ll October - December 2009 ZiNG 47

" T he tourism downturn has had an effect on the construction industry," says Vanessa Hansen, editor of Caribbean Construction Magazine, " especially in the northern Caribbean islands which depend on US tourists. That has had a trickle- down effect on tourist construction projects, but also on government projects because their revenues will be impacted as well. " The Cayman Islands government has put a hold on one of three high school projects, but is going ahead with a large government administration building. In Barbados, work on the Four Seasons resort came to a grinding halt in February - there is word that another investor might be on board, which would get the project moving again. Meanwhile, several projects in Anguilla have either slowed or halted since last year. But in Turks and Caicos two new hospitals will be completed by early next year, and in the Bahamas, the government broke ground on the more than $ 400 million airport redevelopment in July." Hansen says that in these economically tough times, cheap imported labour, often from China, is being sought. " This has created unrest among local workers and unions in several jurisdictions including T& T, Guyana, Jamaica and Grenada." And the industry prognosis? " I think it will pick up soon. You can't work your way around some of the infrastructural projects, they have to go ahead. When the international funds become available the governments will proceed. " Don't forget, some are still in long- term recovery from hurricane strikes as well, such as Grenada, Turks and Caicos and the Cayman Islands. Of course suffering a hurricane strike is terrible but someone has to rebuild, so construction picks up again." BUSINESS Oil & gas prices will rise again, so now is a good time to invest in renewables. ENERGY CONSTRUCTION The construction sector has defi nitely slowed, but opinions are mixed on how much. VANESSA HANSEN, EDITOR OF CARIBBEAN CONSTRUCTION MAGAZINE. MANUFACTURING & CONSUMERISM R egional energy afi cionado David Renwick, who has 37 years' oil and gas reporting experience, says the global downturn and associated low fossil fuel prices are both a blessing and a curse. " For airlines it's good, because one of their main costs is aviation fuel. And for oil and gas importers, i. e. most of the Caribbean, it's good because the price has dropped, so they will save on their foreign exchange. For fossil fuel producers, principally Trinidad & Tobago, it's bad because it's a huge source of income." In T& T the global slowdown has been blamed for the failed sales of four new exploration blocks, and none of T& T's big energy companies have plans for exploratory drilling in 2009. DAVID RENWICK ENERGY CARIBBEAN MAGAZINE G reig Laughlin, President of the Trinidad and Tobago Manufacturers' Association ( TTMA), says the economic downturn has resulted in " a signifi cant number of job losses across most or all sectors". The general slump in consumerism has also meant that many companies have slowed or ceased production as they back- up stock. " This has resulted in the loss of jobs, mandatory vacation periods and shutting down plants temporarily; with some manufacturers indicating the possibility of this measure becoming permanent," says Laughlin. Job losses regionally have altered consumerism patterns, varying from nation to nation, and made buyers more cautious in their spending; a diminishing demand which has been refl ected in price reductions on many products. The impact on the construction and steel sectors has been particularly marked. " The steel industry has been severely hit, with a couple of the TTMA's companies close to closure, stagnated or no longer interested in expanding their trade routes." And, at such a vulnerable time, Laughlin cites the threat of increased competition from European Union ( EU) goods with the signing of the Economic Partnership Agreement ( EPA). The agreement ensures reciprocal treatment on roughly 83% of all goods, effectively wiping out the preferential treatment benefi ts previously enjoyed by CARIFORUM products. Laughlin says the crisis has highlighted the need for diversifi cation, both in Trinidad and Tobago, largely dependent on oil and gas, and throughout the region, where a high dependency on tourism exists. He adds that manufacturers should look to the export market and take advantage of CARICOM trade agreements with nations other than the US, on which up until now too much dependency had been placed. " Most feasible options, besides the CARICOM market, include Cuba and the Central American markets which have not become saturated. With Haiti also becoming a part of the trade in goods regime of the CSME, much potential is available for intra- regional trade with this relatively virgin market." 48 ZiNG October - December 2009 The steel industry has been severely hit, with a couple of companies close to closure, stagnated or no longer interested in expanding their trade routes. GREIG LAUGHLIN, TRINIDAD AND TOBAGO MANUFACTURER'S ASSOCIATION