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TTMA Newsletter 2011

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TTMA Newsletter 2011

  1. 1. Value Jamaica Open & ready for growth Excellence 55th AGM TTMA members awarded for excellence A new national value proposition TTMA’s 55th Annual General Meeting Recycling MANUFACTURER THE PUBLISHED QUARTERLY BY THE TRINIDAD & TOBAGO MANUFACTURERS’ ASSOCIATION Jan - Feb 2011 A Year of Collaboration DOMINIC HADEED TTMA’S NEW PRESIDENT Volume 32 April 2011 A look at the local recycling business 100% T&Tried rue
  2. 2. To be the voice for business enterprise articulating policy, providing quality service and contributing to sustainable economic growth and success Mr. Dominic Hadeed Dr. Trevor Townsend Mr. Richard Lewis Mr. Charles Ross Mr. Allan De Boehmler Mr. Amjad Ali Mr. Paul Quesnel Mr. Wayne Yip Choy Mr. Andrew Aleong Mr. Craig La Croix Mr. Nicholas Lok Jack Mr. Dave Ramkisoon Mrs. Natasha Mustpha-Scott (Chief Executive Officer) PresidentDeskof theThe Vision of Directors Statement Board Do You Need to Contact us? Trinidad & Tobago Manufacturers’ Association 2nd Floor, TTMA Building, #42 Tenth Avenue, Barataria P.O. Box 971, Port of Spain Tel: (868) 675.TTMA (8862) Fax: (868) 675.9000 Email: membership@ttma.com; info@ttma.com website: www.ttma.com The Trinidad and Tobago Manufacturers’ Association Secretariat located in Barataria I wish to welcome you all to the latest issue of the “Manufacturer” which has been redesigned with a more modern and contemporary look, and complements the many changes and revisions that are taking place within the TTMA Secretariat. In addition to the six new members of the Board of Directors, appointed at TTMA's 55th Annual General Meeting held on the 29th March, 2011, the TTMA is working to establish a new direction and vision for the association, and will communicate these to you in the months ahead. I thereby encourage you to give your support and feedback to the Association wherever you can, as we begin this new chapter under my leadership together. While 2011's economic forecast projects a year of recovery, there is still much work to be done to increase this country's competitiveness and restore confidence to the business community, and this can only be accomplished with constant collaboration. The TTMA's mission for the year ahead will focus on working together with other associations, stakeholders and NGOs, government, and other business support organizations, both locally and regionally, to ensure that we pool our strengths and efforts together for the greater good of our national community. In this regard, the TTMA was pleased to host the Hon. Karl Samuda, Minister of Industry, Investment and Commerce of Jamaica on March 29th, 2011 at our AGM Business Breakfast Meeting, and is confident that the opportunities for greater regional integration and collaboration which were presented at this event will materialize in the future. The Hon. Stephen Cadiz, Minister of Trade and Industry who gave a special address, also highlighted the government's commitment to work together for greater trade and business between T&T and Jamaica, and the need to establish greater communications to facilitate the trade process. T h e a n n u a l Tr a d e a n d Investment Convention (TIC) which takes place from June 15th-18th this year has partnered with the Caribbean Investment Forum (CIF) which runs from June 13th- 14th, to form the Trinidad and Tobago Investment week. These two events, another successful example of a collaborative effort, will be critical to s t r e n g t h e n i n g t r a d e a n d i n v e s t m e n t b e t w e e n t h e Caribbean and the Americas and will link over 35 countries to forge new business opportunities and increase trade within the region. Almost immediately following the Trade and Investment week, there will be a Trade mission to Guatemala from June 21st-24th, and I encourage our members to capitalize on these opportunities. The Association is encouraged by the current strength of its business partnerships and the possibility of stronger ones in the future, and will maximize our efforts to ensure that our members are prepared and in the proper business- oriented framework to take advantage of new opportunities. I wish to thank you all for the honour entrusted in me to serve you as President, and I have already begun to convey the message that the TTMA supports initiatives that enhance business transactions and competitiveness, reduces the cost of doing business, and reduces bureaucracy and inefficiency. I look forward to a very dynamic and invigorated year with your encouragement and support.
  3. 3. Immediately following his election as president of the Association, Mr. Hadeed began to work, delivering his inaugural address at TTMA's Business Breakfast Meeting featuring the Hon. Karl Samuda, Minister of Industry, Investment and Commerce, Jamaica. The Business Breakfast Meeting which was attended by 2 0 0 p e o p l e c o m p r i s i n g businesspersons, members of the diplomatic corps, TTMA members, stakeholders, specially invited guests and members of the media, provided the ideal opportunity for Mr. Hadeed to set the agenda of the TTMA for the next year, and establish its role in the local business community. His address which focused on the concept of dreaming to dare and not merely daring to dream, linked the ideals of achievement, p r o s p e r i t y, s u c c e s s , a n d productivity to good ideas, and sealed his intention to break away from the conventional stalemate that “supports bureaucracy and stifles productivity.” “I am and you are, currently in the company of people who are experts at the business of seeking consistent productivity. And we must now work towards becoming Dare to Dream TTMA’s 55th Annual General Meeting better than that, and seek constant collaboration,” he said referring to the topic of regional integration and private sector partnership. “We need to overcome the conventional pattern of self- interest. We need to focus on what is good and common among us. Let us not focus on our differences. That is my dream and my challenge as President of the TTMA. I cannot do it alone. Let us move forward together.” To highlight the need for a stronger collaborative system among CARICOM states, Mr. Hadeed referred to an old joke that left a very poignant message with him, the story of Caribbean crabs versus North American crabs that were both kept in a barrel. The North American crabs he relayed, had to be kept covered as they would unite with the strong helping the weak so that all e v e n t u a l l y e s c a p e d . T h e Caribbean crabs on the other hand, would intentionally pull back other crabs that attempted to get ahead and escape. “The message that haunts me is that it is the biggest and best of the North American crabs escape first, but it is the biggest and juiciest of the Caribbean crabs that are eaten first,” he said “We are presently living through some very interesting times; the world is undergoing some very rapid changes, which presents us with a unique Mr. Dominic Hadeed, president of the TTMA delivers the inaugural address at TTMA's Business Breakfast Meeting 00 ISSUE On Tuesday 29th March, 2011 the Board of Directors and other members of the Trinidad and Tobago Manufacturers' Association (TTMA) elected Mr. Dominic Hadeed as the 43rd president of the Association at its 55th Annual General Meeting held at the Trinidad Hilton and Conference Center in St. Ann's. Mr. Hadeed will serve as president of the Association for the term 2011-2012 after two successive terms under the leadership of Mr. Greig Laughlin from 2009-2011. The AGM also saw the election of six members to the Board of Directors who will spearhead the works of the TTMA Secretariat for the upcoming year. The TTMA recognizes the work and efforts of its outgoing directors for the term 2010-2011- Mrs. Gisele Marfleet -Vice President, Mr. Satnarine Bachew, Mr. Langston Roach and Mr. Anthony Aboud, and welcomes the members of the new executive 55th AGM Statement THE MANUFACTURER PAGE 3
  4. 4. TTMA enhances trade and regional cooperation between Trinidad and Tobago and Jamaica On Monday 28th March, 2011, one day before its AGM and Business Breakfast Meeting featuring the Hon. Karl Samuda, Minister of Industry, Investment and Commerce, Jamaica, the Trinidad and Tobago Manufacturers' Association (TTMA) met with the Hon. Minister and his trade delegation to reiterate its support of Jamaican manufacturers and to further dialogue on the way forward with trade between the two islands. TTMA's meeting with the Jamaican Trade Mission including Mr. Omar Azan, president of the Jamaica Manufacturers' Association (JMA), Mr. Vitus Evans, president of the Jamaica Exporters' Association (JEA), Mr. Francis Kennedy, vice president of the Jamaica Chamber of Commerce (JCC) and other opportunity. This time around it is not going to be the small and the weak that get eaten first by the big and strong. It will be the big and juicy that gets eaten by the collaborative small.” Mr. Hadeed's message that “knowledge should be shared” was also clear as he extended an offer to the Jamaican contingent to a s s i s t t h e m w i t h t h e implementation of the private sector's version of the Beverage Container Bill which the TTMA has been attempting to pass for almost ten years. The Beverage Container Bill if passed, will not only allow for the successful removal of beverage containers from the nation's drains and waterways, but it will also create opportunities for the recycling of other materials such as tires, batteries, and appliances. In addition to the primary benefits to the environment, the Beverage Container Bill will also create new companies and new products, sustainable jobs and new tax revenue from profits earned. The TTMA continues to wait for the necessary legislation for the enactment of the bill and the expected advantages to the social and economic landscape. The Business Breakfast meeting also provided the ideal opportunity for Mr. Hadeed to lay out his expectations for what he wants to achieve during his term, with the assistance and guidance from the newly elected directors, who will serve of their time and talents during the next year. “Each member of this new board brings a specific, unique and needed talent to the TTMA, with the intention of repositioning the Association, towards what we all believe, should be a year of introspection, with a goal of transforming the TTMA into a more effective, focused, and respected organization.” “This new TTMA board would like to engage the other NGO's within Trinidad and Tobago and the Caribbean, in an effort to work together within the areas of common interests and towards common goals. For it is only by pooling our strengths and coming together, can we avoid the duplication of our efforts, and ensure that we are all heading in the same direction at the same time. It is only by recognizing each others' strengths and being able to work together that we can as a small country, and as a small region within a large world, Ever hope to really stand out and be noticed.” officials in trade, formed a vital component of the group's visit to Trinidad, as they sought answers to several lingering problems that impede regional trade. The Jamaican Mission expressed their willingness to form closer ties and have better communication between government agencies like the Bureau of Standards of Jamaica, the Bureau of Standards of Trinidad and Tobago, and eventually the Bureau of Standards in the rest of region, to ensure that barriers to trade do not exist. The TTMA agrees that stronger communication and ties must be forged among regional counterparts, and openly discussed several concerns raised by TTMA members who met earlier in March to discuss trade issues with Jamaica in preparation for Minister Samuda's visit. The TTMA looks forward to continuing talks with our regional counterparts which began on: The creation of equal opportunities, The removal of barriers to interregional trade The ability to partner with each other towards mutually beneficial goals The opportunity to collaborate with one another for assistance on individual needs and issues The diversification of our respective economies And the willingness of our Caribbean leaders, to assist us with these goals by removing governmental bureaucracy which hampers the productivity of our Caribbean people. Meeting of presidents- Mr. Dominic Hadeed, newly elected president of the TTMA greets Mr. Greig Laughlin, Immediate Past President of the Association THE MANUFACTURER PAGE 4
  5. 5. The TTMA's Business Breakfast Meeting which was held on Tuesday 29th March, 2011 at the Hilton Trinidad and Conference Center, St. Ann's was a resounding success, as the Association partnered with the West Indian Tobacco Company Limited (WITCO), to host the day's featured speaker, Jamaica's Minister of Industry, Investment and Commerce the Hon. Karl Samuda. Speaking on the topic, “The state of Intraregional Trade and the Caribbean Community Single Market”, Minister Samuda welcomed Trinidad and Tobago companies to invest in Jamaica whenever they desire to do so, and called for greater cooperation and coexistence between the two countries. Jamaica's Minister of Industry, Investment and Commerce signals trade and investment Jamaica is open and ready for growth “As we progress, we cannot do it alone, Jamaica is a full and c o m m i t t e d m e m b e r o f CARICOM, we are ready for growth through trade and investment...we see Trinidad and Tobago within the CARICOM community as a vital partner in this exciting journey of ours,” he said. Echoing the sentiments shared by Mr. Hadeed in his inaugural address, Samuda emphasized the need to collaborate where necessary for the greater good of all CARICOM states and assist each other to rise above the global economic challenges that we collectively face. “It [regional integration] cannot work in an atmosphere of distrust; it cannot work in an atmosphere of unreasonable competition among our members. It must not be sibling rivalry; it must be a family determined to work together and hold each other's hand wherever there are deficiencies, step in and help. When you help someone who is not as efficient as you are today to become efficient, to become prosperous you become more prosperous,” he said. The Hon. Minister's trip to Trinidad and Tobago at the invitation of the TTMA, his very first visit to the country was embraced by the Hon. Minister Samuda, who capitalized on the opportunities available through the attendance of over 200 businesspersons at the AGM, by bringing a ten member trade delegation. The Hon. Minister also sought to establish a relationship with his Trinidadian counterpart, the Hon. Stephen Cadiz, Minister of Trade and Industry, and various government agencies such as the Bureau of Standards, Customs, Chemistry, and Food and Drugs Division, to discuss standards and quality issues and any other factors impacting on the access of Jamaican products to the local market. “We need to collaborate, coordinate and communicate, we constantly need to be in touch with each other, and that is why I welcome the relationship that is now emerging between (Trade and Industry Minister Stephen) Cadiz and our ministry so that together we can establish a level of communication that would grant us profit,” he said. “This is a time that demands a positive outlook, we need to encourage the productive sector to feel that it is good to manufacture, it is good to make things, it is not good enough to simply buy things that are imported from outside of our region, we must seek the answer to be competitive so we can create the jobs by manufacturing things here that can be competitive on the world's stage, that is the challenge that we face, we can't achieve that if we are divided, we must be united, we must be prepared to share strategies.” The government of Jamaica has extended an invitation to Trinidadian manufacturers to leverage their extensive experience and track record by expanding their operations in Jamaica, and the TTMA agrees that opportunities abound to build even greater investments in a The Hon. Karl Samuda, Minister of Industry, Investment and Commerce delivers the feature address at TTMA's Business Breakfast Meeting THE MANUFACTURER PAGE 5
  6. 6. On March 29th, 2011 following the completion of TTMA's Business Breakfast Meeting, the TTMA hosted the Hon. Karl Samuda, Minister of Industry, Investment of Jamaica and members of the Jamaican public and private sectors to a tour of factories in the East-West corridor of Trinidad. Representatives of the Jamaica Manufacturers' Association (JMA), the Jamaica Exporters' Association (JEA), and the Jamaica Chamber of Commerce (JCC), as well as representatives of the Ministry of Foreign Affairs and Foreign Trade, the Ministry of Agriculture, and Jamaica Promotions Corporation (JAMPRO), were treated to an inside look of the technologies that helped set the stage for Trinidad and Tobago's world-class competitiveness in the Caribbean region. The tours of Blue Waters Products Limited, Associated Brands Industries Limited, Trinidad Distillers Limited (Angostura) and TYE Manufacturing Company Limited were guided by TTMA's Directors who serve on the Executive Board of these companies and were available to provide in depth answers to the questions posed by the Jamaican delegation. Jamaica's Minister of Industry, Investment and Commerce impressed with T&T's modernized manufacturing sector strong Jamaican market and customer base of nearly three million citizens. The creation of new jobs in Jamaica will help build a prosperous economy to the benefit of the entire region, and investors are welcomed from both inside and outside of the region to invest in the country. The TTMA believes that we must forge a positive pathway forward and together build and foster a new era of trust, friendship and infinite business possibilities. The TTMA wishes to provide you with the following list of Jamaica's geographical and infrastructural advantages: One of the world's best ports with major capacity and easy access to the US market A major highway network linking all key economic centres across the country A leading call centre destination at the Montego Bay Free Zone and Naggo Head; offer several advantages The Largest English speaking workforce-with expanding training capabilities Low attrition rate. Competitive wage levels. Cultural affinity with American and European clients. World class telecommunications infrastructure and competitive telephony rates 100% tax holiday on profits in perpetuity for service companies that export 85% or more of their services Duty Free Exemptions on: Capital Goods Consumer Goods Raw material, components or articles for use in an approved activity A r t i c l e s i m p o r t e d f o r construction, alteration, reconstruction, extension or repair of premises in the Free Zone Office equipment No restriction on the repatriation of foreign currency Free Zone companies can operate foreign currency accounts and there is a single entity free zone status for qualified companies outside of the zone The Hon. Stephen Cadiz, Minister of Trade and Industry who also addressed the gathers, shares a word with Her Excellency Sharon Saunder's- High Commissioner for Jamaica to the Republic of Trinidad and Tobago Factory Tour Photos THE MANUFACTURER PAGE 6
  7. 7. Recycling benefits both the economy and the environment. The process of converting waste into valuable raw materials results in job creation, competitive manufacturing industries and growth in the local economy. Simultaneously, the environment is protected; in other words both profitability and sustainability goals are fulfilled. The Trinidad and Tobago Manufacturers' Association (TTMA) is pleased that Trinidad and Tobago is on a 'solid' path with regard to the recycling business, as more companies enter this field. The foreseeable benefits include low energy costs, the protection of the environment, more socially responsible citizens, increased use of green technology and much more. This article presents some local companies that have gone green, and are in the business of recycling. Carib Glassworks Limited (CGL); a member of the Ansa Mc Al Group of companies has been in the recycling business from since 1948; more specifically, the recycling of glass. An exemplar in glass packaging, the company promotes the importance of overall recycling and encourages the public to recycle used glass or cullet by disposing them in recycle bins. The outcome according to Carib Glassworks Limited includes a Carib Glassworks Limited clean environment, low energy costs, preservation of natural resources, reduced energy consumption and reduced waste to landfills and dumps. In addition, Carib Glassworks Limited has embarked on public campaigns that encourage communities, businesses and individuals to develop recycling projects or programmes. The purpose of these public campaigns is to indicate the importance of recycling, the benefits of the programme and addressing the environment's needs. For example, in 2009, Carib Glassworks Limited removed five thousand, two hundred and sixty five (5,265) tons of glass from landfills, drains, coasts and communities and from this amount; three thousand nine hundred and sixty nine (3,969) tons were averted from reaching landfills and dumpsites. The Trinidad and Tobago Manufacturers' Association ( T T M A ) e n c o u r a g e s manufacturers to see the benefits of recycling. There is no doubt that t h e r e c y c l i n g b u s i n e s s i s performing substantially well with the added value that the environment is protected. In most recent times, companies have demonstrated innovative ways in the recycling business such as using waste cooking oil as a type of fuel The EcoImpact Company Limited The EcoImpact Company Limited was founded by Troy Hadeed in December 2009, with the intent to provide tangible solutions and expertise in reducing harmful environmental impacts and increasing environmental awareness. The target audience for their services includes individuals, business entities and Government organizations. Presently, the company focuses on open collection, recycling and processing of waste cooking (vegetable) oil for use in the alternative fuel sector along with other uses. The company has developed a sufficient system of collecting waste vegetable oil on a standardized, contractual basis, free of charge to the consumer. THE MANUFACTURER VOLUME 32 APRIL 2011 PG3 A look at the Recycling Business in Trinidad and Tobago ...Outlook for local Manufacturers Beyond Business Limited Founded in June 2010, Beyond Business Limited is considered to be a champion in sustainable business; and the company's initiatives have demonstrated its willingness to be a responsible, green business. For example, Beyond Business Limited carefully selects suppliers that are committed to o f f e r i n g p r o d u c t s w h i c h a r e environmentally sound and socially oriented for their company. The sustainability-centred philosophy of the company is in keeping with an increasing international trend among global companies that sustainability issues should be completely integrated into the strategic direction and operations of any company. Another example of Beyond Business Limited's mission to be environmentally responsible is the company's usage of office stationery items such as 100% recycled paper, 100% recycled fibres, sustainable wood, recycled newspapers and other recycled materials. Another illustration of its commitment to green sustainable business is its 'World Aware Programme' that entails visits to businesses to host sessions on responsible utilization of office resources. The programme draws attention to the impacts of the global issues, problems and “true costs” related to the acquisition and utilization of basic office resources which includes deforestation, felling of trees, loss of habitat for both plants and animals and many more harmful impacts. Further, the programme allows for the development of a network among organizations as knowledge, skills, expertise, ideas, talents and personal experiences are exchanged. Greening Corner THE MANUFACTURER PAGE 7 and re-used office supplies. H o w e v e r, a n e n a b l i n g environment is required to ensure sustainability of businesses. A key component of the enabling environment is the legislation framework for nationwide recycling and energy conservation which has yet to be enacted. TTMA hopes that with this article, there will be more support for ratification and implementation of legislation. REFRENCES / CONTACTS: , Ansal McAl Group of Companies, available at http://www.ansamcal.com/ Contacts: 639-0393; 785-8348; email - beyondbusinessltd@gmail.com email - ecoimpact@live.com Ansal McAl Group of Companies, Annual Report 2009 Beyond Business Limited: Ms. Hema Singh-Black; EcoImpact Limited: Troy Hadeed;
  8. 8. RESIN CONVERTERS LIMITED PRIME MINISTER'S AWARD FOR PERSISTENCY SANTAINERS OVERALL WINNER OF EXPORTER OF THE YEAR The Honourable Kamla Persad- Bissessar, Prime Minister of the Republic of Trinidad & Tobago (right) presents the award for Exporter of the Year to Miss Joanne Jackson, Director, Marketing &Administration, Santainers Limited. THE MANUFACTURER PAGE 8 On January 18th 2011, the Business Development Company (BDC) and RBTT Bank Ltd hosted the Prime Minister's Exporter of the Year Awards, which highlighted the efforts and contribution of the non-energy sector to the development and diversification of the T&T economy in 2009. Santainers Limited emerged as the overall winner on the night with the award for “Exporter of the Year”, a significant accomplishment on its own, but even more momentous given the fact that this was their first nomination ever for an Industry Leader Award. Santainers Limited manufacturers the Sanicup line of insulated containers for the food and beverage industry and has been investing in new equipment and upgrading their existing equipment over the past years, a contributing factor to their achievements in the export market. The TTMA extends its congratulations to Santainers Limited and all other winners for a job well done, and sees the Exporter of the Year Award as an incentive to the local manufacturing setor to remain resilient and innovative. Christian Quesnel, Managing Director of Resin Converters Limited, was just like many of the entrepreneurs of his generation-ambitious, committed, and hardworking, with an ability to spot an opportunity from a mile away. Mr. Quesnel saw the opportunities that were emerging in the plastics field and resin manufacturing for use in various industries, and in just under a decade of operation, Resin Converters Ltd is the recipient of Exporter of the Year: Persistency. Today Resin Converters is the largest manufacturer of plastics in the Caribbean, utilizing resin to supply plastics for use in various industries and is the leading company for bottles for the motor oil business. Resin's products (Pet Bottles, Plastic Bottles, and Plastic caps) are all made and individually tested under highly automated, sterile conditions, and have been exported to Jamaica, Barbados, St. Lucia and Guyana at cost competitive prices. According to Mr. Quesnel Resin's aim is to generate 35% of its revenue from the export market, and he sees the Prime Minister's Exporter of the Year Awards as an important tool to boost regional trade, especially given his desire to bring different projects to the market. “We are looking at developing and working with our clients to bring various products to the market using our package as part of their selling effort whether it be in the form of recycled material or whether it be in the form of design.” “The company has positioned itself; we're into various technologies that we're advancing. We're attempting to eliminate any quality problems and we're spending a tonne of money on identifying problems and correcting them, and trying to offer our customers zero tolerance with rejects, and I might add it's almost impossible to do but that's our goal,” he said. “We are in an expansion and retooling mode. We do not accept failure or defeat and we have a very good management team who deliver like professionals and make us stand out from the competition. We are going to innovate and make investments in a multi-layering system,” he said. TTMA members recognized for excellence at the 2 900 Prime Minister's Exporter of the Year Awards Mr. Christian Quesnel, Managing Director of Resin Converters Limited
  9. 9. CAPTAIN'S CHOICE PRIME MINISTER'S AWARD FOR EXPORT AGRICULTURE SPANCAST CARIBBEAN LIMITED PRIME MINISTER'S AWARD CHEMICALS AND NON-METALLIC MINERALS AND ENTERPRISE THE MANUFACTURER PAGE 9 Spancast Caribbean, winners of the Chemicals and Non-Metallic Minerals and Enterprise (New Market) categories at the Prime Minister's Exporter of the Year Awards has built a legacy upon providing precast architectural and structural products in a fully computerized batching plant, for clients throughout the region. Spancast has invested years of research and millions of dollars in creating the world's finest precast, prestressed plank production systems, and their in-house Drafting and Engineering Department offers design / build resources and expertise to help construct beautiful buildings on time and within budget. Spancast also provides other services such as Captain's Choice Limited is an example of the returns that can be gained through solid investments in one's business enterprise, despite the challenges of the economic, social and even political climates. An investment of US$2 Million in equipment in the running of Captain Choice's semi- automated conveyor system in 2009 has made them one of the most efficient and best equipped organizations in the Caribbean for the provision of fish fillet and chicken products for US franchise holders of KFC, Burger King and Popeye's. According to Richard Tywang, Managing Director of Captain's Choice, investments in the machinery and equipment has ensured a mechanized process at the factory with a complete breading line, and formular specific production. This has resulted in complete quality assurance which has allowed them to surpass the hygienic and safety standards required by the franchise holders. “This is the future of the business, anybody can go and sell fish or chicken but to take it a step further now you narrow the concept and you bring better food safety handling and standards to institutions that would use these products, you will have more control and you have a responsible party who will guarantee the safety.” “Captain Choice's boat was really for longevity in the industry of seafood, primarily to make a business continuous because raw seafood is just a commodity, but when you transform it into something, a consumable item where you give them a finished job that is tasty, that is healthy, that takes away all the stress at the end of the day, then application advice, layout options, preliminary engineering, budget pricing, and value engineering. David J. Williams, Managing Director of Spancast Caribbean Ltd is proud of the organization's achievements and because the company has been operating in survival mode since the economic downfall which occurred in 2008/2009, the awards have served as a much needed impetus to face the challenges ahead. “It gave us a little boost in a period of really difficult business performance. We were pleasantly surprised, of course it goes back to 2009 so we had to rack our brains as to what did we do in 2009 and of course it came back to us, we had a reasonably good job in Aruba. Other than that we've always been an exporter and in past years we did as much as 90% exports. It's nice to earn foreign currency; it's nice to be known up the islands,” he said. And Spancast Caribbean is certainly known up the islands, in fact the Spancast “stamp of great quality” can be found in Trinidad, Tobago, Barbados, Curacao, Grenada, St. Lucia, St. Maarten, Antigua, Aruba and the United States Virgin Islands (USVI). According to Mr. Williams, some jobs in other Caribbean countries may take some time to be completed such as a St. Lucian project which took a year to finish and others in St. Kitts and Grenada, but the organization has realized that symmetry must be made between the regional and local markets. “In the years subsequent to that large export that we had in 2009 we had to be very aware that being a total exporter is not really good for the industry. We have to balance what we sell locally and what we export because we see it as two different markets. We need the local market of course so that we maintain our presence, that's very important.” you provide a value added product.The focus is on the long term market- the long term is what we're after,” he said. Captain Choice's specialized value added products for franchise companies has been exported to other Caribbean islands under the highest standards, and although the organization's journey in export only began in 2009 after years of planning and research and development, they have achieved notable feats. “We're persistent in where we want to go in our markets, we're persistent in keeping our standards to where it needs to be, we're persistent in research and development, and we do a lot of research and development with new products.” “Standard is the most important thing for us looking at alternative products, because right now we focus on the franchise companies and where they have franchisee operators we have to meet a certain standard. We have very good international ratings in terms of product handling, product quality and our factory standard. For the Burger King Corporation we're at the top level where hygiene and food safety is concerned,” he said. Mr David Willams, Managing Director, Spancast Caribbean Limited, poses with Spancast Staff, with their Prime Minister’s Exporter of the Year Awards for Chemicals & Non -metallic Minerals & Enterprise. Mr. Richard Tywang, Managing Director of Captain’s Choice holds the Prime Minister’s Award for Export Agriculture
  10. 10. These are interesting times for Trinidad and Tobago. We are one of the most cash-rich economies in the CARICOM, with vast natural resources and a very well trained work force. Even though our growth rate, at approximately 2%, seems limiting, the fundamentals of our economy are solid. The fiscal and financial policies will most likely deliver some stability, at least in the short term. Despite the economic position, Trinidad & Tobago faces real and significant challenges that must be addressed in order to enhance the competitiveness of the country for the next decade. In his presentation at the Distinguished Leadership and Innovation Conference, Professor Michael Porter presented a clear, simple and sobering analysis of the Trinidad and Tobago situation and outlined a path to competitiveness. We share some of his conclusions with respect to the current situation and possible future for this country. Our position at 2011 We have a growth crisis. Most CARICOM countries are expected to grow between 2% and 2.8%. The prospects of having better growth rates in the short term are not strong. Lack of diversification and dependence on global commodity markets for natural resources exposes us to high levels of volatility, and threatens our ability to control our economic future. In other words, our prosperity as a country is quite unpredictable. Our prosperity has been based in our ability to commercialize our natural resources and not from increasing our productivity by optimising the value chain across several clusters. In a small economy and in a small geographic market, a critical growth engine is exports. Our current export composition is too narrow, and overly concentrated in goods with limited added value. Re-Thinking Trinidad and Tobago: Towards a New National Value Proposition by Professor Miguel Carrillo, Ph D. Executive Director and Professor of Strategy, Arthur Lok Jack Graduate School of Business The mindset of our young professional is mainly focused on becoming an employee, to have a good job, a nice office, and a secured source of income. Professor Porter's conclusions are supported by our analysis of the findings of the Global Entrepreneurial Monitor study on entrepreneurial activity in Trinidad & Tobago conducted by the Lok Jack GSB. The five most significant conclusions are: We do not have enough entrepreneurial activity. We are in 48th position out of 59 countries on the indicator of entrepreneurial activity defined as new firms existing for less than 3.5 years. Of this reduced entrepreneurial activity, about 2/3 is aimed towards internal commerce and basic trading of existing products or basic services. Approximately 87% of the entrepreneurial activity in Trinidad & Tobago is not innovation driven. In other words, most of our entrepreneurial activity offers limited and narrow value propositions. Our focus is to offer products and services that are allegedly better but not different or original. We are playing the game of “sameness” and disregarding the game of “uniqueness”. The above combination has led Trinidad & Tobago to be one of the three least innovative countries, out of the 59 surveyed in the Global Entrepreneurship Monitor study in terms of new ventures. This finding converges with the World Economic Forum Global Competitiveness Report ( 2009-2010) in which Trinidad & Tobago is ranked 94th of 139 countries in terms of capacity for innovation. The international orientation of new ventures launched in Trinidad & Tobago in the last 3.5 years is very limited. Less than 8% of new firms have more than 25% of foreign customers. THE MANUFACTURER PAGE 10
  11. 11. A possible future by 2021 President Obama once stated that things are never as bad as they look, or as good as they look. Our current position is a great opportunity for a new generation of leaders in the public and private sector. What a great platform to start! Many things to do, and many challenges ahead. Businesses, organizations, and nations need strategy. The strategy is crafted by re-thinkingour national value proposition. The worst error in strategy is to compete with rivals along the same dimensions. Competing to be the best is really about competing to be unique. The key challenge for Trinidad & Tobago is to start with a CLEAR end in mind. Strategy is about three things: focus, choice, and actions. Without a clear end in mind, we cannot have focus, or actions. Strategy is about big bets. It is now time to advance the development of a NEW NATIONAL VALUE PROPOSITION for Trinidad and Tobago. The way we fill the space in the sentence that follows is critical. We want to be the capital of……….. of the world. Organic Food? Eco-Tourism? Port Management? Alternative Music and Rhythms? Apparel and Fashion for Entertainment? Food and Beverages? Yacht Maintenance? What would be our BIG BET? A national value proposition defines answers by exploring these questions: a) What is the distinctive competitive position we should seek, given Trinidad & Tobago’s current location, legacy, resources, capabilities, current and potential strengths? b) What types of activities and clusters should we develop? c) What are the roles of neighbors, the region, and the broader world? We have to identify how we can leverage our history to propel us to a different and new future. We need to tell a new story to the world. Hence, we cannot have a National System of Innovation without a National Value Proposition. Our National Value Proposition has to be very attractive, not just to our local market, or to the Caribbean, but to the world. A critical dimension of this new value proposition is its capacity to create value abroad. Our country, and indeed the Caribbean is quite small to be overly attractive to investors outside the energy sector. FDI will tend to be limited. We have to combine our capacity to be an outpost of opportunities, and to spot and create opportunities to do business abroad. We are a small country. How can we leverage our resources and turn smallness into greatness? How can we exploit the density and intensity of our cultural diversity? Shall we become the capital of 'sun and sand tourism of the Americas', or the capital of 'Manufacturing prototypes of the world'? In the latter case, the world comes to us to produce small batches of new products that are aimed at creating new markets, supported by flexible manufacturing, as is currently happening at the city of Hangzhou in China. Hangzhou's big bet? To become the exhibition capital of the world, specialising in three things: a) manufacturing small batches of product samples, b) organising exhibitions of goods, materials, and products for many sectors, and c) turning wholesale purchases into a great consumer experience. Diageo, one of the largest producers of spirits in the world, is currently outsourcing the creation and development of new alcoholic beverages to Demerara Distillers in Guyana. A Singaporean firm is building a US$733 million offshore terminal in the city of Basra in Iraq that will double exports by early 2012. What can Trinidad & Tobago entrepreneurs do for and in Haiti? All these firms have turned a local value proposition into a global one. Very few local firms are ACTIVELY exploring and seizing opportunities beyond the Caribbean. These few firms will most likely become the growth and innovation champions for Trinidad and Tobago, but we need more of them! In short, Trinidad and Tobago needs to take two fundamental decisions: What to do and with what intensity. We do not need more plans; we need a confirmed position on the way forward and an action agenda that drives change. In next articles, we will propose new roles for government and labour, and explore how a national value proposition can be linked to an innovation system at a supra-national, national, and business level. THE MANUFACTURER PAGE 11
  12. 12. In this issue we shift our focus to the emerging nations of Asia. This region is expected to provide the most returns to international fixed income investors this year. Asia in particular is led by growth in larger economies such as China and India, the region's BRIC members. However, smaller nations such as Indonesia, Korea and Taiwan have also been recording significant expansion in the coming regions. Since the financial crisis, Asia has seen a remarkably strong export- led recovery. But by 3Q 2010, the extremely accommodative policy tightened and exports fell as a result. Despite the deceleration, Asia ex-Japan still managed to outperform all other regions with 2010 projected to grow 9.30%. 2011 growth is expected to slow to 8.40%, consistent with the overall global growth slowdown. (Figure 1). Of the Asian nations, China and India are expected to be the major powerhouses with growth projected at 9.60% and 8.40% respectively. The Association of Southeast Nations (ASEAN-5) nations – Indonesia, Malaysia, the Philippines, Singapore and Thailand – are expected to grow by 5.50% Above Par Growth Risks High Grade vs. High YieldAsian Credit Outlookthis year. In comparison, emerging economies' growth is forecast at 6.50% over the same period. The positive Asian activity confirms the region's role as the main driver of global demand. However, the activity has brought on severe inflationary pressures that have been a growing source of discomfort for consumers, businesses and policymakers around the world. With little spare capacity in the region, inflation has become an increasing concern for Asian central banks. China's January trade data highlighted a rebound in Asian activity. Exports rose by 26.9% while imports were 59.4% higher, both much stronger than economists' forecasts. Other Asian economies have also shown signs of resurgent strength. Stronger exports, particularly of capital goods, are likely to boost activity, but domestic demand is expected to be firm, finding support from public investment. Healthy exports also underpinned the stronger-than-expected reading for Q4 GDP growth in Taiwan, Singapore and Korea. Despite inflation concerns, the region's strong fundamental outlook is extremely supportive for the credit market as it provides a good backdrop for spread tightening throughout this year. Returns for EM Asia are expected to be lower than in 2010, but are still expected to continue outperforming US and European credit. The risk premium applied to Asian credit (versus similarly rated US/European paper) is expected to continue to shrink, which will be the main driver of outperformance. Corporates in the region have remained conservative, with investment-grade companies showing no inclination to aggressively add leverage. Within high yield also, most corporates ended 2010 on a stronger note than where they started, as measured by liquidity, credit m e t r i c s a n d o p e r a t i n g performance. These are definite positives for the region as a whole. In terms of credit quality, analysts prefer EM high yield over high grade bonds since it is the only category that can offer yield pick- up. Against a very favorable fundamental EM backdrop, high- yield valuation is quite attractive by historical standards. Asian high- yielders (sovereigns and corporates combined) are expected to post total returns of 8-9%, with Asian high-yield corporates projected to return 10-12%. Of course, sacrificing quality brings into the forefront the probability of default. For Asian high-yield corporate bonds, defaults are likely to be isolated making it futile to apply a default rate forecast. For high-grade bonds the forecast is less optimistic as low yields are likely to temper the outlook for high-grade and sovereign total returns. On an excess-return basis Asian high- grades could generate 250-300bp. The forecast for Asian sovereigns is even less upbeat as a result of current valuations. Excess returns for sovereign credit are lower at 175-200bp. ASIAA Developing Story THE MANUFACTURER PAGE 12
  13. 13. From a sector perspective, the recommendation is to shift out of defensive sectors and move into cyclical sectors, such as retail and energy. The retail sector is poised to benefit from an uptick in consumer spending while the energy sector is likely to benefit from attractive valuations and a higher oil price. Despite an investor's intuitive desire to seek out investment/high- grade bonds, analysts are recommending high-yielders in the Asian space as corporates have the potential for further spread tightening to the end of the year. We recommend investing in the short to medium term of about 5 to 7 years to maturity to mitigate any capital depreciation from interest rates rising. But more importantly, despite improving financial and credit metrics, proper due diligence is recommended when investing in high-yield bonds. The advice of a qualified financial advisor is recommended before an investmentdecision is made. Bourse Securities Limited - 90 Independence Square, Port of Spain, Trinidad, - Tel: (868) 623-0415 - Fax: 624-6953 This report is for informational purposes only and does not constitute an offer or solicitation to buy or sell any mutual funds or securities discussed herein. The information and any data contained herein have been obtained from financial data provided to us by the issuers of the subject mutual funds or securities. Investors wishing to purchase any of the mutual funds or securities mentioned should consult an investment advisor. Projections and estimates are those of Bourse Securities based on current available i n f o r m a t i o n . E - M a i l u s a t or phone 623-0415/0416 /9360 askus@boursefinancial.com Conclusions Sector Reccomendations THE MANUFACTURER PAGE 13 Be seen! Inserts can also be placed. For further details please contact the Secretariat at 675-TTMA (8862) ext. 239 or email communication@ttma.com Need to advertise your business or event? Try "The Manufacturer" and see real results TODAY! Reach your target customer with : ¼ page, ½ page OR Full Page ads.
  14. 14. According to the recently released 2011 Global Economic Prospects report from the World Bank, global GDP (Gross Domestic Product) growth, which reached 3.9 per cent last year, will decline slightly to 3.3 per cent in 2011 and 3.6 per cent in 2012,with developing The Central Bank of Barbados stated that the Barbados economy experienced a 0.4 per cent decrease for the first nine months of 2010 while in Jamaica, real GDP declined by 0.9 per cent in the third quarter of 2010. Further, the Eastern Caribbean Currency Union experienced a decline of 3.2 In 2010, the Central Bank of Trinidad and Tobago reported that the Trinidad and Tobago economy recovered slowly. The Central Bank estimated GDP at 0.1 per cent compared to 2009, where it fell at 3.5%. The slow recovery in 2010 was attributed to the 4.7 per cent increase in the output of the energy sector; however the non- energy sector fell by 1.4 per cent. Global Economic Review Economic Performance of the Caricom Countries Macro-Economic Performance of Trinidad and Tobago 2010-2011 economies outperforming developed ones. In terms of developed countries, the economy of the United States experienced growth in both the third and fourth quarters of 2010 by 2.6 per cent and 3.2 per cent respectively. However, the United Kingdom contracted by 0.5 per cent in the fourth quarter following growth in both the second and third quarters by 1.1 per cent and 0.7 per cent respectively. per cent in 2010 after facing a decrease in economic activity of 7.3 per cent in 2009. This however was not the case with Guyana which experienced growth by 2.8 per cent in the first half of 2010. The Caribbean Centre for Money and Finance stated in their 2010 annual report that both domestic and imported food prices exerted inflationary pressure in the Caribbean. The document reports that in the fourth quarter, the inflation rates increased in most islands ranging from 1.78 per cent for Aruba to 13 per cent for Trinidad and Tobago and Jamaica. In terms of economic outlook, the region will face challenges even though there were improvements in worker's remittances and income from the tourism sector in 2010. Other outlook prospects include weak inflation and widening of current account deficits. In addition, the Central Statistical Office of Trinidad and Tobago estimated that the average unemployment rate in 2010 was 7 per cent compared to 2009's unemployment rate of 5.3 per cent (refer to table 1). Other indicators include headline inflation which rose to 13.4 per cent by December 2010. This was the result of high food prices which increased by 29.5 per cent. Further, the Central Bank Economic Bulletin 2011 revealed that “core inflation increased to 4.7 per cent in the twelve months to December 2010 from 2.2 per cent a year earlier.” Further, the Central Bank, in its aim to fuel economic growth, reduced the repo rate from 5 per cent in July 2010 to 3.75 per cent by the end of December encouraging commercial banks to reduce their average prime lending rate from 9.5 per cent to 8.38 per cent. In terms of economic outlook, the Central Bank indicated that the economy is expected to expand by two per cent. Real Sector Activity Real GDP Energy Non-Energy Headline Inflation (end of period) 2007 3 2 1. Annual percentages changes, unless otherwise stated. 2 On a fiscal year basis (October – September) and includes budget figures for 2010/11. ( In percent of GDP unless otherwise stated.) 3 Represent balances at the end of the fiscal year and excludes OMOs, treasury notes and debt management bills Source: Central Bank of T&T, Ministry of Finance, CSO, IMF 1 ANNUAL ANNUAL FORECAST 20092008 2010 2011 4.8 1.7 7.6 7.6 -3.5 2.6 -7.2 1.3 2.4 -0.2 4.2 14.5 0.1 3.0 -1.9 13.4 2.3 3.2 1.9 7.0 5.6 1.8 29.2 5.3 -4.9 33.0 4.6 7.5 25.0 7.0 -0.2 36.1 7.5 -5.2 37.7 Unemployment rate (average) Central Government Fiscal Balance Public Sector debt Fiscal Operations THE MANUFACTURER PAGE 14 Table 1. Summary of Economic Indicators
  15. 15. Manufacturing Sector of Trinidad and Tobago The Caribbean Centre for Money and Finance Annual 2010 Report indicated that the manufacturing sector showed growth for the first time in the second quarter of 2010 as the sector expanded by 281 per cent. In terms of the sector's contribution to GDP, it was estimated at 5.5%. Further, within the manufacturing sector, the food and beverage sector has the largest slice (37%) followed by Chemicals, Non – metallic Minerals accounting for 23% and Assembly Type and Related Industries which accounted for 21%. The Central Bank of Trinidad and Tobago provided latest statistics on the Manufacturing sector's contribution to the labour f o r c e . E v e n t h o u g h t h e manufacturing sector contracted by 0.2 per cent in the second quarter of 2010, it was less than in the first quarter of 2010 which was estimated at -1.8 per cent. For the period 2006 to June 2010, the Trinidad and Tobago economy recorded surpluses in terms of its balance of trade; the highest was recorded in 2008 with a total of TT$56,709.7, while the lowest was recorded in 2009 with a total of $TT13,772.3. Other trade statistics indicated that in 2010, Trinidad and Tobago imported goods mainly from the Mineral fuels category as this accounted for 33 per cent followed by Machinery and Transport equipment and Manufactured goods which accounted for 28 per cent and 19 per cent respectively. On the domestic exports side, Trinidad and Tobago exported mainly mineral fuels (79 per cent) followed by Chemicals (9.8 per cent) and Manufactured Goods (5.2 per cent). The top five Import markets in 2009 included United States accounting for 31.3 per cent, followed by Colombia, Russian Federation, Gabon and China which all accounted for 10.1 per cent, 8.0 per cent, 7.1 per cent and 5.06 per cent each respectively. However, the top five export markets include United States (62.5 per cent), CARICOM (15.8 per cent) Spain (6.3 per cent), United Kingdom (4.8 per cent) and the Rest of the World (1.8 per cent). E v e n t h o u g h t h e Manufacturing Sector showed slow recovery in 2010, it is imperative that the competitiveness of Trinidad and Tobago's manufacturers remain buoyant as this will ensure sustainability of the sector. Some indicators that reflect the competitiveness of a country include the Global Competiveness Index and the Index of Economic F r e e d o m . T h e G l o b a l Competitiveness index indicated that Trinidad ranks 84 out of 139 countries with a score of 4.0 for the period 2010 to 2011 as compared to the last period 2009-2010, the country ranked 86 out of the 139 countries with a score of 3.9. This indicates a slight improvement of the country's competitiveness however; there is room for more devleopment. The World Economic Forum indicated on their report that Trinidad and Tobago faces many challenges in the business environment such as crime and theft which was rated the highest (18.3 per cent) followed by poor work ethic (17.6 per cent) and corruption (11.7 per cent). The Index of Economic Freedom for Trinidad and Tobago is 66.5, positioning the economy as 52nd in the 2011 Index. Its score is 0.8 points higher than the previous year, reflecting progress in fiscal freedom, monetary freedom, and government expenditure. Further, it was revealed that Trinidad and Tobago is ranked 11th out of 29 countries in the South and Caribbean region, and its overall score is higher than the world and regional averages. A key index of the Economic Freedom is the Business Freedom Index which addresses the freedom to establish and conduct business. Trinidad and Tobago scored 58.4 falling by 0.6 from last year. In general, the freedom to conduct a business is restricted by the country's regulatory environment. The regulatory system fell short in transparency and clarity, and the i r r e g u l a r i t y o f e n f o r c i n g regulations. Therefore, official statistics indicates that the manufacturing sector progressed in 2010 however the sector faces many problems that hinders the development of the sector. In terms of its economic outlook, the manufacturing sector is expected to grow in 2011. This will be driven by international commodity prices and a revival of trade with Caricom States. Source: Global Competitiveness Report 2010 - 2011 THE MANUFACTURER PAGE 15 Selected Indicators Basic Requirements Efficiency Enhancers Innovation and Sophistication GCI 2010-2011 GCI 2009-2010 1st Pillar: Institutions 2nd Pillar: Infrastructure 3rd Pillar: Macro – Economic Environment 4th Pillar: Health and Primary Education 84 86 55 68 45 70 61 77 78 4.0 3.9 4.7 3.9 4.5 4.6 5.8 4.0 3.4 SCORE (1-7)RANK (out of 139) Table 2. Global Competitiveness Index for T&T

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