BMA: No cutbacks despite sharp export decline

Despite a reported $58 million decline in Barbados’ export earnings during the first half of the year, local manufacturers are not reporting any major fall-out, such as scaled-back operations or delayed shipments, according to President of the Barbados Manufacturers’ Association (BMA) Rakeesh Bernard.

Bernard, speaking to Barbados TODAY on Tuesday, described the current state of manufacturing exports as “a mixed bag”, with some members recording growth while others reported flat or slightly reduced sales.

“Quite a few of our members have said that they’ve seen increases, and some have said they’ve seen either flat or slight declines in sales,” he said, attributing the pattern to several factors, including rising competition and shifting trade dynamics.

“There’s been a lot of uncertainty around tariffs. Our manufacturers who export into the US markets, for instance, may not have faced a tariff before and are now facing tariffs that make our products more expensive and less competitive.”

He also noted the increased competitiveness of regional and international markets, which has put pressure on local producers.

According to the Central Bank of Barbados’ mid-year economic review, released on Friday, domestic exports contracted by 15.6 per cent, falling from $372.6 million in the first half of 2024 to $314.3 million in the first six months of this year.

The report attributed the slump largely to a $61.4 million reduction in chemical and oil-related products, which are traditionally known to be major contributors to export earnings, as well as declines in electronics and food and beverages.

During his presentation, Central Bank Governor Dr Kevin Greenidge noted the slowdown in domestic exports, but stressed that it was largely tied to international developments and not indicative of a weakening economy.

He pointed out that while the goods-producing sector declined, “services continued to expand by 4.3 per cent in the first half of 2025”, driven by robust tourism and professional services.

The Bank maintained that the medium-term outlook remains positive, supported by a pipeline of investment projects.

Bernard, meanwhile, noted that the sector is still receiving government support, including through Export Barbados and the Ministry of Foreign Trade, which has helped to cushion the impact.

“I think the government gives us a lot of support, and [is] continuing to give us that support through the various entities [and that] will help us continue to try and export more,” he said.

The BMA official also clarified that despite the challenges, manufacturers have not been forced to cut production.

“I’ve gotten no reports that anybody has had to scale back or delay shipments,” Bernard said.

“It’s been, for the most part, business as usual. It’s just maybe not the kind of growth that everybody would expect and want across the entire manufacturing sector.”

He further acknowledged that the exit of Arawak Cement from the export space has also contributed to the recent dip.

“Arawak, who would have been a large exporter, is no longer exporting cement from Barbados. That also plays a role,” he said, adding that Rock Hard Cement has essentially replaced Arawak in terms of domestic supply, but the volume of exports remains unclear.

Bernard said that overall, manufacturers are concentrating on finding new markets and increasing competitiveness.

“The entire sector is very focused on increasing our exports into the various markets that we trade,” he added. (SM)