It all started in October 2018 with the context of Brexit, slower demand for garments and a higher level of unsold garments in the stores. Then it was carried through by comparatively higher level of currency devaluation of competing countries and dumping yarn price from outside countries.
Followed by 51% wages increase for the readymade Bangladesh garment industry, higher tariff on gas, the major raw material for captive power generation for spinning industry, the trade war among the two major economies of the world-USA and China.
The battle between USA and China is a battle of USD 100 billion Vs. USD 500 billion exports in between those two countries.
Who would win the battle, only God (Allah) knows but it is evident that it has contributed immensely into increased volatility in the international trade, adversely affected world economic growth, distorted the stability of money market and capital market. So far, we have passed almost eight months and it is now the time to settle down. Is not it?
It is a part of my daily activity that I collect different data and analyze those in my own way that I feel is interesting since I started my career in 1997 after studying Finance for long six years.
And I wondered how close my analysis was with respect to actual as I started my career in the spinning industry. I sometimes wondered is it gut feeling? Nah! Sounds stupid and as I did not have the answer I was happy to remain stupid.
Only in a recent year, I came to know about how I could do it from Mel Robbins who I think is a great motivator. The way my ‘Reticular Articulated System’ signals about spinning business in Bangladesh market is that the situation would remain the same for rest of 2019 and it is very important to design some macro and micro strategies in order to minimize damage.
So, I would highly recommend the spinning community to wake up who are still after the ‘Low hanging fruits’ since the beginning of the biggest spinning catastrophe in Bangladesh since independence that started back in October 2018 and expecting that soon it would be over.
It is high time for action with the future in mind and I am very optimistic about the spinning industry.
As a reference or recommendation you can go through my following two articles that were published in Textile Today: –
|Article in “Textile Today” October, 2018 issue. Topic “Strategies to secure competitiveness in Spinning in Bangladesh”||December 2018|
|Article in “Textile Today” March, 2019 issue. Topic “An analysis of the current state of spinning industry in Bangladesh and seeking a way forward to cultivate success and assure sustainability”||March 2019