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Caribbean Cement Company – Dealing with globalisation

The recent announcement of job layoffs at Caribbean Cement Company is another cause of concern for the government. It highlights the fact that we are still feeling the effects of the worldwide recession. The management of the company has highlighted the down turn in the local construction sector and the importation of cement into the local market as contributors to the redundancies. It is this second factor which I want to look at more closely.

The matter of whether or not to allow cement into the country is part of a bigger issue, that of globilisation. The problem for small countries like Jamaica is how to compete with other countries that are much larger than us. Small countries start off with an inherent disadvantage that of economies of scale i.e. as the production level increases the average cost of production decreases. A country like Mexico producing cement for a population of more than 100 million persons will always have a lower average cost than Jamaica with its population of 3 million. In addition the size of the reserves of the materials used to make cement are larger for countries bigger than Jamaica.

Even if no cement were to be imported into the island Caribbean Cement Company would still have a problem as there is not enough local demand to meet its production capacity. This highlights an additional problem of globalisation whereby it is not sufficient to rely on local demand but one has to think of selling globally in order to be able to survive. This means that local companies who already lose on size issues now also have to compete with other costs such as electricity, labour and security. Small countries will always find it difficult to compete on these issues and will increasingly be found to be uncompetitive.

So, what is the answer? In this age of globilisation smaller countries will have to look at products in which they will have a competitive advantage. This will mean identifying products which are unique to us or in which we have a distinct advantage. For example, Jamaica has a unique product in its jerk seasoning and its reggae music which even though others have try to copy they find it difficult to produce a high quality product. An example of a distinct advantage would be our tourism product to the extent that we have sunshine all year while many countries have cold seasons for 6 months out of the year.

The challenge for smaller countries is whether we can find enough of these products in order to be able to achieve a reasonable level of economic growth. The focus must be to spend more money on research and development with a view to creating new products which can be patented for sale in the global market. I have a suggestion for them, how about an animal feed made from a grass or a tuber instead of from a grain?

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6 Responses to “Caribbean Cement Company – Dealing with globalisation”

GGray says:

November 13, 2010 at 12:31 am

Carib cement, like all such entities have to get real, really quick. The writer as well as us all will agree that globalization is here to stay, and we were all forewarned of the consequences. I disagree though about the notion that the source and reserves of our raw materials involved in the manufacture of cement being lesser compared to countries like Mexico, is an added factor to the cost of production. Au contraire, Jamaica is blessed with huge supplies of the raw materials needed. The greatest factors are, the cost of energy, labour and most importantly, the real competence and excellence in manufacturing. An in depth analysis will show that this is indeed true. While we do not control the price of energy the other factors have to be addressed. For the moment I consider competition as being healthy, and an important driving factor to keep this sole local cement manufacturer honest and willing to drive efforts to achieve manufacturing excellence. We should not be held ransom for this or any other companies’ inefficiencies, too long we are subject to increases in costs passed upon us by manufacturers’ to offset the costs of their incompetences. Wake up and smell the coffee, Jamaica!
gentle says:

November 13, 2010 at 11:15 am

Jamaica has done well during this hard time, and much better than some developed countries. We could have, and should have done much better if the crime rate was lower. There are foreigners, and Jamaicans living abroad who would like to come and live here. However, because of the crime rate most have decided against doing so. There are people who have started building and have stopped, until there is a change. This is not the only factor for the lost revenue, but it is one of the major ones. With the recent upgrading of its product, carib can now compete with the best of them. Get the crime rate down to a more acceptable level, and the country will see a boom in the housing industry, like no other.
john kind says:

November 13, 2010 at 3:39 pm

yes keep making excuses for criminal politicians and their friends,who will sell the very air space over jamaica,the only people you can count on with no look into the future,they will just sell everything,if you fool jamaicans just sit back and watch ,without saying hell no you dont crooks…what you think use to happen to cement in jamaica,before they realize they can sell the company over night for big profits which they share with each other..cement was made there with the same population and big demand for that hight grade product until like i said criminal greed and dont care set in..
Rachel Rothechild says:

November 13, 2010 at 6:35 pm

It Is The IMF way just keep on taking money from them. This is result is just teh beginning.
Omugabe says:

November 14, 2010 at 1:18 pm

Some in “small countries start off with an inherent disadvantage” of the continued existence in the brutal box of mental enslavement — the thinking that Jamaicans are compelled to be in ANY deceptive, divisive, destructive and criminal enterprise that places Jamaicans at an ‘inherent disadvantage’!

Jamaicans MUST begin to ‘think outside’ the european-made boxes, which are never ever created for the benefit of anyone but europeans!

A free people are only going to seek to be part of systems/enterprises with others, only if those systems/enterprises offer Win-Win interactions. Otherwise one is most naturally going to be a servant/slave to those who created their globalism, FOR THEIR ADVANTAGE ALONE!

First question to ask, “Regardless of how cheaper it maybe, where are Jamaicans getting resources to import farin cement from Mexico?”

And for that matter, where are the resources coming from to import any farin sinting at all?

And if Jamaicans can indeed find resources to purchase ANY farin goods & services, are those goods & services so vital that they cannot and should not be produced in Jamaica and by Jamaicans?

For if imported goods and services are forever done on credit, then Jamaicans are owned by their creditors. And as we all know, creditors drive very very hard bargains. They will take your very Jamaican souls to be their servants/slaves.

Because it is true that smaller nations are at ‘inherent disadvantage’ in the white man’s globalism, it is vital for likkle nation’s to stop! Take stock; and prioritize the way in which relatively meager Jamaican resources are being invested/utilized; especially we take stock of how Jamaica’s meager resources are wasted on other people’s goods and services abroad.

For example, how very very unintelligent it is for Jamaicans to be wasting their resources abroad and keeping fariners employed and wealthy, even as Jamaicans become less employed and less wealthy at home, and are thus driven to antisocial activities for survival?

One of the priorities is to resist as much as possible the imposition on Jamaica to use its meager resources according to the urgings of the dictators of globalism; because such a devilish strategy WILL NEVER EVER be for the benefit of Jamaicans, only for the dictators of globalism.

Essentials such as Jamaican foods, should, as much as possible, be produced in Jamaica; because the healthiest foods for the body are those foods that are produced from the particular geographical environment in which the body was first produced.

Farin-produced foods ARE NOT going to be cheaper in the long run; because they are inherently less health. Jamaicans will then be saddled with the health bill that will arise as a result of the negative effects of consuming the inferior farin foods.

To avoid being a disadvantaged likkle fish among Big Fish in the pond of globalism, Jamaicans need to learn important history lessons from the Mighty Maroons, who had to be Self-determined, Self-sufficient & Self-reliant, and with relatively less literacy and other resources that Jamaicans possess today.

It should be noted that so-called ‘globalism’ is a eurocentric creation. And as has been their behavior throughout history, the europeans ARE ALWAYS seeking any means possible to dominate and plunder the planet, FOR THEIR ADVANTAGE ALONE!

Fortunately, Jamaica’s 3 million are humans with minds and FREE WILL. And as such, Jamaicans have the ‘inherent’ ability to determine their own destiny.
This means that Jamaicans need not be slaves to the european plunderous globalism, which was consciously and deliberately designed to place countries like Jamaica at an ‘inherent disadvantage’ from the outset.

Note!
The ‘inherent disadvantage’ of globalism to Jamaicans, IS NOT a natural state of affairs!

The ‘inherent disadvantage’ of european globalism IS MAN-MADE! To be precise, it is european-made!

With a natural system, Jamaicans may in time find ways to take advantage of it.
However, with a european-made system like globalism, the moment an advantage is found by likkle nations, the deceptive and devilish europeans WILL AGAIN ‘move the goal posts’ in order to preserve their DESIGNED ADVANTAGE.

So the solution to the ‘inherent disadvantage’ of ‘globalism’ is to GET THE HELL OUT!
And instead, consciously and deliberately design a Win-Win system, or seek to be part of a Win-Win system of international interaction that would ensure an ‘inherent Win-Win advantage’ for Jamaican Self-determination, Self-development, Self-sufficiency & Self-reliance.
That’s how the Mighty Maroons managed to survive and thrive with greater inner security, pride and self confidence.

Jamaicans continue to suffer as servants/mental slaves, so long as the wise lessons of the Mighty Maroons are not emulated, and improved upon, at the margins, to suit present circumstances.
BOB says:

December 18, 2010 at 8:37 pm

I wonder how much my shares worth now?.