Developers Urged to Prepare for Higher Building Material Prices

Construction firms, developers and property owners are being advised to factor in potential cost increases, as pressures across the supply chain continue to build within Jamaica’s mining and quarrying industry.

The Mining and Quarrying Association of Jamaica (MQAJ) has indicated that operators are nearing the point where rising expenses can no longer be absorbed, with impacts expected to filter through to key construction materials such as limestone and sand.

Industry president Sam Millington noted that cost increases in both fuel and electricity are affecting every stage of production, creating a compounded effect across operations. He explained that simultaneous hikes in these inputs are placing significant strain on producers and limiting their ability to maintain current pricing.

According to the Association, energy demands remain high, particularly for heavy-duty processing equipment, while transportation and export activities continue to rely heavily on fuel. Some operators are already contending with electricity bills running into millions each month, alongside increased hauling costs.

The situation has also been worsened by higher port-related charges, which have reduced the competitiveness of Jamaican exports. The Association reported that some international buyers have begun turning to lower-cost markets as a result.

MQAJ further pointed out that several operators have already been managing ongoing recovery efforts, especially in areas such as Black River, where infrastructure damage disrupted normal activity. These challenges have added to the financial strain currently facing the sector.

Recent figures from the Statistical Institute of Jamaica (STATIN) indicate that the mining and quarrying industry recorded a contraction of 37.5 per cent, reflecting the broader difficulties being experienced.

The Association maintained that these conditions stem from a combination of persistent economic pressures, including rising energy costs and recovery from earlier disruptions, which continue to affect production and distribution across the sector.

It added that without targeted intervention, the industry could lose ground to regions operating at lower cost levels, further affecting its position in export markets.

The sector has been working to stabilise following significant losses linked to Hurricane Melissa last year, which interrupted operations and caused damage to key infrastructure.

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