Interviews
Garment exporters bogged down by myriad problems
18 Mar '10
2 min read
Frequent electric and gas shortages is taking a toll as well as giving sleepless nights to apparel exporters from the country, since they are not able to ready and dispatch the orders in time, again due to which they have to bear extra costs.
The exporters are forking out additional amounts by chartering cargo flights or shipping them to other countries and then by airfreight, to ensure the goods reach the buyer by the stipulated dates, which also entails extra expenditure.
Even though Bangladeshi garment exporters have a low-cost structure, much of the advantages are lost due to the low productivity of the workers which stands at just 35 percent, against that of China which is about 80 percent.
The exporters also have to contend with frequent strikes by the garment workers and also of workers frequently changing jobs, with the biggest challenge being to retain workers, which puts a lot of pressure on completing orders in time
According to experts there is no shortage of orders, but they are not able to accept orders on fears of not completing them on time. All these, put together are putting a stress on the average garment exporter, who is already working on low margins.
Meanwhile, knitwear exports amounted to US $3.55 billion in the first seven months of the current fiscal, a 6.85 percent decline compared to same period a year earlier. The figure is also short by 13.62 percent of the targeted figures.
The exporters are forking out additional amounts by chartering cargo flights or shipping them to other countries and then by airfreight, to ensure the goods reach the buyer by the stipulated dates, which also entails extra expenditure.
Even though Bangladeshi garment exporters have a low-cost structure, much of the advantages are lost due to the low productivity of the workers which stands at just 35 percent, against that of China which is about 80 percent.
The exporters also have to contend with frequent strikes by the garment workers and also of workers frequently changing jobs, with the biggest challenge being to retain workers, which puts a lot of pressure on completing orders in time
According to experts there is no shortage of orders, but they are not able to accept orders on fears of not completing them on time. All these, put together are putting a stress on the average garment exporter, who is already working on low margins.
Meanwhile, knitwear exports amounted to US $3.55 billion in the first seven months of the current fiscal, a 6.85 percent decline compared to same period a year earlier. The figure is also short by 13.62 percent of the targeted figures.
Fibre2fashion News Desk - India
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