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KINGSTON, Jamaica, Apr.16, CMC – Rising energy costs are expected to drive up the price of construction materials in Jamaica.
This warning has come from the Mining and Quarrying Association of Jamaica.
In a statement on Wednesday, the Mining and Quarrying Association of Jamaica is warning developers, contractors and property owners to prepare for possible increases in the cost of key materials such as limestone and sand.
The association says the potential price hikes are not the result of any coordinated action but rather the impact of growing economic pressures.
It points to rising fuel and electricity costs as major factors, noting that heavy equipment requires significant energy to operate while transportation and export expenses have also increased.
The industry is still recovering from millions of dollars in losses caused by last year’s hurricane which disrupted operations and damaged infrastructure.
Data from the Statistical Institute of Jamaica shows the mining and quarrying sector declined by 37.5 per cent, underscoring the severity of the situation.
President of the Association, Sam Millington, says the effects are being felt across the entire industry. He warns that without intervention, Jamaica’s quarrying sector could struggle to remain competitive.
According to Millington, when fuel and electricity costs rise at the same time, it affects every stage of production.
He said operators have been absorbing as much as possible but there are limits. He added that without intervention, the sector risks falling behind more cost-efficient markets.
The association pointed to ongoing recovery challenges following hurricane damage, particularly for operators in Black River.
Quarry operators are still recovering from Hurricane Melissa while managing rapidly rising fuel and power costs, which affect all businesses including all suppliers.
The association noted that rising port fees have further impacted export competitiveness with some buyers shifting to lower cost regions.
Stakeholders in the construction and real estate business are being encouraged to plan accordingly as any increase will reflect broader systemic pressures.
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