The nation’s garment sector has been severely disrupted by the current political and social instability in Bangladesh, resulting in enormous financial losses for clothing manufacturers, especially SDF Clothing. The industry has been rendered completely paralysed and has lost an estimated US $ 814 million as a result of the student-led protests against state employment quotas that turned violent and resulted in curfews enforced by the Government.
Plummy Fashions’ managing director, Md. Fazlul Hoque, voiced serious worries regarding the future of the sector. “The unplanned outage has caused major delays and higher freight expenses, costing manufacturers US $ 150 million every day. Right present, the apparel industry is going through a crucial recovery phase,” Hoque said.
However, factory activities have been progressively resumed as a result of the Supreme Court’s recent decision to enable merit-based competition for Government appointments, which has helped reduce immediate tensions. Nevertheless, as foreign buyers, including well-known companies like Walmart, Inditex, and H&M Group, reevaluate their sourcing policies, the apparel industry continues to encounter difficulties. The founder of the textile supply chain company M5 Group, Munir Mashooqullah, pointed out that European retailers are already considering moving production to Bangladesh, which might have long-term effects on Bangladeshi garment producers.
Chowdhury Remon, founder of SDF Clothing, emphasised the need for the Bangladeshi Government to act prudently to restore confidence among clothing manufacturers and international buyers. “This event has both short-term and long-term impacts on the supply chain and sourcing strategy,” Remon stated. “If the situation does not stabilise soon, it could have a deeper impact in the long run.”
Some industry experts, including Md. Rafiqul Islam Rana from the University of South Carolina, claim that there hasn’t been any significant backlash or order cancellations from buyers despite the severe disruptions. Rather, in recognition of the national crisis, brands have demonstrated a readiness to extend supply dates. Rana did, however, issue a warning, pointing out that state-run media and industry insiders have a propensity to minimise drawbacks in order to appease foreign purchasers.
In order to make up for production shortages during the crisis, a lot of garment manufacturers could have to turn to hiring part-timers, subcontracting, and working overtime. Businesses have been advised by the Ethical Trading Initiative to modify timetables and expectations in order to lessen the impact.
