T&T’s Manufacturing Momentum — Poised for a Prosperous Future
October 25th, 2024
Non-energy manufacturing in Trinidad and Tobago (T&T) is a powerhouse of economic growth, emerging as the second-largest non-energy subsector according to the IMF Country Report 24/150 published in June 2024. Employing over 50,000 individuals and contributing approximately 19% to the National Gross Domestic Product (GDP), the sector has an impressive annual average growth rate of 2.4% since 2012.
TTMA President Forecasts Bright Outlook
Roger Roach, President of the Trinidad and Tobago Manufacturers’ Association (TTMA), shared an optimistic forecast for the sector. “The outlook is highly positive, marked by productivity, competitiveness, and output improvements,” Roach stated. The TTMA anticipates a significant increase in manufacturing output driven by robust investments in technology and infrastructure, coupled with the innovative spirit of local manufacturers. “As global demand for high-quality, diverse products continues to rise, T&T’s manufacturing sector is not just meeting these needs, but also expanding its market share internationally,” Roach added, underlining the sector’s potential for global expansion.
The sector is also poised for significant productivity gains, with Roach highlighting, “Our manufacturers are increasingly adopting advanced manufacturing techniques and automation, leading to greater efficiency and reduced production costs. These advancements are crucial for maintaining a competitive edge in a rapidly evolving global market.”
Competitiveness is another area where the TTMA foresees notable gains. By fostering a culture of innovation and continuous improvement, T&T’s manufacturers are enhancing their ability to compete worldwide. “Supply chain resilience has been another focus area, with strategies in place to mitigate disruptions and ensure steady production flows. The TTMA’s initiatives, such as our annual Trade and Investment Convention (TIC) and our trade missions to potential export markets, play a pivotal role,” Roach explained.
Tech Investment Boosts Production
Between 2020 and 2023, non-energy manufacturing exports surged by approximately TT$1.9 billion. In 2023, the Central Statistical Office (CSO) estimated these exports at about TT$12.8 billion, accounting for 25% of the country’s total exports. Underscoring the advantages of trade agreements in supporting export growth, Roach stated, “Our participation in bilateral and partial scope agreements has opened new markets for our manufacturers. These agreements facilitate smoother trade relations, reduce tariffs, and give our manufacturers the access they need to grow their international presence.”
Roach noted that sustainability initiatives also shape the positive outlook for non-energy manufacturing, “Our manufacturers are increasingly adopting eco-friendly practices, which reduce environmental impact and appeal to the growing segment of environmentally conscious consumers. These initiatives allow our members to overcome non-tariff barriers in some markets, especially industrialised regions.”
Additionally, technological advancements present tremendous opportunities for the sector. From 2022 to 2023, manufacturers invested over TT$1.3 billion in machinery, plant upgrades, software, warehousing, and equipment, creating over 1,000 jobs.
Looking ahead to 2025, the outlook for T&T’s manufacturing sector is promising. “We expect increased output, enhanced productivity, and improved competitiveness. The TTMA remains dedicated to supporting our manufacturers through strategic initiatives, fostering innovation, and expanding market access. With these efforts, we are confident that our manufacturing sector will continue to thrive and contribute significantly to the nation’s economic growth,” Roach concluded.
By Natalie Dookie
