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year’s theme “Recover and Renew With Manufacturing” aptly encapsulates the need for economic resurgence and our manufacturers’ ability to lead Jamaica on a path of recovery. Manufacturing has long been among the pillars of the Jamaican economy, having weathered many storms. It is against that backdrop of resilience and ingenuity, I echo a message of confidence in Jamaica’s ability to retool, reenergize and recover.

pivotal role in fortifying our country’s economy. This is not a feat that can be accomplished with ambivalence nor division, I urge all Jamaicans to increase their support of our manufacturers. This is necessary for the creation of a more competitive and impactful sector across all markets and by extension a stronger Jamaica.

ON, GCMG, CD, KSt.J

I applaud the JMEA and its members, for their steadfast commitment to the The manufacturing industry has been in- promotion and development of ‘Brand strumental in Jamaica’s growth providing Jamaica’ and hope that National Manjob opportunities, attracting capital in- ufacturers’ Month 2020 will serve as a vestment and serving as the backbone timely reminder of the talents and versafor our gross domestic product. Despite tility of our people. Manufacturing should the unfavourable prevailing econom- not be solely seen as a means of survival; ic conditions caused by COVID-19, the it is the key to thriving. manufacturing sector has responded by thinking outside of the box, embracing We must “Produce Local. Export Global”. new and developing markets and positioning themselves for local and international success.

My heartiest congratulations to the Jamaica Manufacturers and Exporters Association (JMEA) on the 2020 iteration of National Manufacturers’ Month. This

This approach coupled with a concerted focus on economic diversity, increasing our manufacturing exports and value-added development will play a

A MESSAGE FROM

THE GOVERNOR GENERAL

His Excellency The Most Honourable Sir Patrick Allen

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JMEA E-MAGAZINE | OCTOBER 2020

Domestic Product and employs approximately 78,700 people. I am therefore pleased to extend greetings to all stakeholders of the JMEA, as you celebrate National Manufacturers’ Month.

A MESSAGE FROM

THE PRIME MINISTER

The Most Honourable Andrew Holness ON, MP

The manufacturing industry has played an integral role in the socio-economic development of Jamaica for generations. As a major driving force for wealth creation and sustainability, the Jamaica Manufacturers and Exporters Association (JMEA), cites that the industry contributes 8.6% of Jamaica’s Gross

As the leading manufacturing and export association in the country, JMEA has served as the voice of exporters, manufacturers, service providers, micro, small and medium enterprises (MSMEs), advocating for the sector as a stakeholder in national development. The JMEA has also grasped opportunities to position itself for innovation and sustainable growth. The Association has so far done a commendable job through lobbying efforts to increase production and earnings to remain relevant in these changing times to maintain lives and livelihoods. As the world grapples with the COVID-19 pandemic, organizations like JMEA must maintain and increase production and visibility, and drive growth by revolutionizing how business is conducted to continue providing vital support to the industry and the country. The JMEA has been advocating for balanced lives and livelihoods by strategic partnerships, export services, research, capacity building, and access to finance.

The best innovators are those who change their tactics and reinvent themselves to compete globally. With Government policies in place to retain export jobs, earn foreign exchange, and contribute to rebuilding Jamaica, we are confident that the country’s manufacturing industry will adapt to global changes. Indeed, Jamaica will recover stronger. I am proud that for over 70 years, JMEA has embodied the words of its motto, “Produce Local, Export Global”, to strengthen its member companies through representation, services, support, offering improved access to finance and equity for its members through partnerships, and the leveraging of networks. I must also commend the leadership and staff for the strategic expertise used to guide JMEA and exporters at large to expand their global footprint by venturing into unchartered territories during this time of change. As JMEA celebrates National Manufacturers’ Month under the theme, “Recover and Renew with Manufacturing”, I encourage all stakeholders to continue improving the country’s competitiveness in the global market as you position yourselves to grasp opportunities that will come as the world diversifies.

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chosen theme: ‘Recover and Renew with Manufacturing.’ There is no doubt that the manufacturing sector has consistently been a significant player in the development of the Jamaican productive sector and the economy, in general. In 2019, the sector’s contribution to GDP had been in the region of 8.6 percent, the highest contribution in the goods-producing area of our economy.

A MESSAGE FROM

THE LEADER OF THE OPPOSITION

Growth in the sector has not only been confined to production for domestic consumption but, increasingly, production has been geared towards goods for export, and area that needs continued focus. In that regard, the manufacturing sector has become a significant source of foreign exchange for the country.

sent the largest single goods-producing sector and a significant contributor to employment. It is an indelible part of our future, and we must all now muster the energies to support the manufacturers in their initiatives and also, to ensure that we build a more resilient, competitive and innovative sector, which we all must build for the sake of our country. Again, I wish you a successful month of celebration as you explore new ways in which Jamaica can “Recover and Renew with Manufacturing”.

Dr. Peter D. Phillips

We are in a unique time in our country’s history, particularly because of the Allow me to take this opportunity to COVID-19 pandemic, which has wreaked commend the Jamaica Manufacturers havoc on so many sectors of our econand Exporters Association (JMEA) for omy, including manufacturing. Yet, we recognizing and celebrating National should not lose sight of the fact that the Manufacturers’ Month under the aptly manufacturing sector continues to reprePhD., M.P.

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Its impact on job creation, capital investment, and Gross Domestic Product (GDP) as well as linkages to the many other productive sectors of the country extolls its importance as a pillar of development that must be bolstered and advanced. Over the last four years, the manufacturing sector has seen the most robust growth of any period observed during the last 25 years, recording an average quarterly growth rate of 2.2%. The sector currently employs approximately 79,000 and contributes 8.6% to GDP.

products into the domestic market, thereby reducing the level of the country’s imports; increased export sales of manufactured goods and increased job creation. It is, however, clear that we are living through interesting times as we are confronted with the unprecedented challenges of maintaining our export and manufacturing thrusts due to the increasing financial fallout from the Novel Coronavirus (Covid19) Pandemic. However, I know our manufacturers are not daunted by the times. Our tenacity and fortitude gained over the previous years’ storms will see us through. As we navigate these uncertain times together, I urge our manufacturers to continue to push through the challenges. We can do this together as it is said that in every adversity, there are seeds of greater benefit!

This accomplishment is no simple feat. I salute our manufacturers and emphasize the government’s commitment to THE MINISTER supporting the growth of this sector. OF INVESTMENT My ministry, the Ministry of Industry, INDUSTRY AND Investment and Commerce (MIIC), has COMMERCE therefore completed the National Five- So, as we celebrate another National Year Manufacturing Growth Strategy, Manufacturers’ Month, under the theme The Honourable a blueprint to achieving $81 Billion per ‘Recover and Renew with ManufacturAudley Shaw annum in manufacturing output by 2025. ing,’ I salute the efforts of our manufacPhD., M.P. turers as we work toward continued and The implementation of the Manufac- collective national growth and wish for Jamaica’s manufacturing sector has been turing Growth Strategy will redound to, all safe and sustainable sailing through one of the country’s longstanding con- among other things, the increased abil- these uncertain times. tributors to its economic development. ity of our local manufacturers to supply A MESSAGE FROM

I join the JMEA this year in its virtual celebration of National Manufacturers’ Month, as the organization leads its membership in their efforts to ensure workplace safety and other adjustments to contain the Coronavirus Pandemic.

A MESSAGE FROM

THE SHADOW MINISTER INDUSTRY, COMPETITIVENESS AND GLOBAL LOGISTICS

Anthony Hylton

The Pandemic has no doubt created pain and uncertainty, but it has also created opportunities especially in the manufacturing sector. While travel restrictions have crippled the hospitality sector, the leeway given to essential areas in manufacturing under these regulations has provided a lifeline to the sector businesses in foods, pharmaceuticals, health care, etc. as well as the economy. These opportunities have been enhanced by the disruption in the global supply chain across all industries, including in essential supplies.

ther enhanced by the Fourth Industrial Revolution in ICT and digitalization, in the Industrial Internet-of-Things (IIOT), machine learning, automation and blockchain. These technologies, properly deployed, are improving productivity in the manufacturing process and enabling increased profitability of firms in the sector, particularly those engaged in export manufacturing. The Pandemic has also brought about stability, if not a reduction, in energy prices thus further increasing profitability.

I take the opportunity to encourage the JMEA to continue to advocate for a shift in critical resources by government and private financiers to support the effort of the MSME firms in the sector to reschedule debts, resulting from or exacerbated by the Pandemic or to assist with credit Additionally, the re-establishment of insurance, as well as reduction in bureauthe supply chain has produced a shift cratic humbug at our ports and elsewhere away from global to regional and local in our fragile business environment supmanufacturing opportunities in order porting manufacturing, and especially to mitigate risks and to assure business export manufacturing, which benefits continuity. These opportunities are fur- the economy and employment directly. JMEA E-MAGAZINE | OCTOBER 2020

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of this crisis, however, we must navigate able growth, where the manufacturing the effects and reboot the economy while sector can provide a predicted output of adjusting to life in this ‘new normal’. J$81 billion and 97,898 jobs in the next five years as outlined in the National FiveAs we celebrate National Manufacturers’ Year Manufacturing Growth Strategy. Month, we recognize that the sector has an integral role to play in the nation’s To foster a culture of recovery and renewrecovery efforts and as such, the theme al through manufacturing, the approach ‘Recover and Renew with Manufactur- must be a collaborative one driven by ing is one that is most appropriate and a common vision of creating a dynamsignals the approach to be taken. If Ja- ic, vibrant sector, producing world-class maica is to emerge from this pandemic value-added products that are able to stir stronger and more resilient than before, global demand. then undoubtedly manufacturing must be a critical pillar in the renewal process. The creativity we have as Jamaicans can be considered as one of our superpowA MESSAGE FROM Though this pandemic has brought on im- ers and it is with this spirit in mind that THE PRESIDENT mense challenges, there are vital lessons we should approach the future boldly, to be learnt. This experience has exposed showing great courage rather than fear. OF THE JMEA our vulnerabilities and highlighted how We are a nation of winners and we will disproportionate our economy is. As we rise above this challenge. Richard Pandohie recover as a country, the plan must now We are all bearing witness to an incred- be to reset and create a more diversified I encourage all my fellow manufacturible period, where the world is being economic base, fueled by innovation, de- ers and all Jamaicans to adhere to the impacted by a serious health and eco- velopment of high value-added products, health protocols, operate responsibly and nomic crisis brought on by the COVID-19 boosting exports and improving the link- extend kindness to those who are hurting in our communities. Pandemic. This has significantly tested ages with the services industry. the global economy and community, plunging it into a state of uncertainty Once this is set into motion, then we It’s time! Let us ‘Recover and Renew with and shock. Jamaica has not been spared have an opportunity to garner sustain- Manufacturing’.

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Time is of the essence to leverage manufacturing for economic recovery and growth.

Importance of Manufacturing to the Jamaican Economy Contributed by Dr. William W. Lawrence Strategy Consultant and Founder of the Professional Services Unit at Mona School of Business and Management

Economic growth has eluded Jamaica for many years to constrain national income and standard of living. This situation is made worse by the recession arising from the COVID-19 pandemic. The Planning Institute of Jamaica (PIOJ) projects that the Jamaican economy will not recover before 2023. Reports from the World Economic Forum identify low levels of export, innovation, and technology as the main reasons for JamaicaÂ´s low productivity and global competitiveness. Continued on Page 11

JMEA E-MAGAZINE | OCTOBER 2020

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JMEA E-MAGAZINE | OCTOBER 2020 Manufacturing is needed to correct these weaknesses and generate real growth of Gross Domestic Product (GDP). However, the GDP growth rate of manufacturing has fallen from over 6% in the late 1980s to below 2% since the 1990s while the annual contribution to GDP declined from 17% to less than 9% (Figure 1).

industries and untapped potential for innovative high-value exports using local materials. However, there needs to be more government-funded research on manufacturing technology, product innovation, and export promotion. COMPANY STRATEGIES

More manufacturing companies should Micro, small, and medium-sized enterimplement lean projects for waste reprises dominate the sector. Many sufduction by mapping work procedures fer from recent closures of hotels and and eliminating non-value costs. Adopt Importance of Manufacturing to the Jamaica Economy restaurants. One-third of companies agile breakeven practices to make prosurveyed by W. theLawrence Jamaica Manufacturers of import duties on non-competing duction output scalable for coping with Dr. William raw materials, (3) enforcement laws ofsales volatility. Develop team-based and Exporters Association are uncertain Strategy Consultant and Founder of the Professional Services Unit at Monaof School Business and Management about business continuity in light of the against unfair imports, and (4) reduc- incentives to boost productivity and pandemic. Most manufacturing com- tion of disincentives. Some aspects of customer service. Renegotiate finanpanies listed on the Jamaica Stock Ex- the NIP have been implemented but cial arrangements and adjust business Economic growth has eluded Jamaica for many years to constrain national income and standard of living. This change are experiencing profit decline. much more needs to be done including models to reverse losses. Review prodsituation is made worse by the recession arising from the COVID-19 pandemic. The Planning Institute of What policy support and company strat- the promised national export strategy uct mix and staffing levels to increase Jamaica (PIOJ) projects that the Jamaican economy will not recover before 2023. Reports from the World egies are needed for manufacturing to and investment policy. operations efficiency. Collect accounts Economic Forum identify low levels of export, innovation, and technology as the main reasons for Jamaica´s drive economic recovery and growth? receivables to outpace disbursement of low productivity and global competitiveness. Manufacturing is needed to correct these weaknesses and The Government of Jamaica should payables. Invest in technology-driven generate real growth of Gross Domestic Product (GDP). However, the GDP growth rate of manufacturing has maintain low interest rates and restrict business intelligence to uncover new POLICY SUPPORT over 6% in the late 1980s to below 2% since the 1990s while the annual contribution to GDP fallen from exchange rate volatility to facilitate product and market opportunities. declined from 17% to less than 9% (Figure 1). The PIOJ has indicated that a review manufacturing price competitiveness Practice zero-based cash management. Micro, small, and medium-sized enterprises Many suffer from closures of hotels risksector. management. Therecent Jamaica of National Industrial Policy (NIP) dominate is and the and restaurants. This One-third companies surveyed by the Jamaica ManufacturersCorporation and Exporters Association Business Development forthcoming. was of last developed CONCLUSION in light ofneeds the pandemic. Most manufacturing companies listed on the are1996 uncertain about business to conduct sector-wide training in showing clusterscontinuity for efficient Jamaica Stock Exchange are What policymanagement support and company strategies are is of the essence to leverage manon turnaround to avert or Time import substitution andexperiencing targeted profit ex- decline. needed manufacturing togrowth drive economic andcompany growth? losses. Some industries ufacturing for economic recovery and reverse ports tofor drive economic basedrecovery on cross-sectoral collaborations. Spe- can generate quick results. Food and growth. Statistical analysis reported in -----------------------cific elements included (1) provision of beverages represent roughly one-half my peer-reviewed book titled “Business concessionary financing, (2) elimination of the value of manufacturing output Renewal and Performance in Jamaica” Insert Figure 1 here each year with strong linkages to other (UWI Press, 2014) shows that three perFIGURE 1 cent increase in real manufacturing outFIGURE 1 put translates to one percent rise in toJAMAICA’S ECONOMIC GROWTH IS is associated closely with manufacturing tal GDP growth. However, this requires Jamaica´s economic growth ASSOCIATED CLOSELY WITH MANUFACTURING meaningful commitment and partnership between the Government of Jamaica and companies in the private sector.

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JMEA E-MAGAZINE | OCTOBER 2020

Thinking Beyond Recovery: Finding Golden Opportunities in Manufacturing

Contributed by The Private Sector Organization of Jamaica (PSOJ)

OVID-19 has created both challenges and opportunities for the Jamaican manufacturing sector. While we are very pleased that much of the sector grew in the last few months, we recognize that the manufacturing players will need to keep their eyes on the proverbial ball to ensure that over time we continue to perform well. As the COVID-19 Economic Recovery Task Force outlined, we should not simply “fix what has been broken by COVID” but to address “fundamental gaps that have been exposed by COVID-19 and exploit the opportunities the crisis offers.” COVID-19 will likely create: 1) higher national indebtedness, 2) changing consumer behaviour patterns, 3) long term challenges to the supply chain, 4) changing work patterns and protocols, and 5) increase significance of the digital and online economy. Jamaica needs to support the ongoing economic development of this critical manufacturing sector. Jamaica needs a transformational approach to improving national productivity. To strengthen the overall Jamaican recovery, the manufacturing sector should actively seek opportunities to:

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Build out new opportunities for manufacturing subsectors. ¤ Decrease the use of US dollars by us- ¤ Create centers of retraining for working more local raw materials and proers and managers; identify opportuactively substituting imports. nities for upskilling. ¤ Increase US dollar earnings by ex- ¤ Invest in performance technologies to porting and supplying new markets, support efficiency and better underwhich countries (or areas of counstanding of supply chain and operatries) have we not sold into but could; tions; from sale- inventory managewhich local products deserve a global ment- supply- analytics. market? ¤ Building capacity in new growth ar¤ Diversify the Jamaican manufacturing eas like medicines, PPE, ventilators, portfolio and economic base. 3D printing, office dividers/space partitions, and work from home supplies, ¤ Increase the overall value of the sector among others. by going up the value-chain to more finished and value-added goods. ¤ Leverage global open source design platforms to find new opportunities. ¤ Proactively create workarounds for critical supply chain disruptions in- ¤ Support pivoting of core businesses cluding diversifying supply chain or operations. among geographic locations. ¤ Optimize local logistics and delivery ¤ Re-think credit and payment arrangewith greater shared distribution netments to support the long-term surwork vival of small and medium enterprises. ¤ Work with GoJ, Civil Society and other ¤ Support training for SMEs especially private sector players to advance the in the areas of cash management and national Economic Recovery. technology deployment. ¤ Build out new opportunities for manufacturing subsectors which experienced demand erosion (e.g. those who supply the tourism industry) based on their current capabilities. ¤ Manage the safety and trust of workers in the sector including rethinking the physical work environment and policies.

We are at the beginning of the transformation of Jamaican manufacturing. Let us examine the sector with a critical eye to ensure that post COVID-19, we have identified the golden opportunities in products, services and processes.

JMEA E-MAGAZINE | OCTOBER 2020

Workforce Development Required for Manufacturing Contributed by Dr. Janet Dyer, Managing Director, HEART NSTA/Trust

orkforce Development remains a critical pillar for the success of manufacturing as the skills gap become more evident amidst changing dynamics. There are many factors contributing to the skills gap in the sector and these factors vary from firm to firm. Furthermore, discussions with manufacturing leaders and workforce development professionals illustrate that the manufacturing skills gap is a serious national problem. Consequently, the HEART/NSTA Trust, Jamaicaâ€™s National Training Agency recognizes the following realities as contributing to this national crisis:

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µ Rising skill requirements for ufacturers impatient and unwilling to entry and growth in manu- participate in the process; and students may find that they are the most uninfacturing careers µ An aging manufacturing workforce, particularly in the skilled technical operations µ The lack of adequate and reliable engagement for entrants in the manufacturing industry These circumstances create opportunities for workforce development and there are at least three stakeholders that need to be involved to solve the workforce development requirement crisis in Jamaica: the industry itself, the education system, and the government through its national workforce and economic development boards. Furthermore, we cannot forget the most important stakeholders, the customers—those workers, students, and parents of students who must navigate the choices made available to them for their best advantage. After spending 10 years in industry and 25 years working with educators and workforce development practitioners, I am convinced that the rules the manufacturing workforce plays by are very different. This is not to say that any of them are bad, just different. If we are to solve this problem, each sector group must work to understand the other and then collaborate to effect change. In addition, manufacturers may find workforce professionals too theoretical; workforce professionals may find educators not focused enough on employment skills; educators may find man-

formed of all. All these viewpoints are real and may sometimes come across as deterrents to understanding the industry requirements and how we can come together to resolve the issues. For this reason, we need to present all sides of the story, looking carefully at each of the puzzle pieces. Besides rising skill requirements and an aging workforce, the reality that puts us at risk is the lack of engagement of manufacturing employers. Unlike competitors in exporting powerhouses, manufacturers have failed to engage with high-quality technical education, internship, and apprenticeship programmes broadly and consistently. Without ongoing industry engagement, existing programmes are too often atrophied, failing to meet the changing technology requirements for emerging occupations or being forced to accept poorly qualified candidates just to fill seats.

In addition to these relatively measurable shortages of skilled technicians, we too often find that the larger population of less-skilled production workers struggle to adapt to a rapidly changing 21st century manufacturing environment. While we readily assist our employees in acquiring valued intermediate manufacturing skills in areas such as quality systems, process improvement, statistical measurement, blueprint reading, and basic preventative maintenance, too many production workers (both employed and unemployed) never acquire the necessary lifelong learning foundation to take advantage of

available training opportunities. The reasons for this unfortunate reality are long-standing and complex; as employers, are simply are not well positioned or resourced to take on the challenge of adequately addressing the needed workforce development requirements. Fortunately, a network of credentials and internships exist for the critical manufacturing occupations in industrial maintenance and mechatronics. Realizing the need to reverse course, many advanced manufacturing employers have forged education and training partnerships with HEART to try to rebuild the necessary talent pool. In these efforts, we have found willing partners among workforce development professionals and some farsighted educators. However, despite the proven employer demand, many initiatives resulting from these partnerships still struggle to enroll an adequate number of candidates who are well-positioned to take advantage of these excellent opportunities. We must seek to change this moving forward.

Discussions with manufacturing leaders and workforce development professionals illustrate that the manufacturing skills gap is a serious national problem.

..the reality that puts us at risk is the lack of engagement of manufacturing employers. JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020

Manufacturing & Export: Untapped Trade Opportunities

Contributed by Jamaica Promotions Corporation (JAMPRO)

anufacturing is at the centre of Jamaica’s economy and is directly connected to the island’s export success, with the development and export of products spanning from food to furniture.

Historically, the sector has boasted a track-record of job creation, innovation, and superior quality, and has racked up well-deserved commendations for positively impacting the livelihoods of over 78,700 employees and contributing to 8.6% of national GDP in 2019. The work of our local manufacturers in transforming raw materials into value-added products has ignited a worldwide love for the label “Made in Jamaica”. Now more than ever, manufacturers are being challenged to raise the bar to innovate, and access new markets globally.

UNTAPPED OPPORTUNITIES As the world grapples with the changes in the global socio-economic landscape, there are also unparalleled trade opportunities that the discerning manufacturer can tap into. A close look at the global manufacturing landscape reveals disrupted supply chains and new consumption patterns from increasingly informed consumers from which manufacturers can benefit. The pandemic has forced many companies to re-assess and re-work their product sourcing processes. Numerous global brands have sought to move their supply chains closer to home. Jamaica’s unique location puts the island within a four-hour flight radi-

JMEA E-MAGAZINE | OCTOBER 2020

...there has been burgeoning demand for the taste of Jamaican cuisine, more health-conscious food & more convenient ready-made meals.

us of approximately half a billion of the world’s consumers in the Western Hemisphere. The challenge for our gifted local manufacturers with the capacity is to fill those gaps and maximize prime export potentials.

cuisine, more health-conscious food, and more convenient ready-made meals. Herein lies an opportunity for local food manufacturers to produce and brand Jamaican style vegan ready-to-eat dishes.

This is a window for local manufacturers to assert themselves as viable and resilient, as well as to leverage the quality assurance, effective manufacturing processes, and product authenticity with which Jamaica is synonymous.

But it doesn’t end there, our slate of Jamaican products, from beverages, spices, sauces, canned foods, condiments to baked goods, all still hold a special place in the hearts and taste buds of individuals across the globe.

In addition to disrupted supply chains, changes in consumption patterns of discerning consumers have created a springboard for Jamaican manufacturers to dive into export markets. In recent times, there has been burgeoning demand for the taste of Jamaican

Now is the time to bolster the inextricable link between manufacturing, export, and economic growth. Now is the time to re-imagine Jamaica’s manufacturing sector- from food, cosmetics, chemicals, building materials to over the counter pharmaceuticals.

JMEA E-MAGAZINE | OCTOBER 2020

Set Aside Regime:

What Does it Mean for Manufacturing? SIGNIFICANT OPPORTUNITIES FOR MSME MANUFACTURERS UNDER GOVERNMENT OF JAMAICA’S PUBLIC PROCUREMENT REGIME The MSME Division, Ministry of Industry, Investment & Commerce

overnment procurement accounts for approximately 50% of total government expenditure in developing economies. The magnitude of this spend signals the potential for public procurement to be used for achieving a variety of macroeconomic and other national imperatives. The United Nations suggests that Sustainable Public Procurement ‘has the potential to transform markets, boost the competitiveness of industries, save money, conserve natural resources and foster job creation.’ The Government of Jamaica, in collaboration with the private sector, in implementing the Public procurement Act 2015, the Special and Differential Treatment Regulations 2018 and both the SetAside Ministerial Order and the Domestic Margin of Preference Ministerial Order 2019, recognizes the important role of public procurement in the development of Micro, Small and Medium Sized Enterprises (MSMEs) as well as certain local industries where there is comparative advantage. The Government’s Set-Aside Ministerial Order is intended to target 20% of the national procurement

budget for MSMEs, including manufacturing businesses. Under this arrangement, MSMEs will be targeted using for the supply of specific local products that they are capable of producing, or aligning with international providers to supply the products, with a specified local value addition. The “Domestic Margin of Preference” regime will benefit Jamaican suppliers who are competing in International Competitive Bidding procedures by giving the local supplier a 20% advantage on foreign bidders, once 35% domestic content can be demonstrated. In assisting MSMEs with the capacity required to successfully bid for these government contracts, the Ministry of Industry Investment and Commerce identifying potential MSMEs to develop their capacity for responding adequately to these opportunities. The Ministry will also raise awareness and sensitize the private sector actors about these initiatives and the benefits to MSMEs. It is hoped that these and other support can help the Jamaican manufacturing sector to “recover and renew”. The recovery and renewal of the manufacturing sector, is critical to Jamaica’s growth and development, as the sector contributes a significant 8.6% to GDP in 2019. It is projected that a significant number of manufacturers can benefit from the public procurement regimes, especially as it relates to the manufacturing of a range of items covered in the Ministerial Orders to include for example: printing on banners, fabric, and posters ; manufacture of uniforms, furniture, drapery, supply of flags and national emblems with significant local content, and the manufacture or assemble of automotive products.

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“…the aim is to channel the development of the environment required to truly grow and expand Jamaica’s manufacturing industry

The National Five-Year Manufacturing Growth strategy: What Is It? And How Will It Impact the Future of the Jamaican Manufacturing Sector?

he National Five-Year Manufacturing Strategy is a joint initiative developed by the Jamaica Manufacturers and Exporters Association (JMEA), the Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) and the Jamaica Promotions Corporation (JAMPRO). It was officially completed and tabled to the Government in January 2020. The formation of the Strategy was driven by the assessment of Jamaica’s current manufacturing sector in comparison to what is happening globally at an industry level. This assessment revealed that in recent years there has been a decline in manufacturing’s contribution to the national Gross Domestic Product (GDP). Several key factors account for this specifically, rising operational costs, workforce productivity issues, cost competitiveness, market access as well as rapid innovations within the global market

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space. These factors have certainly impacted the state at which our sector has been performing as well as its ability to compete globally. Equipped with this insight and driven by a firm understanding that manufacturing has been and will always be a key contributor to Jamaica’s economic development; it was then critical to join forces and develop a roadmap geared towards restoring the vitality of the sector. Essentially, through the National FiveYear Manufacturing Growth Strategy, the aim is to channel the development of the environment required to truly grow and expand Jamaica’s manufacturing industry, in a way that will increase the industry’s contribution to the country’s economic development projections. The Strategy underscores five (5) strategic areas of focus needed to drive the development and revolution of manufacturing in Jamaica:

Enhancement of workforce productivity Improvement of cost competitiveness Expansion of Infrastructure Facilitation of Market Expansion Incorporation of Innovation Strategies

JMEA E-MAGAZINE | OCTOBER 2020 The central growth target of the Strategy is to increase the contribution of the manufacturing sector’s output to GDP from J$66 billion as reflected in 2018 to J$81 billion by December 2025. This growth will be achieved through an aggressive target annual growth rate of 3% per year.

This will involve support from different entities at various phases within the plan. Several mainstream aspects of the implementation will include the following approaches:

Furthermore, in working towards the achievement of that ultimate target, it is expected that growth will be reflected in the following ways:

µ Development of Capacity Building Programmes

Increased jobs in the manufacturing industry. Increased foreign and local direct investment in the manufacturing industry comprising new and expanded businesses.

Increased attractiveness of Jamaica as a location for manufacturing as evidenced through key global location reports.

Increased income to the Government of Jamaica through tax payments.

Increased ability for local manufacturers to supply products into the domestic market thereby reducing the level of the country’s imports.

Increased export sales of manufactured goods thereby increasing the level of foreign exchange earnings for the country.

The successful implementation and execution of this Strategy will require collaborative intervention from both the Private Sector and Government.

µ Educational Approach

µ Cluster Development Programmes µ Execution of Strategic Partnerships µ Public-Private Discussions and Interactions µ Development of Domestic Linkages In a period, such as this where COVID-19 has thrown the world and its economy into a

If Jamaica’s manufacturing industry is to become more productive and impactful then it will require a radical shift. state of disarray, the National Manufacturing Growth Strategy and its implementation is critical now more than ever. It is a roadmap that can certainly assist with building Jamaica’s economic recovery and resilience. If Jamaica’s manufacturing industry is to become more productive and impactful then it will require a radical shift. One that is dedicated to the creation of an environment where our manufacturers are empowered and equipped to produce value-added world-class products that are loved by all and can compete globally. The National Five-Year Manufacturing Growth Strategy will help to create this environment. Through collaboration with all stakeholders, we can cultivate a diversified economic base, underpinned by innovation and value-added activities that will help to bolster the ‘Brand Jamaica’ legacy.

JMEA E-MAGAZINE | OCTOBER 2020

Operating in the Era of COVID-19 Contributed by Dr. André Gordon Chairman and CEO, Technological Solutions Limited

arch 2020 is a period in Jamaica’s history that will be etched in the memories of manufacturers for a long time because it brought the Novel Coronavirus, SARSCoV-2 to Jamaica. The virus, the agent that causes the highly infectious disease COVID-19, has put all manufacturing businesses under threat and forced a change in our thinking and behaviour. Firms were (and many still are) faced with dramatically reduced sales in their core businesses, a serious hard to control threat to the health and safety of all staff and being unable to operate as they used to. Some businesses pivoted and offered new products and services, those exporting found it to be a blessing as domestic consumption declined, while others are still trying to reposition themselves for long term survival. For all of us, what we at Technological Solutions Limited (TSL), knew and shared from April this year is now obvious: COVID-19 will be with us for the immediate future. We must, therefore, equip ourselves and our businesses to be able to operate and thrive in this new reality.

Our knowledge and actions should be driven by the science behind the virus. 22

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The main ingredient required to assure the future success of our businesses in this climate is accurate, timely and trustworthy information in an environment that is rife with misinformation and half-truths from many sources, including social media. Our knowledge and actions should be driven by the science behind the virus and the illness associated with it, as well as how to effectively treat with and control it in our operating environment. Below we summarize some of the main facts that manufacturers should find useful. ABOUT COVID-19 Viruses are not “alive” and therefore cannot be “killed”. They exist and are only active when they infect host cells. Viruses like COVID-19’s SARS-CoV-2 can be destroyed and deactivated by various means, effectively controlled, and with vigilance, its entry and spread minimized in a production environment. To do this, it is critical to understand a few facts about the virus and COVID-19:

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C O R O N A V I R U S µ Recent research has confirmed that the virus survives on some surfaces, including glass, polymers and stainless steel for up to 28 days at our normal operating temperature (30˚C) and up to 3-7 days on banknotes, glass, steel, cotton and vinyl at 40˚C. This means that effective cleaning, sanitation and decontamination are critical to its control in our environment. µ The main means of transmission is airborne. This means that mask-wearing, appropriate distancing (we recommend 8-10 feet, if possible, but 6 feet (with masks) can work as well), and effective barriers (including face shields) should be employed. µ The virus can remain airborne for up to 3-4 hours so managing air exchange and the quality of your air is important. µ The major carriers have been shown to often be asymptomatic (have no symptoms) so systems and approaches targeting only symptomatic people are likely to be ineffective. µ A major means of spread is through super spreaders and super spreader events - large gatherings, enclosed spaces and limited distancing. Most super spreaders are asymptomatic or mildly symptomatic. µ There are several tests available for the virus but each is best applied in different situations (discussed below). µ Effective treatments are emerging. These hold more promise for living with COVID-19 than a vaccine which may still be many months away.

With the above information in mind, effective decontamination and control is possible by targeting each of these specific features of COVID-19 and its spread. TESTING FOR COVID-19 There are three (3) types of tests commonly used globally to test for SARS-CoV-2, the COVID-19 virus. These tests are not equivalent and all should have different applications for manufacturers. There are three (3) main tests: a reverse transcription Real-Time Polymerase Chain Reaction (rt RT-PCR), an antigen test and an antibody test. A summary is provided below:

Antibodies Test These detect whether a person has already been exposed to the virus and is producing antibodies. It does not detect current active infections and should not be used for diagnosis. Should be used for screening large populations where infections are suspected to have occurred. Results are generally available within 15-20 minutes. Sensitivity – varies widely, depending on the manufacturer. Drawback: some have a high false negative rate and they are sensitive to storage temperatures.

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JMEA E-MAGAZINE | OCTOBER 2020 EFFECTIVE CONTROL Effective control starts with effective training of all staff and persons operating in or entering onto the production facility compound. Without this, the behaviour will not support sustainably effective control. This should be supported by: effective routine cleaning of facilities and surfaces with appropriate soaps and detergent effective sanitation (see below) effective decontamination when this is required

Antigen Test These detect whether a person currently has an active infection. It can be used for diagnosis of symptomatic persons (only) in the early stages of the illness. It Should be used for Point-ofCare (POC) screening for symptomatic patients. Results are generally available within 20-60 minutes, on average.

Sensitivity - very accurate, particularly over the first seven (7) days of the illness.

Drawback: Does not detect asymptomatic persons or pre-symptomatic persons; some have a high false negative rate for persons who are beyond the 7-8th day of symptoms detected; both positive and definitely negative results are recommended to be confirmed by rt RT-PCR. Accuracy may be temperature sensitive.

RT-PCR Tests These detect whether a person currently has an active infection. It is regarded as the “Gold Standard” test with a very high degree of accuracy. This is the only of the three tests that routinely will detect asymptomatic and pre-symptomatic persons (carriers and potential spreaders). Results are generally available from 24h to as long as 10 days, depending on the laboratory.

Sensitivity - very accurate, over the entire period of contagion, as well as before and after. As long as the virus is in the body and active, it will be detected.

Drawback: The time for results is longer than the other two methods. Some reagents may be temperature sensitive.

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ongoing validation and verification of all cleaning, sanitation and decontamination activities effective prevention of airborne transmission as discussed above effective identification and sequestration of asymptomatic (as well as symptomatic) carriers

EFFECTIVE DECONTAMINATION This should be done (and validated to be effective) using any or a combination of cleaning agents and sterilants such as those listed by the US Environmental Protection Agency (EPA): ultraviolet light (exposure, dose and duration are important) strong oxidizing agents - hydrogen peroxide, vital oxide, etc. (concentration, effective application and residence time are important) ethanol (alcohol) - 70% or greater; 0.5% (500ppm) hypochlorite, among others. It should be noted that many persons are offering these “sanitization” services who do not necessarily have the training or technical competence to do so effectively.

EFFECTIVE TREATMENT Effective treatments that are emerging include combinations of remdesivir, steroids like dexamethasone and monoclonal antibody cocktails are showing success in treating the virus. However, these are not easily available locally, are in short supply globally and many of these treatments are still only experimental. Critically, CT scans and other investigations have shown that COVID-19 can cause long-term damage to major organs, even when symptoms appear to be mild or absent (asymptomatic). As we learn to live with and effectively control the virus, the application of fact-based knowledge and science will allow Jamaica’s manufacturers and other areas of the economy to survive and thrive in the new normal. TSL’s COVID-19 Resilience Support Centre and its specialists expect to play a role in helping us to achieve this.

FACTORY

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Letâ€™s Learn More About a Few of our Local Manufacturers

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CHIEF EXECUTIVE OFFICER JAMAICAN TEAS LIMITED

LEGEND IN MANUFACTURING How long have you been in manufacturing? We acquired the factory with one packing machine and 6 employees in 1996. Today we have 15 packing machines and 60 employees.

What inspired you to start your business? We saw that there was an unmet need for ready to drink herbal teas in Jamaica and the wider Caribbean for herbal teas. We also realized that these teas were consumed by Caribbean people for the past 400 years and the basis of their use was that the teas were good for you. Furthermore, we realized that a lot of the raw materials were available locally. Finally, we realized that we could compete on cost with international tea companies and so we had the basis for a viable business.

To who/what do you attribute your accomplishments in the manufacturing industry? Both my father and I made personal sacrifices in the first 10-15 years of the business, working long hours and taking minimal pay and reinvesting all of the profits of the company. We did not have to borrow from financial institutions at a time when interest rates were very high because we reinvested all profits. Finally, we identified the Caribbean market as our primary market because we realized that we could not survive if we relied only on the domestic market. This meant that we had to do a lot of travelling to other Caribbean markets and we had to send small orders by air at little or no profit in order to get customers to try the products. It took at least 10 years before we started to build brand awareness and regular export orders.

What would you say is one of the major challenges you have faced in manufacturing? We originally started the business on the basis that we could get the raw materials locally and we could help develop local farming. Unfortunately, the major items that we require such as ginger and peppermint are not available locally in sufficient quantities and at a reasonable price. This held us back in our development and we eventually had to import these items.

JMEA E-MAGAZINE | OCTOBER 2020 This is one of the factors that allowed us to grow and increase our exports.

What would you say is the major difference between manufacturing in Jamaica now versus then? µ Much more efficient customs and port facilities that allow us to clear goods more quickly. µ More efficient government revenue services that allow for payments online rather than in person by cash or cheque. µ A more competitive banking system that has brought interest rates down to single-digit rates. µ Better shipping arrangements within the Caribbean that allow us to ship anywhere within the Caribbean. µ More recognition by the Government of the importance of manufacturing and their availability to help. µ The start of the Junior Stock Exchange in 2010 which allowed companies such as ours to raise capital and obtain tax relief. The tax relief allowed us to generate more cash for investment in equipment. µ Reduction in the cost of electricity from JPS and reduction in the cost of Solar PV systems which has allowed many manufacturers to significantly reduce their cost of energy. µ Greater awareness among manufacturers today that their survival depends on their ability to export. We have lost most of our largest manufacturers who were around 25 years ago because they either went out of business or were taken over by foreign companies because they did not export and were not competitive.

Share with us one fun fact about your company or brand? Back in 1988 (before we acquired the factory) when hurricane Gilbert struck, the factory was in St Thomas. It took us three (3) days after the Hurricane before we were able to visit the factory to inspect it. We had been without water and electricity in Kingston for many weeks. When we got to the fac-

tory there was no roof and there was a pool of water three (3) feet deep in the factory. However, all of the tea in the factory was exposed to the rain and it was one great big pot of black tea. The only good thing was that the factory still had running water and we were all able to strip and have a good shower. It felt so good!

What makes a successful manufacturer? The realization that we are all very small in Jamaica and we must think small and be nimble. If you think that you are big you are done for. Look long term for your success as it takes many years of slow growth until you develop brand awareness. Do not let obstacles get in your way as there is always an answer to every problem. Do not cut costs by keeping salaries and benefits of your employees low. Find other means of cutting costs including your own benefits. Treat your customer as your most important asset and do whatever it takes to satisfy their needs. I get a lot of negative feedback from our overseas customers about sloppy and lazy Jamaican manufacturers and they say that they could do much more business if the local manufacturers could meet their needs.

What impact do you hope to further make within the Jamaican manufacturing sector? Provide an example to other manufacturers in Jamaica that we can succeed and compete with international companies. Show other manufacturers that you can succeed with almost any product providing that you are prepared to make personal sacrifices. Show other manufacturers that our domestic market is too small to allow for long term sustained growth. Assist other manufacturers by introducing them to our overseas customers.

What would your advice be to fellow Jamaicans who want to enter manufacturing? Be prepared to make big personal sacrifices. If you are working for someone now, chances are that you will take a big hit to your earnings for a long time. But this is an investment in your-

self for the long term. Don’t be afraid to fail because you will gain a lot of valuable experience from building your own business and you will always be in demand by employers. Don’t make the same thing that everyone else is doing; look for something new, look for a product that can be exported after you have developed the product on the local market. Pay your taxes and utilities and operate within the law. If you have to break the law to succeed then this business will not survive.

What is one key area of focus that will help to push the Jamaican manufacturing sector forward? Manufacturers should set as their goal, to earn 50% of their revenue from outside of Jamaica and direct all of their efforts to achieving this. This will expose them to the best business practices and will ensure that they are competitive and make the best product possible. Jamaica is a tiny market and does not allow for long term growth for any manufacturer.

What are your goals outside of work? Be a positive role model for others and mentor others. Make a positive difference to the school that I chair in Whitfield town. Maintain a close family relationship with my family members and help them to fulfil their goals. I will continue to speak up publicly when I see wrongs being perpetuated by our government whichever party it is.

What is your version of a great weekend? Gardening around the house which helps me to relax and appreciate the simple things in life. Lunch with my close family and mother. Occasionally, a visit to Hellshire for the most relaxing atmosphere and the best fried fish.

What mantra or philosophy do you live by? Obstacles are things that get in your way when you take your eyes off your goal.

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MANAGING DIRECTOR

KING PEPPER PRODUCTS LTD

FEMALE LEADER IN MANUFACTURING What inspired you to enter manufacturing? My grandmother was a pioneer manufacturer in Jamaica having started both an aluminium cookware factory and a soy sauce factory in the 50’s and 60’s. As a child, I grew up on the factory grounds and was always exposed to industriousness and the issues surrounding manufacturing. I guess you could say that a love for manufacturing is in my blood.

What has been your most rewarding experience as a female in manufacturing? When my staff and farmers say they pray for me every day.

What would your advice be to other females wanting to enter manufacturing and the benefits of being in this sector? There is no substitute for hard work. Dedication to your business coupled with a good product will undoubtedly reap rewards. Jamaica holds special value globally, the time is ripe to take full advantage of that.

What is one key area of focus that will help to push the Jamaican manufacturing sector forward? Access to affordable financing is the ONLY way MSME’s can thrive.

What are your goals outside of work?

What has been your biggest challenge as a My ultimate goal is to raise two compassionate yet fearless daughters with a firm faith in God. female leader in manufacturing? I can’t say I have encountered many challenges specifically related to being a female as I find Jamaica business-friendly to women. My biggest challenge as a manufacturer however is financing the long-term growth of King Pepper.

To who/what do you attribute your accomplishments in manufacturing thus far? My father Dudley Eaton started King Pepper/Eaton’s and built a strong foundation of first class products and a “no shortcuts” culture. Any accomplishments I have had stem from that foundation along with my own cultivation of opportunities.

What is your version of a great weekend? Exploring Jamaica with my family.

What mantra or philosophy do you live by? Be humble and always be willing to learn.

FOUNDER/OWNER

L’JHEAN BEAUTY

What makes a successful manufacturer? I don’t think there is one set formula but, responsible management is common among successful businesses.

Share with us one fun fact about your company or brand? The Falmouth post office (known for its Georgian architecture) is featured on all Eaton’s labels. We are proud to be an ambassador for Falmouth and a job creator in a rural area for 35 years.

What impact do you hope to further make within the Jamaican manufacturing sector? My goals are to create more jobs through the growth of Eaton’s and to play an even larger role in support of Jamaican farmers.

YOUTH IN MANUFACTURING What inspired you to enter manufacturing? Since I was a child I was always good with making things with my hands, melting crayon and candles in my microwave at the time to make coloured candies. I then developed an interest in skincare as a teenager. This was further ignited after I had my first child. I realized he suffered from cradle cap and then eczema. I started researching and created products to treat and soothe his skin ailments. I also had family members that would have eczema flare-ups, especially in the summer months. They started requesting my products, then friends and the rest was history. I really wanted to share the many benefits of my distributed and manufactured products. Continued on Page 31

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What has been the greatest challenge experienced as a youth in the manufacturing industry?

In my opinion, there are not enough internship programs. Doing so can entice millennials and Gen Xers in other industries to leap into manufacturing. This would offer some guidance to youth as to the path that should be taking to develop a thriving and profitable business.

What has been the most rewarding experience as a youth in manufacturing? Inspiring other youth, being an example that it can be done. It is also a very fulfilling feeling when lives are improved by the use of my skincare products. I am humbled by the excellent reviews of how my products are helping individuals in Jamaica and across the world to improve their confidence and their lives overall.

Share with us one fun fact about your company or brand?

neurs think that business plans are just for attracting investors or borrowing money. The truth is, they provide a roadmap for your company. Your business plan outlines what your vision is for the business. What’s more, it will detail how you are going to get there, and when you’re likely to do so. If you find that your focus is shifting, it’s important to look back at your business plan. It will show you whether your shift is a good idea or not.

What impact do you hope to make within the Jamaican manufacturing sector? I hope to one day expand thus, enabling us to employ more of our Jamaican youths. This would help to close the gap in youth unemployment giving these youth a source of income. For society, youth employment promotes social integration, intergenerational dialogue, citizenship and solidarity. Creating and fulfilling income-generating job opportunities for young people can have direct positive consequences for poverty alleviation.

One fun fact about my business that many may not know is that L’Jean Beauty is pronounced “Lejen” and is a blend of both my husband, Leighton and my name Jheanelle.

What is one key area of focus that will help to push the Jamaican manufacturing sector forward?

To who/what do you attribute your accomplishments in manufacturing thus far?

What would your advice be to youth with a desire to enter manufacturing?

I attribute my accomplishments to my family who has been a major support system for me.

What makes a successful manufacturer? µ Someone who is not afraid to network. Manufacturing is one of those industries where you don’t want to “go it alone”. Instead, it’s important to have a strong network to help your business grow. We all know that networking helps us to discover new sales leads and improve the things we do. µ

Have the right team at your disposal. The people you hire will either make or break your business. It goes without saying, that you don’t want the latter to happen to you! That’s why it’s important to pay close attention to the staff you hire.

µ A successful manufacturer is not afraid to put in the work. Work hard and smart to achieve the goals and meet the targets. µ Make sure you’ve got a solid business plan. It is crucial to have a decent business plan in place before you start manufacturing. Some entrepre-

Market access and penetration and domestic linkages.

My advice is if this is your passion don’t be afraid to pursue it. It’s also very important to do some research on the area of manufacturing that you would like to enter. Finding and approaching a mentor in your field of manufacturing is also important. This will help to guide you through the process of developing your ideas for your manufacturing business.

What are your goals outside of work? My goals outside of work include becoming a motivational speaker and youth advocate in manufacturing.

What is your version of a great weekend? My version of a great weekend is a family trip to Treasure Beach, St. Elizabeth or Portland, enjoying the beach, rivers, the food and the relaxing feeling that both places offer. I love these places as they provide the perfect setting for relaxation, reflection and regrouping.

What mantra or philosophy do you live by? “It’s not what you cannot do, but what you can do.” What you focus on the most decides the course of your life. A simple change of focus from what you cannot do, to what you can do, can bring a massive difference to your outlook. I believe you begin to

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JMEA E-MAGAZINE | OCTOBER 2020 attract solutions and get back on track. So whenever you encounter self-defeating thoughts, use this mantra to change your mindset from negative to positive.

FOUNDER / OWNER KANDES DELIGHTS

What impact do you hope to make within the Jamaican manufacturing sector as you progress? Contributing to employment. Also, I hope to enhance the technology behind the methods of ice cream manufacturing.

What is one key area of focus that will help to push the Jamaican manufacturing sector forward? Funding.

STARTUP IN MANUFACTURING What inspired you to enter manufacturing? It was more of a gap in Jamaica’s Ice Cream market that needed to be filled rather than an inspiration to enter manufacturing. Manufacturing was more of a means to fill that gap /opportunity.

What has been your greatest challenge as a startup in manufacturing? Financing.

What has been your most rewarding experience in manufacturing thus far? Being awarded grants such as the Voucher for Technical Assitance (VTA) by the DBJ and HEART/NSTA Trust; Also, receiving membership into entities such as The Jamaica Manufacturers and Exporters Association(JMEA) and The Jamaica Business Development Corporation (JBDC). They foster and encourage growth and development. Also being aired on National TV stations and publications.

To who/what do you attribute your accomplishments in the industry? Caterers such as Lorraine Fung and entities such as the JBDC. Ben & Jerry’s ice cream and also Emery Thompson’s trainings.

What makes a successful manufacturer? Hard work, dedication and knowledge of your processes along with the desire to want to learn more.

Share with us one fun fact about your company or brand? We name our product flavours from customer suggestions. If they have an idea of a flavour and the flavour is worthy of the market we name the flavour in their honour.

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What would your advice be to Jamaicans who have an idea for something they want to manufacture but are unsure of how to make a start? Seek assistance from Business Support Organizations. In most cases the knowledge gained is free and access to financing can be realized.

What are your goals outside of work? Health and family wealth. Ensuring that my friends and family are not in want and to travel the world.

What is your version of a great weekend? Football of course! not the American version. I also like outdoor engagements/get-aways with friends and family.

What mantra or philosophy do you live by? Don’t just exist. LIVE!

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Digital Transformation: A Competitive Advantage Contributed by MC Systems Limited

lobally, manufacturing sector is experiencing more uncertainty about the future than they have in decades.

Consequently, forecasters have all had to recast their expectations in the face of the unpredictability of the COVID-19 pandemic.

Digital technologies, such as a variety of e-payment solutions offer compelling opportunities for JMEA players.

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Businesses, of all kinds, have been put under tremendous pressure to find new ways of operating as governments continue to encourage leaders to implement COVID-19 responsive measures to stay open and stave off overall economic challenges. Technology â€“ specifically digital technologies â€“ can answer many of the uncertainty-filled questions govern-

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ments and businesses alike are asking as they plan for the “next normal” they know very little about at this time. No doubt Digital Transformation (DT) is the number one recommendation when it comes to strategizing for the immediate and long-term future. Most proponents of DT, such as Microsoft, credit the phenomenon for “bringing together people (team members and customers), data and processes”, while MC Systems holds true to the fact that it’s “an evolution in thinking and business culture that embraces technology at its core.” This change in organizational style will result in teams being oriented toward continually challenging the way they operate, given to experimentation and learning from failure. What is implied in this way of understanding DT is that it is less about the technology and more about the leadership philosophy about the use of technology to create change, manage risk, catalyze efficiencies and boost profits. Digital technologies, such as a variety of e-payment solutions offer compelling opportunities for JMEA players, who, according to a JMEA COVID-19 Impact survey published in the Jamaica Observer early September 2020, reported that only 38% of respondents had utilized e-commerce technologies to help with COVID-19 disruptions. Given that DT is a journey that often begins with the most pressing need, integrating such technologies could prove to be a significant starting point for such entities going forward; especially that the same survey indicated that 63% of those who used e-commerce saw increases in revenues from that channel. This scenario supports the conclusion of technology experts who suggested that the organizations that fared the best

during the pandemic pivot are those that had the IT Infrastructure that was highly responsive and adaptable to de demands such as remote work, increases in online transactions and other service delivery and customer experiences.

“Always on” means a company cannot afford “unavailability” or such an entity risks losing business to a competitor who is available and able to deliver when the customer needs the product or service.

Work from home orders were perhaps more challenging for JMEA members who reported in the same Impact Survey that less than 10% of staff compliment were engaged in remote work – no doubt owing to the human-intensive nature of the plant operations. As the industry, contemplates the course of the future, those conditions would have to be reimagined.

Of course, the ideal infrastructure must also support built-in solutions such as back up and recovery, disaster recovery as well overall policies and teams to deliver robust business continuity and ultimately a business that is resilient to any disruptions.

The further along the DT journey the players go they could implement, for example, a move to taking orders only online, supported by a chat bot, which then processes a confirmed order and sends it to the delivery team by way of Robotics Process Automation (RPA), so that the warehousing and transportation teams are scheduled for a delivery within minutes. Such a scenario is likely to catapult profits, exceeding the customer expectations in the process.

Even when the times are uncertain stakeholders still anticipate assurances about the future of the business, and will expect business leaders to deliver such assurances. The leaders’ best option in these times is having a transformation mindset that prepares the organization for change and builds an operation that’s ready for any eventuality. And the best move is to do it before the competition.

With that in mind, it is clear that in this digital era and especially in highly com-petitive market segments, the organiza-tion that gains the edge is the one that is digitally transformed. Of course, the organizational choice about which technology or IT Infra-structure to implement will differ by need, industry, company size, customer habits, geographical locations (Jamai-ca or other countries) and maybe even regulation. However, no matter the business type, the customer demand at this time is for continuous operations. To gain that ad-vantage, one of the questions, leaders should be asking is: Do I have the Infra-structure to support being “always on” for my customer?

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ever waste a crisis. Within every crisis lies an opportunity for renewal and greatness. To survive and prosper business leaders must rally the spirit of agility, resilience, and creativity among the employees to surmount the huge challenges posed by a crisis. COVID-19 pandemic has resulted in unprecedented human and humanitarian challenges and has put the spotlight on HR function in the organization. In the past few months, we have seen a greater appreciation for the strategic role of the HR lead in assisting the organization to respond to the impact of this crisis. The HR manager has been essential in everything from monitoring workforce sentiment; coordinating the implementation of mobile work/ telecommuting; ensuring the implementation of the hygiene protocols in the workplace to establishing connections between leaders, employees, and teams.

In this volatile and dynamic digital age organizations are forced to reimagine the future of work.

Human Resource Management Tips During A Crisis Contributed by: The Human Resource Management Association of Jamaica (HRMAJ)

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In this volatile and dynamic digital age organizations are forced to reimagine the future of work, the role of leaders to create safe, productive, and enjoyable jobs. The future of work is linked directly to the workers’ safety and health. Therefore, companies must act swiftly to safeguard employees’ health and to migrate to new ways of working effectively for business continuity. Here are nine (9) tips for business continuity during/post crisis, with specific reference to COVID-19:

1. Cultivate a proactive Mindset and Focus shifts. Leaders must promote a

culture of agility, innovation and risktaking. Develop, continuously review, and implement Business Continuity Plans.

2. Prioritize and comply with Occupational, Safety and Health (OSH) guidelines. Employee’s

wellbeing is now a priority for business success. Strict adherence to the COVID-19 guidelines is mandatory.

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3. Re-skill and Up-skill the workforce. Shorter

learning curve required to increase employees’ proficiency in the use of the various digital platforms for work. HR Managers and the team leaders need to acquire/improve competences in crisis management and use of digital technology.

4. Implement and deepen two-way communications. Employees are looking to their leaders for guidance and reassurance as the crisis evolves. Much of that responsibility falls to the HR team. A balanced blend of virtual and face to face meetings will help to engender trust and promote engagement. Information shared must be factual and obtained from credible local or international authority.

5. Leverage the power/ synergy of teamwork. Have the team members involved in the problem-solving process. Collaboration and consultation are key strategies for staff commitment.

6. Invest in robust technologies to allow for

effective migration to mobile work and online customer service.

7. Develop/review and implement flexible work arrangements, to include Work from Home (WFH) with agreements detailing SMART deliverables.

8. Enhance/Implement Employee Assistance Programme (EAP) - with a focus on employees’ physical, emotional, psychological and spiritual wellbeing and in helping them to navigate the sudden changes in their personal and professional lives. Engage experts to do virtual talks on self-care.

9. Promote staff engagement and productivity. HR should

conduct quick and ongoing pulse surveys and implement appropriate feedback regarding creative and cost-effective ways to boost morale, measure results and reward excellent performance e.g. Lunch and learn sessions; birthday celebrations; storytelling etc. - especially in the virtual space.

Organizations should embrace New York Times columnist, Thomas Friedman’s perspective that humans who want to adapt in an age of acceleration must develop “dynamic stability.” Rather than trying to stop an inevitable storm of change, Friedman encourages leaders to “build an eye that moves with the storm, draws energy from it, but creates a platform of dynamic stability within it.” HR is required to take a leading role in helping the organization and the workforce adapt to the changing business environment and to help the organization to both recover and prosper. Learn more about HRMAJ @ www.hrmaj.org

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Supply Chain Management During A Pandemic Contirbuted by Gordon Foote BSc. MBA, MSc (LSCM)

he term “supply chain” may sound complex, but it simply refers to a system that allows a manufactured product to reach a consumer in one or more steps. A typical supply chain network for a product will consist of a raw materials supplier, a manufacturer, a distributor, a retailer, and a consumer. The way that the product is moved within the supply chain network is referred to as the logistics. This has to do with the physical flow that consists of transportation, warehousing, packag-

ing and handling and service flow that includes: customs clearance, insurance, supervision, and stock and order management. Finally, Supply Chain Management is the process of delivering a product from raw material to the consumer. It includes supply planning, product planning, demand planning, sales and operations planning, and supply management. This is very important for a positive or negative impact on the supply chain and resounds throughout the business. In simplistic terms, your Supply Chain Management operations should deliv-

er key performance metrics, commonly referred to as the 7R’s of Supply Chain Management. There is much to read on these identified areas of accepted focus and outcome. These areas are as follows:

µ µ µ µ µ µ µ

Right Product Right Place Right Price Right Customer Right Condition Right Time Right Quantity

B F

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The COVID-19 pandemic paralyzed the world and revealed the critical importance of supply chain management— perhaps more so than any other event in modern history in navigating crises. The extensive scope of disruption, massive spillover of effects across countries and industries and extreme shifts in demand and supply that occurred during the COVID-19 pandemic illustrate that pandemics are qualitatively different from typical disruptions. The economic turmoil caused by the pandemic has exposed many vulnerabilities in supply chains and raised doubts about globalization. Managers everywhere should use this crisis to take a fresh look at their supply networks, take steps to understand their vulnerabilities, and then take actions to improve robustness. They can’t and shouldn’t back away from globalization; doing so will leave a void that others—companies that don’t abandon globaliza-

tion will gladly and quickly fill. Instead, leaders should find ways to make their businesses work better and give themselves an advantage. It is time to adopt a new vision suitable to the realities of the new era, one that still leverages the capabilities that reside around the world but also improves resilience and reduces the risks from future disruptions that are certain to occur. Even as the immediate toll on human health from the spread of coronavirus (SARS-CoV-2), which causes the COVID-19 disease, increases, the economic effects of the crisis and the livelihoods at stake are coming into sharp focus. Businesses must respond on multiple fronts at once; at the same time that they work to protect their workers’ safety, they must also safeguard their operational viability, now increasingly under strain from a historic supply-chain shock.

Many businesses are able to mobilize rapidly and set up crisis-management mechanisms, ideally in the form of a nerve centre. The typical focus is naturally short term. How can supply-chain leaders also prepare for the medium and long term and build the resilience that will see them through the other side? In the current landscape, we see that a complete short-term response means tackling the sets of issues that require quick action across the end-to-end supply chain. These actions should be taken in parallel with steps to support the workforce and comply with the latest policy requirements: For manufacturers, there are many areas of concern, risks, and opportunities. Here are several key things manufacturers must bear in mind when managing their supply chain during a pandemic or crisis:

SUPPLY CHAIN MANAGEMENT TIPS DURING A PANDEMIC/CRISIS

Adhering to the pandemic protocol for safety during reopening and operations.

Managing employee screening schedules and potential impact.

3. 4. 5. 40

Implement requirements to safeguard your operations from suppliers and logistics providers. Find the right balance for production stockpiling to reduce production exposures while increasing product availability. Financially, avoid over-investing in some areas of operations while underinvesting in others.

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6. 7. 8. 9. 10.

Automate and improve production systems through technology and redesign. This will assist with boosting the company’s ability to anticipate and react to disruption. Revisit supply chain and logistics elements for operation in the new norm. Validate the sustainability of suppliers and the viability of purchasers to continue and create new value chain connections. Look for opportunistic capacity sharing with other entities where Logistics and Supply Chains can be integrated, ensuring the viability of output remains possible with your operation Continually monitor operating KPIs to ensure the highest level of operations management.

JMEA E-MAGAZINE | OCTOBER 2020

Financial Tips for Manufacturers Navigating COVID-19 Significant challenges impacting manufacturers during this Covid 19 induced downturn include a decline in revenues and tightening of liquidity. The severity of the challenge depends on your market; diversity of product offering; customer base and nature of downturn. Minimizing losses and increasing liquidity are two strategies that can be helpful during this period and it is therefore incumbent on management to plan and act early to implement measures. Review revenue expectations and adjust expenditure budget in a sustainable way to reflect the new realities. While short term losses are sometimes inevitable, continuation over any prolonged period could lead to depletion of cash reserves and an increase in debt to unsustainable levels which could impair long term viability of the business. Active management of the budget on a frequent basis is desirable with clear short term objectives to address short term losses over the near term. Explore opportunities to increase cash position which could include reducing inventory levels, where appropriate; improve the collection of receivables; postpone non-critical capital expenditure; and extension of credit terms with suppliers. Share your recovery plan with your Bank and discuss financing options to help you through the downturn. - SCOTIABANK 42

JMEA E-MAGAZINE | OCTOBER 2020

Manage Cash Flow and Preserving Cash Reserves During a Crisis Cash flow management during this economic crisis is imperative to small and medium businesses’ survival. Focusing your efforts on activities that put generate cash flow could mean the difference between stabilizing your operations or remaining stagnant. In order to control operating cash flow, you may consider employing the following measures: Examine accounts receivables more closely to ensure that you get paid on time. Shorten or restructure payment cycles to bill on a more immediate basis. Find creative ways to incentivize your customers to pay you sooner by offering payment discounts or collecting pre-shipment payments.

The ability to manage debt is paramount to stabilizing cash flow.

Devise ways to utilize excess inventory, even if you must sell stock at a discount. Consider leasing building or equipment instead of tying up financing in purchasing decisions that may not have immediate pay-offs. Drawdown on existing lines of credit to ensure that you have cash reserves in the event of any further disruptions.

Managing Debt During Crisis The ability to manage debt is paramount to stabilizing cash flow and ensuring business continuity. First, ensure that you have a complete picture of how much debt is actually owed, so that a comprehensive approach to addressing your debt may be developed. Prioritize your debt and try to service them in order of their repayment dates. Determine, where possible if minimum payments You may be able to request deferral on payments such as mortgage repayment and banking facilities which may help you to allocate funds to paying other immediate bills. It is in your best interest to find out about all the avenues of support which may be available to you. Remember, debt is a normal part of running a business and it can be managed. - EXIM BANK JAMAICA JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020

COVID-19 Finance Tips

Pivot where necessary, and look for opportunities.

Pivot, where necessary, and look for opportunities during these challenging times. Companies may need to pivot to preserve cash flows, while, at the same time, eke out opportunities in the market. Maintain close relationships with your bankers to benefit from, payment holidays, and moratoria etc. on your credit facilities. As businesses pivot to achieve new opportunities, working capital financing may also be required. Budget. Develop a realistic budget for the business and stick to it. - JN BANK

Tips on Revamping your Business

Your business MUST be digitally optimized.

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Think Digital - With the forced social changes across the globe, restriction of movement has propelled digital business solutions across multiple industries and with more people spending more time and money online, your business MUST be digitally optimized. New Opportunities - Keep your eyes and ears open within your industry, and outside, as with such rapid social changes, comes new trends, which could lead to brand new business opportunities to incorporate within your operations or even a new venture. - NATIONAL COMMERCIAL BANK

JMEA E-MAGAZINE | OCTOBER 2020

Sustaining Productivity in a Virtual World Contributed by Tamar Nelson, Chief Technical Director (Acting) Jamaica Productivity Centre (JPC)

t is clear that working virtually from home will be a part of our postCOVID economy, and some would now describe it as an economic essential. Many are eager to get a handle on how to remain productive while working virtually. This article will help to answer the question on the minds of many. How might we sustain and/or improve productivity levels virtually? The sooner we, whether policymakers, business leaders, or employees, can answer and act on it, the better our firms and communities will be positioned when the pandemic subsides. Firstly, letâ€™s consider productivityâ€™s definition, which is the efficient conversion of inputs into outputs, or simply put, doing the right things the right way. The outcome of it all being goods or services being delivered cheaper, faster, at a higher quality all, while increasing value to the customer. During the period 2000 to 2019, Jamaica has seen a decline in productivity growth levels of -15%. The advent of the global pandemic paired with a fast-changing economic environment has led to an even greater need for improved productivity output.

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The global pandemic has forced many to adopt flexible work arrangements, which means an entire or a few members of the team working virtually. A recent study conducted by the Jamaica Productivity Centre (JPC), in June 2020 shows that 96% of firms surveyed are utilizing alternative work arrangements. Of the amount surveyed, 76% will be making this a permanent move. One of the impediments faced by business owners and pondering the move to virtual operations is how to maintain the productivity level of their organization. The fear held by many individuals is that working from home would distract employees from their duties with factors at play such as family responsibilities, friends, errands, extended leisure activities, etc. Though these factors may be at play, research shows that persons generally tend to be more productive in their own space. By putting effective systems in place, organizations can be even more productive working from home virtually. Here are five (5) key perspectives that if utilized will allow you to be well on your way to operating productively in a virtual office space.

The global pandemic has forced many to adopt flexible work arrangements which means an entire or a few members of the team working virtually.

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RETHINK STRATEGIES If you have not already done so, now is a good time to review, rethink and revise your strategic direction and initiatives after scanning the new environment in which we are now operating. Making as much use as possible of the opportunities and technological adoption, which can add efficiencies in the delivery of goods and services. Doug McMillon (CEO, Walmart) sums it up well when he says, “There are so many new ways to serve customers. Technology, data, and information are opening new doors for us to lead through. Our purpose … will always be relevant, but we’ll do it in new ways.”

2. 3. 4. 5. MEASURE, MEASURE & MEASURE

FOCUS ON THE CUSTOMER

BUILD A COMMUNITY

INCORPORATE ERGONOMICS

The old adage of you can’t improve what you can’t measure holds true especially in a virtual space. If we are measuring what matters and can get the data associated in as real time as possible, it will help teams to be flexible and able to adjust to the ever-changing circumstances within the environment. Utilizing task or workflow tracking and measurement online tools where possible would be best. However, at minimum, creating results-based work plans along with associated output and outcomes and tracking these can have a positive impact on your organization’s productivity.

Whether internal or external, customers are key to an organization’s existence. We therefore, have to ensure we are providing the goods and services that the customers need and value. Otherwise, we run the risk of losing touch of what’s really important to those who we serve which can have catastrophic implications. As Jeff Bezos (Founder and CEO, Amazon) said, “If you make customers unhappy in the physical world, they might each tell six friends. If you make customers unhappy on the internet, they can each tell 6,000.” By keeping close contact with your customers through direct calls, surveys, emails etc. you will be able to continue to test and see if there are any gaps in expectations.

Whether we call it a community, network, or an association, it is important to foster collaboration while working virtually, internal and external to the organization. This will help to mitigate the psychosocial impact of working virtually, increase creativity and leverage the resources available to the organization. To do so, we have to think outside emails. Video conferencing tools (e.g. Skype, Microsoft Teams, Google Meet) and online collaboration platforms (e.g. Google, Microsoft 365), will help to decrease confusion and misread/misinterpreted information. By fully utilizing these tools, for example, enabling audio and video as much as possible when using video conferencing tools, will increase the reality factor and helps with connection in a virtual space. Virtual “meetups” among groups will also help to build connections and allow for greater efficiency of flow.

Setting up an effective space that can be used for safe and productive work is equally important when working virtually. “Virtual Ergonomics” as some have phrased it, speaks to not only having the right tools, lighting, temperature but also includes practices such as breaking every thirty minutes, allowing yourself to drop your hands from your work, stretch, and breathe, and switching up your tasks to create variation in your posture. Applying proper ergonomics has shown to improve both health and work efficiency, reducing musculoskeletal and other disorders. Some organizations have provided some basic tools to ensure worker productivity while working virtually to ensure productivity levels can be maintained. Including installing stable internet connectivity, as well as ensuring that proper equipment is ordered and set up for employees at home.

The cementing of these five (5) suggestions will call for dynamic and transformational leadership among the teams. To enable, engage, energize and encourage the team while learning and growing together in the virtual space thereby realizing the productivity growth potential within the organization. JMEA E-MAGAZINE | OCTOBER 2020

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JMEA E-MAGAZINE | OCTOBER 2020

Importance of Innovation and Research Development for Recovery and Growth

Contributed by Samuel Braithwaite Lecturer, Department of Economic, UWI, MONA

ccording to the Jamaica COVID-19 Economic Recovery Task Force, during the period 2016-2019, the manufacturing sector in Jamaica experienced â€œthe most robust and consistent period of growth of any period over the past 25 years.â€? This period of growth coincides with

prudent fiscal and monetary management of the Jamaican economy by successive governments. However, while prudent management of the economy is certainly necessary and welcome, innovation and research and development (R&D) are crucial for sustainable economic growth and development. Indeed, growth economists generally agree that the vast differences in

output per worker, across the centuries, are primarily a result of technological advancement. Technological advancement can be viewed as an improvement in some process, whether that process is concerned with the production of some good or service or the way we manage a firm or institution. With technological advancement comes increased efficiency i.e. more output from a given level of resources, including time. In fact, we can have technological advancement without having a new shiny product. Technological advancement can occur by simply using old tools more efficiently. However, to arrive at better processes we must constantly engage in R&D and by extension innovate. To innovate means to either create something new or to modify an existing product or process. Using growth accounting analysis, which decomposes economic growth, the IDB (Is There A Caribbean Sclerosis?) identifies three primary factors which account for the relative decline in Caribbean economic growth: first, there is a decrease in the number of working people relative to the overall population; second, the lower use of capital per worker; and third, inferior technological advancement or low growth in produc-

JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020 tivity. This article focuses on the third factor. Jamaica is generally regarded as having experienced low productivity growth over the last four decades or so. Using World Bank measures of total factor productivity for a period of 39 years (1980-2018), Jamaica recorded 26 years of negative productivity growth. For the same period, China and the United States recorded 2 and 8 years, respectively, of negative productivity growth. Additionally, Jamaicaâ€™s average percentage productivity growth is 0.02% (1980-2018), while China and the United States have averages of 4% and 0.6%, respectively.

Average

Percentage Productivity Growth

0.02% JAMAICA

0.6% UNITED STATES

A well-trained labour force with sufficient skills at various levels is surely lacking in Jamaica. High levels of crime and an inadequately trained labour force are two factors which are often cited as hindrances to Jamaicaâ€™s productivity growth. To engage in consistent and significant levels of research and development financial resources are needed. However, crime prevention initiatives reduce the amount of financial resources available for firms to spend on R&D and innovation. A well-trained labour force with sufficient skills at various levels is surely lacking in Jamaica. This is not for a lack of training institutions. In the first instance many persons do not have the basic academic requirements necessary to matriculate into institutions such as

JMEA E-MAGAZINE | OCTOBER 2020

those providing technical and vocational training. In some cases persons have varying degrees of vocational skills but are not certified in their field of work. These issues notwithstanding, the migration of skills (tertiary, and technical and vocational) is arguably the greatest factor contributing to the inadequacy of skills in Jamaica. Surely, increased productivity, through R&D and innovation, requires a cadre of skilled workers who understand the domestic environment and can create new ideas, or build on old ideas, or ideas from other countries. Instead, Jamaica is saddled with the cost of education, and apprenticeship, with little return from those who migrate.

4% CHINA

The COVID-19 pandemic has undoubtedly disrupted economic activity across the globe, however, it also presents opportunities for manufacturing firms to rethink their processes, to engage in research, and to innovate. This is necessary for resilience, recovery, and sustainable growth. The task is not theirs alone. Government, civil society, and tertiary institutions also have roles to play.

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Business Continuity and Safeguarding the Workforce Vision 2030 Jamaica, Planning Institute of Jamaica (PIOJ)

n the face of the COVID-19 global pandemic, Jamaica remains committed to the implementation of the 21-year Vision 2030 Jamaica National Development Plan (NDP) and making â€œJamaica, the place of choice to live, work, raise families and do businessâ€?. The country also remains committed to advancing the Sustainable Development Goals (SDGs) through the implementation of Vision 2030 Jamaica. The importance of economic management and strategic planning at the national, sector and enterprise levels to ensure business continuity and safeguard the workforce has been reinforced

The performance of the manufacturing industry, the largest contributor to GDP among the good producing sectors, was consistent with the general positive trajectory of the economy.

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within a context where longstanding inequities based on size, formality and access to capital have exacerbated vulnerabilities and threaten survival. Jamaica started 2020 with macroeconomic stability firmly entrenched, evidenced by modest inflation levels; debt on a firm downward path; seven consecutive years of economic growth; strong external positions with sufficient international reserves; and financial sector stability. The country also experienced an uptick in demand stemming from both international and domestic sources.

The improvement in demand from international sources reflected improved out-turns in the economies of Jamaicaâ€™s main trading partners which augured well for exports and foreign exchange earnings. The increase in domestic demand was largely driven by an improvement in the labour market as Jamaica recorded a historically low unemployment rate in 2019. The performance of the manufacturing industry, the largest contributor to GDP among the good producing sectors, was consistent with the general positive trajectory of the economy. For 2019, the industry grew by 1.8 per cent relative to 2018 and represented 8.6 per cent of economic output. This out-turn represented five consecutive years of growth. The industry also employed 7,900 persons in 2019, accounting for approximately 6 per cent of total employment in the country.

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COVID-19 has invariably strained local business continuity processes.

COVID-19 has invariably strained local business continuity processes. These have been largely geared to respond to the exigencies of globalization and mitigate risks associated with anticipated hazards and the local social and economic context – not a global pandemic. Local industries are now forced to respond to challenges that favour sectors and businesses that are already logistically agile and adaptable in the virtual technology and information space.

The COVID-19 pandemic now threatens Jamaica’s hard-earned economic gains and poses risks to achieving robust growth. It has disrupted the norms of the global and local business communities and workforce and upended transitions and transformations underway to respond to an already changing business environment. The global business environment has been characterized by increasing globalization fuelled by rapid technological advancement, innovation, logistics and media. There also has been a parallel increase in consumer demand that calls for value-added and mass customization integrated in sustainable consumption and production models that are reshaping production and market structures.

Accordingly, COVID-19 has required of business continuity processes, an accelerated and more energetic embracing of agility, adaptability, resilience building, and competitiveness. This includes improving the alignment of business processes with economic and public policy; access to quality and timely data and information; and technology enablement. It includes advancing the development and leveraging of the higher forms of capital – human, cultural, knowledge and institutional – towards optimizing productivity. These are critical to piercing the boundaries of scarcity and traditional notions of economies of scale that have disproportionately undermined the growth potential of small states such as Jamaica, and which constrain the capacity for business adaptation. Safeguarding the workforce involves expanding on a holistic approach which includes income and social security; promoting community, employee and workplace safety; providing psycho-social support; and exercising corporate social responsibility to the country as a whole. The pathway of the pandemic is shrouded in uncertainty, making planning for recovery difficult. Notwithstanding this, the challenges posed by COVID-19 must be addressed within a framework of policy-driven multi-stakeholder partnerships that are relevant to both the immediate challenges of the pandemic and the new normal that will emerge. This will ensure that lives and livelihoods are protected and the country, including key industries such as manufacturing, recovers stronger and becomes more resilient. JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020

Buy Jamaican: The Importance of Retail Trade in Recovery

Contributed by The Jamaica Chamber of Commerce (JCC)

s elsewhere, the real realities of the COVID-19 pandemic have forced changes in the be behaviour of the Jamai Jamaican consumer. Physical distancing protocols, the increase in the numbers of persons working from home and/or confined to home because of curfews and the many consumers (and firms) whose resources have been depleted or virtually exhausted, have certainly impacted consumer behaviour and few, if any, retailers will not have felt the impact on their bottom line.

Yet, the importance of the retail sector can hardly be overstated. To begin with, it is one of the country’s major sources of both direct and indirect employment. Any sustainable national economic recovery must include a robust recovery of the retail sector. At the same time, it would be foolhardy to expect that in the months – or even longer – that lie ahead, the national economy will simply revert to normality. The truth is, even with a vaccine that hopefully will be widely available and affordable, we will have much lost ground to make up. As far as the retail sector is concerned, its recovery must include certain transformations. For one, our consumers, with the self-interested support of retailers, must make the effort to seek out Jamaican-made products. We have long gone past the stage where consumers could credibly assert that locally-made products were inferior to imports. We know that in

most instances our products are on par with – and in many cases superior to - many that enter our distribution system from overseas. In addition, when we buy Jamaican-made products we are supporting our local industries, from manufacturing to agriculture, in their recovery rather than supporting the recovery of overseas manufacturers of finished goods. At the same time, it is clear that many of our retailers will need to up their game. The experiences of many consumers over the past several months cannot be gainsaid. A small but growing number of consumers may have become more comfortable with purchasing online but only a small percentage of our retailers have made the effort to transition to establish or grow out their online sales channels in an effort to retain their previous customers or to attract new ones.

Our retail sector may also evolve to feature a new channel – that involving the consolidation and distribution of goods to households and workplaces. Or, as seen in a growing number of markets, they should be exploring the offering of buying online and picking up in stores – or BOPIS as recent nomenclature puts it. The retail sector should not dismiss these changes in consumer behaviour as merely transient and assume that as, and when, things get back to “normal”, purchasing practices will similarly return to “normal”. For instance, the restriction of hundreds of thousands of persons to their homes will likely have resulted in greater attention being paid to do-it-yourself projects or the availability of easy-toprepare meals. Our retailers should be exploring partnerships with our manufacturers to optimize the solutions that consumers have devised or have been forced to seek.

JMEA E-MAGAZINE | OCTOBER 2020

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Bridging the Gap:

Creating A Linked Economy Contributed by Tourism Linkages Network, Tourism Enhancement Fund

he Ministry of Tourism, and in particular the Tourism Linkages Network Council, which guides the work of the Tourism Linkages Network, commends the Jamaica Manufacturers and Exporters Association for spearheading yet another Manufacturers’ Month. It is taking place during a most challenging time, given the worldwide and national impact of the COVID-19 pandemic, and this makes it even more important, given the role that the manufacturing and export sectors must play in rebuilding and sustaining the national economy. The theme, ‘Recover and Renew with Manufacturing’, is therefore very relevant as it speaks to the recognition of what needs to be done, not just to get us back on track, given the devastating impact of the pandemic on national life, but to the understanding that it is not business as usual as we are in a new paradigm and therefore renewal is essential.

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...do not overlook the potential of the tourism market for a wide range of product.

The tourism sector is an integral partner of the manufacturing and export sectors and the Tourism Linkages Council, is comprised of key public and private sector partners and functions in a strategy of being consultative while relying heavily on collaboration to ensure that all sectors are integrated seamlessly. It was very deliberate therefore that the Linkages Network targeted manufacturing and agriculture as the first sectors with which to forge a partnership. Through tourism, the JMEA members have an export market at their fingertips. Technically speaking, tourism is an export-oriented industry and our manufacturers and exporters need to see it in that light and aggressively market their products with that in mind. So, while manufacturers may focus on exporting overseas, do not overlook the potential of the tourism market for a wide range of products, from large items of furnishing to toiletries and sundry gift items. And, of course, providing products with which the industry produces its culinary delights.

Already, in addition to creating channels for growth and job creation in the manufacturing and agriculture sectors, the Tourism Linkages Network has enhanced Destination Jamaica’s product offering through the creation of four other vital networks, namely: Gastronomy, Shopping, Health and Wellness, Knowledge, Sport and Entertainment. These are additional areas for the manufacturing and export sectors to tap into. The Manufacturing Technical Working group functions to strengthen linkages and create opportunities for local manufacturers across Jamaica through partnerships. And over the past 4 years, we have worked closely with JMEA to strengthen the capacity of manufacturers, through programmes such as Christmas in July, Speed Networking and digital and social media training which are central to the sustainability of locally manufactured products. These projects are also directly aligned with this year’s theme of ‘Recover and Renew with Manufacturing’. As we relentlessly pursue the restoration of the tourism industry through an innovative approach, the Tourism Linkages Network will continue to support the JMEA by creating collaborative relationships and opportunities which ultimately drives economic growth. JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020

Export Expansion:

Manufacturing for Export Contributed by Export Max III Secretariat

he export of locally manufactured goods and services has long been noted as a pillar on which Jamaica can build substantial and consistent growth. The export sectorâ€™s possibilities for expansion, and its potential for widespread economic impact in the creation of jobs and new innovative products and services, means that it is high on the Jamaican governmentâ€™s list of priority areas for advancement.

One of the major interventions that is needed to boost exports is the strengthening of the business environment.

JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020 Unfortunately, while the island has made significant progress in the diversification of its exports, Jamaica has not been able to truly capitalize on its export potential. In 2019, Jamaica’s trade deficit grew to approximately USD$4.76 Billion, which means the island’s import bill is over four (4) times its export value. Jamaica’s Export Value per Capita is also USD$541 per person which is less than half of the CARICOM average and 23% of the world average. These figures represent the overall slow growth of exports in Jamaica, but there are solutions that are currently being executed to address this challenge.

ness, and remove red tape. It is hoped that with these activities, Jamaican firms will have the support to access export as a viable option for expansion, and as an avenue for business growth. Currently, less than one percent of the productive sector is exporting and earning foreign income. In fact, approximately 75% of Jamaica’s exports is from just four product categories - this includes less than twenty players in those sub-industries. There is therefore an opportunity for more companies to become exporters and fill the void that currently exists. ACCESSING NEW MARKETS TO GROW EXPORT SALES The challenge of accessing international markets is also a significant difficulty facing manufacturers and service providers in Jamaica. It is estimated that approximately 65% of exports go to just three countries, which is not a sustainable practice, especially now as the COVID-19 pandemic has led to shocks in supply chains and logistics globally. One of the remedies developed to improve this issue is the implementation of a central programme called Export Max to boost exports. The Export Max Programme was launched by JAMPRO in 2011 and was initially marketed to micro, small and medium-sized enterprises which were exporters or export ready.

FACILITATING F FA CILITA ITA ITA ATING TING T THE HE GROWTH OF MANUFACTURING FOR R EXPORT EXPORT R – CREATING ATING T A THE HE RIGHT BUSINESS ENVIRONMENT One of the major interventions that is needed to boost exports is the strengthening of the business environment. This will provide the atmosphere for manufacturers to produce more products on a larger scale. The Jamaican government and private stakeholders like the Jamaica Manufacturers and Exporters Association (JMEA) are working through the National Competitiveness Council (NCC) to enable reforms that will make it easier to do busi-

The first iteration of the programme effected a 33% growth in its participants’ export sales and was eclipsed by Export Max II which produced more than 213% growth in export sales and 200 new jobs. The Export Max programme has seen tremendous success emanating from Export Max and Export Max II. Now, in its third iteration, the focus of the programme continues to be connecting firms with new and emerging markets to increase Jamaica’s export sales. This is now achieved through the collaborative efforts of the Jamaica Business Development Corporation (JBDC), JMEA and JAMPRO, with each partner providing the cohort with a specific range of expertise underneath the Export Max umbrella. The programme currently has close to 50 companies across various sectors. Since

Currently, less than one percent of the productive sector is exporting and earning foreign income. Export Max III’s launch in September of 2019, a total of 30 exporters have acquired new contracts or orders for their products. Export Max has afforded the cohort various training in market intelligence and strategy building which will allow them to stand on their own once the programme is complete in 2022. In the two years remaining in Export Max III, the partners aim to increase manufacturing export growth in Jamaica and continue to support Jamaica’s nation-building through manufacturing and export. This direct assistance for manufacturers will help to transform Jamaica’s enterprises and export sector. It is hoped that the programme will further expand to include more companies across the island in the future. THE WAY FORWARD With these interventions to develop Jamaica’s manufacturers and exporters and with targeted assistance from the Jamaican government and stakeholders like the JMEA, JAMPRO, and the JBDC, it is believed that the export sector will grow and increase its contribution to the Jamaican economy. Jamaica’s manufacturers are therefore encouraged to utilize the available resources and explore new opportunities to do business as exporters. JMEA E-MAGAZINE | OCTOBER 2020

JMEA E-MAGAZINE | OCTOBER 2020

he world we live and work in is described as VUCA …Volatile, Uncertain, Complex and Ambiguous. The challenges to life and work are enormous. Despite these challenges, we can chart a path that will help us to navigate in this VUCA environment and soar to success. There are 5 critical pillars we can use to build this successful life, despite the challenges of COVID-19 or any other disruptions.

Vision, Passion, Purpose, Action and Faith. VISION – THE DESTINATION AND THE PATH TO GETTING THERE. You need to spend some time thinking about what do you want to be in life, what do you want to achieve? Where do you want to go? What will my life be like in 15/20 years? What we see is what we’ll get. Too many adults are drifting through life without a sense of direction, A SENSE OF PURPOSE and not having any long term focus. As a result, they lack the passion, zest and verve for life and work.

Remember everything you’ve been inspired to do, the way has already been made.

SOARING TO SUCCESS IN THIS V.U.C.A. WORLD DESPITE THE DISRUPTIONS Inspirational Thoughts

From Nsombi Jaja PMP, CMC, SMC, SAMC Certified Management Consultant, Certified Dream Builder Coach, Inspirational Speaker

How many of us have a large, long-term vision for our lives 10 -15 years out? Joel Barker said ‘A positive vision of our future is the most powerful motivation for change you and I possess’. He also said ‘Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world.’

JMEA E-MAGAZINE | OCTOBER 2020

Create a large vision for yourself. There is no limit to what we can imagine, envision, and create in our mind’s eye. There is no cost to imagination and dreaming. Everything begins with a thought. ‘When you create your vision make it so big that when you achieve it you’ll know it’s only God’ – Jack Canfield. Continued on Page 63

JMEA E-MAGAZINE | OCTOBER 2020

Dream big, see it in your mind’s eye and know that once you are prepared to work to make it happen you can do it, you can achieve it. Take a look around you. You have endless opportunities, the road ahead is full of promises and like any other road you’ll find some bends, twists and turns, some potholes and major drops. Keep your eyes steadfastly focused on the vision, your bright future and you’ll make it. A bend in the road is not the end of the road unless you fail to make the turn. PASSION Passion ignites, passion excites, passion fuels. Be passionate about life, work, play, and everything you do. Pursue excellence in all you do. Keep improving everyday! My son has a tagline ‘Where love, passion and skill work together to create a masterpiece’. Passion fuels life.

achieve, empowered to solve problems, empowered to serve others and live a rich, productive and useful life. ACTION Joel Barker’s ‘Vision without action is merely a dream, action without vision just passes the time but Action with vision can change your world’. Shakespeare said Our doubts are traitors and make us lose the good we oft might win, by fearing to attempt or stop in midstream. Ideas are inspired---take action--take action. It’s time--take action. Do not live your life with regrets--- If only I did. Remember everything you’ve been inspired to do, the way has already been made. This leads me to the final pillar.

PURPOSE

FAITH

Each of us has been placed here with a purpose. Our job is to find what that purpose is. Seek and you will find. Read the book ‘The Purpose Driven Life’ by Rick Warren. When you are on purpose life is exciting and wonderful. You will begin to see the amazing goodness in everything. You will be able to extract the blessings from every experience. You will be able to see opportunities when others only see despair. Chase your purpose. My friend Alvin Day said ‘Chase money and you will be in want all your life because you will never catch it. Chase your purpose and money will chase you, overtake you and embrace you.

With God ALL things are possible. Believe, trust and demonstrate faith. There will be many to discourage you especially when things are not going so well. Remember God is your Source and from God, all things flow.

How many of us: µ Are living on purpose µ Are doing what we know we were created for? µ Feel like we are swimming in the river in the direction in which the river is flowing? When we are living a purpose-driven life the components of our lives are aligned and we are empowered to

Stephen Covey said We choose to travel on one of two roads in life. One is the broad and well traveled road [that leads] to mediocrity, the other less traveled is the road to greatness and meaning. The path to mediocrity suffocates human potential. The path to greatness unleashes and realizes human potential. The path to mediocrity is the short cut quick-fix approach to life. The path to greatness is a process of sequential growth from the inside out. Deep within each of us is an inner longing to live a life of greatness, contribution and meaning. All of us can consciously decide to leave behind a life of mediocrity and to live a life of greatness - at home, at work, in the community. Regardless of circumstances, we can achieve great things. See this greatness first with your mind’s eyes, taste it, feel it,

want it and then go for it. All things are possible with God. Choose the higher road. We all have the power to decide to live a great life. Start with having a great day, every day. I close with this poem from Beverley Nadler that sums up Vision, Passion, Purpose, Action and Faith. It is titled:

I CAN! by Beverly Nadler I look in the mirror and ask myself What do I want to be? What do I want to have and do? The choice is up to me. Created in the image of God The bible says we are. And with God all things are possible So reach for the highest star! First, we have to set our goals, Then create our plan And when doubts and fears get in the way, Keep on saying “I can!” Face each day with confidence Stand tall, with your head held high! Believe in yourself and you’ll make it. You can, if only you’ll try. Dare to hold fast to your dream While you do what you must do. Always keep your eye on your vision The wisdom inside will guide you. Take action - get out of the shadows And step out into the sun! For the only race you can win in life Is the race that you have run. We measure success by money and wealth But so such better by far Is the success of feeling the Power inside When you know who you really are. Each one of us is a special person. We’re all one of a kind, With untapped potential that awakens When you learn how to use your mind. Now when I look in the mirror I finally love what I see. I can do anything I really want to Thank God - I’m ME!

JMEA E-MAGAZINE | OCTOBER 2020

Profile of the Jamaica Manufacturers and Exporters Association (JMEA) Welome to the JMEA!

Contributed by the Jamaica Manufacturer’s and Exporters Association (JMEA)

he Jamaica Manufacturers and Exporters Association (JMEA) is the largest Association in Jamaica representing the productive sectors involved in manufacturing, primary production and the provision of services for the domestic and export markets. The JMEA continues to be the leading voice for manufacturers and exporters and remains resolute in its pursuit to advance the conditions in which the productive sector operates and promote Jamaican brands both locally and internationally.

ports on raw materials, 50 per cent reduction in exports fees at Trade Board Ltd and Jamaica Agricultural Commodities Regulatory Authority (JACRA). 2. Access to Affordable Finance: Access to finance through partnerships with the financial sector, private equity schemes and grant funding. Our partnerships include MOU with First Angels Network for equity investments, non-collateralized loan facility with EXIM Bank, discounted credit facilities with Sprint Financial Services, collateral support under the Development Bank of Jamaica’s (DBJ’s) improved Credit Enhancement Facility (CEF) and other grant funding opportunities where available. 3. Market Research & Export Services: Research and preparation of targeted market profiles to assist with penetrating and securing new markets and services that assist our members with navigating the export landscape. Also provides industry information on events and trends through emails, bulletins, membership meetings and research papers.

differently, through branding, linkages, selling beyond traditional markets 4. Standards and Quality: Assistance with implementing and and developing other innovative ways acquiring required local and inof promoting local products and serternational standards through vices, export growth and profit are JMEA’s partnership with the Buachievable. reau of Standards Jamaica (BSJ). Members receive a 20% discount. Still not a member? Do not sit on the Additionally, training and capacisidelines. We will help you expand your ty building in areas such as Good market reach from domestic to internaManufacturing Practices (GMP), tional spheres. Become a part of our Good Agricultural Practices extensive network and let us help take (GAP), ISO 9001:2015 and more. your business across borders.

The experienced JMEA directors and 5. Business Development: Services/capacity building through staff provide unmatched support and the Voucher for Technical AssisOur members have continued to services in the areas such as: tance Programme (VTA) in partbe brand ambassadors for Jamaica nership with DBJ and training in through product innovation, import 1. Advocacy: Representation made accounting and risk management substitution and exports of quality to Government on matters impactfree of cost and at discounted products and services. The JMEA uning manufacturers and exporters. rates through MOU with Elizaderstands that export-led growth turns Several major incentives have been beth Sloane & Company. economies around and by thinking achieved including duty- free im64

JMEA E-MAGAZINE | OCTOBER 2020

6. Trade Opportunities: The provision of several platforms to promote members’ products locally and overseas including our flagship biennial Expo Jamaica, our biennial Jamaica International Expo (JIE), the “Buy Jamaican… Build Jamaica” Campaign and trade missions. 7. Advertising Opportunities: Advertising through our email blast, website, bulletins, newspaper supplements, social media and Year Planner. 8. Linkages: Tourism and distributive trade networking and business opportunities through the Association’s linkage events and partnerships e.g. Speed Networking and Christmas in July. 9. Incentives: Assistance with acquiring manufacturing and agricultural incentives. 10. Mentorship and expert advice from renowned business leaders in export and manufacturing.

400 MEMBERS STRONG, AND YOU CAN BE A MEMBER TOO! We represent exporters and manufacturers in the following sectors:

JOIN TODAY in 5 Easy Steps 1. Visit our website www. jmea.org to complete the online registration form or email us at jmea@jmea. org to request a registration form. (Submit a copy of your TCC and Business Registration) 2. Pay initial subscription fee, calculated upon receipt of your application. 3. After the fee is paid, your application will be presented to the Board of Directors for approval at its meeting, held monthly. 4. Approved applicants will be notified, pending a site visit to the business/factory location.

5. New members are presented with a Membership Certificate and a New Member’s Package containing valuable information, including a complete list of incentives andbenefits. Please be advised that the JMEA team is WORKING REMOTELY and as such our physical office remains CLOSED until further notice. The Team can be reached at the following: Email: jmea@jmea.org Telephone: 876-922-8880-3 / 876-922-8869 Website: www.jmea.org Instagram: thejmea_ Twitter: thejmea_ Facebook: JMEALimited

µ Mining and Quarry µ Agriculture, Forestry and Fishing a. Crops and Animal b. Forestry and Logging c. Fishing and Aquaculture µ µ µ µ µ µ µ µ µ µ µ µ µ µ µ µ

Electricity, Gas and Petroleum Information and Communication Arts and Entertainment Professional Services Manufacturing Food and Tobacco Products Beverages Textile, Apparel and Leather Products Wood and Furniture Products Printing and Paper Products Packaging Products Chemical and Pharmaceuticals Products Rubber and Plastic Products Mineral and Metal Products Electrical, Electronics and Optical Products Other Manufactured Products

Did You Know:

#MANUFACTS µ The Manufacturing Sector employed 78,775 persons in 2019 which represents 6.3% of Jamaica’s entire labour force. Despite the low percentage, the sector recorded the 2nd highest labour productivity of all sectors which shows that each employee contributes approximately JMD$840,000 to GDP. µ Exports from the Manufacturing Industry increased from USD$486.9 Million in 2016 to USD$657.4 Million in 2019, reflecting a growth of 35% over the past three years. Recover &

Renew with MANUFACTURING JMEA E-MAGAZINE | OCTOBER 2020

JMEA National Manufacturers' Month 2020-E Magazine