Entrepreneurs should focus on upskilling manpower 

Bangladeshi apparel sector entrepreneurs should emphasise upskilling manpower as it is the right time to do so. They should also focus on introducing new technologies available in the market. Now we are passing a lean period in the apparel industry, which is a good time to develop people's skills as many product orders have started shifting to Bangladesh. 

However, the rate of diversification is very slow, although in some cases, it saw a good growth as many entrepreneurs are trying to come out of just producing basic items. A number of factories have grown their capacity to produce critical or semi-critical products as part of diversification. But the industry will still need to manufacture basic items.

It will not be wise to fully come out of producing basic items; we should maintain a base on cotton products, but that should be for upper-end items instead of low valued apparels. That will help to increase the profit margin, as basic items have no margin, it is like running the business hand to mouth.   

Bangladeshi apparel industrialists have very progressive thinking regarding diversification. Already they are investing in it. But none of our neighbouring countries' entrepreneurs are willing to invest in anything that risky. 

If we talk about automation, that process also needs people. Automation and skilled people are needed in parallel. As a brand, we are also giving regular training to all employees to make them skilled. If any organisation has a set of skilled people, they may easily execute any new project. 

In the middle of last year, we said that there would be an impact of the Ukraine war on the industry. And usually July, August, September are already lean months. The previous year felt a little different only because of Covid-19. Because during Covid-19, business dropped. In 2021, it was up.

Similar to our heartbeats, business also has a kind of heartbeat. If we think about where we are right now in terms of heartbeat, I would say we are at the lower point. What will happen if the heartbeat drops further? Will the industry die? There is actually no option to die. I think it will move upwards later.

Now the question is how can the heartbeat be raised. The main challenge in first world countries is energy. In winter, the energy demand in Bangladesh goes down, but theirs increases. If they do not get Russian gas, they buy liquefied natural gas at much higher prices.

After February they will realise how to survive without Russian help and that there is no need to block so much money just for energy. Then their government will introduce some subsidies to keep the economy running. Because if this continues, their economy will worsen. Since then there will be no power crisis, if people can be encouraged, businesses will recover. 

After that, orders might come to Bangladesh in March. But those orders will not be delivered before September. So the second half of this year will be good. The first half will go as it is now. 

But as a manufacturing country, we need to prepare.

Although investment is slowing down now as the economic situation is a bit negative at the moment. However, those with skilled people need not slow down their investment. Because as much as we talk about automation, it is humans who have to drive it. And automation will be needed. But automation will also require the right people. After that, it is possible to grow the business through automation. 

Industrialists should upskill their manpower now. If workers are not trained now, it will be difficult to face future challenges. Because other countries are already focusing on creating skilled workers first, and then on coming up with new technology.

The author is the country manager of G-Star RAW