Nearly 55% knitwear factories faced order cancellations or reductions: BKMEA

Some 55 percent of knitwear factories have experienced either the cancellation or reduction of work orders from their international clothing retailers and brands because of the ongoing gas and power crisis, according to a survey by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) released today.

The BKMEA conducted the survey among 20 percent of its member factories located in Narayanganj, Gazipur, Chattogram, Dhaka and other areas between August 21 and September 14 this year, said BKMEA Executive President Fazlee Shamim Ehsan.

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The survey also found that approximately 60 percent of those surveyed were forced to provide discounts to their buyers, approximately 78 percent experienced partial production shutdowns and approximately 87 percent experienced shipment delays.

Approximately 92 percent had to bear additional costs for alternative fuels, approximately 92 percent experienced wasted labour and working hours, approximately 89 percent faced the risk of losing buyers’ confidence, nearly 59 percent of the surveyed factories faced the risk of defaulting on bank loans and about 7 percent experienced complete shutdowns of production, the survey also said.

“The garment sector has been passing through a difficult time, and many of us have also been doing well. But at the same time, some of the factories have shut down. If the government gives us good policy support, we can overcome this challenge,” said the BKMEA executive president.