In July, 56% of the total production capacity has been booked
Only 35% of the production capacity of Bangladeshi apparel manufacturers has been booked for the consolidated period of July-December this year, according to a survey by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Furthermore, the prices of apparel goods booked by global retailers over the same period have fallen by an average of 14% due to shortages of work orders, the survey said.
The BGMEA survey examined the responses of over 100 manufactures to determine the impact of the Covid-19 pandemic on work orders for the second half of 2020.
The manufacturers confirmed work orders for 127.50 million pieces in the July-December period of 2020, while 365.78 million pieces can be produced at full capacity. December is the worst month in the second half of the year, with only 17% of total production capacity having been booked (10.27 million pieces out of 60.56 million).
In July, 56% of the total production capacity has been booked.
Men’s undergarments saw the biggest decline in price of 43%, followed by babies’ garments with a 35% fall. Only the price of knit bottoms rose this year, by 6%.
“Factories have had less of their capacity booked and factories operating below capacity will not be able to recover operating costs. On top of that, orders that have been placed at significantly lower price points compared to last year,” Chairman of the BGMEA Standing Committee on PR Khan Monirul Alam Shuvo told Dhaka Tribune.
“The market demand is so low compared to supply that the price is automatically being pushed lower in this fiercely competitive market. As you know, we are now incurring additional expenses for running factories with proper health and safety protocols. This combined with the order situation and price situation is making our lives extremely difficult,” he added.