PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

industry was, however, estimated to have registered the strongest growth due to increased
crude bauxite production coupled with higher alumina output associated with the
reopening of WINDALCO’s Ewarton alumina plant. Additionally, increased road
rehabilitation in the aftermath of Tropical Storm Nicole would have spurred activities in
the Construction industry.
Manufacture
Real value added for the Manufacture industry declined by an estimated 2.3 per cent for
the calendar year 2010. This was influenced by fall-offs in the real value added for Food,
Beverages & Tobacco (1.4 per cent) and Other Manufacturing (3.5 per cent). The Food,
Beverages & Tobacco component was affected particularly by sluggish local demand as
export of some goods increased relative to the comparable period in 2009. The
performance in this component was further compounded by the fall off in sugar
production which is heavily weighted in Food Processing. The Sugar production decline
was attributed to the poor quality of sugar cane reaped which negatively affected the
tonnes cane/tonnes sugar ratio.
The Other Manufacture component continued to be negatively impacted by the downturn
in the Chemicals & Chemical Products, Non-Metallic Products and Metals, Fabricated
Metal Products, Machinery & Equipments. Activities in the Chemical & Chemical
Products was negatively affected by the low level of activities in the international ethanol
market and the high cost of sugar on the international market which impacts the cost of
wet ethanol which is imported by local producers of ethanol.
The downturn in the Non-Metallic Products and Metals, Fabricated Metal Products,
Machinery & Equipment sub-industries was affected significantly by the downturn in
local construction activities. The downturn in construction activities resulted in lower
demand for products in:
Non-Metallic Products such as: cement; cement blocks; pre-mix cement and tiles
Metals, Fabricated Metal Products, Machinery & Equipment such as building
fixtures and fittings.
Also affecting the Other Manufacture component of the Manufacture industry was the
temporary cessation of production activities by the sole producer of Petroleum Products
for maintenance purposes and lower demand for some petroleum products.
Construction
For January – December 2010, real value added for the Construction industry is
anticipated to decline by -1.9 per cent. This performance was mainly attributed to
reduced activity primarily in Building Construction and Building Installation sub-groups
which reflected the general downturn in the economy. However, the Other Construction
category which mainly includes civil engineering activities recorded growth due to an
increase in the volume of emergency road repairs.
Agriculture
The industry is expected to decline by 5.0 per cent during October to December 2010 due
to the impact of Tropical Storm Nicole. Based on the industry’s performance for the 1 st
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