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Manufacturer calls out government
By Paul Henry
Sunday, July 22, 2007
Metry Seaga is the latest manufacturer calling on the government to immediately implement policies to resurrect the island's ailing productive sector and ensure its survival into the future.
Seaga - who operates the Jamaica Fiberglass Products Limited (JFP) in the Kingston 11 area of Spanish Town Road - told Sunday Finance last week that it is too easy for products manufactured abroad to be imported into the island and complained of the ease with which overseas manufacturing companies secure government contracts.
The problem is further compounded, Seaga said, when added to the difficult economic climate in which local manufacturers are forced to operate.
"Manufacturing needs to be given some priority now [and] the government needs to understand that it is the first one who needs to give us the shot," said Seaga.
"We [recently] lost a $70- million bid to do the counters for the [new addition] to the Norman Manley Airport. We lost that bid to a company out of England because their bid was J$1million lesser than us," he argued. "The US government has a policy in place that any bids being done there, the US companies get a 10 per cent advantage right away. If that were the case [here] that [England] company bid would have been $6 million more than mine and we would have gotten the contract," added Seaga with a frustrated tone.
Jamaica on a whole - not just his company - lost on the JFP's failed bid, said Seaga, while speculating that the British company might spend only "$7 million of that $70 million here". Had he won that bid, he said, "50 of that $70 million would still be here".
Seaga said that government is the largest purchaser of products within its country and "for us to build and grow a manufacturing sector, the government has to start the ball rolling".
"If they had done that with us with that one little job, we would be supplying from here forward counters for all airports in the Caribbean. We would be supplying it, we would be exporting it - we would have been bringing foreign exchange back into the country," said Seaga.
Seaga's business partner, Steve Sirgany, who sat in on the interview, interjected: "There would have been many other businesses like us opening up. What happened to us (with the airport bid) happened at least once per month with government bids."
Sirgany complained that the majority of office furniture in Jamaica are imported from China, even though they can be manufactured locally.
"Look how far China is from us, only the shipping companies benefit from this," he added.
Seaga said that Jamaica should follow the example of Caribbean neighbours Trinidad and Tobago whose manufacturing sector has boomed over the years due to friendly govern- ment policies.
"The mindset in Trinidad is different and that is why the manufacturing sector has boomed. The government has a lot of land available and what it does is set it up as factory space and rent it out at US$100 a year," said Seaga, while noting that the Factories Corporation of Jamaica on the other hand has "millions of square feet of land" here but rents at market value.
"They are not providing an incentive to manufacturing. What they are saying is, 'If you can't stand up on your own two feet, come out a di business.' We feel that this is a mistake because what it is doing is putting people who are at a lower level of society in terms of skill at a disadvantage and putting them out of work."
He pointed to manufacturing company Serv-Wel as one of the many such companies that are being hurt by the lack of friendly policies toward local manufacturers. Serv-Wel, back in its heyday in the 1970s, employed some 2,000 workers but currently has a workforce compromised of a mere 200 people.
"What I can tell you is that we are not going to give up on manufacturing. We are going to fight it we are going to make it work - with or without the help of the government," Seaga said.
Over the years JFP has outfitted fast food restaurants such as KFC, Island Grill, Burger King and Taco Bell, with tables, chairs, partitions, bathroom and service area counters. JFP also exports approximately 30 per cent of its products to South, North and Central America and to countries within the Caribbean.
By Paul Henry
Sunday, July 22, 2007
Metry Seaga is the latest manufacturer calling on the government to immediately implement policies to resurrect the island's ailing productive sector and ensure its survival into the future.
Seaga - who operates the Jamaica Fiberglass Products Limited (JFP) in the Kingston 11 area of Spanish Town Road - told Sunday Finance last week that it is too easy for products manufactured abroad to be imported into the island and complained of the ease with which overseas manufacturing companies secure government contracts.
The problem is further compounded, Seaga said, when added to the difficult economic climate in which local manufacturers are forced to operate.
"Manufacturing needs to be given some priority now [and] the government needs to understand that it is the first one who needs to give us the shot," said Seaga.
"We [recently] lost a $70- million bid to do the counters for the [new addition] to the Norman Manley Airport. We lost that bid to a company out of England because their bid was J$1million lesser than us," he argued. "The US government has a policy in place that any bids being done there, the US companies get a 10 per cent advantage right away. If that were the case [here] that [England] company bid would have been $6 million more than mine and we would have gotten the contract," added Seaga with a frustrated tone.
Jamaica on a whole - not just his company - lost on the JFP's failed bid, said Seaga, while speculating that the British company might spend only "$7 million of that $70 million here". Had he won that bid, he said, "50 of that $70 million would still be here".
Seaga said that government is the largest purchaser of products within its country and "for us to build and grow a manufacturing sector, the government has to start the ball rolling".
"If they had done that with us with that one little job, we would be supplying from here forward counters for all airports in the Caribbean. We would be supplying it, we would be exporting it - we would have been bringing foreign exchange back into the country," said Seaga.
Seaga's business partner, Steve Sirgany, who sat in on the interview, interjected: "There would have been many other businesses like us opening up. What happened to us (with the airport bid) happened at least once per month with government bids."
Sirgany complained that the majority of office furniture in Jamaica are imported from China, even though they can be manufactured locally.
"Look how far China is from us, only the shipping companies benefit from this," he added.
Seaga said that Jamaica should follow the example of Caribbean neighbours Trinidad and Tobago whose manufacturing sector has boomed over the years due to friendly govern- ment policies.
"The mindset in Trinidad is different and that is why the manufacturing sector has boomed. The government has a lot of land available and what it does is set it up as factory space and rent it out at US$100 a year," said Seaga, while noting that the Factories Corporation of Jamaica on the other hand has "millions of square feet of land" here but rents at market value.
"They are not providing an incentive to manufacturing. What they are saying is, 'If you can't stand up on your own two feet, come out a di business.' We feel that this is a mistake because what it is doing is putting people who are at a lower level of society in terms of skill at a disadvantage and putting them out of work."
He pointed to manufacturing company Serv-Wel as one of the many such companies that are being hurt by the lack of friendly policies toward local manufacturers. Serv-Wel, back in its heyday in the 1970s, employed some 2,000 workers but currently has a workforce compromised of a mere 200 people.
"What I can tell you is that we are not going to give up on manufacturing. We are going to fight it we are going to make it work - with or without the help of the government," Seaga said.
Over the years JFP has outfitted fast food restaurants such as KFC, Island Grill, Burger King and Taco Bell, with tables, chairs, partitions, bathroom and service area counters. JFP also exports approximately 30 per cent of its products to South, North and Central America and to countries within the Caribbean.
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