Is there money to be made for self-employed people or others seeking to simply change careers in the manufacturing sector and — if yes — what industries?

According to the Bank of Jamaica, in the manufacturing sector, food, drink and tobacco dominated lending with furniture, fixture and wood products coming in second and metal products rounding out the top-three sectors that were granted funding by commercial banks for the period ending May 2017.

Total lending for the sector was $20.8 billion – a 30 per cent increase over lending for the 12-month period.

Now manufacturing represents only 3.5 per cent of the $582.5 billion lent by commercial banks for the month of May 2017. That said, according to the Christopher Williams-led Proven Investments team, “Jamaica has an aggressive, ownership-driven reform agenda, driven mainly by policy reforms in the energy, manufacturing, agriculture and tourism sectors.”

Therefore, we turned to our panel of experts to look at some of the ways that people seeking to create income ideas can benefit from the manufacturing sector.

WHICH PRODUCTS?

The Scientific Research Council (SRC) was first on the agenda in terms of getting help with determining what products are available for light manufacturing.

Dino Hinds, director of Micro-Financing Solutions, notes that the SRC “will in fact develop a forumla for you. If you don’t want to buy the ready-made formulas that they have in their natural products development division, you can ask them to create one from scratch for you. Let us say that you believe that pear is a great ingredient to put in shampoo, then the SRC can work that out for you and then you have your product”.

From there, Hinds noted that you can then turn to the Jamaica Business Development Corporation to help you develop a business plan and do your own market research.

For people who do not want to do their own business plan, it would be good to pay someone to do it for you.

Hinds notes “I think it’s very important to get a comprehensive business plan done for any business one is looking to get into. This business plan should include research on the market for the product and also existing competitors that are operating in the space.”

From there, one can look at the nuts and bolts of setting up a small manufacturing enterprise.

“Another thing to consider,” Hinds says, “is the cost to manufacture the product. This is important as we want to ensure that you have enough capital to make the product and bring it to market. Finally, it is important to check to ensure that raw materials are readily available. Can it be sourced locally, do you have to important these raw materials? Is the supply of raw material consistent? It would not be good to bring a product to market and when demand picks up we are not able to meet that demand.”

PATENTS AND TRADEMARKS

Of course, there is no industry that doesn’t have risks so up next on our panel is Robert Taylor, attorney-at-law who spoke on key areas one must be aware of. He noted that, “If you truly believe you have a great product idea, apply for a patent. A patent is a granted by the State to the inventor or a monopoly in the use of an invention, thereby excluding others from making, using or selling the invention within the country of grant for a specified period of time without the authorisation of the inventor.”

Alternatively, Taylor recommends trademarking any special names that your product will likely have. “A trademark can provide an additional layer of protection, since a company’s name is often tied closely with its idea. Also, by establishing a trademark, you also have added protection in the event a legal issue should arise. The documentation required to register a trademark can serve as written proof that your business idea was in the works at a specified time. These dates will be crucial in establishing the exact date your idea was in the works in the event someone else tries to dispute this fact.”

And finally, before you launch your product to market, Taylor recommends that, “One of the best ways to secure your idea is to only reveal what is absolutely necessary. If you’re pitching an idea to a potential client, give only the details necessary to convey the idea. It’s not necessary to share every detail of how your product works, for instance, when you can get the same information across by revealing the need your product or service fulfills. One exception to this may be when you’re pitching to investors or lenders, who will likely want to know everything about your product before taking a financial risk on it.”

And finally, Taylor advises that you use non-disclosure agreements (NDA). “Although many investors will balk at signing an NDA before you speak with them, it may be a calculated risk as the balance of power is in their favour; this may be something you’ll have to give up if you want investors.”

WHERE TO WORK

Now, not every one wants to start their own manufacturing business and may simply want to work for one. According to Dr Carolyn Hayle, former head of HEART Trust/ NTA, there are three career paths that are trending high in terms of pay internationally that one can study for in Jamaica. “Right now manufacturing is going high-tech internationally. If you were to stay in Jamaica and invest $420,000 for a post-grad diploma and then a further $800,000 in a master’s degree, a career in information technology would, at the managerial level, pay you median US$80,772. Now, remember that that salary is based on international standards.”

Up next, Hayle said that manufacturing plants worldwide will always need an operations manager, and the median salary is US$70,056. “People would have to do a four-year bachelor’s which will cost $1.3 million and they would need work experience, all of which can be had right here in Jamaica. And in a few years, they can enjoy the benefits of a career with stability as there is manufacturing always happening somewhere.”

And rounding out the top-three manufacturing careers list is the mechanical engineer path which, based on international standards, pays an annual salary of US$60,733. Hayle notes that a four-year undergraduate degree would cost about $600,000 per year and the master’s degree would be a further investment of $1.2 million.

Hayle noted that the international salaries are a benchmark for negotiation and her sources were Monster.com, Boston.com and WSJ.com for salaries and for the cost of studies, it was information found from the local UWI and UTech admissions departments.