The whitepaper delves into best practices and strategies that can help textile manufacturers enhance operations and maximize their bottom line.
Profitability in Motion
The textile & apparel industry has been a significant part of the global economy, which involves the production, distribution, and consumption of a wide range of textiles and garments across countries and regions.
The manufacturing of textiles & apparel (T&C) is highly driven by the cost of raw materials, the cost of power & other utilities, salary and wages, etc.
Over the decades, as various aspects of manufacturing costs have increased, a transition has been witnessed in the textile & apparel industry.
It is evident that manufacturing shifts towards low-cost destinations from time to time. In the past, the USA, Europe, and Japan have been the top manufacturers; however, the manufacturing base has shifted to countries such as China, India, Vietnam, Bangladesh, and Turkey, among others.
Manufacturing was further expected to shift to African countries such as Ethiopia and Kenya.
These countries have improved their infrastructure, making them attractive to manufacturers.
Despite making efforts, manufacturing in these countries has faced significant challenges due to geopolitical instability and regional tension.
One example is the removal of Ethiopia from the African Growth and Opportunity Act (AGOA) trade program, which allows eligible African countries to export goods to the United States duty-free.
55% of the global Textile & Apparel (T&A) trade is collectively accountable to the leading suppliers, like China, India, Bangladesh, Vietnam, and Turkey.
This has made it even more difficult for Ethiopian manufacturers to access the US market, reducing their competitiveness and hindering further investment and growth.
The total share of African countries in textile & apparel (T&A) exports is less than 1.5%.
CREDITS: Wazir Advisors Pvt. Ltd. report