According to one of the world’s leading ethical trade membership organizations, Sedex, garment, footwear and construction sectors have suffered the biggest economic hit during the COVID-19 pandemic with supply chain disruption.
According to Sedex survey, 68 percent of the garments’ factory revenue has decreased critically. They surveyed 469 suppliers from the garment sector across 51 countries, mostly in Bangladesh, China, India and Turkey.
The report title was COVID-19 Impacts on Businesses was launched late May. It also studied sectors like chemical, pharmaceutical, retail, cleaning, wholesale and fishing.
According to report, India (88%) and Bangladesh (77%) have been particularly impacted. Only 10 percent of the respondents have seen an increase in revenue.
The report disclosed that customers are supportive during the pandemic. According to report about 5-percent of businesses will temporarily close and 21 percent stop workers coming in to work during this period.
With little to no margin for savings, many garment and footwear workers look set to face extreme poverty, it mentioned. Timely collaboration between retailers and governments is critical for managing the impacts of COVID-19 on the millions of people affected.
Sedex urge brands to work collaboratively with suppliers to deliver products to agreed and workable timelines to avoid possible critical issues. Sedex strongly advises buyer organizations to allow for flexibility and additionally provide fair prices.