Latoya Grindley, Features Writer

Businesses have had to implement major belt-tightening to limit the effects of rising fuel costs and plunging profits.

Many have been forced to take drastic steps to conserve. But companies that bank sales on islandwide delivery are finding the going tough.

Measures to conserve gas

Wade Robotham, operations manager at Honey Bun bakery, says the company has been taking measures to conserve on gas. One of those methods is the outsourcing of distribution, which was introduced about five years ago.

"We have contractors here for delivery, so for the bulk of the fleet, we don't see those bills. This aids the company in terms of fuel consumption."

Robotham says another cost-effective strategy employed by the bakery was regular servicing of vehicles. At present, the company has four delivery trucks which are all diesel-operated.

"We are tightening up on the servicing of the vehicles and for one of the bigger trucks, we have ensured that it can't go over a certain speed, by way of governing it."

Experts have said driving at slower speeds results in significant fuel savings.

No major problem

Robotham explains that for Honey Bun, the matter of fuel efficiency does not present "a major problem right now".

But his bakery counterparts have not been as fortunate, several collapsing in recent years because of untenable operational costs, sentiments Honey Bun shares. In addition to sustained weekly petrol price hikes, bakery closures have been sparked by massive increases in the cost of raw material, such as yeast and flour, and a contraction of the food market.

latoya.grindley@gleanerjm.com