FosRich Company Limited, a local distributor of lighting, electrical, and solar products, has decided to halt its planned expansion into the US market, citing growing uncertainty stemming from recent policy shifts.

“We have halted our plans to enter the United States market until further notice,” the company’s directors stated in a recently published year-end report to shareholders.

Recent US policy changes including increased tariffs, stricter immigration rules, and reduced government aid — have all contributed to a more unpredictable business environment. These developments have not only disrupted supply chains or raised operating costs but have also forced many companies, particularly those dependent on federal contracts or subsidies, to delay or reconsider expansion plans.

Managing Director Cecil Foster, providing further clarification, told the Jamaica Observer on Monday that the decision taken by his company was not driven by any direct material impact on operations. Rather, he said, it reflected concerns surrounding current unpredictability in the North American market.

“Due to much uncertainty and based on how the US Administration has been behaving, we decided to put our US operations on hold until some semblance of normalcy returns. We don’t have a projection on when that might be, but we continue to monitor the situation closely and will resume operations at the appropriate time,” he further said to the
Business Observer.

After incorporating its FosRich USA Inc subsidiary last year, the company said it would enter the lucrative US market, positioning itself to tap into growing opportunities in the minority business enterprise (MBE) niche, valued at billions of dollars. At the time, the company said projects being targeted across several states — including Tennessee, New York, and Texas — would have exceeded US$10 billion.

From a secured Ashland, Tennessee, base, the company sought to supply construction products for infrastructural projects for MBEs that benefit from mandatory federal, state and city contracts. The hub set up was to operate as an intermediary for the local operations from which products including PVC, sewage and water pipes, electrical fixtures among other items were to be shipped to the US.

“We were just about to kick off the project when the US elections occurred. Since then, due to some of the rhetoric and instability, we’ve been taking a cautious approach,” Foster noted.

With US plans on hold, FosRich is now shifting its focus to other markets, including Guyana, where it plans to similarly supply materials for infrastructure development.

“By the end of the year, we are looking to have our site in that country built out,” Foster said.

FosRich, which saw revenue fall slightly below the previous year to $3.68 billion, was mainly affected by the substantial drop in PVC and solar panel costs on the global market, the directors said. The yearly out-turns were additionally impacted by a general slowdown in local housing starts, caused primarily by considerable increases in the interest rate during the reporting period when compared to that of the prior year.

“We have not yet begun to benefit from the recent reductions in interest rates,” the report noted.

For the year ended December 31, 2024, net profit plunged by 85 per cent, dropping sharply from $235 million in 2023 to just $35 million.

Despite the challenging environment, the company remains optimistic about its future prospects. FosRich continues to invest in a number of ongoing projects it expects will yield significant returns. It currently holds a 20 per cent stake in a new real estate joint venture in Trelawny with BC Dundee Enterprise, a business owned by the Foster family, for which the company will supply products.

Additionally, as the company moves forward with construction of its superstore and corporate offices at 76 Molynes Road in St Andrew, it expects completion during the third quarter of this year. The multi-storey development, specifically designed for diverse commercial tenancy, is projected to generate additional revenue streams.

“We are cognisant that despite the challenges ahead within our local operating space and the wider global space, we have the right talents and leadership to deliver on our plans for the ensuing period. We will continue to execute our plans to ensure that we remain competitive as we deliver value-driven solutions for our customers. The result for this, our seventh full year since our listing on the Junior Market of the Jamaica Stock Exchange on 19 December 2017, reflects the implementation of the specific strategies as outlined within our strategic plan,” Foster further said in the report.