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LightCastle Partners in collaboration with Policy Exchange Bangladesh, organized a pivotal dialogue event on 21st October 2024, aimed at addressing the critical challenges regarding automation integration in the apparel industry of Bangladesh. This event underscored the need for a cohesive approach to integrate automation for sustainable growth while safeguarding worker wellbeing and ensuring the industry’s competitiveness on the global stage.
The event brought together an esteemed gathering of industry leaders, innovators, development partners, academicians, and government stakeholders, emphasizing the importance of collective action and research-driven insights to drive meaningful change.
Central to the discussion were themes of enhancing industry competitiveness, advancing skills development, and creating employment opportunities, particularly for women, in an increasingly technology-driven landscape.
This event as part of the Bunon 2030 initiative, marked the fourth dialogue series under the theme of ‘Future-Proofing RMG: Tackling Automation for Sustainable Growth & Worker Wellbeing,’ focusing on how automation and innovation can lead to sustainable growth while safeguarding worker welfare.
The event was held under the ‘Oporajita: Collective Impact on the Future of Work in Bangladesh’ project, supported by The Asia Foundation and funded by the H&M Foundation. It shares a common goal of protecting the future livelihoods of women garment workers in Bangladesh.
The dialogue commenced with opening remarks from Kazi Faisal Bin Seraj, Country Representative of The Asia Foundation, who underscored the urgent need for collective action to future-proof the RMG industry.
He highlighted that while automation should drive higher productivity, it is also crucial to prioritize worker wellbeing in this process. Recognizing the complexities of the situation, he stated “Brands like H&M are actively identifying the challenges and engaging relevant stakeholders such as FSG and The Asia Foundation, alongside LightCastle and Policy Exchange, to enhance dialogue and research efforts. The emphasis remains on increasing productivity without overlooking the importance of ensuring the wellbeing of workers throughout this transition.”
With this narrative in place, the session began with a virtual presentation from Sumit Manchanda, Senior Advisor for Green Growth Strategies, who previously led green manufacturing initiatives at the World Bank’s IFC. He introduced the economic complexity framework by César Hidalgo of MIT and Professor Ricardo Hausmann of Harvard, emphasizing that improving economic complexity should be a key policy goal.
Currently, Bangladesh ranks 101 out of 133 countries in economic complexity, indicating a reliance on simple products. However, there are ample opportunities for the nation to enhance its economic complexity and benefit from the positive outcomes associated with it.
While, Mr. Manchanda addressed the global landscape and trends in automation across developed countries, Zahedul Amin, Co-founder, and Director of Finance, Strategy, and Consulting Services at LightCastle Partners, presented a compelling keynote on the local context of automation in Bangladesh, emphasizing its implications for workers’ wellbeing.
He highlighted several key points regarding the state of automation in Bangladesh’s textile and RMG sectors. Over the years, the country has integrated automation across its value chains, but currently, only 15% of its manufacturing processes are mechanized. While the textile value chain is fully automated, certain tasks within the RMG sector such as ironing, folding, and packaging — still depend on manual labor.
Additionally, he noted the global shift towards high-tech manufacturing in countries like China, Vietnam, Turkey, India, and Cambodia, emphasizing the need for Bangladesh to keep pace with these developments.
Following that, the panel discussion was set on the stage which was moderated by Dr. M Masrur Reaz the Chairman of Policy Exchange Bangladesh, concluding on a thought-provoking note about where the balance lies between automation and worker wellbeing, and how this equilibrium can be achieved.
The panel featured a distinguished lineup of industry leaders and experts who delved into pressing issues facing the sector. The panel included Professor Dr. Engineer Ayub Nabi Khan, Vice-Chancellor of BGMEA University of Fashion and Technology (BUFT); Shams Zaman, Country Managing Partner of PricewaterhouseCoopers (PwC) Bangladesh; Habibullah N. Karim, Founder and CEO of Technohaven Company Limited; Mohsina Yasmin, Former Executive Member of BIDA; and Ainee Islam, Director of Program Development at The Asia Foundation.
The panelists stressed the importance of integrating updated technologies in Bangladesh’s garment sector to boost productivity, efficiency, and product quality while unlocking new market opportunities. However, they highlighted the accompanying challenges, such as potential job displacement, a widening skills gap, high investment costs, and infrastructure limitations, particularly in power and internet connectivity.
To ensure technology integration supports both industry competitiveness and workforce wellbeing, strategies such as upskilling and reskilling workers, diversifying product offerings, and fostering a culture of innovation through research and development are crucial. Furthermore, prioritizing sustainability and ensuring financial support through incentives and improved access to finance are key to driving sustainable growth in the sector.
Subsequently, an innovative showcase session was held to bridge the gap between cutting-edge innovations and industry needs. Innovators like Md. Ridwan Hossain, a Computer Science and Engineering graduate from North South University, captivated the audience with a live demonstration of his innovation ThreadBridge – a QC Glass.
These advancements are designed to enhance fault detection in RMG production units, significantly accelerating factory quality control through rapid, accurate detection and effortless integration into existing processes.
Shimmy Technologies Inc. and Solvei8 also took the stage during the showcase session. Solvei8 is leading the charge in manufacturing excellence with their Factory OS, a mobile-based solution that provides real-time asset and maintenance monitoring to significantly reduce production downtime.
Their modular Manufacturing Execution System (MES) is meticulously designed for the intricate processes of apparel manufacturers, allowing users to seamlessly track and control operations from fabric inspection to packing.
Finally, the event concluded with closing remarks from Shams Mahmud, Director of BGMEA, and Managing Director of Shasha Denims. He emphasized, “Despite significant sales, we have failed to reinvest in upgrading technology or upskilling our workforce. Access to finance remains the biggest barrier to making these critical improvements.”
He also stated the need for a national framework for decarbonization to support sustainable growth in the industry, further emphasizing the sustainability of the apparel sector to align with global standards for resource efficiency, climate adaptation, and decarbonization.
To download our publications, visit our Bunon 2030 website
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