MANUFACTURERS with under seven years experience within the industry are to benefit from a recognition programme to be sponsored and implemented by Continental Baking Company (CBC) through its National brand.

Chairman of CBC Gary ‘Butch’ Hendrickson yesterday, at the Knutsford Court Hotel, launched the programme, which will see 15 manufacturers from various entities receive $25 million worth of promotional exposure.

The sponsorship is being made courtesy of the CBC and Hendrickson who told the audience of manufacturers, business persons and the media that he is committed to promoting, manufacturing and production as a solution to Jamaica’s growth.

The programme, dubbed ‘The Bold Ones: New Champions of Manufacturing’ will serve to highlight the 15 selected businesses through a multimedia campaign that includes newspaper, television and radio advertisements and features, website features on the National Baking Company webpage, exposure on social media such as Facebook and Twitter and at the upcoming JMA/JEA trade show. Participants range from Debz and Ranaz, which makes soy-based ice cream, to Adduci Cigars and manufacturers of herbs and spices, pastry and packaging. All use Jamaican ingredients in their products.

“By highlighting these enterprising and successful small businesses, other Jamaicans will be inspired to take the initiative to explore their own possibilities,” Hendrickson said.

He said that in using his good fortune and success as a third-generation manufacturer whose company has been in the business for 58 years, he could assist the companies deal with the challenges of starting and running a business.

“The productive sector is the backbone of any country, and given the changing world economy, we are increasingly understanding the importance and possibilities of this sector and importantly, the people who have utilised their creativity and expertise to make excellent products,” Hendrickson said.

President of the Jamaica Manufacturers’ Association (JMA) Omar Azan added that while the agricultural and services sectors — earmarked as priority sectors for the government — can be shut down as a result of a natural disaster, the manufacturing sector can continue to produce even in the most trying times.

“The manufacturing sector has remained resilient, contributing US$1,244.7 million to foreign-exchange earnings, 8.5 per cent of GDP, employing 70,000 persons and our productivity has outperformed many sectors,” Azan said. The Manufacturing industry was the largest contributor to GDP among the economy’s goods producing sector in 2008 according to the Economic and Social Survey Jamaica.

“These are the facts and if we continue to earmark one or two sectors alone as our engine of growth we will continue to falter particularly in times of crisis as well as fail to capitalise on the opportunities that are available in the manufacturing sector,” he added.

Azan said that in the context of all that hampers the competitiveness and survival of local manufacturers, among them a complex tax system, high electricity costs, high levels of crime, a lack of partnership and a fragmented approach to attracting investment, the initiative by the CBC is a good one.

He said the collaboration that the initiative speaks to is necessary to compete in both the local and international markets.

“Let’s replicate this local initiative through the creation of a trade show access programme to support and see more of our small and medium-sized enterprises partaking in trade shows- especially at this point in which our trade imbalance is at a record high,” Azan said.

Minister of State in the Ministry of Industry, Investment and Commerce, Michael Stern who spoke on behalf of Karl Samuda, told the group that despite suggestions to the contrary, the ministry is “100 per cent behind manufacturing”.

“It is against this background that we welcome initiatives by private sector entities such as National Baking Company to bring a fresh approach to this vital subsector,” Stern said.

At the end of the presentation, Hendrickson explained that the programme, which is in its infancy aims to attract new manufacturers each year, who will also benefit from the mentoring and business development process. Among the criteria for selection is that the manufacturer employs at least five persons, be in business for less than seven years and is tax compliant. This important caveat impressed the banking representative present. They noted that this would at least ensure that the businesses have proper accounting records.

Pamela McLean, managing director of the Exim Bank noted that the programme augers well for the manufacturers involved because the mentorship process, which includes oversight and business management practises, would make them better candidates for loans from the bank.

Bernadette Barrow, assistant general manager of NCB’s SME unit concurred. She told the Business Observer that the initiative is ‘tremendous’ because the SME’s can benefit from the experience of the more established businesses.

“A lot of these small manufacturers don’t necessarily have the opportunity to get the exposure. Look at something like marketing. Most of these established companies would have gone to trade missions, would have seen first hand what people really want,” she said. Barrow added that the CBC mentoring process can teach the new manufacturers how to approach business in a way that is sustainable, structured and disciplined.