(Trinidad Guardian) Prime Minister Dr Keith Rowley has challenged the manufacturing sector to grow its brands, supply the needs of the country, lean towards exports and earn foreign exchange.
In the keynote address at the T&T Manufacturers Association’s president dinner and awards at the Hyatt Regency, Port-of-Spain, he expressed confidence in the sector and “its driving role in the future prosperity of our economy.”
Dr Rowley noted the sector was the third largest contributor to gross domestic product (GDP) and the second largest non-petroleum contributor. He said since 2000, its output has grown from $ 2.1 billion to $6 billion in 2015 adding that around the world the manufacturing sector helped to drive economic growth and raised living standards
“A very important point to note is that T&T’s manufacturing sector overall is a net foreign exchange earner and therefore a critical pillar in stabilising our domestic economy,” he said.
However, he added, over the decades manufacturers have had to grapple with two major problems: Productivity in the workforce and labour shortages.
“This is a serious problem that cannot simply be ignored and reasoned as a reflection of our culture and this Government, through improved education and training at all levels, is committed to changing this,” the Prime Minister said.
“However, since the Government is not a manufacturer it has to be noted this issue of poor work attitude and resulting low productivity is also a management issue and while the Government systems may be a nursery for this scourge, private sector contributions are not insignificant in this matter,” he added. He cited the Global Competitiveness Index 2015-2016 which said poor work ethic was the main challenge to doing business in T&T.
Dr Rowley, who acknowledged that the domestic manufacturing sector had been somewhat successful over the years in product and brand innovation, wondered how many of them were producing and exporting the same items today as they did ten and 20 years ago.
“The second relevant question with respect to manufacturing and the issue of diversification is, are our firms exporting to the same markets today as they were ten and 20 years ago? How have we done with respect to entering new, even difficult markets?” he asked. He said it was up to local manufacturers to reorient themselves and chart a new path forward in leading the way and rising above new challenges.
Dr Rowley said data provided by ExporTT showed that approximately 200 local firms consistently export to countries within Caricom and North America and less than ten firms were exporting on a regular basis to countries within Latin America “where successive governments have placed significant resources in negotiating trade agreements over the last 15 years.”
He said T&T had negotiated innovative trade arrangements which could provide valuable opportunities for immediate and growing trade access to a substantial market which had been largely ignored even though it was just seven miles away.
“The current circumstances have pushed the market towards us more than we have reached out to explore.
“The Government of Venezuela has offered to put up a revolving fund of US$50 million to facilitate the purchase of a specific list of Trinidad and Tobago manufactured products,” he said.
Following the Prime Minister’s address, TTMA president, Dr Rolph Balgobin, urged manufacturers to expand in nearby massive markets, including Cuba, Costa Rica, Dominican Republic, Panama and Venezuela.
“In the bigger one right next door, Venezuelans are in need of manufactured goods in volumes which most of us will find unthinkable.
“The opportunities are there and they are working with the agencies of government to make them as accessible to you,” he said.
Given examples of what could be achieved in Venezuela, Dr Balgobin said t they were in need of 5.6 million units of toilet soap, five million cement bags, a few thousand tonnes of mayonnaise and 18,000 tonnes of flour a month to start.
“That is the scale of the opportunity that is sitting right next door. We have an opportunity now to go out there to bring more exciting projects forward,” he added.