Presented By:José Rosa

General ManagerKajola-Kristada, Ltd.

Manufacturing Sector – Saint Kitts and Nevis Strengths Sector Composition Economical Indicators Strengths Challenges &

Opportunities/Initiatives

AgendaAgenda

Saint Kitts & Nevis Saint Kitts & Nevis ManufacturingManufacturing

Sector CompositionSector Composition Constituted by local and foreign manufacturing

companies Approximately Eighteen (18) different manufacturing

companies 90% of the companies have operated for over 10 years in St.

Kitts and Nevis Manufacturing companies categories.

Light Electronic & Electrical Servo motors, switches, telecommunication and cable TV

devices Beverages

Beer, soft drinks, water, rum Apparel

Uniforms, General Clothing Furniture Masonry, Windows and Doors Agro processors

Saint Kitts & Nevis ManufacturingSaint Kitts & Nevis ManufacturingGDP Impact TrendGDP Impact Trend

Percentage of GDP Percentage of GDP By Business Sector 2012 By Business Sector 2012

Saint Kitts & Nevis Saint Kitts & Nevis ManufacturingManufacturing

Selected Economical Selected Economical IndicatorsIndicators Relevant Data

Employees - Approximately 2,000 in 2012 Exports (Currency =XCD million)

2010 – $139.81 $110 – Electronic/Electrical $6.62 - Beverages

2011 – $163.42 $121 – Electronic/Electrical $9.03 - Beverages

2012 - $166.66 $132 – Electronic/Electrical $10.12 - Beverages

Saint Kitts & Nevis Saint Kitts & Nevis Manufacturing StrengthsManufacturing Strengths

Stable political, social, economical and business environment

Business incentives and fiscal exemptions for local and foreign investors

Low cost producer relatively to USA and other developed countries

Free trade agreements and international initiatives to facilitate the free movement of goods Caribbean Single Market Economy (CSME) CARICOM European Partnership Agreement (EPA) Caribbean Base Initiative

Saint Kitts & Nevis Saint Kitts & Nevis Manufacturing Strengths Manufacturing Strengths

(cont.)(cont.) Strong Human Resources base

Trainable Experience in manufacturing Adaptability to meet markets demands

Adequate infrastructure Diverse air and sea transportation

services Proximity to USA, South America,

Central America and Caribbean Markets

Saint Kitts & Nevis Saint Kitts & Nevis Manufacturing Other Manufacturing Other

Important FactsImportant Facts Bring new technologies Continuous employee training and education

Create stable jobs Employees work 40 hrs./week all year Competitive salaries and working conditions

Participate actively in the community Education scholarship Sports and entertainment events Support government and community initiatives

Maintain competition of cargo rates

Saint Kitts and Nevis Manufacturing Saint Kitts and Nevis Manufacturing Challenges & Opportunities /InitiativesChallenges & Opportunities /InitiativesChallenges Opportunities/

Initiatives Develop a Manufacturing

Strategic Plan to sustain and enhance manufacturing sector in Saint Kitts and Nevis

National Strategic Draft completed

National Consultation to take place during 2nd quarter 2013

Explore new trade agreements with other countries such as Brazil, MERCOSUR, Central America, Asia 

Partial Scope Agreement (PSA) between Brazil- Guyana – SKN should be functional by June, 2013

Increased operational costs Utilities (electricity),

employees compensation, freight, wages

Application for energy audit funds for the manufacturing sector was submitted to The Center of Development Enterprise (CDE)

Insufficient local technical support base No advanced technical

education such as engineering

Working closely with TVET to align technical curriculum and training with the sector needs

Sourcing technical resources from the region taking advantage of the CSME

Saint Kitts and Nevis Manufacturing Saint Kitts and Nevis Manufacturing Challenges & Opportunities /InitiativesChallenges & Opportunities /Initiatives

Challenges Opportunities/Initiatives

Majority of the raw materials and components have to be imported

Explore partnerships and cooperation agreements with other manufacturing sector in the region to increase regional sourcing

Compete with countries in and out of the region with lower wages

Manufacturing plants are investing financial and human resources to promote high productivity and quality level using LEAN, Six Sigma and ISO tools.

Increase automation to reduce labor cost and produce new products

Saint Kitts and Nevis Manufacturing Saint Kitts and Nevis Manufacturing Challenges & Opportunities /InitiativesChallenges & Opportunities /Initiatives

Challenges Opportunities/Initiatives Worldwide decline

in manufacturing and economical recession

Focus to grow the small manufacture enterprises (SME) Initiated discussion between the

Manufacturing Division of the SKN Chamber of Commerce and SIDF to see the availability to obtain capital to incentive this sector

Last year started trainings to improve SME’s business knowledge sponsored by the Central Bank (ECCB) and SKN Chamber of Commerce

Attract new foreign industries with different technologies such as Medical Devices, Pharmaceutical

Increase workforce flexibility and productivity

Government to explore alternatives to mitigate the effect of the recession for indigenous manufacturers