INDUSTRY IN MARTINIQUE
1. General
2. Recent diversification
3. Industrial activity
4. The economic environment

The island of Martinique in the Caribbean archipelago has a surface area of 1,100 sq.km. and has been a French overseas ‘département’ since 1946. It has 381,427 inhabitants.
Its per capita Gross Domestic Product is FF61,000, as against FF123,000 in mainland France.
Its economic activity is centred on the Schoelcher - Fort de France – Lamentin urban area, where the main infrastructure facilities are found.
The economy is characterised by an agriculture sector that, despite a gradual decline, provides 40% of Martinique’s export income, and by a sizeable tertiary sector. The industrial sector, composed of construction and industry, employs 18% of the active working population.
The A.M.P.I. represents 117 companies with 15 or more employees. In 1998, these companies had a turnover of 4.8 billion French francs.
Industry, the third most important economic sector, employs 8% of the active working population and contributes 14% of gross tradable added value.

RECENT DIVERSIFICATION
For a long time industry concentrated on agro-foods, but it has since gradually diversified, given the need to manufacture locally, previously imported goods. This import-substitution phase marked the start of an industrialisation process that has continued thanks, in some cases, to franchises and to a favourable environment – industrial estates, infrastructure, etc.
Today, industry covers eight separate sectors, two of which account for 66% of overall turnover – energy and agro-foods.
Agro-foods, traditionally characteristic of Martinique’s industrial activity, represents 38% of companies and 45% of employees. Building materials and chemicals come third with a turnover of one billion French francs. Printing, wood, furniture and metals represent 11% of the total turnover of local industry.
Today, Martinican industry has modern production machinery that is highly competitive and manufactures products of quality comparable to those of European industry.
However, the small size of the local market and insularity are penalising factors for these companies, who have to look for new markets. The Caribbean basin has enabled some firms to develop their exports or to set up plants in other islands. With their know-how and their sought-after tropical products, they are now turning to European markets.
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INDUSTRIAL ACTIVITY

Agro-foods – new challenges
With 43 companies, agro-foods is the largest industrial sector. It is organised around six different activities – sugar and rum, fruit and vegetables, drinks, dairy, animal feed and other. It includes sophisticated companies that have modernised their production equipment and are henceforth in a position to better respond to the expectations both of the local market and of new export markets.


Energy – considerable economic weight
Its turnover represents 36% of the industrial sector and its investments 83%. The energy sector is made up of an oil refinery and two power stations.
With the exporting of oil products to Guadeloupe, energy accounted for 22% of export income in 1999. Renewable energies are a solution to the electrification of remote areas.


Building materials – considerable quarrying activity
This sector accounts for 17% of employees and has the third largest turnover of the industrial sector. Aggregate is quarried for cement and concrete. Despite a certain slowdown affecting construction, there are some signs of an upward turn.
Metals
This sector is made up of 11 companies and includes joinery, metal gates, galvanised iron sheeting, rebars and welded wire mesh, all suited to a tropical climate. Having to comply with building standards and deal with competition has encouraged some companies to seek quality certification.

Chemicals and plastics – present on the Caribbean market
This sector is very diverse – plastic packaging materials and tanks, fertilisers, paint and household cleaners. Most of these firms export within the region or have set up plants in Guadeloupe or in the Caribbean.


Printing - diversification
Printing is organised around one newspaper printworks and eight jobbing printers. After successive phases of modernisation, these companies now have the technical resources to increase their presence in graphics up-stream.
Today, competition is very strong on the local market, which is diversifying into photoengraving, digital printing, continuous printing, etc.

Wood and furniture – training for quality
Dominated by its cottage-industry origins, this sector is divided into cabinet-making and joinery. Alongside traditional furniture, these firms propose new products using tradition-based modern designs. They have stressed training through exchange programmes. In addition, pallet manufacturing and two sawmills have been developed.

Other industries – industries working for industry and shipbuilding
A heterogeneous group covering shipbuilding, which took off in the 1990s, and other productive activities or services to industry. In this group, new products have appeared to extend the added value of local know-how.
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THE ECONOMIC ENVIRONMENT
Infrastructure and services to industry
With France’s third containerised port and a large airport, Martinique has infrastructure facilities that are geared to increasing contacts with other countries and to optimising their management locally.
Further, the sea front is being redeveloped. This should be completed by 2004 with a new container port, a marina, an inter-island passenger traffic centre, a cruise boat reception area, etc.
Several industrial estates have been built on the fringes of the main urban centres.
The large variety of services available to business can provide the latest technical support for companies. The excellent communications network encourages the use of new communication and information technologies.

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Financial and tax incentives and grants
Different tools are available for business development – preferential loans, a special fund for the French overseas ‘départements’, tax allowances, the basic law for the French overseas ‘départements’ and the 2001 Finance Act. These contribute to lowering labour costs and provide tax credits for investments in industry. The commitment of the authorities to helping industry is also reflected in the financing of projects contributing to growth and support for the industrial fabric.

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Research, technology transfers and higher education
Thanks to a dozen branches of French research institutes, research is being done in several fields – agronomy, fishing, seismology, medicine, law, etc. Bodies providing technological support, over and beyond the existence of local know-how, are called on when external assistance is required.

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Environment
By increasingly integrating environmental concerns into their strategy, industrialists have become active partners in sustainable development. A regional plan to eliminate toxic industrial waste and the future incinerator will bring Martinique into line with European standards.

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Training and employment
Professional organisations and the private sector have reacted to deal with the unemployment problem. Many financial incentives exist to encourage professional insertion and youth employment. However, training remains at the heart of policies to ensure the full use of qualified human resources.

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