Bangladesh’s textile industry is progressing with a vision of US$ 50 billion export by 2021. To achieve this export target, significant positive changes are happening here. The industry is seeing a huge transformation in human capital, automation, workplace safety and newly developing with ultra-high facility economic zone establishment. Workers wage increased to almost 51%, which is already implemented from this December, and it is another significant happening. Alongside these positive things, there were many unfavorable situations like the devaluation of the currency, unwanted incidents, utility crisis, wage hike etc. but the industry growth was in an up-trend in 2018 and still counting. Now Bangladesh is a trustworthy name for international buyers.
Bangladesh is entering into a new era
Bangladesh textile and apparel industry is moving towards digitalization and automation. Industry 4.0 is expecting to be implemented by the next year, which is considering as the new era. The whole industry is trying to do business in a digital way aiming to maximize profits while achieving zero inventory loss, zero leftover stock, zero lost sales opportunity and most importantly zero waste emission through smart, speedy and sustainable production. Without the automation and integral decision making, it won’t be possible. Machinery companies are continuously working on bringing new featured machinery focusing customers demand.
Industry 4.0 gains momentum in the manufacturing world. The use of artificial intelligence, processing of big data and connecting the dots together in quick and fast decision-making would be the key changes in the industry’s success of Bangladesh.
Bangladesh Economic Zones Authority (BEZA) has been working to set up 100 economic zones by 2030, which will create jobs for about one crore people and produce goods and services worth US$ 40 billion. BEZA has identified 74 locations across the country for setting up economic zones.
Human capital transformation is getting a trend of industry
Though automation trend is increasing but it cannot replace an efficient workforce significantly. At present, the manufacturers are investing immensely to build skilled workforces. This is the year where many factories associated with Textile Today in the march of ‘Human Capital Transformation’.
Although automation is making a significant impact, still the textile and apparel industry needs more skilled people. Because of the lack of skilled manpower, foreign professionals are taking away almost 5-6 billion dollars every year from the country.
Bangladesh government has already raised the minimum monthly wage for the workers to TK 8,000 ($95) which was TK 5,300 ($65). Now it is time for the workers to be more efficient as the government has kept their demand.
Sustainability has been the most uttered word throughout the year 2018 and a number of significant developments happened in this arena. Bangladesh has taken the leading position in sustainable green industrialization with the world’s several top-ranked Green factories. As of the U.S. Green Building Council (USGBC), Bangladesh’s RMG sector now has 67 Leadership in Energy and Environmental Design (LEED) green factories. Among them 13 are LEED Platinum rated while more than 280 garment factories in Bangladesh would get the LEED certification soon.
A lot of awareness activities done by many stakeholders including Textile Today. It has launched a training and capacity building program in collaboration with Engineering Resources International (ERI) Ltd aiming to make efficient professionals for the textile industry who will run the Sustainability Department and implement Sustainability Management System (SMS) in the factories and help the same to get the social, environmental and economic benefit and make the textile and apparel industry sustainable in the long run.
Bangladesh is the next hotspot for apparel sourcing
Bangladesh will remain the apparel sourcing hotspot for international retailers and brands because of competitive prices and China’s declining market share in the garment business, says a global survey. At the same time, the apparel sector improved workplace safety and other compliances after fixing the structural, electrical and fire loopholes.
However, to continue the higher export growth, the government should improve the infrastructure and make sure that the Chattogram port and the national airports are running smoothly.
In July-November period of the current fiscal year, export earnings from the readymade garment sector went up by 18.59% to US$14.18 billion, which was US$11.96 billion in the same period last year, according to the Export Promotion Bureau (EPB).
It is expected that the growth trend will be continued throughout the 2019 and many more new horizons will open for Bangladesh textile and apparel industry.