AMID the threats of Covid-19, a handful of companies in East New Britain (ENB) are finding ways to forge ahead.
President of the ENB Chamber of Commerce and Industry, David Stein said he received responses from ENB members, who despite challenges posed by the pandemic have strategized ways to remain in operation.
The Balsa industry is still going strong and employment levels are unchanged. 3A Composites (formerly PNG Balsa) is the largest balsa processing company. They employ around 900 people and they expect that to be unchanged over the next twelve months.
Lihir is providing a strong market for sand and gravel supplies and that in turn is keeping some small plant hire and cartage contractors going and employment level is good.
Mr Stein said retailers are generally reporting reduced sales, but rather than reduce staff numbers they are mostly having staff work reduced hours and rotating staff on to other jobs to keep them employed.
“Small building contractors are doing it tough. One contractor reported that he will reduce his work force from 25 to 14 next month unless he gets something happening in the next weeks. There is very little government contract work happening and not much capital expenditure work on offer from the private sector.”
One steel fabrication and building Supply Company is saying turnover has contracted around 10% but staff levels are being maintained on compassionate grounds rather than commercial reasons.
A car hire and lodge accommodation company is saying turnover is down by more than 50% but they have kept all staff on, working on rotation with each getting about 40 hours per fortnight. Hotels, lodges and resorts are all in the same boat.
Mr Stein said neither of the fuel companies- Puma and Islands Petroleum, have laid off any staff, but they have certainly reduced their capital expenditure and maintenance work which affects others ability to maintain employment levels.
He said one of the dailies reported that the employment index from the Bank of Papua New Guinea shows that formal private sector employment declined by 5.5 per cent in the September quarter of 2020, compared to an increase of 1.3 per cent in the June quarter of 2020.
“I think that figure is probably not painting the true picture where many employees have kept their jobs but earning reduced income. In ENB, we are seeing big increases in break and enters, armed hold-ups and petty theft, and that is telling the true story,” Mr Stein said.
“There has been no one saying whether this is Covid-19 related or due to general downturn of the economy. I think we can safely say that tourism and hospitality industry woes are almost entirely due to Covid and travel restrictions. I think the rest are suffering from reduced economic activity, which was already depressed prior to Covid and only gotten worse since,” he said.