The document summarizes 4 threats facing the garment industry in Bangladesh.
1) Pressure from government and buyers' organizations to improve worker safety and conditions has increased costs for manufacturers, reducing profit margins.
2) International human rights groups are advocating for better wages and working conditions, which may lead buyers to impose new requirements without raising prices.
3) The US withdrew trade preferences due to concerns about worker rights, creating new challenges for manufacturers.
4) As a small cotton producer, Bangladesh relies on imports, creating long-term uncertainty over cotton supply that threatens the industry.
The document summarizes 4 threats facing the garment industry in Bangladesh.
1) Pressure from government and buyers' organizations to improve worker safety and conditions has increased costs for manufacturers, reducing profit margins.
2) International human rights groups are advocating for better wages and working conditions, which may lead buyers to impose new requirements without raising prices.
3) The US withdrew trade preferences due to concerns about worker rights, creating new challenges for manufacturers.
4) As a small cotton producer, Bangladesh relies on imports, creating long-term uncertainty over cotton supply that threatens the industry.
The document summarizes 4 threats facing the garment industry in Bangladesh.
1) Pressure from government and buyers' organizations to improve worker safety and conditions has increased costs for manufacturers, reducing profit margins.
2) International human rights groups are advocating for better wages and working conditions, which may lead buyers to impose new requirements without raising prices.
3) The US withdrew trade preferences due to concerns about worker rights, creating new challenges for manufacturers.
4) As a small cotton producer, Bangladesh relies on imports, creating long-term uncertainty over cotton supply that threatens the industry.
Sl. Threats Weigh Rating Weighte Comments/ Justification
No t (1-5) d Score . 1 The Govt. BGMEA, 0.25 5 1.25 Ensuring safety and security of the BKMEA, including buyer’s laborers has to be maintained not organization abroad are only for the compliance issue exerting pressure for came in the forefront but also a ensuring safety and basic human right. For this to security of the laborers, ensure the cost of Garment and also better working industry has gone up. Buyers are condition after the Tazrin not paying any extra CM on this havoc and Rana Plaza ground. Ultimately the industries tragedy. profit margins are getting low day by day, certainly a threat for the new entrants. 2 International citizenry as 0.25 3 0.75 Concern of human rights bodies well as human rights are yet a vocal issue. Soon, this bodies are becoming may drive buyers to make another vocal regarding the poor mandatory issue without raising wages of the workers and any CM on to their orders. hefty profits of the Ultimate result is extra CM, again owners and internal a threat for the new entrants. buyers. 3 The USA has withdrawn 0.25 4 1.00 Keeping apart the trade unionism GSP facility on the plea of consequence either good or bad worker’s right. for the garment industries in Bangladesh, the withdrawn of GSP facility pushed the garment manufacturer to another hurdles. 4 We are not a big cotton 0.25 3 0.75 Textile is the backward linkage of producing country like Garment Industry and the first our neighbors -India and and basic raw materials for Textile Pakistan is cotton from which threads are produced in spinning mills than weaving or knitting and than other intermediate process are done to forward the fabrics in to garment industry. A long run cotton import uncertainty will always be there as a back-end threat. TOTAL 1 3.75
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