Digital transformation efforts by Bangladesh In the current landscape of the RMG manufacturing industry, profit margins typically hover around 7 per cent – 8 per cent per order, making it difficult for factories to support long-term sustainable operations. The industry’s narrow profit margins highlight the importance of efficiently covering expenses, including worker and management salaries, amidst various challenges such as the impact of Covid, the Russia-Ukraine war and a global economic slowdown. Operating under these conditions, factories strive to maintain functionality and financial stability. As we look ahead, 2024 is believed to mark a resurgence for RMG factories, with the order scenario expected to return to normal. Despite this positive outlook, many factories are in the midst of expansion plans. However, the establishment of new factories involves arduous processes, consisting of at least two-year investment period that includes land acquisition, construction and order acquisition. This waiting period for orders to materialise poses a financial burden for both new entrants and established players, adding to the challenges faced by the industry during these demanding times. The only answer is to increase efficiency and productivity in the manufacturing business to improve profit margins, while going for systematic expansion plans. In the […]
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