The local manufacturing industry has been subjected to permanent pressures for change, first due to a native economy open to international markets in expansive competition, then due to the insistent digital transformation and automation, and due to a pandemic that has created a deep crisis in the structures of the productive models.
Next we talked with the Vice Minister of Industrial Development of the Ministry of Industry, Commerce and MSMEs (MICM), Fantino Polanco, about the reality of this industry.
1. What is the reality of the local manufacturing industry?
The local manufacturing industry has managed to keep growing and even surpass itself despite the negative effects caused by the Covid-19 pandemic. The reality is that local manufacturing companies are an engine of national development due to the jobs, foreign exchange and opportunities they generate.
When reviewing the data published by the Central Bank, in the period January-September 2022, the sector showed an accumulated growth of 4.3%, consistent with the year-on-year growth reflected in the total sales of the local manufacturing sector in the period January-August 2022 of 23.2%.
2. What do we call local manufacturing and what type of companies make it up?
The local manufacturing industry refers to those productive units dedicated to transforming raw materials or intermediate goods into products. We refer to them as local because they are covered by the ordinary tax regime.
3. How many companies belong to the manufacturing sector, how many jobs do they generate and what is their contribution to GDP?
The local manufacturing industry represents a contribution of more than 6,500 production units and around 136,600 formal employees, according to data from the DGII and TSS. Regarding its contribution to the economy, in the first semester of 2022, this sector contributed 11.7% of the GDP of the Dominican Republic.
Four.Have technological advances positively or negatively impacted this industrial sector?
Definitely, advances in technology have positively impacted manufacturing industries. Technology allows the industry to improve its productivity, competitiveness, its ability to trade internationally and promotes the creation of more quality jobs.
The adoption of technologies by these industries boosts their growth and the possibility that they are integrated into global value chains. For this reason, in the Ministry of Industry, Commerce and MSMEs, led by Minister VÃctor Bisonó, we have prioritized in our actions policies aimed at supporting the digitization of industries with the support of the Ministry of Industry, Commerce and Tourism of Spain and the Inter-American Bank. developmental.
5. What is the participation of local manufacturing in international markets?
At present, exports of industrial products in the national regime have shown significant growth. In the period January-October 2022, these grew by 20.5% compared to the same period in 2021, representing 12.5% ​​of total exports from the Dominican Republic.
6. What are the challenges that this industry faces to compete, locally and internationally?
One of the main challenges is to continue increasing quality levels so that industries can continue to increase their presence in international markets, especially in the case of Mipymes industries. That is why this government has relaunched and strengthened the Dominican Quality System (SIDOCAL), a key infrastructure for quality through standardization, evaluation, certification, and accreditation services.
Another major challenge facing manufacturing industries is the development of human capital. For this reason, at MICM we are carrying out important initiatives that seek to increase the technical skills of industry employees and managers, for which we have the support of the School of Industrial Organization of Spain, with whom we have trained 360 people.
7. What initiatives are carried out to promote the manufacturing industry?
One of the main initiatives that the vice-ministry has developed is the Industrias RD data portal. It is the first permanently updated interactive portal with exclusive economic statistics of local manufacturing industries. It also makes available publications, digital tools and the most important initiatives carried out by the Vice Ministry.
Facing innovation and productivity, the “Digital Industries” Macro Program is being developed, consisting of five support programs to promote digital transformation in the industry.
To highlight, rescue, enhance and distinguish products made in the Dominican Republic, we are in the process of implementing the “Made in the Dominican Republic” seal, with which locally manufactured products will be distinguished, recognizing them as part of the Dominican identity.
8. What are the main achievements in this 2022?
Without a doubt, one of the main achievements this year has been the launch and implementation of decree 31-22 to promote the development of MSME industries through the public procurement mechanism. The decree instructs public institutions of a social nature to prioritize MSMEs in their purchasing processes, provided they have the necessary capacity and quality to supply the goods demanded.
We launch digital tools to help raise the levels of productivity, competitiveness and sustainability of industries. Among them is:
- Local Manufacturer Directory (DML), business tool that presents contact information and information on the economic subsector to which the manufacturing industries belong.
- Advanced Digital Self-diagnostic Tool (HADA), instrument to diagnose the level of digital maturity of industries
- Cleaner Production Self-diagnostic Tool, which allows to measure the degree of implementation of an environmental strategy of Cleaner Production to the processes, products and services of the industries.
Almost 3,000 technicians and managers have also been trained in the different training programs, managing to strengthen the industries in the neuralgic issues of quality, innovation, productivity, digital transformation and sustainability.
9. How do you envision 2023 being for this industry?
2023 will be a year full of achievements and conquests for the local manufacturing industry. Large foreign and local investments have been announced, which reflects a very promising and hopeful environment to continue expanding industrial activity.
This has been achieved to a large extent due to the economic measures that we have adopted from the Dominican government, which have contributed to a moderation of inflation and sustain growth around its potential. All of this has allowed us to have a favorable macroeconomic environment for business development, including that of manufacturing industries.