Manufacturing sector shows slight growth

AFTER five consecutive years of decline, the manufacturing sector grew by 0.7 per cent in 2000 compared with a decline of 0.9 per cent in 1999. The sector's contribution to gross domestic product (GDP) was $3035.9 million, which accounted for 15.9 per cent of GDP.

According to the Jamaica Manufacturers Association (JMA), during the year, there was increased output from the processing sub-sector, the revival of activities in the "heavily-weighted" petroleum sub-sector and continued retooling and modernisation of factories within the industry.

However, the sector continued to be affected by relatively high interest rates, unfair competition from smuggled goods, the high cost of utilities and security, and bureaucracy.

Last year five manufacturing entities were closed. These were Cifuentes Y Cia, West Indies Glass, 3M (manufacturing facilities), Apparel Handlers and East Ocean Textiles.

At the same time, the sector recorded new product entrants. During the year Pepsi-Cola International acquired the carbonated beverage line of Desnoes & Geddes. Other companies introduced new products such as Grace Food Processors (Canning) which introduced a jerk barbecue sauce and a new line of sausages and bacon for the tourism sector. The company also introduced a line of fruit juices under the brand Tropical Rhythms.

It was also a more profitable year in 2000 for the JMA, which depends largely on subscriptions from members for its funding, after a more aggressive strategy for collecting fees.

Subscription fee represents 56 per cent of total income for the year.

Surplus

The JMA made a surplus of $389,535 on its operations for the year ended December 31, 2000 compared to a surplus of $219,344 for the previous year, in spite of provision for bad and doubtful debt of $600,069 which includes $567,070 for uncollected subscription and $32,999 for anniversary and awards banquet tickets.

During the year emphasis on increasing membership and generating additional income bore fruit. As a result at year end 12 ordinary members and two associate members joined.

During the year under review the association's income increased by $248,385 from $9,612,287 to $9,860,672.

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