News From USJFCOM: Task Force Ramadi helps free enterprise take hold in Iraq

Commander Kevin Hunt, right, discusses a marketing proposal for the Ramadi Ceramics Factory with a local sales representative. Hunt is one of nine Task Force Ramadi members supporting the Department of State's embedded Provincial Reconstruction Team 2-Ramadi.

Navy Cmdr. Kevin Hunt, right, discusses a marketing proposal for the Ramadi Ceramics Factory with a local sales representative. Hunt is one of nine Task Force Ramadi members supporting the Department of State's embedded Provincial Reconstruction Team 2-Ramadi. (Official photo by MCCS(SW/AW) Gary Boucher)

Task Force Ramadi helps free enterprise take hold in Iraq

Members of a tailored task force made up of more than 100 military and civilian personnel from the Army, Navy, Air Force and Marine Corps forward deployed to Camp Ramadi in Iraq are working with the Department of State's reconstruction teams by using business techniques to help economic development.

By Task Force Ramadi Public Affairs

CAMP RAMADI, Iraq (May 21, 2008) -- Two members of Task Force Ramadi listened as sales representatives for the local ceramic factory complained about competition in the market place.

A representative from a local marketing firm offered his services in exchange for a share of future profits.

To Navy Cmdr. Kevin Hunt, the conversation was a good indication that progress was being made.

"The more they talk, the better things are," he said. "That's capitalism and that's what they can expect. That's why they need to be able to produce a higher-quality product at the lowest cost."

Hunt is one of several Task Force Ramadi members supporting the Department of State's embedded Provincial Reconstruction Team (ePRT) 2 - Ramadi. The ePRTs assist the local governments in building their capacity to govern more effectively and deliver essential services. The ePRT-Ramadi is focusing on strengthening the capacity of the municipal government to transition to Iraqi self-reliance.

Task Force Ramadi is a tailored task force made up of more than 100 military and civilian personnel from the Army, Navy, Air Force and Marine Corps forward deployed to Camp Ramadi to support ongoing operations in Multi National Force-West's area of operations. The task force deployed from U.S. Joint Forces Command's Standing Joint Force Headquarters earlier this year.

The ceramics factory, located just outside the city of Ramadi, employs between six and seven hundred people. It is currently a state-owned organization and, in the past, production was based on quotas set by the federal government. "They haven't had any experience in marketing and sales," said Hunt.

"The central government said to provide a certain number of products and then the government would pick up those products and distribute them at a subsidized rate. The factory operated and workers received wages regardless of demand."

According to Hunt, the goal is to reach a point in the future at which the factory can operate as a private industry, with the ultimate goal that it be turned over by the government to a group of investors.

To reach that goal, several challenges have to be overcome. The ceramics factory is coupled with a glass factory, which is lying dormant and needs to be refurbished at an estimated cost of tens of millions of dollars. "The hope is to get the ceramic factory up to a production level that will support funding for its own operations and maintenance," Hunt said.

"At the same time, we are working with a local firm to initiate a marketing and sales campaign that will nominally match the volume increase. As the capacity increases, they will need a matching volume of sales." At the same time, the complex manager is spending large sums to refurbish the glass factory complex, an industry recognized as a symbol of the city of Ramadi industrial strength.

Hunt saw the meeting between the factory manager, sales representatives and marketing firm as a huge step towards addressing the challenges. "This was the first time we've had a professional marketing company come in to meet with the factory manager," he said. "The marketing firm representative's comment on a desire to be invested in the company was a surprise to me. It was a good surprise though because it indicated that there was a company that was willing to work hard to market the goods for a percentage of the profit of sales on those goods."

According to Hunt, the factory manager will now need to decide if he chooses to use the local marketing firm. "It's also his prerogative to go find another marketing firm if he desires," Hunt said.

The factory is also looking at improving quality standards. "They are looking to get certified in ISO (International Standards Organization) 9000," Hunt said. "If they get certified, it gives them an edge in marketing products over other companies that don't meet that standard."

In addition to discussing marketing, sales and production standards, the ePRT was able to offer some immediate help with getting the tile production back on line. "We provided a little more than $14,000 to the company today so they could purchase an urgently needed repair part for one of the two operating assembly lines," Hunt said.

"The use of Quick Relief Funds (QRF) for the factory replacement part was a case book example of what the QRF program was designed to accomplish," said Lt. Col. Gregory White, another Task Force Ramadi member supporting the ePRT. "QRF allows the EPRT to immediately address issues that can be solved with goods or services under $25,000."

Prior to the visit, the production line had been down for three weeks and, according to Hunt would most likely have remained down for another two months. "That means up to two hundred workers would be without jobs," he said. "This was a very positive thing for us to be able to help the company and secure good will. That in itself makes you feel good because it has an impact on a lot of people."