More than 80% workers of garment factories in Bangladesh think they need more training to face challenges of the fourth industrial revolution, according to a survey of the Bangladesh Institute of Development Studies (BIDS).
The BIDS conducted the survey among 119 firms, including 72 of knit and 47 of woven industries, in four locations in Dhaka and Chittagong.
Delivering a presentation at BIDS Research Almanac 2023 at a hotel in the capital on Thursday, Rizwana Islam, research associate of the BIDS, said the existing human resources believes more training would remedy the skills gap.
Of those believing in the necessity, 82% are male and 84% are female in the woven industry while 84% are male and 88% female in the knit industry.
Islam said they conducted their survey focusing on the skills gap, mismatch and shortage.
Although the garment sector has the minimum shortage of human resources among other sectors, it still lacked skilled human resources notably in managerial posts, she said.
The notable deficits are in management, quality control and some of finishing operator posts, she added.
The also survey found that there was a mismatch in the educational levels sought and that available in almost all categories of jobs.
Only for quality inspectors in both the industries and printing and embroidery machine operators in the knit industry, survey shows a matching of desired and actual qualifications of the employees, she added.
Skills enhancement programs are needed focusing more on occupations where the gap is higher, said Islam.
Enterprises should have close linkages with training providers so that trainees could get internships in factories and in turn the enterprises will get good quality workers, she said.
The government should introduce training on computer programming, technical engineering, and design work so that the industry can work on product diversification and move to upper value chains of garment products, she added.
About 68 per cent of Bangladesh’s annual export earnings from apparels is still confined to just 10 items, indicating that product diversification in the industry is yet to reach expected levels even after a journey of four-and-a-half decades.
The 10 most exported apparel items accounted for $30.94 billion of the country’s $45.70 billion earnings from the industry last year, according to data from the Export Promotion Bureau compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
As always, knitted cotton T-shirts saw the highest exports in 2022, registering earnings of $8.93 billion with roughly 26 per cent year-on-year growth.
This means that T-shirts contributed some 20 per cent of the total apparel exports that year, when Bangladesh captured 23 per cent of global trade in the sector, the data shows.
The 10 most exported apparel items accounted for $30.94 billion of the country’s $45.70 billion earnings from the industry last year
Men’s woven trousers were the second highest earner, registering about 23 per cent year-on-year growth to hit $5.94 billion with a 13 per cent share of the total apparel exports. Locally made men’s trousers, including child sizes, hold a 21 per cent stake in the global market.
Women’s trousers were the third largest export item, earning $3.63 billon with year-on-year growth of 19.10 per cent. The sector has a global market share of around 16 per cent.
Meanwhile, cotton jerseys and pullovers placed fourth in terms of earnings while those made of manmade fibre stood at fifth.
Men’s cotton woven came next at sixth, women’s cotton knitted trousers seventh, synthetic woven trousers eighth, men’s cotton knitted shirts ninth and men’s cotton knitted trousers was the tenth most exported apparel item in 2022.
Bangladesh’s share in the global market for these 10 items was about 15 per cent of the $160.43 billion registered that year. At the same time, the country grabbed an 8 per cent share of the overall global apparel market valued at $431.94 billion.
Among these top 10 garment items, only 12 per cent of the export earnings in 2022 came from non-cotton apparels while cotton-based apparels made up the rest, said BGMEA President Faruque Hassan.
“Although we have experience and a good capacity for producing cotton-based apparels, we are still lagging behind in the non-cotton sector,” he added.
Hassan went on to say that while only 25 per cent of the textiles consumed worldwide are made of cotton, 75 per cent of Bangladesh’s garment industry is concentrated on making cotton clothes.
“So, huge opportunities await but we have a capacity shortage when it comes to making high-end garments such as sportswear, lingerie and outerwear,” he said.
“To increase Bangladesh’s hold on the global non-cotton apparel market, we need to increase efficiency and technical know-how in the industry,” the BGMEA chief added.
Hassan then said more investments are needed in backward linkage industries while the environmental aspect of industrial production should be kept in mind.
During the first two months of 2023, garment exports from Bangladesh grew by some 10 per cent year-on-year.
A significant part of the growth was contributed by shipments to the European Union (EU), the largest export destination for Bangladesh.
Exports to the EU amounted to $4.22 billion during the January-February period, registering year-on-year growth of 8 per cent.
However, Bangladesh saw negative growth in exports to eight of the 27 countries in the EU, namely Germany, Austria, Bulgaria, Denmark, Finland, Latvia, Malta, Poland and Slovenia, the data says.
During the two-month period, exports to Germany fell 12.37 per cent to $1.17 billion. On the other hand, shipments to France and Spain grew by 14 per cent and 22 per cent to $477.87 million and $645.68 million respectively.
At the same time, exports to the US fell roughly 14 per cent to $1.33 billion from $1.54 billion. Shipments to Canada also dropped by some 3 per cent to reach $206.80 million.
However, exports to the UK saw 21.63 per cent year on-year growth to stand at $964 million during the first two months of the current calendar year.
Bangladesh’s exports to non-traditional markets rose remarkably in the January-February period, showing year-on-year growth of 42.51 per cent to hit $1.64 billion from $1.15 billion.
Currently, the share of export earnings from clothing sent to non-traditional markets stands at 19.64 per cent. Japan is the top destination among major non-traditional markets, fetching $321.12 million during the period.
Exports to other non-traditional markets such as Australia, India, South Korea, Turkey and the UAE are also rising but shipments to Russia, China, South Africa and Chile have declined, the data shows.
Bangladesh’s apparel exports to Canada lost its shine in 2022 with Vietnam overtaking the country in the market thanks to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Vietnam overtook Bangladesh for the first time as the second largest apparel exporter in the Canadian market in 2022.
Bangladesh’s apparel exports to Canada in 2022 stood at $1.73 billion, which is 35.2 per cent higher than $1.28 billion in the previous year, according to International Trade Centre data.
The apparel exports of Vietnam to the Canadian market in 2022 increased by 46.35 per cent to $1.75 billion compared with those of $1.2 billion in 2021, the data showed.
The data showed that the share of Vietnam in the Canadian RMG imports increased to 14.10 per cent in 2022 from 9 per cent in 1018.
In the past five years, the share of Bangladesh in the Canadian apparel market grew to 13.9 per cent from 11.61 per cent.
The share of Chinese apparel in Canada decreased to 30 per cent in 2022 from 38.53 per cent in 2018.
Experts said that Vietnam’s exports to Canada started increasing after signing the CPTPP in 2018 as the agreement established duty-free access for trade in goods between the two countries.
Under the deal, Vietnam has been getting duty benefit in the Canadian market since 2019.
Under the treaty, Canada has eliminated 94 per cent of tax lines for Vietnamese imports, and Vietnam has eliminated approximately 66 per cent of tax lines for Canadian imports.
Although Bangladesh’s readymade garment is getting duty-free market access in Canada, the trade facility under the CPTPP and diversified products have made Vietnam the second largest apparel exporters in Canada beating Bangladesh, exporters and experts said.
China still remains as the largest apparel exporter to Canada with 30 per cent market share.
Chinese apparel exports to Canada in 2022 increased by 21.57 per cent to $3.77 billion from $3.1 billion in 2021.
‘Bangladesh would have to face tough competition in Canada as at least 17 per cent duty would be imposed on apparel products after the graduation of the country from the least developed country to a developing one in 2026,’ MA Razzaque, chairman of the Research and Policy Integration for Development, said at a recent programme.
He said that Bangladesh’s readymade garment was currently enjoying duty benefit in the Canada market, but after the graduation, the benefit would be eliminated for the country and Vietnam would enjoy duty-free access that time on the market.
At a meeting on ‘Identifying Issues Relating to the Upcoming New EU GSP Regulations’ organised by the commerce ministry on May 18, Razzaque presented a research paper showing that Bangladesh was grabbing the market share shifted from China in the European Union while Vietnam was taking the most advantage of shifting business from China in North America.
He said that LDC tariff preference was critical for Bangladesh in raising its apparel export market share.
With tariff preference, Bangladesh captures more than 22 per cent of extra-EU apparel imports, but in the Canadian market, Bangladesh is already under pressure, Razzaque said.
He suggested that the government should go for bilateral and regional arrangements with major trading partners to face the challenges of LDC graduation as Bangladesh RMG might not get the duty waiver benefits under the GSP Plus arrangement due to proposed safeguard measures in the proposed EU GSP scheme.
Bangladesh Garment Manufacturers and Reporters Association president Faruque Hassan on Saturday told New Age that Vietnam was enjoying advantage in Canadian market due to the CPTPP.
‘In 2022, Vietnam surpassed Bangladesh in exporting RMG in Canada, but we will regain our position in 2023 in the market,’ he said.
According to the ITC data, apparel imports by Canada in 2022 increased by 28.62 per cent to $12.45 billion from $9.68 billion in 2021.
RMG imports by Canada from Cambodia in 2022 increased by 22.61 per cent to $1.28 billion from $1.04 billion in the previous year.
Though Bangladesh dominates the global denim market, it witnessed a negative export growth of the items in both the European Union and USA during the first quarter (Q1) of this calendar year.
Exporters have attributed the fall to a sluggish demand in the markets due to economic slowdown triggered by the Russia-Ukraine war-induced high inflation that forced the consumers to prioritise their basic needs.
Exports of denim garments to the USA in January-March period of 2023 recorded over 33 per cent negative growth to US$131.44 million which was $196.25 million during the same quarter last year, according to data from OTEXA, an affiliate of the US Department of Commerce.
Bangladesh’s denim export earnings from the USA stood at US$943.70 million in 2022 which were US$798.42 million in 2021, data showed.
Bangladesh is the top denim goods supplier to its single largest destination, USA, since 2020. In 2019, Mexico was the top supplier with $802 million exports, but it fell to $161.24 million only in Q1, 2023.
OTEXA data showed that the total US imports of denim apparel from the world in the Q1 decreased by 31.37 per cent to $662.44 million which was $965.28 million during the corresponding period of 2022.
Once the biggest denim exporter, China scored fifth position in the US market with $58.60 million, marking over 34 per cent negative growth.
Pakistan and Vietnam ranked third and fourth position with $74.11 million and $62.85 million respectively, according to data. When asked, Md Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association, said RMG exports to almost all the major destinations witnessed negative growth in the recent months and so did the denim goods.
“The main reason is the Russia-Ukraine war while high inflation forced consumers to prioritise their basic needs, mostly food, and discouraged fashion buying,” he said.
Talking to the FE, Mr John of Chinese company Zhejiang Xinlan Textile Co. Ltd., also attributed the sluggish denim business in recent times to the war.
His company is participating at a two-day denim show – Bangladesh Denim Expo – organised by the Bangladesh Apparel Exchange at International Convention City Bashundhara (ICCB) in Dhaka.
He, however, said he is here in Dhaka to display their latest products, hold business meetings with his existing clients and explore new customers.
Md Hasibul Huda, deputy general manager of Pioneer Denim, said they also got less work orders from US and Canada, but work orders from the EU increased in recent months.
Tanvir Hossain, project manager of Jeanologia, a technology supplier company, said that despite a bleak economic situation in major export destinations, the global fashion brands are placing orders here in Bangladesh as the majority of the denim fabric makers and exporters are adopting new technologies that help reduce water consumption.
Jeanologia, a Spanish company, is also taking part in the expo that began on Tuesday. Some 90 exhibitors from home and abroad are showcasing their latest denim products, fabrics, accessories, chemicals and technologies.
Almost all the denim manufacturers in Bangladesh adopted new technologies like Ozone and laser in line with buyers demand, Mr Tanvir Hossain said, adding that the business is now going slow due to no or little expansion of local factories because of scarcity of work orders fueled by the global economic crisis.
He claimed that the expansion of denim factories as also the adoption of new technologies has brought down the use of water to 9-30 litres from around 360 litres to produce a pair of jeans. Brant Tong, sales manager of XDD Textile from Vietnam, hoped that the business would turn around within the next six months.
According to available BGMEA data for January-February period of 2023, Bangladesh fetched $234.06 million from denim exports to the EU, marking a 14.37 per cent negative growth.
Turkey shipped denim goods worth $184.08 million, followed by Pakistan $140.51 million during the period, marking over 23 per cent and 11 per cent negative growth respectively.
Bangladesh sustained its top position in the EU market since 2017, according to BGMEA data.
In 2022, Bangladesh fetched $1.55 billion from denim exports to the EU which was $1.18 billion in 2021, data showed.
According to Bangladesh Textile Mills Association, some 40 local mills produce denim fabrics
Apparel makers in Bangladesh are considering rare bulk exports by air to Europe and the United States, as they race to meet deadlines and avoid cancellations after a cyclone delayed shipments, caused power cuts and disrupted production.
The crunch could disrupt summer clothes supplies for retailers such as Walmart, Gap Inc, H&M, VF Corp, Zara and American Eagle Outfitters, some of Bangladesh’s largest export customers.
Cyclone Mocha, one of the strongest storms to hit the region in years, made landfall in neighbouring Myanmar over the weekend, but left a trail of destruction that also has delayed businesses’ return to normal in Bangladesh.
Apparel shipments account for more than 80 per cent of the country’s exports and are especially crucial now after its dollar reserves plunged nearly a third in the 12 months to end-April, hitting a seven-year low.
“We have to airlift goods now as we’re missing the shipping deadline,” said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). “We don’t want to suffer losses or lose customers.”
Bangladesh, the world’s second-largest garment exporter, has already been hit by weakening global demand, with exports falling in both March and April.
Buyers generally bear the cost of shipping. However, when goods are airlifted, all transportation-related costs are borne by the manufacturers, hurting their already thinning margins, Hatem said.
Apparel makers, who directly and indirectly employ millions of Bangladeshis, export ready-made clothes to regions including Europe, North America, Japan and Australia. Air freight typically costs $8 to $10 per kg, according to industry players.
A large European buyer has asked one garment manufacturer to reduce delivered prices by 5% to account for the delay, an email reviewed by Reuters showed. Another garment owner who supplies H&M said some of his shipments had been delayed.
Power cuts in the last two months, first due to a scorching heatwave, and then the cyclone, have put more stress on apparel companies. Many factories are now running on power generators fuelled by expensive diesel.
“If this goes on, it’ll be difficult to survive,” said Mohammed Nasir, owner of a garment factory in the Gazipur industrial hub, north of Dhaka.
Fazlee Shamim Ehsan, vice-president at the industry body BKMEA, said if goods cannot be delivered on time buyers either seek heavy discounts or threaten to cancel orders.
“Now there are also chances of missing orders for the next season, as we are struggling to provide samples on time due to the regular power cuts,” Ehsan said.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has said that India’s expertise in providing MMF and high-end fabrics can serve as a crucial competitive advantage for Bangladesh’s RMG sector.
He made the comments at the inaugural season of the 2nd Textile Sourcing Meet-2023 on Saturday at the International Convention City in Bashundhara, read a press release.
Faruque said, “As a result, there are now four land ports equipped with warehousing facilities for the smooth transportation of fabrics and RMG raw materials. Furthermore, the introduction of rail services has significantly reduced transit time, enabling faster delivery and more business opportunities.”
“To leverage this advantage, BGMEA has collaborated with the government over the past two years to address the infrastructural bottleneck, which is the land port between the two nations.”
He added that with a focused approach and efficient execution, there is immense potential to boost exports using Indian raw materials and thereby help us reach our 100 Billion USD export target
This premium event is especially being organised to facilitate efficient materials sourcing for RMG Exports & achieve $100 Billion by 2030. The event is designed to support increased sourcing from India & other markets.
As part of this well-curated event, Raw-material sourcing will be fast-tracked & deeper relationships will develop with Indian stakeholders by bridging the role through faster sourcing, speedy responses, shorter lead times & trade finance solutions.
Through this initiative, SOWTEX has brought together top associates with key industry decision-makers. This event is also showcasing 35+ fabric & material suppliers along with MMF materials.
During the programme, Sparrow Group Managing Director Shovon Islam said that amidst the limitations and trade embargo imposed on Chinese fabric and cotton by the USA, coupled with Bangladesh’s ambitious goal of becoming a 100 billion USD RMG exporter, India presents itself as a valuable partner capable of providing the requisite raw materials for Bangladesh’s RMG industry.
“BGMEA has been working closely with Indian suppliers and RMG manufacturers to foster better cooperation and understanding, thereby facilitating increased procurement of Indian fabrics to augment Bangladesh’s competitive advantage.”
“Additionally, India boasts of manufacturing high-quality MMF raw materials, which Bangladesh can leverage to diversify its product categories for export. India can also offer novelty fabrics and collaborate with Bangladesh’s RMG manufacturers to introduce new designs.”
He continued, “The sourcing arrangement between the two nations is a mutually beneficial proposition, constituting a win-win scenario.”
This event will be a major step towards building a strategic partnership to provide high-quality fabrics & materials to this ambitious goal of $100 Billion of RMG Export from Bangladesh and aims to contribute $10 Billion of raw Material support from India in the next 5 years.
The two-day-long programme is organised by Sowtex in collaboration Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Bangladesh Garment Executives Association (BGEA) & Confederation of Textile Industries (CITI).
According to the Export Promotion Bureau, the promising sector experienced a negative growth of 29.34% to $940.8 million in the July-April period of FY2022-23, down from $1.33 billion in the same period the previous fiscal year.
The optimism that the home textile businesses carried for more than two years is fading as it has failed to fulfill expectations for a few months.
The sector has gradually veered off course as a result of a significant drop in demand caused by inflationary pressures, the implications of the current Ukraine-Russia war, and worldwide consumers’ reduced spending power.
According to the Export Promotion Bureau, the promising sector experienced a negative growth of 29.34% to $940.8 million in the July-April period of FY2022-23, down from $1.33 billion in the same period the previous fiscal year.
The aim for this sector for the mentioned time was $1.61 billion, which was 41.75% lower than the target, as per EPB data.
Industry insiders say that in addition to global difficulties, internal issues such as a nearly 179% increase in gas prices, a foreign reserve crisis and interruptions in power and energy supplies all had an influence on the sector’s productivity.
Momtex has a monthly capacity of six million meters and 7500 employees. H&M, Linen House, KAS, OTTTO, Walmart and many others are among their global customers.
According to Shahjada Rubel, Momtex’s head of business, their gas bill has climbed by 8.5% and their entire production costs have grown by more than 15%.
“A number of orders started shifting from China, but due to high production costs, we can’t hold them. Now they are moving to Pakistan as production costs are lower there,” he added.
He also said that due to the reserve crunch, banks are discouraged to open LC which also impacts exports.
“The Russia-Ukraine war has shaped global consumer behaviour in a new way. Their buying capacity has curtailed as they are spending more on foods and other essentials due to inflationary pressure,” he added.
To combat inflationary pressures, purchasers’ countries’ banks are raising lending rates, which is influencing their consumers’ behavior, he noted.
“In these circumstances, we need governmental support, especially in the uninterrupted supply of power and energy,” he added.
A senior official of Zaber and Zubair told Dhaka Tribune that due to the ongoing economic turmoil, the purchasing capacity of the people of the buyers’ country was curtailed.
“Who had purchased four units now purchases only two. Moreover, throughout the pandemic, many stayed at home, affecting the market for home textiles,” he added.
However, once normalcy returned, individuals began to venture outside due to economic activity, which reduced demand and resulted in a large supply for purchasers.
M Shahadat Hossain Sohel, chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, told the Dhaka Tribune that disruptions in gas and electricity supply are on the rise.
He also stated that they are paying more for gas and electricity, but supply problems continue.
“Moreover, the issues of customs, income tax and corporate tax are still unsolved which has declined the competitiveness of our manufacturers,” he added.
Regarding the latest Hemtextil Frankfurt, he said that they didn’t get the expected response as the whole world is passing through a crisis.
“The Ukraine-Russia war has changed the whole world and crises persist in all sectors including food, coal, gas, oil etc. We can’t say anything unless the war ends,” he added.
However, the fact that the west is moving away from China, Vietnam and Pakistan. There is no other option but Bangladesh.
“If the war situation improves by the end of this year, the sector will rebound from 2024,” he added.
Regarding the national poll, he said that domestic political stability is also a must for surviving any business and many political parties will consider this.
Industry insiders said that home textile is one of the first-line export sectors of the county, which includes bed linen, bed sheets, bath linen, carpets and rugs, blankets, kitchen linen, curtains, cushions and cushion cover, covers for quilts and other bedroom textiles.
Bangladesh entered the market of home textiles in the 1980s and now the name Bangladesh has also been added to the list of the top home textile-producing countries, said the industry insiders.
In the last fiscal year, the sector bagged $1.62 billion, fetching a growth of 43.28% in FY22 against $1.13 billion in FY21, EPB data showed.
Major industrial sectors, including the largest export-oriented apparel industry, still face a higher prevalence of skills gap among employees, harming their overall business productivity, according to research findings.
The findings were unveiled at a technical session on ‘Skills and labour market outcomes’ on the concluding day of two-day BIDS Research Almanac 2023 at a city hotel on Thursday. A total of four studies were presented at the session.
A study, titled ‘Labour market and skills gap analysis for readymade garment industry in Bangladesh’, conducted by Bangladesh Institute of Development Studies (BIDS), finds that the knit industry continues to face skills gap in their employees as nearly 68.79 per cent of firms admitted that they suffered from skills gap in the flatlock machine operator category.
About 47.83 per cent of firms in the woven industry said they have such a gap in the manger category.
Helpers, most of the sewing machine operators, quality inspectors, and some of the finishing operators in the knit industry reported a higher skills gap, says the study conducted between 2021 and 2022.
On the other hand, management employees, quality controllers and some of the finishing operators in the woven industry have more shares among the prevailing total share of skills gap in employees, it shows.
Rizwana Islam, one of the researchers who presented the study, said about 6.5 per cent of the woven industry and nearly 2.99 per cent of the knit industry reported that they think employing foreign skilled workers could be a way out for them to mitigate the level of existing skills gap.
A total of 476 workers were interviewed from 119 enterprises in the study where employers determined the skills gap of their employees based on their proficiency level.
In terms of knit industry, the skills gap faced by enterprises is as follows: flatlock machine operator (68.79 per cent), other SMOs including helpers in the sewing machine operator category (68.04 per cent firms), printing machine operator (66.67 per cent firms), quality inspector (65.54 per cent firms) and lockstitch machine operator (62.26 per cent firms).
In the categories of woven industry, the skills gap faced by enterprises is as follows: managers (47.83 per cent firms), management employees (46.55 per cent firms), sticker man (46.15 per cent firms), and marker man (45.59 per cent).
Another study paper – ‘Skill mismatch and labour productivity: evidence from two emerging sectors of Bangladesh’ – was presented by Kazi Iqbal, senior research fellow and one of the key researchers.
The study was conducted among 123 light engineering firms and 100 electronics firms.
About three-fourths of the workers in light engineering and electronics sectors found a mismatch with their education and field of work, it reveals.
Over 60 per cent of workers in the field lack adequate education and knowledge about the industry, the study said.
The incidence of under-education is the highest among the floor workers, it said, adding that under-education affects output per worker more severely.
The readymade garment (RMG) sector, which accounts for the highest share of export earnings, has more than 60 per cent skills gap among employees, especially machine operators, a study by Bangladesh Institute of Development Studies (BIDS) has found.
For sustainable growth of the sector, the study suggested organising job-specific training for employees through the Skills for Employment Investment Program (SEIP), professional bodies concerned, and employers.
Discussing the study findings on Thursday, the last day of the two-day BIDS Research Almanac 2023 held in the capital, BIDS Research Associate Rizwana Islam said the study was conducted to determine the current labour skill situation in the garment sector and the required skill set the industry will need in five to 10 years.
She said RMG is one of the 10 sectors included in the study. “It was initially supposed to be a general study on RMG. But considering that separate work skills are required for operating woven and knit garment machinery, it was segmented.”
The study was conducted in early 2021 among 476 workers and their employers in around 119 small, medium, and large factories in Chattogram (50), Dhaka (43), Gazipur (9), and Narayanganj (17). It focused on three aspects – skill shortage, skill mismatch, and skill gap.
According to the study, skill shortage is not a major problem as employers can replace workers within a week or a few more days while skill mismatch does not cause much trouble either.
Rizwana said over 90 per cent of RMG employers think labour demand will grow in the next 10 years but they fear a wide skill gap will also appear while attempting to meet the new forms of demand.
“Twelve sub-categories of occupations under four broad categories were included in the study. It was found that the skills gap is over 60 per cent in every aspect.
“Interestingly, employees recognised their shortcomings and over 50 per cent of them agreed on the need for profession-based training, especially those working with automated machinery,” she said.
Employees want the training to be arranged by employers as they do not have enough money to get themselves trained, she added.
According to the study, 33.26 per cent of knit factories are willing to provide training for their employees while 24.65 per cent are willing to give appraisals and performance reviews.
Besides, 33.23 per cent of woven factories are willing to provide training while 18.87 per cent are willing to give appraisals and performance reviews.
Moreover, 25 per cent of quality control workers and 26 per cent of finishing operators said they are willing to pay partially for training.
“Most employees said they want training related to their roles while some opted for gender-related training, especially managers or supervisors. Many also wanted health and safety training,” Rizwana explained.
“As employees cannot pay for training, they said training should be provided through SEIP in collaboration with employers and apparel organisations like Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA),” she said.
Besides, to reap the benefits of the fourth industrial revolution, workers said computer-based technical training and programming are needed
so that the industry can go for product diversification and manufacture high-value items, the researcher added.
Apparel makers in Bangladesh are considering rare bulk exports by air to Europe and the United States, as they race to meet deadlines and avoid cancellations after a cyclone delayed shipments, caused power cuts and disrupted production.
The crunch could disrupt summer clothes supplies for retailers such as Walmart, Gap Inc, H&M, VF Corp, Zara and American Eagle Outfitters, some of Bangladesh’s largest export customers.
Cyclone Mocha, one of the strongest storms to hit the region in years, made landfall in neighbouring Myanmar over the weekend, but left a trail of destruction that also has delayed businesses’ return to normal in Bangladesh.
Apparel shipments account for more than 80 per cent of the country’s exports and are especially crucial now after its dollar reserves plunged nearly a third in the 12 months to end-April, hitting a seven-year low.
“We have to airlift goods now as we’re missing the shipping deadline,” said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). “We don’t want to suffer losses or lose customers.”
Bangladesh, the world’s second-largest garment exporter, has already been hit by weakening global demand, with exports falling in both March and April.
Buyers generally bear the cost of shipping. However, when goods are airlifted, all transportation-related costs are borne by the manufacturers, hurting their already thinning margins, Hatem said.
Apparel makers, who directly and indirectly employ millions of Bangladeshis, export ready-made clothes to regions including Europe, North America, Japan and Australia. Air freight typically costs $8 to $10 per kg, according to industry players.
A large European buyer has asked one garment manufacturer to reduce delivered prices by 5% to account for the delay, an email reviewed by Reuters showed. Another garment owner who supplies H&M said some of his shipments had been delayed.
Power cuts in the last two months, first due to a scorching heatwave, and then the cyclone, have put more stress on apparel companies. Many factories are now running on power generators fuelled by expensive diesel.
“If this goes on, it’ll be difficult to survive,” said Mohammed Nasir, owner of a garment factory in the Gazipur industrial hub, north of Dhaka.
Fazlee Shamim Ehsan, vice-president at the industry body BKMEA, said if goods cannot be delivered on time buyers either seek heavy discounts or threaten to cancel orders.
“Now there are also chances of missing orders for the next season, as we are struggling to provide samples on time due to the regular power cuts,” Ehsan said.
