Ganz looks forward to diamond manufacturer’s cooperation

Recently, Moti Ganz, president of the International Diamond Manufacturers Association (IDMA), brought attention of the diamond industry towards the massive loss of labour occurring at diamond factories, and other challenges faced by the diamond manufacturing units due to the current market slowdown. He feared that the industry may loose talent in the bargain.

Ganz appealed that in the current market situation, diamond manufacturers must balance the need to retain a viable labour force with the ability to continue servicing long term clients. "In a period of reduced demand for diamonds, it is important to maintain our industry's manufacturing infrastructure. The manufacturing sector is sensitive to the plight of the mining communities and the national diamond economies and we will help make every possible effort to unclog the pipeline and have a free-flowing, healthy diamond industry once again."

He further added that "It has been our experience from previous downturns that when workers are laid off, they leave the industry and will not come back when the tide turns. Huge capital investment and efforts have gone into training, and years of dedicated effort have made our highly skilled labor force one of our finest assets. Though the need to balance our inventories is unquestionably a high priority, it is not in our interests that diamond mines be closed. These are extremely capital intensive ventures, and there is no certainty that they will reopen quickly enough to satisfy demand when the economic climate improves."

Another area where Ganz felt was worth a concern was the diamond industry's ability to access finance. "We suddenly live in a new world where banks face shortages of funds. The diamond industry remains attractive to the banking system, but we have to fight to keep our preferred position among many other borrowers who are seeking funding. IDMA is consulting closely with the commercial banks and we feel confident that they understand and appreciate the current situation prevailing in the industry."

He added, Diamond industry forces need to band together and banks must recognise that it is the manufacturing sector that will lead the industry to stability and renewed growth. Our members are displaying great resilience and a strong commitment to all our stakeholders. When the crisis is behind us, what will be remembered is the role played by our members in all the manufacturing countries around the world. " Ganz was optimistic that though "this is a difficult period of retrenchment, but without doubt the industry will be stronger for it."