which the sector has experienced include increased freight costs, increases in the cost of electricity and the introduction of VAT which has “affected the profitability of indigenous companies”.
“It has made some of them less competitive against products that we import into the island. Our breweries and bottling companies, they are more exposed because with all those additional costs they need to be passed to somebody else. And the customers, comparing the price of the local products and the imported products, would see that local products are cheaper or the same price. And that definitely will affect our ability to compete.”
There is need to “take care of the manufacturing sector” Rosa admitted, while outlining a number of initiatives that the CIC Manufacturing Council is in the process of executing in this regard.
“It is very important for there to be a manufacturing strategy. One of the things we are working on is putting a strategy together for manufacturing that would be the guidelines to make sure that we can sustain what we have and we can grow this sector.”
He said this would facilitate growth of the sector – which is necessary if economic mobility is to be increased.
Though agro-processing comprises but a small portion of the sector, Rosa noted that there is need for assistance to be provided to agro-processors, thereby transforming it into a more viable business enterprise.
“We need – as a council – to see how we can reach these people, try to bring them to our council and see how we can give them tools to be more successful. Small companies are the backbone of many countries and we need to continue doing this. This is why it is important to have the manufacturing sector in place.”
All sectors in an economy are important but, according to Rosa, there are times when some sectors are neglected for the sake of others. Notwithstanding – he noted – the possibilities of growth and sustainability of the manufacturing sector are endless once stakeholders commit to its advancement.
“I believe in diversification of the economy but many times I believe we focus on some sectors and we forget others. And then I believe that the tourist sector is important…the financial sector is important. But what will we do with 2100 employees if tomorrow the manufacturing sector begins going down and disappear from this island?...Not everyone has the skills to work in the financial or the tourism industry…”
“We need to give clear vision, we need to work together within the private sector and the government, making sure that we have the infrastructure, we have the fundamentals and we can continue sustaining and growing manufacturing.”
