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HomeConversationsBangladesh’s Garment Industry Under Pressure as Gas and Electricity Crisis Deepens

Bangladesh’s Garment Industry Under Pressure as Gas and Electricity Crisis Deepens

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Bangladesh’s Ready-Made Garment (RMG) industry is a key pillar of the country’s economy. It generates a large share of export earnings and provides jobs for millions of people. However, the sector faces a serious challenge that cannot be ignored: unreliable gas and electricity supply. For the garment industry, uninterrupted energy is not a luxury; it is essential to maintain production, quality, and timely shipments.

Photo: Md. Nazrul Islam Babu, Managing Director & CEO, SIMEX Sourcing Limited

Production Is Being Disrupted

Every stage of garment manufacturing depends on a stable energy supply. From cutting and sewing to dyeing, washing, finishing, ironing, and packing, production schedules are carefully planned around strict deadlines. Low gas pressure can seriously affect boilers, dyeing, washing, and finishing operations. At the same time, frequent power interruptions can bring sewing lines and other machinery to a standstill. The result is lost production hours, lower efficiency, and increasing pressure on factories to meet shipment deadlines.

Rising Production Costs

When production stops because of power or gas shortages, factory operating costs do not stop. Workers still need to be paid, machinery remains idle, factory overheads continue, and delivery commitments remain unchanged. Many factories are therefore forced to operate generators to maintain production. However, generator-based electricity is significantly more expensive because of fuel, maintenance, and operational costs. This ultimately increases the cost of producing each garment. At a time when international buyers are continuously demanding lower prices, higher quality, and shorter lead times, this additional cost creates enormous pressure on Bangladeshi manufacturers and suppliers.

Shipment Delays and Buyer Confidence

In the global apparel business, on-time delivery is critical. Buyers work according to strict seasonal calendars and retail launch dates. A delay of even a few days in one production process can affect the entire shipment schedule. When factories face repeated energy disruptions, they may struggle to complete orders on time. In some cases, suppliers may have to use expensive air freight or request shipment extensions from buyers. Repeated delays can also affect buyer confidence and create opportunities for competing sourcing countries to attract business away from Bangladesh.

Bangladesh’s Global Competitiveness Is at Risk

Bangladesh is competing with major apparel-producing countries such as China, Vietnam, India, Indonesia and Cambodia. International buyers today evaluate suppliers based not only on price but also on quality, compliance, capacity, lead time, reliability and on-time delivery. If energy shortages continue to disrupt production, Bangladesh risks losing some of its competitive advantage. The issue is therefore much bigger than the difficulties faced by individual factories. It directly affects the country’s export competitiveness.

Small and Medium Factories Face Greater Pressure

Large factories may have greater capacity to invest in generators and alternative energy solutions. Small and medium-sized factories, however, often cannot afford the additional cost. For these businesses, prolonged gas and electricity shortages can reduce production capacity, raise operating costs, and create serious financial pressure. The impact eventually spreads across the entire supply chain, including workers, subcontractors, fabric suppliers, accessories suppliers and logistics providers.

Immediate and Long-Term Solutions Are Necessary

Factory owners alone cannot address the gas and electricity crisis. It requires coordinated action from the government, energy authorities, utility providers and industry stakeholders. Export-oriented industrial zones should receive reliable and predictable energy supplies. If power or gas restrictions become necessary, factories should be informed through a clear and reliable schedule so that they can plan production accordingly. In the long term, Bangladesh needs stronger energy infrastructure, improved gas supply management, increased power-generation capacity, and more reliable industrial utility networks. Investment in renewable and alternative energy solutions should also be encouraged wherever practical.

Protecting the Future of Bangladesh’s RMG Sector

Bangladesh’s garment industry is not simply another business sector. It is directly connected to the country’s export earnings, employment and economic stability. If gas and electricity shortages continue for an extended period, production costs will rise, shipment risks will increase, and Bangladesh’s position in the international apparel market may be weakened. Therefore, ensuring reliable, uninterrupted and predictable gas and electricity for export-oriented industries should be treated as a national economic priority. Finding new buyers and setting higher export targets are important, but they will not be enough if factories cannot produce efficiently and ship orders on time. A strong garment industry needs strong infrastructure. Reliable energy underpins reliable production, timely shipment, and long-term buyer confidence. If Bangladesh wants to remain a leading global apparel sourcing destination, ensuring dependable gas and electricity supply must be one of the country’s highest priorities.

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