A recent survey indicates that approximately 38 per cent of the production capacity in Bangladesh’s readymade garment (RMG) factories will remain unutilised until April.
This underutilisation is attributed to a reduced number of orders from buyers, driven by declining apparel consumption in Western markets amid the ongoing global economic turmoil.
Conducted by Forum, a panel gearing up for the upcoming elections of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the survey involved 100 factories, with responses from 66 of them.
The report reveals that 62 per cent of the surveyed RMG units’ installed capacity has been booked for the January to April period.
However, it also highlights that 27.5 per cent of the installed capacity in the surveyed garment factories remained unutilised in 2023 due to a shortage of orders.
Faisal Samad, the leader of the Forum panel and a director of BGMEA, presented the survey report.
Key findings from the report include a 3.90 per cent average decline in product prices over the past year, while customs- and bond-related costs in the factories witnessed a significant 47.85 per cent increase during the same period.
