Small and medium-sized garment factories in Bangladesh are finding it increasingly difficult to keep their heads above water amid the rising cost of production and a fall in work orders from international clothing retailers and brands.
Big and green apparel factories are content bagging a constant stream of work orders but small, medium and subcontracting units are suffering amidst volatility in the global garment supply chain stemming from the Russia-Ukraine war.
Fakir Apparels Ltd (FAL) appointed 400 new workers last month after training them for three months at its training centre as the Narayanganj-based garment factory has received 25 per cent more work orders this season compared to the last season.
Some local garment suppliers are struggling to avail payments from troubled Western clothing retailers and brands even nearly two years past making shipments while Covid-19 was initially running riot.
Small garment factories struggling to stay afloat
The dearth of work orders from international retailers and brands to small and medium-sized garment factories is so acute that many entrepreneurs are looking for buyers to sell units and exit the industry for good.
The fallouts of the coronavirus pandemic have brought the SME garment units to their knees as orders collapsed with the global drop in sales.
The units of the apparel industry, considered the lifeline of Bangladesh s economy, had faced abnormal delays in payment from buyers, order cancellations and suspensions and non-availability of loans from the stimulus package.
However, the large garment factories in this top export earning sector are faring better to some extent when it comes to getting orders, thanks to better coping mechanisms stemming from their large production facilities and ability to make shipments on time.