BMA optimistic about sector’s expansion in 2022

Local manufacturers have welcomed the news of a four per cent growth in that sector reported last week by the Central Bank of Barbados, but they are however not in full celebration mode yet.

In a statement issued on Monday, the Barbados Manufacturers’ Association (BMA) said it was optimistic about the coming year following the “modest” growth of 1.4 per cent reported in the economy for 2021 and the four per cent improvement in manufacturing, but remain cautious that those gains could be lost if there’s a repeat of the two natural disasters of last year and the COVID-19 pandemic worsens.

According to the association, optimism is justified in an economy that grew despite the challenges of COVID-19 and in the aftermath of two natural disasters in 2021. The members however caution that a repeat of 2022 could derail any proposed double-digit growth this year.

The association suggests that it is important that manufacturing thrives in Barbados as it continues to be an important contributor to economic growth and development locally.

“Although the local manufacturing sector is not equal, in terms of scale and magnitude, to manufacturing sectors of large industrial nations, the sector continues to meet critical economic objectives locally that are important to sustain the economy of Barbados,” the association contended.

“Its contribution to foreign exchange generation and employment was especially noticed when COVID ravaged our tourism sector in 2020 and 2021. The sector’s contribution to overall development is expected to touch numerous areas in 2022 and beyond,” the BMA declared.

The organisation said manufacturing is not just about making something from materials, but that it is about the skills and capacity-building it achieves along the way.

“Within this sector, innovation and creativity are spurred and nurtured. Many Barbadians turned to manufacturing in 2021, especially in food and beverages due to job loss and to supplement reduced income. Our larger traditional manufacturers were able to increase their staff levels in response to increased demand contributing to the 13,000 jobs created last year,” the BMA revealed.

The association believes that manufacturing will have a key role to play going forward on its own and through its support to larger revenue-earning sectors like tourism.

“To realize the sector’s full potential, manufacturing needs support from the necessary enabling policies. Therefore, any conversation or policy development aimed at diversifying the economy must not exclude manufacturing,” the BMA insisted.

“Our work programme, Buy Bajan will have additional meaning going forward. It will not only be a call to support local manufacturers. It will also be a call for local manufacturers to help mitigate challenges like the global logistics crisis and competitiveness through innovation and partnerships with other sectors such as agriculture and renewable energy,” the statement noted.

The association said it “gladly” embraces the mission of contributing to the diversification of the economy and is diligently working on programmes to help grow the sector’s input to foreign exchange.

“We are working on initiatives to spur development in manufacturers of all sizes,” the BMA added.

“The Central Bank Governor’s proposal that the manufacturing sector focuses on exploring new models that can overcome the limitations with scale, is sound. The suggestion to work with creatives is one of the approaches we believe can deliver tangible results in the medium to long-term,” the association disclosed.

But of more importance, the BMA said, is that the resources needed to develop this model are not beyond  the means of the country.

“At the core of the model is the development and strengthening of partnerships and relationships with local, regional and international stakeholders that will redound in benefits for Barbados in terms of technology transfer, resource sharing, research/development and input sourcing,” the manufacturers concluded. (EJ/PR)