Within the next two years, 80 percent of the garment factory owners in the country are planning to purchase automated or automated machines to operate their factories. During this period, automation will increase by more than 13 percent compared to the previous period. It can involve 1 to 6 workers per machine.
Currently, only 500 of the average 2,250 workers can be engaged in the automation process. Due to greater efficiency of automation and relatively lower production costs, production can increase by 22 percent. However, the unemployment rate in this industry is likely to increase as there is a fear that a large number of workers will not be able to join the automation even if the production increases.
This information was presented in a ceremony at a hotel in Gulshan on Monday (October 21). Zahedul Amin, co-founder and director of Lightcastle Partners, delivered a keynote presentation titled ‘Future-oriented Apparel Industry: Ensuring Automation and Worker Safety for Sustainable Growth’.
The presentation said that a survey was recently conducted based on interviews with 267 garment factory owners, foreign buyers and garment workers in the country. A survey was conducted on 20 garment factories in Dhaka from February 5, 2023 to April 8, 2023. These issues come up in the survey. This image was obtained from the data source of a skill development organization called Shimi Technology.
Policy Exchange Bangladesh and International Business Consultants Lightcastle Partners jointly organized this dialogue with the participation of relevant stakeholders.
The program was conducted by the Chairman of Policy Exchange Bangladesh. M. Riaz of Masroor. Kazi Faisal Bin Siraj, Country Representative of Bangladesh Asia Foundation gave the welcome speech.
It was informed at the event that according to the 2020 data of the Asian Productivity Organization (APO), the average level of productivity per worker in Bangladesh is 9.2 percent. From 2015 to 2020, the average rate of productivity of Bangladeshi workers is increasing at a rate of 5.1 percent. But from 2019 to 2020, the rate dropped to 2.2 percent a year. While the same period in Vietnam has increased at the rate of 4.4 percent. This is possible in Vietnam because of the combination of high efficiency and automation.
Citing survey sources mentioned in the presentation, it is said that among the interviewees, 93 percent of operators in the country expressed interest in working with automated machines. At the same time, 70 percent of women operators are interested in becoming newly skilled with modern machines.
With this in mind, the keynote presentation at the event highlights the potential as well as the apprehensions in this industry. It said, while traditional work would increase unemployment, new opportunities and possibilities could be created if machines made workers skilled in engineering, programming and maintenance.
BGMEA University of Fashion and Technology Vice-Chancellor Professor Dr. Engineer Ayub Nabi Khan, Country Manager of Price Water House Coopers Bangladesh Shams Zaman, Founder and Chief Executive Officer of Technohaven Company Limited Habibullah N Karim, Former Executive Member of Bangladesh Investment Development Authority Mohsina Yasmin and related leaders.
In the discussion, the speakers highlighted some recommendations to the industry leaders to take this industry forward. Notable among these are: procurement of updated or advanced technology considering the safety risks of the work environment and workers’ skills, upscaling and rescaling of workers, emphasis on circularity to reduce carbon emissions in garment factories, taking into account the issue of worker safety, etc.
According to the 2023 data of the Export Development Bureau, Bangladesh currently ranks second as a single country in the world in terms of exports of ready-made garments. According to the same source, Bangladesh exported garments worth USD 47 billion till February 2023-2024 fiscal year. According to Bangladesh Bank, the contribution of GDP in this sector in the fiscal year 2023 is 10. 35 percent. More than 4 million or more than 4 million garment workers are employed in this industry. 60 percent of whom are women.
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