A recent survey piloted by Jamaica Manufacturers and Exporters Association (JMEA) indicated that more than half or just about 60 per cent of businesses surveyed in the country’s productive sector have seen a decline in revenues as the COVID-19 pandemic continues its onslaught on operations globally.

While the vast majority said their revenues were severely impacted, another 24 per cent of them reported their revenues as being stable and 16 per cent indicated increased revenues.

In commenting on the findings of the COVID-19 impact survey, JMEA President Richard Pandohie told the Jamaica Observer that the decline in revenue comes as no surprise given that the entire world is experiencing contraction, of which local companies prove to be no exception.

“Additionally, exporters have also experienced reduced sales of products to major export markets such as the United States and United Kingdom, as those economies continue to remain closed. Our exporters of perishable products have also been badly impacted by reduced air cargo transportation,” he said on Monday in responding to questions from the Business Observer.

The survey which was undertaken during the period of March 27- April 15 saw a majority of businesses in the micro, small and medium-size enterprises (MSMEs), as well as some large enterprises across multiple industries – ranging from food and beverage (40 per cent), textile and apparel (nine per cent), services (15 per cent) and other sub-sectors (10 per cent) – reporting on the impacts of the pandemic on their business operations.

The survey revealed that while 52 per cent of the respondents interviewed indicated they would remain open for business, 42 per cent, following closely on this amount, expressed uncertainty as to whether they would be able to remain open for business, which the JMEA president said came as a shocker.

“A concerning number is that 42 per cent of respondents who were unable to indicate if they would remain open — with many seeing the month of May as a potential tipping point. Many indicated that they could not keep their production open beyond the end of May if there is no improvement in business,” he said.

He said that while many businesses have been experiencing the struggles associated with the period, it must be noted that only a mere six per cent of the respondents said they would be closing temporarily, while others said they would be keeping their operations going, but on a significantly reduced scale, in an effort to safeguard employees from the debilitating virus.

POSTIVE IMPACTS

Pandohie said that with many businesses having had to scale down operations, several others have seen the emergence of new opportunities.

“Several companies, especially in the apparel and chemical sectors, have identified new opportunities and have ventured into new product lines such as the making of sanitisers and face masks. Some companies, especially makers of natural products, have seen a big jump in their export demand, with one of our members, Home Choice, recently shipping off their first container of natural ginger juice to Dominica. Last week Quality Incorporations also exported their first container of bathroom tissue to the USA,” he shared, while also mentioning that several similar stories would be coming in short order.

The JMEA head further said that there were also several other low-hanging business opportunities, especially in the area of agro-processing, of which the country must urgently capitalise on given that the requisite public-private sector partnerships are properly developed.

“It is our collective obligation to keep viable businesses going to keep our economy turning and to prevent any socio-economic fallout,” he further told the Business Observer.