Contrary to some recent reports which suggested that large apparel manufacturing units are faring moderately better when it comes to getting orders, the same cannot be maintained about the small and medium-sized factories.
According to media reports, thanks to the scarcity of work orders from international brands and retailers, the issues faced by the small and medium-sized units have become so acute lately that many entrepreneurs are, reportedly, looking for potential buyers to sell their units and bow out of the business for good.
Speaking to the media, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Rezwan Selim, citing the trade body’s data, reportedly, maintained that in 2020, around 300 SME units (which are also members of the BGMEA) had to shut down due to the fallouts of the coronavirus pandemic even as he added that of those, around 20 units have reopened and some are struggling to reopen as they did not receive work orders while also being unable to manage funds to run the factories.
The BGMEA Director, who looks after labour affairs and closed factories, reportedly, further added that work order scenario is not encouraging for even the big factories even as he added that majority of the factories, particularly the SMEs, are running at 40 to 50 per cent capacity while also adding that since the inflow of orders in bigger units is low, the SMEs are not getting the associated subcontracting orders as well.
It may be mentioned here that thanks to the pandemic, the small and medium apparel units had to face various challenges as per industry insiders, including non-availability of loans from the stimulus package, order cancellations and suspensions, abnormal delays in payment from buyers, etc.
Bharat Tex Special Report 2026 
