A disruption that begins on the factory floor can quickly ripple through production, working hours and operating costs before reaching shipment schedules, buyer relationships and, ultimately, manufacturers’ ability to service their financial obligations.
BKMEA survey shows Bangladesh knitwear factories face severe energy disruption, with 90 per cent citing electricity shortages and 75 per cent hit by gas crisis.
Knitting output fell around 37–38 per cent, sewing about 40 per cent and dyeing 51 per cent; 87 per cent reported shipment delays.
Higher fuel costs, buyer discounts, order cuts and loan-default risks are also rising.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) survey provides a snapshot of how energy disruptions are affecting the knitwear factories it surveyed. As per reports, the BKMEA surveyed about 20 per cent of its member factories in Narayanganj, Gazipur, Chattogram, Dhaka and other areas recently.
The findings show how an energy shortage can spread across multiple stages of the production and export chain.
Around 90 per cent of respondents said electricity shortages were disrupting production, while 75 per cent reported being affected by the gas crisis. Among factories that provided gas-pressure information, gas availability was reportedly about 78 per cent below their normal requirements. Among those that reported load-shedding hours, average daily outages had reportedly nearly tripled.
The effect on production was substantial. Knitting output reportedly fell by around 37–38 per cent from normal levels, while garment sewing declined by about 40 per cent. Dyeing, one of the more energy-intensive stages of textile production, suffered a sharp reduction, with output reportedly falling by an average of 51 per cent.
The consequences extend beyond production itself. Around 78 per cent of surveyed factories reported partial production shutdowns, while 87 per cent experienced shipment delays.
For manufacturers operating against tight export schedules, such delays can quickly create commercial pressure with overseas buyers.
The survey found that 55 per cent of factories had experienced cancellations or reductions in work orders from global retailers and brands amid the energy crisis. The financial pressure is also accumulating simultaneously.
About 92 per cent of surveyed factories reportedly claimed they had incurred additional costs for alternative fuels, while a similar proportion reported wasted labour or working hours because of the disruption.
Around 60 per cent said they had been forced to offer discounts to buyers, with shipment delays cited as a factor behind that pressure.
For an industry already operating under intense cost and price pressures, these additional expenses can further squeeze margins.
There is also a longer-term concern over buyer confidence. Nearly 89 per cent of surveyed factories reportedly claimed they faced a risk of losing buyers’ confidence.
Persistent uncertainty over whether orders can be produced and shipped on time can affect how buyers allocate future business.
The pressure is also reaching manufacturers’ ability to service debt. Nearly 59 per cent of surveyed factories reported a risk of defaulting on bank loans, while about 7 per cent said they had experienced complete shutdowns of production.
Taken together, the findings describe a chain of consequences that starts with unreliable energy supply and moves through production, labour utilisation and operating costs before reaching shipments, buyer discounts, export orders and financial obligations.
The impact of the crisis simply cannot be measured in megawatts of electricity, gas pressure or hours of load-shedding.
For Bangladesh’s garment manufacturers, the larger question is whether energy insecurity remains a temporary disruption or becomes a persistent cost and reliability problem. If the latter happens, the issue could extend beyond lost production in individual factories to the sector’s broader competitiveness and ability to meet the delivery expectations of global buyers.
The immediate supply picture, however, has begun to improve, but that does not necessarily resolve the sector’s longer-term energy-security problem.
On September 14, Prime Minister Tarique Rahman reportedly said industrial gas supplies would return to near previous levels after a technical problem at one of Bangladesh’s two floating liquefied natural gas (LNG) terminals was resolved. Subsequent reporting indicated that gas supply had begun to increase from the night of September 14, although some industrial areas could take longer to see the improvement.
The government also reportedly underlined that it is pursuing measures to expand both domestic gas production and LNG import capacity. Prime Minister’s Office spokesperson and adviser reportedly said recently that a programme to drill 150 new gas wells was already under way, with another 150 planned in a subsequent phase.
The government also reportedly plans to add three LNG terminals to the two existing facilities, with the third terminal targeted for operation before 2028.
The government has also framed the response in terms of both immediate relief and longer-term energy security. At a recent meeting with business leaders and media representatives, the Prime Minister reportedly sought cooperation in implementing the government’s power and energy plans.
For the RMG sector, the significance of those measures will ultimately depend not only on how much additional energy becomes available, but on how reliably factories can access it.
The BKMEA survey provides a snapshot of what happens when that reliability breaks down: production falls, shipments are delayed, costs rise, orders come under pressure, and financial risks increase.
Fibre2Fashion News Desk (DR)
