Bracing for headwinds

A key sector leader has argued that despite the severe disruptions caused by Hurricane Melissa, which the International Monetary Fund estimates could depress economic output by between eight and 13 per cent in the short term, Jamaica’s macroeconomic fundamentals remain resilient, and key structural indicators signal a credible path to recovery.

Kathryn Silvera, president of the Jamaica Manufacturers and Exporters Association (JMEA), noted however that even with a positive outlook for 2026, manufacturers and exporters face multidimensional headwinds.

Silvera said high energy costs and logistics bottlenecks continue to erode competitiveness and add inflationary pressure to production costs. At the same time, she noted that labour shortages and skills gaps persist in key sub-segments of manufacturing, particularly for advanced processing, quality management, and export-grade production lines.

Responding to questions posed by The Gleaner, Silvera said credit access remains limited for MSMEs, constraining retooling, expansion, and working capital flexibility.

In the aftermath of Hurricane Melissa, the JMEA president said manufacturing is grappling with weakened raw material pipelines for agro-processing firms and increased reliance on costly imports.

“The most urgent challenge lies in [the] speed of recovery, ensuring that affected firms access grants, concessional credit, and raw material inputs quickly enough to restore capacity, retain jobs, and avoid permanent exit from the market,” she said.

Without accelerated and targeted support, the JMEA head said, MSMEs (micro, small and medium-size enterprises) risk structural displacement at a time when manufacturing is essential for food security, export earnings, and economic stability.

On the question of how the JMEA plans to position itself to address these challenges, Silvera said the association is evolving from a sector voice to a national recovery and growth partner.

“We will continue to engage with [the] Government and development agencies and financial institutions to expand blended finance, recovery grants, and risk-sharing instruments tailored to MSMEs and agro-processors,” she said.

Further, she said the JMEA will continue to advocate for energy-pricing reforms, infrastructure upgrades, and logistics efficiencies that lower input costs and improve export competitiveness.

She said the JMEA will also partner with the Government and training institutions to accelerate workforce skills modernisation and boost productivity across the manufacturing value chain.

Strengthening export facilitation, quality standards compliance, and market access initiatives to help exporters seize global and regional market opportunities, particularly with the United States and CARICOM partners, are also on the JMEA’s agenda this year.

“Our objective is clear – we will not just restore manufacturing, but we will build a stronger, more resilient, more competitive industrial base that drives jobs, foreign exchange, and national economic stability.” Silvera added.

Metry Seaga, president of the Private Sector Organisation of Jamaica (PSOJ), said he was expecting reconstruction efforts to propel economic activities this year, following the devastation caused by Hurricane Melissa last October.

Prior to the impact of Hurricane Melissa, Jamaica’s macroeconomic indicators were moving in the right direction, Seaga said.

“This is what has saved us, and it is important that we don’t use this as an opportunity to go back to the days when we used to ‘run wid it’ and make mistakes by overspending,” he said.

Seaga said he was confident that the Government will be fiscally responsible and that the PSOJ will hold the administration to account.

“The foundation is there for investment and we have got to start growing our productive sector, and I think we are in a position to so do.”

The need for greater productivity in the country was highlighted by Seaga, who pointed to red tape in government as a barrier that has to be removed in order to make way for increased business activity.

“If we don’t fix that red tape, if we don’t get government agencies to move much faster and much more productive in their processing of licences and things of that nature, then that’s going to hinder productivity.”

Turning to the political directorate, the PSOJ head said they must be prepared to make faster decisions for the country and not be afraid of any backlash.

“If it is good for the country, do it and let the chips fall where they may,” he added.

edmond.campbell@gleanerjm.com