What is an innovation center and what does it do for our readymade garment (RMG) industry?
With massive changes in technology, the apparel industry has reached a stage of either evolve or die, as conventional norms of the industry are frequently being challenged.
Moreover, the transition towards a higher level of competency requires adapting to changing product design, reducing lead time, increasing productivity, adopting the latest technologies, minimizing production costs and making manufacturing plants more sustainable.
In this development effort, knowledge is the first and foremost requirement. Keeping this in mind, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is going to launch the new Centre for Innovation, Efficiency and Occupational Safety and Health (CIEOSH) at BGMEA's newly built head office in Uttara.
Why did the BGMEA want to set this up? How does it serve its long-term goals?
The goal of this innovation center is to formulate a roadmap for our industry for the next 20 years by putting effort into identifying and enabling what challenges and opportunities we need.
There is no doubt that the RMG industry is a healthy solution for our economy.
Although there are many gaps, there are potentials that need to be identified.
We want to grab export earnings worth $100 billion from this sector.
The garment industry has over 4 million employees and the majority of these workers are women.
They are getting lots of freedom and are able to focus on child education, value addition in the family and many more.
So, we think, if our industry is sustainable and if we can achieve the export target of $100 billion, then the sector will create 10 million more direct jobs with 40-50 million indirect jobs in its backward linkage and associate industries.
How will it increase productivity and efficiency?
There should be established balances between wages vs. value addition, work vs. wage, and remuneration vs. work.
For example, a worker in China can produce products worth $400 because of his efficiency while a Bangladeshi worker can provide a production of $150.
That means one of them is equal to three of us and the cost of production is also $50 more. So, there is no alternative to increasing the efficiency of our workers.
If we want to develop this efficiency, we need a revolution in industrial engineering and other management sectors.
How will it help our industry to become circular, eco-friendly, green, and energy-efficient?
We often talk about ESG (eco friendly, socially responsible, good governance) and articles on SDGs.
Efficiency saves costs and when it comes to environmental efficiency, eco-friendly products need to be mentioned.
For example, I can make the economy flourish, but if it was no longer livable, then that development would be of no use.
So, we need to make sure that we can be more eco-friendly, socially responsible and establish good governance.
We can gain more efficiency in production if we can build an eco-friendly, energy-efficient, recyclable and circular industry.
Moreover, if the government understands these issues, they will give additional policy and incentive support to those factories.
How will this center build the capacity of mid-level management, and upscale workforce? Will our existing education system be aligned to support the innovation center?
The innovation center will work as a knowledge gateway to understand the gaps and then increase efficiency by providing niche training and extensive research.
However, our existing education system is not aligned with this innovation centre and that is why the platform will work to fill up this gap.
This centre is the exact opposite of our conventional and certificate-oriented education system.
Will the innovation centre endorse state-of-the-art technologies in line with 4IR?
The challenges 4IR has like technology and automation are challenges until we tap into them. Then it’s no longer a challenge, but an opportunity.
If a worker does not know how to operate a machine, an IoT device and other elements, then it is a challenge.
And to turn this challenge into an opportunity, the innovation center will provide clear directions and policy support.
How does this centre help increase RMG exports?
We want to work in such a way that we can turn the challenges of the 4IR into opportunities in the next 10 years.
If we can build capacity, enhance transparency, and traceability, and present ourselves as an acceptable, reliable and green platform to buyers, then all brands will come to us.
Moreover, we will work to provide the government with a research-based proposal on where to make investments.
We also have space in our innovation centre for outsiders who will come to work with us.
Will this centre help address the issues that are alienating manufacturers from global buyers?
It is common for buyers to demand a higher value at a lower price.
To increase efficiency and productivity, the centre will arrange regular showcasing of advanced technology and will arrange regular training sessions on product development for the mid-level as well as top-level management of the factories with the aim of ensuring the supremacy of the industry in product development.
If we talk about value addition, there are challenges in terms of the availability of manmade fibre (MMF). Are there any plans to promote MMF production locally, or bring more foreign investments to boost capacities?
Value addition and moving up the value chain are undoubtedly keys to our growth.
The global share of synthetic fibres is 60%-70% and will see steady growth at a rate of 3-4% up to 2024.
As the worldwide demand for MMF is growing, and it is a high-value-added product, we need to take measures to strengthen this sector.
I think incentives in producing MMF can lure more FDI into the country as Bangladesh has a strong forward linkage in the apparel sector.
How much has been invested in the innovation centre?
BGMEA is investing continuously here and this investment is more research-based rather than infrastructural.
The structural and interior investments for the centre amount to about $250,000.
In addition to that, the BGMEA will bear the operational expenses of the centre, including salaries of its staff.
The initial inauguration will be on May 16 and it will be launched on November 22 as an international platform.
In your view, where does Bangladesh's garment industry hope to be in the next few years?
With the nation preparing for elevation from the least developed country (LDC) status, it is not a time for us to rest and we have to formulate solid plans for long-term goals.
In the coming years, we hope to elevate the Bangladesh apparel industry to the next level and start the paradigm shift from low end to high end/high value.
