Prime Minister Mia Amor Mottley yesterday warned that Barbados could not continue depending heavily on imports while producing too little of its own goods, as she called on manufacturers to expand exports, embrace innovation and help build a stronger and more resilient economy.
Delivering the feature address at the Barbados Manufacturers’ Association (BMA) State Of The Industry Conference at the Lloyd Erskine Sandiford Centre, she said too many Barbadians had become comfortable being consumers instead of producers. “For too much time in our recent years of Independence, Barbadians have been satisfied to be consumers and not producers. That is not going to get us anywhere,” she said.
Mottley pointed to the country’s growing import bill as evidence that Barbados needed to urgently strengthen manufacturing and increase exports.
She said that in 1960, Barbados exported around US$24 million in goods while importing US$49 million. However, by 2024 exports had climbed to US$461 million while imports had surged to US$2.2 billion.
Five times
“A difference now with our imports being almost five times what our exports are. In 1960 it was effectively doubled and over the course of our independent journey it has become almost five times,” the Prime Minister stated.
While acknowledging that Barbadians had developed a taste for imported goods and services, she said the country had not moved quickly enough to create and market products internationally.
“What hasn’t happened with sufficient pace and sufficient progress has been the extent to which we are prepared to claim the export market. Unless that changes, we’re going to continue to be playing catch-up all the time,” she told the audience.
Mottley said Government was committed to supporting local manufacturers after years of decline in the sector.
“We are not prepared to abandon manufacturing as has been done for the better part of the last four decades,” she declared.
She said Barbados could no longer afford to operate as a small economy focused only on its local market and urged manufacturers to think beyond the island’s population.
“The mental change that sees yourself as an exporter and not just as a domestic producer is the most important change that must happen in this room today,” she stressed.
She encouraged businesses to make full use of opportunities within CARICOM and other international trade agreements.
“The CARICOM Single Market and Economy (CSME) is the first step that has been taken to say to you, don’t concentrate on just under 300 000 people. Look at what we have within the context of the CSME and treat that as your domestic base.”
Mottley also addressed the rising cost of energy and warned manufacturers and consumers to prepare for continued global uncertainty linked to the conflict involving Iran and disruptions in international supply chains.
“When the war started, the price of oil was at US$64 a barrel. What is the price today? US$109,” she said. She pointed out that while fuel prices had increased globally, Government had taken steps to reduce the impact on Barbadians by capping value-added tax and excise taxes, and absorbing part of the increase.
The Prime Minister cautioned that if the international crisis continued for a prolonged period, consumers would eventually have to absorb more of the burden.
She also revealed that Government would soon announce investment opportunities in the utilities sector, including electricity and water, so Barbadians could directly benefit from those industries.
Mottley said Barbados had to continue investing in renewable energy, digitisation and training for local businesses to remain competitive internationally.
Minister of Innovation, Industry, Science and Technology Senator Jonathan Reid also urged manufacturers to embrace artificial intelligence (AI) and innovation, saying small countries like Barbados now had opportunities that did not exist before.
“We have to become makers of the new. We have to become builders,” he said, adding that advances in artificial intelligence had levelled the playing field between small and large countries.
“For the first time in history, the most sophisticated tools, the most advanced technologies ever created by man are in all of our pockets right now,” he said.
“A kid in Grazettes or a kid in Crab Hill has the same access to that rocket ship that a kid in Singapore, San Francisco or Toronto has at the same time.”
He warned that Barbados could fall behind if it failed to embrace the opportunities created by AI and digital transformation.
“My only fear is that we miss the window of opportunity and then our gap of catching up gets even further because others will use it in advance,” Reid said.
BMA president Rakeesh Bernard highlighted the critical role manufacturing continued to play in Barbados’ development.
“Manufacturing matters because every locally-produced product reflects Barbadian ingenuity, creates jobs, develops skills, attracts investment and strengthens our ability to compete globally,” he said.
He added that despite global uncertainty, rising costs and supply chain disruptions, local manufacturers had continued to adapt and contribute to national development. (TRY)
