The figures are out, Bangladesh Apparel Industry has picked up over 40% of the business lost by China, by far the greatest percentage, with India being the least competitive, picking up only 3.5%.
It is also amazing! From my knowledge a great percentage of the textiles or yarns to weave or knit into fabric must be imported from other countries. It is not just low labor costs, as this usually makes up no more than 25% of the cost of a garment, it is the business entrepreneurship of the business owners desiring to do business, and keep their people working, which has done the trick… I congratulate you all, but what will it take to STAY the course, so that you can maintain the business?
Somehow through Industry Organization, Government Assistance, and Academic Education programs, Bangladesh must invest in modern machinery for producing the volume fabrics used globally in commodity apparel products. Spinning, weaving, knitting, dyeing, finishing, are needed to be put into facilities in Bangladesh, and become a world supplier of textiles.
You have people to put to work, you have power to run the machinery, you have the port for shipping, and the entrepreneurs that can make it happen.
Normally the apparel “assembly cut and sew business”, moves from country to country, as people start earning a wage, desire to have a better life for their children, and try to maintain a standard of living that is globally acceptable, and become more educated.
The Textile/Apparel Industry is comparatively less expensive in capital investment and the training of people to operate the machinery and employs thousands, compared to other industries.
Bangladesh, with a concerted effort can become the number one apparel producer, as you have the people, and now you just need to produce the raw materials. You have already proven you can be the number one without a concerted effort, and with a focused plan, I will say you will stay the course.
Bangladesh is competing against Sri Lanka, with similar issues, and then there is Vietnam with a Communist control of the worker like China, and finally an area that someday will be a very strong player in the global marketplace, the 37 Sub-Saharan countries of Africa.
The Chinese are already investing in these countries with modern equipment to make the textiles needed, mainly because of the Free Trade Agreement with the United States (AGOA). The political unrest, the borders with no ports, the very low education, and lack of power to run the machines, have held them back for 12 years I have been involved.
The Chinese have the money to build what it takes to make the AGOA countries powerhouses in both markets of EU and USA. However, this will all take time, and during this time Bangladesh has a chance to build and maintain a strong market position.
Look at Myanmar/Burma, already USA buyers are seeking costs, as an alternative to China, Cambodia, this is how fast a market can open and how fast it can dissolve.
Bangladesh, with a concerted effort can become the number one apparel producer, as you have the people, and now you just need to produce the raw materials. You have already proven you can be the number one without a concerted effort, and with a focused plan, I will say you will stay the course.
Congratulations!
