VOLUME 11, ISSUE 08 | AUG 2024 ARUBA TRADE & INDUSTRY ASSOCIATION MAKING THE CONNECTIONS Also in this issue FLEXPAK Herrick Henriquez, Director
WWW.BUSINESSVIEWMAGAZINE.COM Email for all inquiries: info@businessviewmagazine.com 2422 Palm Ridge Road, Suite 820 Sanibel FL, 33957 239.220.5554 CONTACT US TITLE SPONSORS GREAT NEWS! Business View Publishing was named to the 2020 Inc. 5000 list of America’s Fastest-Growing Private Companies! Read the press release Editor in Chief Karen Surca Research Directors Mike Luchetta Contributing Writers Dan Macharia Director of Production Jared Ali Director of Marketing Nora Saliken Director of Administration Michelle Siewah Digital Strategist Jon Bartlow Art Director Renée Yearwood Managing Director Alexander Wynne-Jones COO Matthew Mitchell Executive Publisher / CEO Marcus VandenBrink 1 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
EDITOR’S NOTES Tourists may still be soaking up the last few weeks of summer across the stunning water-drenched beach-lined shores of the Caribbean, however, the fall beckons, and businesses and organizations across the islands are gearing up for what the Autumn will bring. Although tourism remains one of the primary economic drivers across the Caribbean islands, savvy entrepreneurs are making their mark with innovative business solutions to offer residents. We cover all of these business developments in the pages of our Caribbean publications. Our August issue is no exception. While economic Indicators remain robust for many regions throughout the Caribbean islands, local businesses continue to gain traction and have their sights set on further expansion. For our August issue of Business View Caribbean, we sat down with Flexpak, a dynamic and fast-grower industry leader in packaging solutions. Offering tech-forward packing options and to expand throughout the Caribbean, this is one company to watch. We keep an eye on other business developments as companies continue to flourish in the local Caribbean market. It is as clear as the crystal waters surrounding the islands that continued growth is on the Caribbean horizon, as are the progressive initiatives of those we were fortunate to chat with. With sustainability in mind, best business practices up front, and a resilient economy at their fingertips, the undeniable draw of the Caribbean islands remains tangible. As with every issue, my hope as Editor in Chief is that our valued readers continue to learn something new with each issue we produce for you. Karen Surca Editor in Chief Dear Readers, 2 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
VOLUME 11, ISSUE 08 13 THE INCORPORATED MASTERBUILDERS ASSOCIATION OF JAMAICA (IMAJ) Building a better Jamaica, brick by brick 19 JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION Steering the ship in the right direction 29 FLEXPAK Packing a punch within the Jamaican Market COVER ARUBA TRADE & INDUSTRY ASSOCIATION 2 EDITOR’S NOTES 7 OPENING LINES BEST PRACTICES IN BUSINESS & ECONOMIC DEVELOPMENT – JAMAICA FLEXPAK 29 3 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
37 ARUBA TRADE & INDUSTRY ASSOCIATION Making the connections BEST PRACTICES IN BUSINESS & ECONOMIC DEVELOPMENT – ARUBA The articles in this publication are for information purposes only. Business View Publishing assumes no liability or responsibility for any inaccurate, delayed, or incomplete information, nor for any actions taken in reliance thereon. The information contained about each individual or organization has been provided by such individual or organization without verification by us. The opinion expressed in each article is that of its author and does not necessarily reflect the opinion of Business View Publishing. ARUBA TRADE & INDUSTRY ASSOCIATION 37
Business View Caribbean provides media coverage for organizations operating within select industries. Our publication satisfies the need for industry-specific information and intel on key businesses across the Caribbean! Get BVC delivered straight to your inbox. Get updates on the latest business news. 100% FREE to subscribe! We respect your privacy, now & always. Click below to sign up for a FREE SUBSCRIPTION to Business View Caribbean and get each new issue sent directly to your inbox! SUBSCRIBE STAY INFORMED WITH CORE BUSINESSES FROM THE CARIBBEAN
DOMINICA INTERNATIONAL AIRPORT ADVANCING STEADILY, BOOSTING ECONOMIC HOPES Source-https://thecaribbeannewsnow.com/, News Editor, First Published July 25, 2024 The Dominica International Airport is on track to become a pivotal hub in the Caribbean as work advances remarkably onsite. The project, funded by the country’s Citizenship by Investment Programme, is situated on Dominica’s scenic northeast coast between Woodford Hill and Wesley. Montreal Management Consultants Development oversees the development, with China Railway No. 5 as the main contractor. The Dominica International Airport will feature a 2850-meter runway to accommodate widebody aircraft, enabling direct flights to North America, Europe, and key Asian cities. Other modern amenities include a spacious terminal, advanced air traffic control systems, a central substation, a health centre, and extensive cargo handling capabilities.The airport is designed to meet international standards, ensuring safety, efficiency, and comfort for travellers. In the recent update posted, significant progress has been made on the foundational work. Backfilling and direct dynamic compaction at the culverts, earthworks, Opening Lines 7 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
which are easier instead of ours. So we definitely think it’s going to improve several aspects of the country,” added Johnson. The $1 billion XCD megadevelopment has already engaged a substantial workforce, contributing to the island’s economic growth. and stone excavation at the terminal area are ongoing. These essential groundworks lay the foundation for the airport’s future infrastructure. The new airport will transform Dominica’s economy by facilitating increased tourism and improved trade connections. In an interview,Samuel Johson,CEO of the International Airport Development Company (IADC), said that even if a destination has the best attractions, hotels, and brands, it will be useless. It’s challenging to get there. “We’re [Dominica] an island in a chain of islands, so they could as easily land in any of our sister islands 8 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
Source-https://caribbeannewsglobal.com/, News Editor, First Published Aug 27, 2024 The Bahamas has moved one significant step closer to a seamless digital health information exchange system, as Information Systems for Health (IS4H) Bahamas has launched pilot programmes designed to stress-test a suite of new health information exchange applications including a new patient portal, an appointment scheduling app and more. The first phase of piloting these apps will last three months and will lead to improved efficiency and effectiveness of healthcare decision-making, paving the way toward a healthier, more secure Bahamas. IS4H BAHAMAS PILOT PROGRAMMES LAUNCHED OPENING LINES The IS4h Bahamas development tempo has increased dramatically over the past months. Now, as the digital architecture nears completion, the team is anticipating that the stress testing will yield actionable results. Indeed, some segments of the Bahamian public are presently interacting with the initial stages of a successfully digitalized health information system. The following applications are currently in Phase One of testing with Mental Health Counseling Services, Nutrition Counseling Services, the CNCD (Chronic, Non-Communicable Diseases) Screening Unit, and a health learning management system: 9 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
• Bahamas National Patient Portal (BNPP), through which participants will be able in the first instance to view results online (CNCD Unit & Nutrition Counseling Services), and through which participants will soon be able to request a service online. • PatientPay, a point of sale (POS) application which allows users and administrators access and flexibility in a secure environment to manage financial obligations from anywhere in the country. Supporting these public-facing apps are PatientLink Bahamas (Appointment Scheduler), through which patients will be able to view appointments and through which providers (Mental Health Counseling Services in the first phase) will be able to set and manage patient appointments online.; a one-time password (OTP) app which facilitates multi-factor authentication for increased data and information security; a Master Patient Index (MPI) which is the building block of the eventual electronic health record (EHR), and a business intelligence tool (BIT) which pools all the data from across the applications to allow for improved reporting, more detailed and customizable analysis and more data-driven public policy making. PROFESSIONAL DEVELOPMENT In addition, the Moodle Learning Management System (LMS) is also in the first phase of testing. Through Moodle, public health personnel will have online access to dynamic courses that will support training and continuous learning. The implementation of the LMS will facilitate more effective and efficient delivery of training. Moodle will also enable training and continuous learning to be accessible to the Family Islands. IN THE PIPELINE IS4H Bahamas technical experts will use the data and lessons learned in Phase One of piloting to refine the apps and the environment in which they operate before widespread adoption. In the coming weeks, training of public health staff and providers will ramp up to ensure that the new digital health information exchange systems are fully utilized to improve health outcomes for everyone in the Bahamian public health system. 10 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
THE INCORPORATED MASTERBUILDERS ASSOCIATION OF JAMAICA (IMAJ) BUILDING A BETTER JAMAICA, BRICK BY BRICK best practices BUSINESS & ECONOMIC DEVELOPMENT JAMAICA JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION 75 YEARS AND STILL GROWING STRONG! 11 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
FLEXPAK PACKING A PUNCH WITHIN THE JAMAICAN MARKET 12 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
THE INCORPORATED MASTERBUILDERS ASSOCIATIO AT A GLANCE THE INCORPORATED MASTERBUILDERS ASSOCIATION OF JAMAICA (IMAJ) WHAT: P rofessional organization supporting the construction, engineering, and architectural industry WHERE: Kingston, Jamaica WEBSITE: www.imaj.org.jm BUILDING A BETTER BRICK BY B 13 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
ON OF JAMAICA (IMAJ) R JAMAICA, BRICK The Incorporated Masterbuilders Association of Jamaica (IMAJ) is a strong and effective voice for the construction industry in Jamaica. IMAJ was incorporated in 1952 by Mr. T.A.D. Smith, who felt that the country’s builders and construction contractors deserved a unified association to address their mutual concerns, negotiate the salaries of union workers industry-wide, and provide builders with education, professional recognition, and advocacy. 14 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
In the beginning, the mission was to promote good workmanship, integrity, and honorable practice in the trade or business of building and/or civil engineering contracting; to settle disputed points of practice; and to support the interests of those who are involved. Those tenets continue today. The Association employs a good amount of advocacy to promote its aims and objectives, and also conducts seminars and training for tradesmen, supervisors, engineers, managers, etc. From time to time, government asks for representatives to sit on various committees, so IMAJ makes certain members available to serve in that capacity. The creation of the Association has brought professionalism to members of the industry and provides a forum for the industry to speak in a unified voice. Since its inception, the Association has secured benefits and implemented policies in the best interest of its members. Originally, IMAJ had 13 founding members. Today, membership numbers have grown to about 150 in tiered categories – based on a company’s capacity to undertake work and conforming to the government’s National Contracts Commission that rates contractors. In addition to corporate members, there are also associate members, including electric contractors and suppliers of materials. Mr. Lenworth Kelly, President of the Incorporated Masterbuilders Association of Jamaica, relates,“We are a small island so contractors do everything – commercial, residential, public sector. You may be challenged, business-wise, if you restrict yourself to one area or another, so most people do a mix. At least three things, some will do residential, commercial, and also infrastructure work. And the ones who do infrastructure, are more likely to do all types, whether it be the ports, airport, roads, marine… they pretty much cover the range.” One of the biggest challenges facing the construction industry in Jamaica is financing, particularly for bonds. Kelly explains, “You can get financing from a bank facility, depending on the assets you have, and as you grow you can increase that. But access to financing for bonds is tricky. Let’s say, for example, there’s a $10 million U.S. job – the bond would be 10 percent. So the bank would tell you that you need to have that $1 million bond in assets or cash. Most people don’t have that, so we have what we call a developed bond market, where you pay a premium just like insurance. But we don’t have premium-based bonds available locally. Every bond you get, you have to collateralize it 100 percent. So that makes it very challenging for our contractors, especially when contractors who come from other places with larger resources, like China and Southeast Asia, are backed by their government when they are working overseas.” 15 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 THE INCORPORATED MASTERBUILDERS ASSOCIATION OF JAMAICA (IMAJ)
IMAJ has incorporated the Electrical Contractors Association of Jamaica, the Jamaica Air-conditioning Refrigeration & Ventilating Association, the Women’s Construction Collective and the Association of Construction & Engineering Students as members of the Executive Council and they have a seat at the table. The overall industry is huge so the idea is to have an umbrella body where everybody can have a voice. A place where issues can be vented and advocacy can be assigned to those issues. Speaking to the diversity of the industry these days, Kelly acknowledges, “There is a good number of women in construction in Jamaica – at the supervisory level and as tradespeople. They do steel work, masonry, carpentry, painting, plaster work. It’s a joy to watch them, they tend to be very focused.” IMAJ also offers a certification program in collaboration with HEART College of Construction Services (HCCS) that involves onsite evaluation of tradesmen who don’t have a trade certificate.“In the industry, the vast majority of workers have not had formal training,” says Kelly. “They apprentice on the job and learn the skills. In our partnership with HEART, our contractor members send them supervisors and then HEART will train those supervisors in how to evaluate the workers onsite because the workers already work under their supervision every day. So you assist them with their weaknesses and get the best ones certified first and then start working with the others. Then we communicate and make an application on their behalf with HEART, the trade training body. They will come in and assess the worker; if they pass the test, they get a skills certificate that acknowledges their qualifications to do a certain job. We do scholarships, too, for students in high schools and those in college who are in construction and engineering.” Respecting the importance of occupational safety training, IMAJ created a safety manual that was signed off by OSHA (Occupational Safety and Health Administration) and the unions for Jamaica’s existing occupational health and safety laws. It’s in a comic book format, so workers who can’t read, see the pictures and know what it’s about. Kelly notes,“When a worker comes onsite, you do a safety orientation with them and then they are issued a book. The management of the site signs that they will supply IMAJ continues to lobby and encourage the government to move on the issues, and the organization also acts as a resource entity because the documents they produce are used by government departments for tracking labor and making their projections – even the Statistical Institute of Jamaica uses them. In keeping with the By-Laws of the Association, 16 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
them with the safety gear, and the employee signs that they will abide by the safety rules. People buy our manual in batches of ten or up to the hundreds, so they have enough for each worker.” The Association communicates with members through email, as well as Instagram and Facebook and their website.The segment of membership that doesn’t do social media are still kept well informed by email and they know to check the website for updates. IMAJ is activity driven, so they are presently running a series of webinars – one every two weeks. Most programs are heavily discounted for members, but the webinars are free and available to the public. Anyone can register and participate. Another benefit of the Association, and something most people aren’t aware of, is that IMAJ has an inhouse consultant who will answer questions from the public about anything related to construction. The service is largely for householders who are doing small projects and need some guidance. They can call in and that resource is provided for free on Tuesdays and Thursdays. Currently, the construction industry in Jamaica is experiencing a fair amount of activity. Kelly reports, “The private sector is doing quite a bit of building by way of housing apartments. For at least the past 20 years, we have been short on housing stock for a certain category of income. So there is a lot of potential in that area, if you can bring a two-bedroom, two-bath unit in for say 13 million Jamaican dollars, which is about $100,000 US.Then you will get ready purchasers because that segment of the market is largely unsatisfied and the demand is soaring.There THE INCORPORATED MASTERBUILDERS ASSOCIATION OF JAMAICA (IMAJ)
are some builders who only operate in that sector, so they are always doing work.“At IMAJ, we encourage everybody in the industry to deliver on Time, Cost, and Quality (TCQ). Our training usually surrounds contracts and scheduling and such things that will help you to perform.” Kelly sums up the overall importance of the Association by saying, ““At IMAJ, we encourage everybody in the industry to deliver on Time, Cost, and Quality (TCQ). Our training usually surrounds contracts and scheduling and such things that will help you to perform. Most of the larger contractors on the island are members of IMAJ and we also have trade suppliers, so it’s not just contractors. It’s a lot of persons who are involved in the industry, whether they are providing a service, or goods, or equipment. We advocate on a range of issues and we are consulted by government on various issues, also. So we encourage everyone to join, to make the industry stronger, because it’s important to serve our country in whatever capacity we can. We want people to build the best standards and help to train the young people. We pay school fees for children of construction workers and they don’t have to be from a member company. Once you are a construction worker, your child will qualify. For colleges, we don’t do the top performers, we give scholarships to the students who will perform better if they get help; the ones the school identifies as having potential but are struggling financially. We have a bunch of them in the industry who have come through that program and are doing well.” 18 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
JAMAICA MANUFACTURERS & EXPORTERS ASSOCIA AT A GLANCE JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION (JMEA) WHAT: I ndustry voice of exporters, manufacturers, service providers, and MSMEs WHERE: Based in Kingston, Jamaica WEBSITE: www.jmea.org 75 YEARS AND STILL GROWING STRONG! 19 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
ATION G In a year when businesses near and far are bouncing back with resiliency from the throes of the pandemic, the Jamaica Manufacturers & Exporters Association (JMEA) has another big reason to celebrate – the milestone 75th anniversary of its founding! A rich legacy indeed. The JMEA was formed in 2018 from the merger of the 71-year-old Jamaica Manufacturers’Association (JMA) and the 52-year-old Jamaica Exporters’ Association (JEA). Primarily, the JEA was tasked with 20 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
the growth and development of non-traditional exports in Jamaica and was the main repository for all export-related information. Whereas, the JMA had key oversight on serving, promoting, and advocating for the interests of the local manufacturing sector. The well-timed merger that created JMEA has allowed the Association to attain wider national and international influence, resulting in a more effective, holistic representation and application of greater benefits to the entire membership and industry. Today, the Jamaica Manufacturers & Exporters Association serves as the voice of exporters, manufacturers, service providers, and micro, small and medium enterprises (MSMEs). Vital support is provided to JMEA members and the industry through advocacy, strategic partnerships, export services, research, capacity building, and access to finance. Its goal is unwavering and clear – to contribute to the growth and sustainability of Jamaican businesses and the economy. Business View Caribbean spoke with John Mahfood, President of the JMEA, about current challenges and the future of the industry. His informative insights bode well for the future of Jamaica’s manufacturing and export sector. BVC: Congratulations to JMEA on 75 years! Can you share an overview of the Association today? Mahfood: “We represent about 450 companies, from very small mom-and-pop businesses to quite large companies as far as Jamaican standards. But most are fairly small companies. We advocate with the government ministries on behalf of our members, if we see issues that need to be addressed. We also put on courses and seminars and organize events where members can showcase their products. We had a meeting in early April that was called ‘Speed Networking’, where about 50 hotels and tourism sector companies met with about 100 of our manufacturers with a view to increasing support for local manufacturers among the hotels. “Another more recent project was Christmas in July, where some of the smaller members of the JMEA showcased their products to financial institutions and gift shops and so on, with the goal of having 21 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION
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BVC: How is the supply chain disruption impacting manufacturers? Mahfood: “In 2020 when the impact of COVID was really significant and there was a massive downturn in the purchasing of manufactured items, companies had to change their method of operation in order to increase productivity and efficiency. In 2021, we started to see the benefits of those efforts. Manufacturers were returning to a higher level of profitability than they had experienced pre-COVID, without any increase in sales. That was a good sign, those institutions sell the local products.We organize trade shows overseas, and we also organize trade shows in Jamaica, where we have our companies physically present and invite buyers from overseas. The end result of all our efforts is to build up the manufacturing sector in Jamaica. Many years ago, it was one of the leading sectors – accounting for about 20 % of GDP – but over the past 30 years, for various reasons, it has declined to about 8 % of GDP. We want to see that trend reverse. In particular, we think it can be reversed by increasing export.” JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION
and the outlook for 2022 with the return of schools and the opening up of the entertainment industry indicated that companies would benefit from their cost reduction exercises and would much better sales and profits. But that has now been tampered by logistical problems. “In early 2021, we started to see a massive increase in the cost of trade out of the Far East and that was bad enough. But the last quarter of 2021 up to now, we are seeing a shortage of containers to the Caribbean much worse than it has been in the past. It may be that shipping lines are looking at where they can make more money and diverting more of their available shipping space to the North American market, at the expense of some of the smaller Caribbean islands.And in general where they have to go first to the U.S. and then come to Jamaica. “We’re seeing that change starting to affect not only importers but manufacturers, where you’re trying to source raw materials and packaging materials and it’s not coming through. We had a serious shortage of items such as glass bottles, aluminum cans, tops 24 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
customers it meant that you wouldn’t be visiting your customers for a couple years, you wouldn’t be attending trade shows, and any internal meetings were done by Zoom and other means. In Jamaica, a lot of the financial institutions and government agencies went to work-at-home models. So it represented a big change in the way we operated. for bottles, cardboard boxes, and it’s showing up in terms of reduced sales because your fulfillment level is in decline. That and the increase in trade has put a serious dampening effect on manufacturers.” BVC: How did the pandemic change the way Jamaican businesses communicate? Mahfood: “As a small island, if you had export JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION
“Now we’re beginning the process of having physical meetings and visiting customers again, but there were some benefits to the changes that were made. You now can see a lot more customers, more regularly, through technology and we hope that will make companies more effective when they continue using that technology for marketing and selling. That, along with an improvement in their ability to physically see their customers. “As for The JMEA, we have about 20 people on staff and we did a lot of online seminars and courses to help our members innovate and look at how they do business. We’re visiting our members again in person now and we’re also meeting groups of members online, which has turned out to be good because with technology we’re able to reach out and talk to all our members more often.” BVC: Looking to the future, how do you see the industry evolving and how will the Jamaica Manufacturers & Exporters Association continue to be a viable voice for members? Mahfood: “The challenges with transportation and logistics also creates some opportunities. The big issue is, for instance, a shipping container to Jamaica from Thailand or Malaysia may cost $15,000, however, the shipping cost within the Caribbean is relatively unchanged at about $1,000 to Trinidad, or $1,500 to Barbados. So what that means is that Jamaican exporters and manufacturers have an opportunity because of the high cost of freight outside of Jamaica to the rest of the Caribbean. “We, at the JMEA, are trying to convince our Jamaican manufacturers and exporters to take advantage of this opportunity that has presented itself to start exporting. Because of the shortages that exist worldwide, we have to look at our small Caribbean community more seriously, in terms of how we protect each other and sourcing our products from entities that are closer – whether it’s Canada, the U.S., or another Caribbean country instead of importing from far-off places. “We are also looking at the opportunity of doing more trading online – it means Jamaica can hook up with good online sellers and sell to anyone, in any country, anywhere in the world. It’s just a matter of presenting your product well and pricing it well. In addition, we are focused on strengthening the linkage between our manufacturers and our tourism sector in Jamaica and other markets. “Finally, one thing that has been a fantastic success in Jamaica has been companies that have listed on our Junior Stock Exchange, where businesses can 26 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
27 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 JAMAICA MANUFACTURERS & EXPORTERS ASSOCIATION
raise up to $6 million U.S. and where the regulations are less severe than on the main Exchange.About 45 companies have listed on the Junior Stock Exchange and as a result have improved significantly in terms of their sales, their profitability, their business. The JMEA have signed a memorandum of understanding with the Jamaica Stock Exchange to encourage more of our members to list and we are hopeful that the number of companies listed on the Junior Stock Exchange will move up to 100 companies in the next few years. We believe this will be one of the big ways that we lift manufacturing in Jamaica.” 28 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
FLEXPAK AT A GLANCE FLEXPAK WHAT: L eading Packaging and design solutions company focusing on a loyal customer base WHERE: St Catherine, Jamaica PACKING A PUN THE JAMAICAN 29 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
NCH WITHIN N MARKET Providing ‘flexibility’ in its leading services while staying on top of the ‘pack’ It can not be understated the importance of packaging when it comes to the overall marketing and distribution of products. Only those companies that are equipped with the knowledge of the local market, are able to provide flexible solutions for their client base and also have the industry experience to back their products truly ‘pack’ a punch. 30 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
For Flexpak Ltd., the secret to packaging success lies in providing a total packaging experience as well as packaging in bulk while spanning the market across the island of Jamaica. Founded in 1999 by Nigel Hoyow with the help of his two business partners and born out of his vast packaging industry experience earned over many years dating back to the mid-1970s, Hoyow brought his vision into full focus and named it Flexpak. As the name dictates, Flexpak has made its mark by providing the very best, flexible packaging solutions for a market that it is deeply rooted in. Although very few companies competed in this space at the time Flexpak hit the market, it was Hoyow’s steadfast vision and the overall marketing and distribution of products. Many have tried to come up with efficient packaging options but only those who have a clear vision to produce the very best packaging solutions that allowed the company to hit the ground running and provide the springboard to its future success. PACKAGING THE RIGHT SOLUTIONS Hoyow’s business framework was to produce greater volumes of packaging so that Flexpak would have a more competitive pricing structure.The niche target was mainly bakeries, snack food manufacturers, and frozen juices – which to this day still make up a big part of the Flexpak revenue stream. Today, Flexpak represents one of Jamaica’s largest manufacturers specializing in printed polyethylene and polypropylene bags. The company’s growth has been attributed to its ideal packaging solutions for food products that are both safe and considered to be the best solution for this market segment. Related to the food sector, Flexpak also provides ideal packaging solutions for one of Jamaica’s largest economic drivers, the agricultural industry. Hoyow points to the garbage bags, crop protection bags, seedling bags, and weed protection bags the company produces in addition to graphic design options for its agri-based client needs. Although Hoyow admits that there were bumps along the road to packaging success, Flexpak’s focus and clearly defined product approach began to pay off in a relatively short time. Viewing the business as a one-stop packaging shop formed the backbone of Flexpak’s business model. PACKING ON MORE EMPLOYEES AND EXPANSION As the company’s client base grew, so did the growth of the company’s employee base.Today, the company boasts over 65 employees who remain loyal to the principles that formed the company’s roots. 31 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 FLEXPAK
including the Cayman Islands, the U.S., Belize, and Guyana. PACKING A PUNCH AGAINST SUPPLY CHAIN WOES Hoyow notes that the company continues to look outward and welcome export opportunities along with its continued focus on its loyal customer base in Jamaica. He also notes that this outward focus is aided by Flexpak’s new offerings and technical expertise. Hoyow emphasizes that by upgrading Coupled with the growth in its employee base, the company also boasts modern manufacturing facilities based in St. Catherine and a separate warehouse and administrative offices to support the work that it does. The manufacturing facility is equipped with a daytime solar installation producing about 100 Kilowatts and is primed to be upgraded as the company’s technical and machine capacity grows. Although Flexpak’s primary target market remains the beautiful island of Jamaica, the company is looking to expand into a larger export-based market 32 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
PACKING THE RIGHT PRODUCTS Primary revenue drivers for the Flexpak operation are finished bags, pouches, and rolls using various substrates – whether multiple layers or monolayer films suitable for the required products e.g. polyethylene, polypropylene, PET, and polyamides (nylon) for vacuum packaging. There are a few local competitors, but they are not currently able to duplicate exactly what Flexpak does, especially in the area of full-color process printing and multiplelayer lamination – both being done on wide web machines. Hoyow draws attention to the company’s Good Manufacturing Practices (GMP) which forms the base of all Food Safety Management Systems and is anticipating its HACCP certification (Hazard Analysis and Critical Control Program). He notes that by prioritizing and controlling potential hazards in the company’s production process, Flexpak can assure its customers that the processes in place meet the requirements of globally established best practices its services such as providing its customers with laminations and full-color process printing options, further growth is bound to follow. Coming out of COVID, Flexpak, like many other organizations, realized the value of sourcing locally, and clients also turned to Flexpak as supply chain woes caused delays and distributions over the last few years. When looking for quality printing and packaging options, Flexpak provided the local solution with second-to-none products for the local market. As supply chains have normalized of late, Flexpak’s proactive approach has guaranteed a loyal customer base to build on moving forward. Client loyalty cemented during this time and the company continues to enjoy a wide local client base that appreciates the high-quality product base consistently offered by Flexpak. As supply chains have normalized of late, Flexpak’s proactive approach has guaranteed a loyal customer base to build on moving forward. Sun Chemical Caribbean Limited A Proud partner of Flexpak Limited Quality, Service and Innovation from the Global Leader in Inks, Coatings, Pigments and Advanced Materials. www.sunchemical.com FLEXPAK
and ultimately safe packaging. Flexpak is also part of the worldwide Authorized Economic Operators (AEO) program, which is a Customs certification that the company achieved a few years ago. This helps to speed up the clearing of raw materials from the wharf, based on accurate record-keeping and the security of goods, containers, and premises. Flexpak has many long-term customer relationships including companies like the Jamaica Broilers Group, Island Dairies, and numerous bakeries and manufacturers island-wide that have stayed the course throughout the years. Hoyow highlights that the company has also changed company working hours to take advantage of and make use of its daylight solar system, 7 days per week, and is currently planning to upgrade this solar installation further to include a 24-hour system shortly to save on electricity usage. ment e also some indirect exportation, as we produce packaging that quite a few manufacturers use PACKAGING FUTURE DIRECTIONS When it comes to the future of Flexpak, one thing remains obvious. With the flexibility to be able to provide just what the industry and its clients require, Flexpak remains the leading choice for packaging solutions throughout Jamaica. The company also is perfectly positioned to adopt new technology as it continues to look to sustainable options such as the introduction of reusable bags. Flexpak is also looking to move towards digital printing shortly as it adopts new machinery and focuses on sustainable solutions that match client demand. With this progressive business approach and dedication to its customer base coupled with its extensive knowledge of the local market, Flexpak will continue to package the best solutions for years to come. PREFERRED VENDOR/PARTNER n GOPLACA Inc.(Gomas y Plasticos S.A.) www.goplaca.com n Sun Chemical Caribbean Ltd. www.sunchemical.com 34 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
ARUBA TRADE & INDUSTRY ASSOCIATION MAKING THE CONNECTIONS best practices BUSINESS & ECONOMIC DEVELOPMENT ARUBA 35 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
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ARUBA TRADE & INDUSTRY ASSOCIATION AT A GLANCE ARUBA TRADE & INDUSTRY ASSOCIATION (ATIA) WHAT: T he leading advocacy organization representing Aruban businesses WHERE: Base in Oranjestad, Aruba EMAIL: www.atiaruba.org MAKING THE CONNECTION 37 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
E NS The Aruba Trade and Industry Association (ATIA) is the leading advocacy organization representing the interests of the Aruban businesses.ATIA’s membership represents directly and indirectly through other advocacy organizations, such as AHATA and WAB, more than 80% of the private sector employment on Aruba. 38 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
The main goal of the Aruba Trade & Industry Association is to provide relevant services to its members – to champion, promote, and protect the members’ interests and the business community in general. As the voice of Aruban businesses, ATIA is involved in several government advisory and consultative committees and is also on the board of numerous public entities and enterprises. Business View Caribbean had an enlightening conversation with Herrick Henriquez, Director of the Aruba Trade & Industry Association, where he shared valuable insights about business development in Aruba and how ATIA continues to be a strong voice for its members. BVC: Could you start by sharing some background history of ATIA? Henriquez: “The Aruba Trade & Industry Association is an employers’ organization that was formed 77 years ago, on June 17, 1945, by several business people who came together as more of a lobbying Herrick Henriquez 39 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 ARUBA TRADE & INDUSTRY ASSOCIATION
group. It started, basically, as a voice for business in Aruba at a time when not everybody had access to the government. Throughout the years, ATIA also started partnering with other organizations in the Caribbean. “Today, ATIA is the longest standing employers’ organization in Aruba and the only employers’ organization on the island that is officially recognized by the ILO (International Labour Association) and the IOE (International Organization of Employers). We’re also part of the Caribbean Employers’ Confederation (CEC) based in Trinidad and Tobago. “In 2020, ATIA’s Director at the time, decided to pursue a new career. I was working at the Central Bank of Aruba when this opportunity came up, and I felt that I could help the economy better in this position than at the Central Bank. So I took that leap of faith, came here in March of 2021, and never looked back. It was a good fit for me. I like to be at the forefront of change, and ATIA was at the point where the Board also wanted a change.They wanted to make an impact again, to shock the community, so I told them they should choose me, as I was already well known in the community, and I had a big network.” BVM: How has the business climate evolved in Aruba through the COVID-19 pandemic? Henriquez: “Friday, March 13, 2020 was a very dark day for the island because we got our first positive COVID case. By March 17th all our borders were closed. Aruba is 80 to 85 percent dependent on tourism. So imagine in the span of a few days, going from an island in the middle of its busiest season to zero tourists. In a couple of studies by the IMF (International Monetary Fund), Aruba was the most impacted economy in the entire world by COVID because we lost so much business. “Fast forward a couple of months,Aruba had survived wave one and in July we opened our borders back up for tourism and we never closed them again. During that time, a lot of updated health and safety codes were created on the island, which also helped spearhead a new and different tourism industry. People wanted to still go on vacations, but be safe, and they felt very safe in Aruba because of all these new mandates and regulations. For the remainder of 2020 and into 2021, the island really showed its resilience. “Most businesses that could afford to do so went to a hybrid model or remote work. A lot of companies also invested in digitization. Supermarkets started having online orders and deliveries… the digital platforms really helped the island move forward. Some wholesale companies, for example, who depend on the hotel and tourism sector, weren’t 40 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
supplying the hotels because they were empty. So by changing their business model and going direct to consumer, those companies didn’t make as much money but they were able to survive.” BVC: How is the supply chain moving now after so much disruption? Henriquez: “There was a big impact but we’re lucky that Aruba has a steady stream of products coming in. Our importers did a great job in the management of the supply chain of their own inventory systems. Aruba is not as dependent as the U.S. or other places with just in time delivery. We have companies with larger inventories which helped the island. “ATIA actually went out in public and on the news and said, “There is no shortage of food. Maybe the brand you like is not there but there is always an alternative.” So, we never had an issue with a food shortage on the island. However, the freight charges increased our prices a lot because of the supply chain disruption and the issue at the Suez Canal. An example: containers from China that used to be $4,000 per container were going for about $20,000 to get here. That raises the prices a lot for products on the island.” BVC: What issues are you lobbying the government for currently? Henriquez: “As a lobbying organization, we brought forward to government that the only way they can lower prices a bit is by changing the calculation methods of the import for the time being. As long as freight is high and the economy is recuperating, don’t charge import duties on the freight charges. We kept on fighting for that and we’re seeing the fruits, but they’re bringing whole new legislation in for those areas, so we’re doing the best we can. “Because the economy was closed for a long time, Aruba got financial support from The Netherlands. During those times they subsidized the companies here on the island to help us. For this subsidy, they requested the island to make a reform package, together with The Netherlands, where reforms on basically all areas and sectors of the island should have to be implemented. What ATIA has to look at from a business standpoint are the areas of tax reform, labor reform, and the elimination of red tape. There is also social reform where they’re looking into an unemployment package. Education, the hospital, government spending are also being looked at over the next two years. “It will make our economy more robust, even more resilient, and also more modern. We have a lot of outdated laws and change is not fun but we have to do it to become more competitive in the region. 41 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 ARUBA TRADE & INDUSTRY ASSOCIATION
ATIA has really been advocating for many of these points over the years and continues to be a strong voice of support for change in the government.” BVC: What type of education programs and networking events do you offer? Henriquez: “Every year we do programs on labor law. We do training through our official Customs Declarations portal, where companies can participate to train their staff. That is a big one. Also, people management, HR programs. When I came on board, we added a financial education line with a CPEcertified company in The Netherlands, where we do specific financial training for companies that are under the supervision of the Central Bank. That was a real success last year. “We also organized an in-person business mixer for networking at the end of September and that was sold out. The new Minister for Economic Development was our guest and I had a ‘fireside chat’ with him on the stage, where we got to ask him the questions most relevant to businesses – but on a social level. Then in November, we had our main fundraiser, a corporate event with a panel of four local businesses (big companies) sharing how they had to pivot to survive COVID and thrive. “This year we’re rebranding the leadership conference to focus on ‘purpose’.The world is changing to a more purposeful economy – the new generations need a purpose to work somewhere. And we feel that the economy in Aruba is ready for that now. People are quitting their jobs to do something with more of an impact. So we have big plans to talk about purpose and culture at our conference.” BVC: Looking ahead, how will ATIA continue to be a viable voice for the Aruba business community? Henriquez: “I’m looking forward to the future. We’re here to push people a little outside of their comfort zone but also I think ATIA should be a bridge – a place that connects businesses with other islands, other countries, it’s about stimulating the economy. And because the economy is becoming more global, I think we’re a good place that people can come to find those connections they need because we have them already. The Aruba Trade & Industry Association should become that bridge to Aruba and from Aruba to the outside world. All this, and continue to advocate for the local companies and stimulate reforms to become a more resilient economy.” 42 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08
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