Terrance Ortt, CEO of Domus Windows and Doors, is calling on the Government to do more to improve the ease of doing business, especially as he sees manufacturing as playing an instrumental role in improving exports.
He also noted that the current crime situation is a “terrible blight” on the country.
Speaking following a tour of his Factory Road, Chaguanas facility on Friday, Ortt said, “Having dealt in Canada, St Kitts, Antigua, several jurisdictions, and the US, I must say it is most unfortunate that this country shoots itself in the foot,” as he described T&T’s ease of doing business.
However, he noted things are improving.
Domus is a Caribbean-based manufacturer of UPVC (Unplasticised Polyvinyl Chloride) windows and doors that has invested about $70 million into T&T.
Ortt, who is a Canadian national, founded Domus in 2006 and his first entrance into the Caribbean market was in St Kitts, where he opened a factory in 2007.
The company was created for the sole purpose of developing and manufacturing a wide range of products to be produced in the Caribbean, specifically for the Caribbean.
By 2011, the company had outgrown its start-up factory in St Kitts.
It was on a visit to this country he met with businessman Arthur Lok Jack, who persuaded him about the advantages of manufacturing in Trinidad.
In 2018, manufacturing operations were opened in Trinidad.
However, Ortt had planned the opening for 2013.
“I was very unhappy with the delays. There were a lot of bureaucratic delays...getting the land for instance, that took years longer than it was supposed to. Customs granting approvals for a bonded warehouse delayed things months and months and then we had trouble with the EMA (Environmental Management Authority)...it was pretty well across the waterfront,” he explained.
However, he said the company confronted these challenges “one after the other” adding that things are “a lot better than it used to be.”
“Only because we have squat and we have pushed and we have refined our processes so at this point I don’t have too many complaints,” Ortt added.
Regarding the spiralling crime rate and is located in a “hot spot,” Ortt detailed the measures he has implemented to protect his business.
“We have at least 150 different sensors around the factory, 28 cameras and armed security. We don’t take any cash.
“We really have not been affected by it (crime) but we have taken all sorts of precautions,” he added.
In sharing some insights about the company’s financials, Ortt said year-on-year revenues have increased by about 20 per cent.
The impact of the COVID-19 pandemic as well as disruptions in the global supply chains however have resulted in cost increases and Domus was not spared as the company imports its raw material from North America.
Ortt said glass for instance has doubled in the last two years as well as the cost of aluminum.
“Our other hardware has increased to anywhere between 50 and 80 per cent and so we have had to pass that along. We actually process 50 million components a year to make our windows and doors and 90 per cent of output is customised,” he explained.
He said the price of the company’s products to customers increased by about 35 to 40 per cent, noting that there’s also the cost of labour which he said, “has not gone up as much.”
“I think we are on our sixth price increase in the last two and a half years,” said Ortt, an engineer.
Giving an idea of the prices of products, he said, on average, if a piece originally cost $1,000, it would now cost $1,300.
“As you go up in performance, you pay for it as well,” Ortt said.
Despite the increase in prices, Domus has not only maintained its market share but is actually growing.
“The market share has gone up. I think the market has contracted to some degree, but we are doing much better now as the brand gets known.
“People are also taking a longer-term view of their ownership of the product. They are not just looking at the cost only, but they are looking at maintenance cost, longevity, etc,” Ortt added.
He said this is also reflected in the fact that the construction industry is also improving its acquisition of higher-quality products.
“I think the Caribbean is a bit of a ‘backwater’ but as it is coming into its own, it is now upgrading and all the quality is going up,” Ortt added.
He said the company has also kept its margins very low on entry-level products.
On whether the country’s continuing foreign exchange crunch has impacted business, Ortt said the Export Import Bank of T&T (EXIMBANK) has helped to ensure business continuity.
Regarding the company’s footprint, he said Domus has a major distributor in Guyana as well as Grenada and all the way up the chain to Jamaica.
“We don’t fall into the French islands but all the other ones...We have offices in St Kitts, Antigua and then we have distributors in all of the other islands,” he explained.
Noting the particular vulnerabilities of the Caribbean regarding climate change and the impact of hurricanes, Ortt said there is still very little effort made to increase the performance of buildings.
“There’s is almost no hurricane protection or very, very little,” he said.
As such Domas is trying to educate the market about the importance of having proper hurricane resistance units, noting that 80 per cent of all building failures occur due to windows and doors and not the roofs.
“The roof failed because the window or door failed,” Ortt added.
He also noted that the company has bagged major projects including with construction company Home Solutions, whose latest development is 32 apartment buildings in Arima.
Moving forward, he said the company does not intend to open any other factories in Trinidad, but in its current site, it has room for expansion.
“Right now we occupy 50 per cent of the site so we can double the size and even now we are only running about 20 per cent of capacity,” Ortt added.