Bangladesh’s garment industry grapples with significant challenges in labor-based productivity, evidenced by its hourly output of $3.40, a considerable distance from China, the leading exporter with an hourly productivity of $11.10. Despite being the second-largest apparel exporter in Asia, Bangladesh lags behind seven competitors in hourly productivity, with the exception of Cambodia.
The industry’s recruitment strategy, focusing on CEOs, EDs, IEGMs, and managers from countries with influential officials in similar positions, has not yielded the anticipated productivity improvements, prompting questions about the failure to establish a robust industry ecosystem domestically.
Government agencies report a commendable 3.80% increase in overall labor productivity between 1995 and 2016. However, data from the Asian Productivity Organization (APO) reveals a more modest growth of 2.5% in 20 Asian countries during the same period. Bangladesh’s hourly productivity of $3.4 is notably lower than that of several regional counterparts, including Sri Lanka, Indonesia, China, Philippines, India, Vietnam, and Myanmar, posing a challenge to the industry’s efficiency.
The reasons behind the industry’s inefficiencies are:
1. The workforce in Bangladesh’s garment industry experiences a profound sense of dissatisfaction, primarily stemming from low wages. However, the situation is exacerbated by misleading and provocative messages propagated through newspapers, social media, and labor organizations. Regrettably, efforts to redirect the understanding of these workers towards the industry’s positive contributions, such as providing income and alleviating unemployment, have been largely ineffective. Despite being the second-largest apparel exporter, the failure of media, BGMEA, BKMEA, government agencies, and internal organizational teams to positively market these aspects has hindered progress.
2. The prevalent practice of producing relatively inexpensive products in Bangladesh’s garment sector results in lower wages, creating a cycle of reduced work pressure and salaries. While the potential for increased earnings exists with exceptional performance and handling critical orders, the failure to communicate this message effectively has contributed to the closure of 300 factories in recent months. Wage boards, government bodies, employers’ associations, NGOs, and labor unions are continually working towards wage parity, yet the challenge persists. Efforts to counteract negative messages and maintain awareness in support of salary levels require ongoing attention.
3. Emotional and enthusiastic individuals who share negative news and labor exploitation stories on social media contribute to a distorted view of the industry. Failing to recognize our own inefficiencies, we indulge in the delusion that sharing such news serves a greater purpose. Overlooking the pivotal role of the garment industry in preventing a drastic increase in unemployment and revitalizing the economy, we continue to engage in activities that do not align with our national destiny. The need for a shift in focus from negative news to industry strengths is imperative.
4. Office-level employees face constant stress and strain due to supply chain inefficiencies, leading to unnecessary overtime and shipment delays. Incorrectly attributing 80% of industry inefficiency to production, this misplacement of responsibility hampers the sector’s overall effectiveness. Recognizing the significance of addressing supply chain challenges and starting individual projects within each factory is crucial to rectify this situation. Media, government bodies, and private organizations must play a more active role in supporting these initiatives.
5. The garment industry as a whole has inadequately addressed issues of total business inefficiency, with completed projects by government and non-government organizations falling short. Failure to scrutinize foreign companies involved in such projects has led to significant expenditures without tangible industry improvements. Caution is warranted before engaging with reputed companies to ensure internal dissatisfaction and sensitive information are not compromised.
6. Negative narratives from local and foreign media, influential personalities, and foreign companies renting hotels with industry funds contribute to a tarnished image of the garment sector. The failure of public and private organizations to counteract this negativity is evident, with sporadic protests and minimal initiatives. Vigilance is required to safeguard the industry’s reputation against undue criticism.
7. The media in Bangladesh, while adept at reporting on various topics, tends to overshadow small negative news about the garment industry. This selective reporting fuels public indignation and undermines the industry’s contributions. The educated class needs to remain vigilant to counteract such biases and ensure a more balanced representation of the industry in the media.
- Internal efficiency training within organizations has primarily focused on keeping operators productive, neglecting efforts to enhance personal efficiency and overall production efficiency. Each factory must initiate projects to address these shortcomings, with media, government bodies, and private organizations providing essential support. The success of the industry relies on individual initiatives and a holistic approach to improving efficiency.
- The garment industry’s failure to invest adequately in automation is a critical shortcoming. While some initiatives like installing ERP and RFID have been undertaken, true factory automation remains elusive. Acknowledging the inevitability of automation, the industry must embrace this transformation to remain competitive. Neglecting this imperative will result in a missed opportunity for sustainable growth.
- Despite appointing high-ranking officials, including CEOs, EDs, IEGMs, and Managers, from countries known for productivity, the factories under their leadership do not exhibit the expected levels of efficiency. This raises questions about the industry’s failure to establish a conducive ecosystem. A comprehensive review session with heavyweight officials is necessary to understand and address the challenges hindering the establishment of a productive culture.
- Lean methods, with a toolbox of 100 effective tools, require closer involvement in all processes of production-oriented organizations. The reluctance to adopt tested methods impedes the development of an efficient ecosystem. It is crucial to identify and implement high-priority tools based on the organization’s business model, fostering a culture that integrates these tools into daily operations. Constructive steps must be taken to ensure successful implementation and transformation.
