Manufacturing sector at standstill - Ramsay Ali
sourcing sufficient volumes of milk for its ice cream products had meant that the company had been compelled to pursue the option of importation for both milk and white sugar.
Meanwhile, Ali says that quality packaging continues to be an area of concern for several large manufacturers. He noted that the emphasis on continually upgraded packaging reflected in imported products meant that local companies are compelled to spend more, pointing out that imported glass bottles constitute a significant percentage of product costs in Guyana.
“There are some companies that are involved in labelling in Guyana, but to be competitive you have to access labels from overseas,” Ali said.
Ali said the twin challenges associated with expanding external market share and serving a limited local market meant that many local manufacturing entities were unlikely to experience significant growth over a short period in view of the fact that compared to other regional entities that enjoyed a bigger market share, their production levels were significantly compared with those of their competitors elsewhere in the region.
“We can increase our volumes if we can export, but then we are not competitive on the export market due to our high production costs… it is a chicken and egg story.”
And according to the Sterling Products CEO the growth of the manufacturing sector is also seriously impaired by the high cost of necessary investment in efficiency-related technology. “The start-up cost of solar power, for example, is high.
There are several companies that may want to but may not have the finances for that kind of investment,” Ali said.
And according to Ali it is likely that the manufacturing sector is also limited in its growth by the fear of financial risk that might be afflicting “There is a risk involved in new business.”