KAM: Manufacturers plan to reduce size of full time employees
SEE ALSO :Are you ready for the job market?In the first quarter of the year, the majority (47 per cent) of manufacturers operated at about half capacity while 33 per cent reported being operating at 75 per cent of installed capacity. Only 20 per cent of surveyed manufacturers were operating at near full capacity during the quarter under review. The industrial manufacturers, however, reported a positive outlook on revenue growth rate over the next 6months. 48 per cent expect positive revenue growth for their own companies, with 19 per cent forecasting a negative growth whereas 33 per cent forecast zero growth. According to the survey barriers to the growth in the manufacturing sector over the next six months include the cost of raw materials, pressure from increased wages, decreasing profitability, taxation policies, unhealthy competition from cheap imports and regulatory pressure. Other challenges reported as a threat to businesses include frequent power fluctuations, delays in vat refunds by KRA and clearance delays at the port.