Can Automation Save the Bangladeshi Garment Industry?

Can Automation Save the Bangladeshi Garment Industry?

December 10, 2018

Second only to China in the world’s clothing export markets, Bangladesh focuses on efficiency in its textile factories to defend its market in the face of increased competition from Cambodia, Vietnam, Myanmar, and some African countries.

Automation helps Bangladesh modernize apparel factories, with two workers able to do the work of 15.  These improvements help offset increasing costs, as the government mandates a 51% wage hike, and Western brands demand better fire and safety standards in the factories.

Video Spotlight: How Automation Impacts Garment Workers in Bangladesh

This post is based on the Nikkei Asian Review article, Bangladesh fights for future of its garment industry, by Mitsuru Obe, November 4, 2018, and the YouTube video, How Automation Impacts Garment Workers in Bangladesh, by Electric Runway, June 7, 2018. Image source: igor kisselev / Alamy Stock Photo.

Discussion Questions:

1. How does the cost of production in Bangladesh compare to that of other countries, and how does it impact the viability of its apparel industry?

Guidance: Currently, labor costs in Bangladesh remain low by global standards, with an average monthly wage of $101, compared to $518 in China.  However, some African countries like Ethiopia have average Continue reading