Manufacturing & Retail Distribution

By the Trinidad & Tobago Manufacturers' Association (TTMA), Christian George

Reflecting on the 2018 theme for the annual Trade and Investment Convention (TIC) is an apt way to begin discourse on the current state of affairs of the manufacturing sector. This article maintains an optimistic outlook, acknowledging challenges, but also new horizons and opportunities. Such an outlook is reflective of the ability of the sector’s constituents to successfully operate in the globalised trading environment.

Recent developments for the sector have occurred due to the manufacturers as well as the government. Manufacturers’ continued investments in their plant and equipment result in increased capacity and competitiveness which is needed for their survival and success. Some of these investments have been highlighted in local media, including:

• Baron Foods Ltd, a manufacturer of sauces and condiments, recently commenced operations in

Trinidad and Tobago.

• Carib Glassworks Ltd’s new furnace that increases capacity to 70,000 tonnes of glass bottles annually.

• KC Confectionery Limited’s state-of-the-art bubble gum lines, which add 5,000 tonnes of confectionery annually.

Furthermore, the Government has developed initiatives targeted towards the manufacturing sector, including a grant fund facility for machinery and equipment, and the research and development facility (RDF) which focuses on innovation. Applicants can receive as much as $250,000 via the grant fund facility, and $1 million via the RDF.

The aforementioned developments, as well as the others, auger well for the future of the economy. This positive outlook is reflected in the Ministry of Finance review of the economy, which has indicated that the food and beverage, as well as the textiles, clothing, leather, wood, paper and printing sectors are experiencing an upward trend in their respective contributions to GDP (using constant 2012 prices). Furthermore, notwithstanding the negative GDP growth from 2014, the World Bank forecasts GDP growth rates of 1.9%, 2.2% and 1.6% for the periods 2018, 2019 and 2020 respectively. Thus, the outlook for the sector is promising, as this growth would be partly due to the operations of manufacturers.