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  • 4 days ago
Rising energy costs are sending shockwaves through the local manufacturing industry. With natural gas prices up 77 percent, businesses are warning of layoffs and even possible relocation
Transcript
00:00The Trinidad and Tobago Chamber of Industry and Commerce is raising the alarm over a looming contraction in the country's
00:07manufacturing sector.
00:08The warning comes after a 77% increase in the price of natural gas, a key input for many manufacturers.
00:17Any contractions or partial shutdown within our manufacturing sector will result in job losses. And we are looking at from
00:27200 to 500 job losses in the immediate term. The broader ripple effects across the supply chains will be significant.
00:40While the chamber acknowledges reform in the energy sector may be necessary, its members are frustrated by the way the
00:47changes were implemented.
00:48Our manufacturing members reported that a revised rate were presented in a very regimented manner without the opportunity for meaningful
01:01discussions.
01:02Contracts were signed under commercial duress and included escalations in 2025, 2026, 2027, resulting in an overall increase in approximately
01:17100% in natural gas over a three-year period.
01:21The financial impact has been immediate.
01:23The immediate impact is substantial. Our members estimated that the increased cost of production for them is between U.S.
01:34$500,000 to U.S. $1.2 million per annum.
01:40These are not marginal adjustments that can be simply absorbed by our members.
01:48The likely consequences are higher consumer prices, reduced export competitiveness, potential job losses, contractions in our manufacturing sector.
02:02Some manufacturers are even exploring the possibility of relocating operations to other territories to stay competitive.
02:09We respectively call for structured engagement between the government, ANGC, and stakeholders.
02:20Transparency regarding pricing formula, long-term energy policies, and a phase- and rules-based implementation framework rather than sudden
02:33decisions.
02:33The Trinidad and Tobago Manufacturers Association represents around 650 members, 70% of which are small and medium-sized enterprises.
02:45We talk about the national gas price increase, and that affects the manufacturing sector in the main.
02:52We talk about the increases in the excise duties. That affects the cultural sector, the bars, the restaurants.
03:02We spoke about the pharmacy issue. That affects members of the community in that sector.
03:08So we're talking about a cross-sector impact.
03:12Dialogue with government is ongoing, but chamber officials say tangible results are still pending.
03:18The chamber remains fully committed to continuous engagement with the government, the NGC, and all stakeholders.
03:27Our aim is to arrive at measurable solutions that minimize economic strain while advancing national development objectives on all our
03:37advocacy issues.
03:39With energy costs surging, Trinidad and Tobago's manufacturers are now facing critical decisions that could shape the future of the
03:47sector.
03:47Overshid Tawari, Rupanarain, TV6 News.
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