Pandohie: Supply chain issues worse following US tariffs than during COVID

 

Close to two months after the 10 per cent tariff on goods exported from Jamaica to the United States to effect, Chief Executive Officer of the Seprod Group, Richard Pandohie, says from a supply chain standpoint, the impact on manufacturers has been worse than during the COVID-19 pandemic.

 

Mr. Pandohie says his company has been trying to find alternative markets. Describing supply chain shocks during and post COVID as a nightmare, the Seprod CEO says businesses are having a harder time sourcing and receiving products.

 

"During COVID, a lot of production went down, so supplies were actually available. Now, some commodity prices went through the roof, obviously, but the fact is that the reality of today, and I've been saying this for at least a year and a half, two years now, that our supply chain disruptions are actually worse now," he said, noting that micro, small and medium enterprises (MSMEs) are at greatest risk. 

 

He said Jamaican manufacturers are in wait-and-see mode whether US consumers will purchase their goods at increased costs.

 

"The consumers in the US are facing price increase on a number of items, from their electronics to whatever. They're going to look at their basket and say, 'Boy, should I buy Supligen? Is that necessary or is that nice to have?' Maybe instead of picking up three they pick up one."

 

Mr. Pandohie maintained that Jamaican manufacturers cannot absorb the price increases which have had to be passed to the consumer. 

 

"The price has been passed through for the most part. And it's a wait to see how the consumers react. My feeling is that the volumes will come down. We're going to have to find a way to either be more productive and have more production so we can drive our unit costs down to kind of cushion that price; look for new markets, a next approach; and also, look at our supply chain to see if we can bring in stuff to reduce our costs," suggested the manufacturer, who was speaking on TVJ's Smile Jamaica.