Jamaica Moves to Secure Cement Supply as Government Warns of Wider Economic Risk to Construction Sector

Jamaica’s Government has moved to defend its management of the island’s cement supply chain after shortages triggered by Hurricane Melissa and operational disruptions at the country’s main domestic cement producer threatened to slow construction activity across the island.

Speaking in the House of Representatives on Tuesday 24 June 2026, Minister of State in the Ministry of Industry, Investment and Commerce, Delano Seiveright, outlined the scale of the challenge and the steps taken to keep building activity on track.

A Sector That Employs One in Ten Jamaican Workers

The minister did not understate the stakes. According to figures cited in Parliament, the construction sector employed between 131,200 and 146,700 individuals between January 2025 and January 2026, accounting for approximately nine to ten per cent of total national employment.

Seiveright made clear that the consequences of a major cement supply shock would extend well beyond building sites. Real estate and business services, transportation and storage, wholesale and retail trade, and manufacturing would all be affected if construction activity were to contract sharply.

What Caused the Supply Pressure

The minister identified two primary sources of disruption. Caribbean Cement Company Limited (CCCL), Jamaica’s main domestic cement producer, experienced operational difficulties linked to equipment challenges and adverse weather conditions. At the same time, Buying House Cement Limited (BHCL) suffered extensive warehousing damage following the passage of Hurricane Melissa in October 2025.

Both factors combined to create a tighter-than-normal supply environment at precisely the moment when reconstruction demand was rising sharply.

Government’s Response: Permits, Allocations, and Warehousing

In response, the ministry approved import permits totalling 170,000 metric tonnes — 100,000 for Caribbean Cement and 70,000 for Buying House Cement — along with a further carry-over allocation of 6,848 metric tonnes for BHCL. Cabinet subsequently approved an additional 490,000 metric tonnes across six companies to further reinforce supply.

On the storage side, Caribbean Cement has committed to establishing approximately 12,000 square feet of new warehousing space in Spanish Town and is exploring additional facilities in Mandeville — moves designed to improve distribution resilience across the island.

The ministry has also secured technical support from an international development partner to improve its predictive modelling and forecasting capabilities for critical commodities — a longer-term measure aimed at reducing the risk of future supply shocks.

The Safety Net Principle

Seiveright noted that Jamaica’s cement supply framework is built on the Safety Net Principle, established under Cabinet Decision No. 11/13 in 2013. The framework allows the Government to respond to supply disruptions and periods of elevated demand without permanently undermining domestic producers.

The Consumer Affairs Commission is conducting ongoing surveillance of stock levels, pricing trends, and supply challenges across the market.

“Given the measures the ministry has instituted, we foresee no prolonged shortage of cement.”

— Minister of State Delano Seiveright, House of Representatives, 24 June 2026

What This Means for Property and Development

For Jamaica’s property market, cement availability is not an abstract policy matter — it is one of the most direct determinants of whether housing projects, infrastructure upgrades, and commercial developments can proceed on schedule and within budget.

Jamaica currently has over 40,000 housing solutions at various stages of development, including more than 10,700 units under active construction. The National Housing Trust plans to commence construction on a further 10,675 solutions during the 2026–27 financial year. With Hurricane Melissa reconstruction still ongoing and tourism-linked hotel projects continuing across the north coast, demand on the island’s cement supply is expected to remain elevated for the foreseeable future.

Developers, contractors, and self-builders should take note of the Government’s commitment to ongoing market surveillance and should factor supply-side risk into project planning and procurement timelines.

Source: Jamaica Observer — Cement supplies to stabilise, says Seiveright, published 24 June 2026.