Govt, Chamber, TTMA to meet on covid19

GOVERNMENT, the TT Chamber of Industry and Commerce and the TT Manufacturers Association (TTMA) are expected to meet later this week to determine how local businesses have been affected by the threat of coronavirus.

This was disclosed on Tuesday by Trade and Industry Minister Paula Gopee-Scoon.

In a statement, Gopee-Scoon said countries and businesses have had to endure several global challenges over the last two decades and coronavirus is the latest one.

“The major difference however is that it surrounds primarily the world’s largest economy, China, being the epicentre.”

Gopee-Scoon said apart from the human adversity, China’s economy and consequently the global economy are affected.

She added, “In particular, there is expected to be supply chain disruptions and our manufacturers and distributors are likely to be affected.”

Gopee-Scoon said, “This may call for some recalibration and perhaps the need to source products, raw materials, machinery parts and equipment from alternative locations.”

The TT Chamber, Gopee-Scoon continued, is doing a survey to determine how many local businesses have been directly affected and in what way.

She said she would meet with Chamber CEO Gabriel Faria and TTMA president Franka Costelloe this week to discuss those matters.

“As a country, and this applies to business as well, we all need to exercise patience and not build undue fear, but at the same time be prepared in the prevailing circumstances,” Gopee-Scoon said.

She was satisfied with Government’s overall preparation for coronavirus and was cautiously optimistic of the situation being contained.

She concluded, “We look forward to the Chinese economy rebounding and a return to global economic stability.”

In a separate statement, Costelloe said China has doubled its share of trade with the world over the last decade. Given TT’s close trade relationship with China, she said, “We are likely no exception.”

Costelloe said some of TT’s manufacturers procure raw materials either directly or indirectly from China.

She expected the global impact of coronavirus on trade to be felt in the next four to six weeks. when supply of raw material will either be slowed or halted. Costelloe said the most vulnerable will be those that rely heavily on factories in China for parts and/or materials.

“The TTMA is gathering information and data from its membership to confirm the impact and measures being put in place,” she said.

Costelloe explained that mounting pressures for companies to find creative ways to reduce the cost of doing business in TT have resulted in methods that reduce supply chain costs through lean inventory management, outsourcing and/or offshoring. She said local manufacturers “ are reliant on a robust, responsive supply chain system.”

Costelloe also said international reports have indicated that the coronavirus has reduced the output of manufactured goods, parts and materials out of China globally. She added that TT manufacturers can anticipate the same effect in the next few weeks, as delivery times are being extended and Chinese suppliers have closed their doors as a precaution.

Costelloe said to mitigate the risk of depleted inventory, TT manufacturers will have to consider new supply chain management systems.

She said these systems may not be cost-effective, but allow for meeting demand through methods such as ​increasing inventory procurement, which reduces cash flow and increases demand on foreign exchange; using alternative suppliers at higher rates; and new tooling methods.

Costelloe said the majority of TT manufacturers have not been grossly affected as yet by coronavirus, But she added manufacturers “are cognisant of the potential risks over the next few weeks.”

She said they are taking proactive steps to prepare while balancing increases in the cost of doing business and the ease of doing business.

TT’s top regionally exported products are prepared foodstuffs, beverages and spirits, she said, and these are predominantly shipped to Guyana, Jamaica, Grenada, Barbados and St Lucia. “Demand for TT products in these countries are largely driven by the tourism industry.”

Costelloe added that the tourism industry “globally, stands to be significantly impacted by reduced travel which will inevitably reduce demand for products such as food, beverage and spirits.”

Strengthening TT’s borders to keep out contraband and illicit products, she said, will bolster domestic demand and supply.

“Eliminating unregulated products illegally sold to community will safeguard local industry and community.”