Struggles Faced by Textile and Garment Sector in Bangladesh
Current Challenges Facing Bangladesh's Textile and Apparel Industry
The textile and apparel industry of Bangladesh, a critical economic sector, is currently grappling with a series of challenges that are impacting its growth and sustainability. This sector, known for its labor-intensive production and resourceful workforce, contributes over 84% to the country's exports and employs more than 4.2 million workers, predominantly women.
Emerging Challenges
- Emergence of Electronics Industries: The rapid growth of electronics, motors, and high-tech industries poses a competitive threat to the textile and apparel sector. These companies, like Atlas Copco, Walton Group, and Philips, are embracing new technologies and customer demands, which add value to Bangladesh's economy and compete with the garment sector.
- Increased Order Speed and Variety: Rapidly changing fashion trends and the demands of the global market for rapid feedback from suppliers have led to faster order distribution and an increased variety in orders. While the fashion industry in Bangladesh is capable of producing basic items, it falls short in producing trendy, in-demand items, especially in comparison to competitors who can offer short lead times.
- Recent Wage Increments: A significant wage increase within the RMG sector may impact the apparel industry's growth. With the minimum wage now at 12,500 Takas (as of December 2023), this direct cost increase could raise product-making costs and freight on board values, potentially leading to strained relationships with foreign buyers.
- Dependency and Grading System: Over-reliance on specific buyer orders and the grading system employed by buyers can lead to unfair practices and reduced payments. Bangladesh should focus on adopting open market policies and enhancing its negotiation and marketing strategies to mitigate these issues.
- Global Technological Advancements: Bangladesh lags behind in technological advancements, a critical factor for a competitive edge in today's market. Modernization of machinery, adoption of lean manufacturing, and standardization are essential steps for the industry to stay competitive.
- Safety and Green Business Policies: In light of past incidents like Rana Plaza and Tazrin, industrial safety and compliance have become crucial for international buyers. Adhering to safety standards and achieving green certification, like the USGBC and LEED, is integral for securing top-class buyer orders.
Additional Challenges
Other factors hindering the textile and apparel sector include limitations in modern machinery, a lack of a technologically-oriented workforce, fear of short lead-time shipments, limitations in raw material production, time-consuming port services, a lack of local professionals, mismatches between planning and implementation, and a lack of training and education for workers to adapt to modern machinery.
Understanding and addressing these challenges are vital for the sustainable growth and development of Bangladesh's textile and apparel industry.
- For Bangladesh's textile and apparel industry to maintain its competitive edge, it's crucial to address the gap in technology, particularly in adopting lean manufacturing and standardization in the supply chain.
- To keep up with evolving regulations and compliance requirements, the manufacturing sector must focus on adhering to international safety standards and achieving green certifications, such as USGBC and LEED.
- Compliance with apparel industry regulations should extend beyond safety to include the entire supply chain, ensuring ethical manufacturing practices and responsible sourcing of materials, particularly in the sports industry where sustainability and transparency are increasingly important.
