GM&SA Annual Awards…Manufacturing sector still plagued by retarded growth- GM&SA President

Mar 09, 2014 News

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By: Kiana Wilburg
When it comes to the manufacturing and export industry, many of our local companies do more than just defy the odds. They exude discipline, an unending dedication to complying with international best practices while producing quality products and services to aptly exemplify their unconditional love for what they do.

An awards ceremony held on Friday last at the Pegasus Hotel was dedicated towards presenting companies with plaques of appreciation and reverence for the contributions made towards the development of Guyana’s manufacturing sector.
Receiving the President’s Executive Award for export achievement was Pritipaul Singh Investments Incorporated.
As a symbol of the Guyana Manufacturing and Services Association’s (GM&SA) admiration for companies that were relentless in their pursuit of improved technologies which positively influenced the conduct of business, plaques were presented to five companies.
These included; Guyana Telephone and Telegraph Company, Brass Aluminum and Cast Iron Foundry, Air Services Limited and Gafsons Industries.
Three other companies received accolades in recognition of their commitment towards the development of the spirit of entrepreneurism.
Moreover, awards were given out to those companies who managed to maintain impressive growth and stability for over six decades. Gafsons was a recipient of this distinguished award. Gafoors, the parent company of Gafsons Industries, is part of a special group of industrial manufacturers in Guyana that has maintained a competitive presence in the manufacturing sector. With over 60 years of experience, the industrial giant has earned the title of being one of Guyana’s most dependable suppliers of quality hardware, light and heavy construction materials, clothing, footwear and household items.
Today, Gafsons stands as the undisputed champion in this sector. With great customer service and high quality products, it has managed to penetrate local markets nationwide. Their clientele extends to Rose Hall, Corentyne and Parika. They even have a Charlestown outlet and a Houston multiplex.  GM&SA insists that that Gafsons Industries must be recognized for continuously  investing in manufacturing materials, constantly upgrading its inventory and range of products, making it a boon for builders and contractors across the length and breadth of Guyana.  The plaque presented to the Chief Executive Officer of the Company, Mr. Sattaur Gafoor was in recognition of the company’s continuous investments in extending the range of building materials and maintaining high standards in manufacturing for more than 60 years. The accolade was given to him by Former Prime Minister of Trinidad and Tobago, Mr. Basdeo Panday.
Other companies receiving similar awards included; John Fernandes Ltd, Toolsie Persaud Ltd, Banks DIH Ltd, Edward B. Beharry Group of Companies, and the Demerara Oxygen Company.

GMSA Report
Presenting the report on the successes and challenges facing the GM&SA was its President, Mr. Clinton Williams.
Firstly, he noted that the Guyanese economy has been consistently recording a five percent average growth over the last five years.  The main sectors contributing to this performance are Mining

(particularly Gold & Diamonds), Wholesale and Retail Trades, Rice and Sea foods, Building and Construction, and Information and Communication Technology. However, traditional products (including Sugar and Forest products) continue to under-perform due to a number of inter-related factors.
“The Manufacturing Sector has also seen retarded growth, accounting for a very small percentage of our GDP (four percent).  Imagine that the sector’s contribution in 1963 was 15 percent.”
He contended that the restricted growth could be attributed to meager local demand, high energy and transportation costs, and insufficient and non-incentivized financing.
The GM&SA President expressed that very high trade transaction costs and inordinate customs delays during import and export transactions have also become a worrying problem. However, he posited that it can be reduced significantly with the Single Window Automated Processing System (SWAPS), which is currently being implemented slowly.
“Without being prejudicial to the current Go-Invest Institutional Framework, there is dire need for a comprehensive review and possibly revamping of existing mechanisms in this vital investment promotion agency if we are to successfully modernize our accommodation of new manufacturing businesses. Comprehensive and enforceable steps should also be taken to curtail unfair competition from smuggled imports, from dumping and by wide scale importation of cheap foreign goods.”
He added, “With regard to occupational skill demand and supply, there is need for continuous Labour Market Intelligence Surveys.  This should be complemented by Competency Based and Entrepreneurial Skill Training and Development Programmes in public and private education curricula.  The Private Sector should also lend support to the introduction of a “National Training Levy” and the establishment of a Skills Bureau to broker specialized and emerging technical skills.”
If these areas of concern and suggested solutions are to be adhered to, Williams asserts, “We will be able to manufacture and market high quality, value added products and services, there will be substantial enhancement of productivity and production capabilities and scope and there will be opening up of new markets and the expansion of current market share.”
Most importantly he believes that the transformation of the Manufacturing Sector would, of course, raise its contribution to GDP to a level even greater than the 16 percent which was the norm four decades ago.

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