"Fall in RMG work orders triggers domino effect", 11 November 2022

The country's accessories and packaging industry has started to feel the pinch as the local export-oriented garment sector has been experiencing a significant fall in work orders.

Industry insiders said they have been grappling with different issues, including delayed payment, deferred shipments of ready goods and banking complexities, in recent months.

The local accessories industry meets over 90 per cent demand of the export-oriented readymade garment (RMG) sector.

But the fall in apparel work orders has left a reaping effect on the accessories and packaging industry, said the packaging entrepreneurs.

RMG exporters claim that work orders have decreased by 30-40 per cent in recent months.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Md Shahidullah Azim said buyers are now asking for delaying their shipments citing huge inventory as demands have declined in western markets mainly because of high inflation and fuel price induced by Russia-Ukraine war.

So the drop in work orders in the local RMG sector means the local accessories and packaging industry will see a decline in work orders too.

In this regard, Abdul Kader Khan, former president of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, said, "If we received a work order for 0.1 million pieces earlier, it now has come down to 35,000-40,000 pieces."

Also in many cases, buyers (local RMG manufacturers) are asking for deferred shipments for already ready goods, citing deferred shipments by their respective customers (global apparel customers) as a reason, he explained...