Technical textile is the next frontier for the Bangladesh RMG industry

The readymade garment industry (RMG) of Bangladesh accounts for about 83% of the country's total export volume. The apparel industry of Bangladesh grew continuously in recent decades, making it the second largest in the world after China. The country exported RMG worth $42 billion in the last fiscal. 

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has envisioned achieving a $100 billion export target by 2030. So, for the steady growth of Bangladesh's RMG industry, we need to diversify our apparel export basket. 

Technical textile is a potential segment where Bangladesh has the opportunity to explore and expand its business. The global market for technical textile is projected to reach $208.5 billion by 2024 from $178.92 billion in 2020. Its market is assumed to reach $298.1 billion by 2030. Europe represents the largest regional market for technical textiles, accounting for an estimated 28.8% share of the global total. 

Photo: Collected

Technical textiles are engineered products with a specific functionality. They are manufactured using natural as well as manmade fibers such as Nomex, Kevlar, Spandex, and Twaron that exhibit enhanced functional properties, including higher tenacity, excellent insulation, improved thermal resistance, etc. These products find end-use application across multiple industries such as sports, construction, defense, agriculture, aerospace, automotive and healthcare sector. 

Technical textiles are also known as smart textiles. Manufacturers of technical textiles use both natural and manmade raw materials. Manmade materials, which currently account for 40% of total fiber consumption across the entire textile industry, include items like viscose, nylon, acrylic and polypropylene. 

Garments made of technical textiles can offer many qualities which traditional garments cannot; they can be antibacterial, insect repellent, flame retardant, odorless and much more, allowing the wearer to reduce risks and bodily harm. 

Technical textile is far more capital-intensive and requires greater use of technology than the apparel industry. Production of high-quality technical textiles and garments made of technical textile require a more skilled workforce, especially in the fields of inspection, raw materials testing, R&D as well as quality control through the manufacturing processes. 

Manufacturing processes require skilled middle management to deal with daily problems in a critical manner. Managers, such as those responsible for procurement, will also need to be well-versed in the technical specifications.

So, launching training initiatives by individual companies can fill up the dearth of skilled human resources that the Bangladeshi entrepreneurs currently face in setting up a technical textile manufacturing unit. 

Photo: Collected

Depending on the category or level of staff to be trained, the companies may employ different training strategies. For example, for technical operators, where learning by doing is an important way to gain skills, newer employees can often be trained within the company, with mentoring by other more experienced technical operators. 

Countries such as China and India are already producing good quality technical textiles and will be formidable competitors. Innovation will be the key to carve out our niche in the technical textile segment. The greatest competitive advantage in the technical textile sector is possessing a unique product based on proprietary technology, which comes after extensive investment in R&D and product development activities.

However, increasing prices of utilities and energy could dilute the low-cost advantage of doing business in Bangladesh particularly for manufacturers with high energy consumption, which is the case of technical textiles.

Nonetheless, now is the time to seize the opportunity in the technical textiles market for Bangladesh. With the correct combination of investment and support, the country could compete effectively in technical textiles. To acquire more knowledge about both market demand and technology related to technical textile products, the government could send trade missions on fact-finding trips to international technical textile and trade show events. 

The shift from manufacturing the traditional apparel to technical textile apparel or smart apparel will require substantial efforts and effective collaboration among all key sectoral players. The future of Bangladesh's leap in technical textile obviously lies in synergies and collaboration across the entire apparel value chain.

Abdullah Hil Rakib is Managing Director of Team Group. He is also a Director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).  

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.