Prime Minister P.J. Patterson (centre) presents the Prime Minister's Cup to J. Wray and Nephew Limited's chief operating officer for production, Neil Glasgow, while Jamaica Manufacturers' Association (JMA) president Doreen Frankson looks on. Wray and Nephew won top honours in the champion exporter category at the annual JMA awards banquet at the Hilton Kingston Hotel, New Kingston, on Thursday. - Winston Sill/Freelance Photographer
AFTER A tough year in 2003, the manufacturing sector rebounded sharply in 2004, says Doreen Frankson, president of the Jamaica Manufacturers' Association (JMA).
But, the sector continues to face difficulties with high interest rates, a difficult commercial environment and crime, she said, speaking at the JMA's annual awards function at the Hilton Kingston Hotel, St. Andrew, on Thursday.
Manufacturing grew by by 3.6 per cent in 2004, compared with a decline of 0.8 per cent in 2003. This positive performance was achieved despite the adverse effects of natural disasters, challenges with port facilities and the fire at the Petrojam petroleum refinery, Frankson noted.
"What was significant about the performance of the sector last year was the dramatic increase in exports of some 28 per cent," she stated.
But, big challenges continue to face those on the sector.
One is the "urgent need to reduce interest rate spreads. The farmers and manufacturers are currently waging a battle against high spreads and lending rates," said Frankson.
The ultimate results of cutting interest rate spreads can transform Jamaica, she said. "A commercial environment in which Jamaican producers enjoy the same competitive rates as our regional neighbours, especially in the context of the CSME, makes eminent good sense."
Another concern is that a number of manufacturers have recently been negatively affected by changes in the modernisation regime, which is geared towards assisting manufacturers with retooling.
RE-EXAMINATION
"Retooling is critical to the sector if manufacturers are to compete effectively in the current liberalised trading environment," she said. "This situation must be re-examined and the sector consulted about changes. And, to this end, we urge the powers that be to act quickly to adjust this problem."
The national issue that is now of most concern is the high level of crime and violence in the society, she said. "We cannot allow the criminals to win. Their devious actions are demoralising our human resources and impact negatively on investment and development."
Government and the private sector must unite against the threat, she noted. "Firm, resolute and measured actions are required."
