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The
Manufacturing industry is estimated to have declined by 5.0 per cent
during 2009 and contributed 8.3 per cent in overall Gross
Domestic Product (GDP).
Total GDP for the sector was $40,790.6 million compared to $42,924.7
million in the previous year. This is as a result of decline in
the two sub-sectors 'Food and Beverage' and 'Tobacco' Manufacturing.
The conditions in the industry worsened due to the
intensification of the global financial economic crisis.
The downturn in the Construction and 'Mining and Quarrying'
industries negatively affected the production levels of the
category “Other
Manufacturing”.
The
decline in the Manufacturing industry in 2009 was due to the
challenges which arose in demand for products as well as the supply
of raw materials.
The decrease observed in production was as a result of
contraction in disposal income and lower consumer
confidence. On the supply side the constraints were due to the tightening of credit markets and
increased operational expenses. However,
the major industry indicator, total labour force, decreased
by 7.3 per cent in 2008 compared to 6.9 per cent in 2009. Actual
figures showed it totalled 77,700 in 2009 relative to 80,100 in 2008.
Policies
and Programmes
The
manufacturing industry continued to operate within the framework
of the Ministry of Industry, Commerce and Investment.
The Ministry continued to promote industrial
and commercial development, and sensitization of local producers to
international standards. It encouraged increased productivity so as
to improve the country's competitiveness.
Performance
The
Producer Price Index (PPI) for the manufacturing sector showed an
increase of 13.1 per cent.
This increase was as a result of increases in the index for
rubber and plastic products, food and beverages and tobacco; and
other manufacturing.
Other factors which led to this increase were the
depreciation in Jamaican currency as well as increases in utility
expenses and transportation cost.
A 9.4 per cent decline was recorded in the refined
petroleum products sub index.
Food
Processing
In
2009, gross output in the food processing sub-sector declined due
to a reduction in the production of dairy products, edible
fats, edible oil, sugar, molasses, poultry meat and animal feeds. Higher output was
experienced in condensed milk,
cornmeal and flour production which registered 24.2 per cent, 8.1
per cent and a 3.3 per cent increase respectively.
Beverages
and Tobacco
During
2009, the beverage and tobacco sub-sector recorded a decline in
output as a result of declines in beer, stout and carbonated
beverages, while alcohol production registered a marginal increase of 0.1
per cent.
Other
Manufacturing
Although
there was a marginal increase of 0.3 per cent in cement
production, Non-Metallic
Minerals and Plastic Products declined.
This sub-sector's performance was influenced by a decline in demand for
construction materials such as concrete, blocks, and tiles.
There was also a 7.9 per cent decline in the
production of other plastic products.
This decline was consistent with an increased demand for
cheaper imported alternatives.
Lower
levels of output were recorded in the Petroleum Products group due to decreased production of liquid
petroleum gas (13.4 per cent), automotive diesel oil (7.2 per
cent), fuel oil (2.8 per cent) and gasoline (0.6 per cent). There
was an increase however in turbo fuel and other petroleum
products. Production of refined products were also affected due
to an accident at the Petrojam Pier earlier in the year which resulted
in the plant being operated for only 17 days this year.
During
2009, Chemical and Chemical
Products recorded a decline in output of detergent (36.6 per
cent), sulphonic acid (27.2 per cent), sulphuric acid (23.3 per cent) and
aluminium sulphate (23.4 per cent). A decline was also
experienced in paint production. Early
in the year the prices of local
fertilizer decreased resulting in an increase in demand for the
product by 7.9
per cent.
Manufactured
Export Earnings
In
2009, total manufactured exports declined by 40.4 per cent or
US$722.9 million compared to US$1,244.7 million in 2008.
This was as a result of a decline in the volume of
traditional and non-traditional manufactured exports. The
volume of total non-traditional export goods declined by 43.6 per
cent. Conversely exports of the animal and vegetable oils and
manufactured goods increased.
Exports
earnings in the apparel sub-sector continued to trend downwards
with a decline of 95 per cent to US$1.11 million compared to US$22.4 million in 2008.
There was no earning from apparel export under the
Caribbean Basin Trade Partnership Act (CBTPA).
In 2009, the category “Other” also recorded a decline
of 61 per cent to US$1.1 million compared to US$2.8 million the previous years.
Source: Economic and Social Survey Jamaica 2009
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