80pc RMG owners adopting automation: Stakeholders urged to take proactive steps amid fears of rising unemployment

Proactive steps are necessary to support Ready-Made Garment (RMG) workers who are at risk of unemployment as automation continues to grow in Bangladesh’s garment sector, speakers at a dialogue event said on Monday. 

Automation, while presenting challenges for the workforce, is also key to enhancing the industry’s global competitiveness.

Advanced technologies can significantly boost productivity, improve quality control, and lower operational costs, ensuring that Bangladesh’s RMG sector maintains its competitive edge internationally, according to a media release. 

Embracing automation allows the industry to meet increasing demand for high-quality products with shorter lead times—critical for international buyers.

In the next two years, 80 per cent of garment factory owners in Bangladesh plan to invest in automated machines, according to data from a research which was presented by LightCastle Partners at the event held at a hotel in the capital's Gulshan.

Automation in the sector is expected to grow by over 13 per cent during this period. Despite the increase in efficiency and projected production increases of up to 22 per cent, concerns about rising unemployment persist. Out of an average of 2,250 workers per factory, only 500 are expected to be directly involved with automation processes, leaving many workers at risk.

Speaking at the event, Zahedul Amin, Co-founder and Director of LightCastle Partners, delivered a keynote presentation titled "Future-Proofing RMG: Tackling Automation for Sustainable Growth and Worker Wellbeing."

He highlighted the need for a balanced approach that supports industry competitiveness through automation while safeguarding the workforce through upskilling and reskilling initiatives.

LightCastle Partners, an international leading business consultancy firm, organized the event in partnership with Policy Exchange Bangladesh.

The event emphasized the need for urgent action to address the potential impacts of automation on the workforce, calling for recommendations that ensure sustainable growth while protecting the livelihoods of garment workers.

During his presentation, Zahedul Amin shared findings from a recent research that showed 93 per cent of garment operators in Bangladesh are willing to work with automated machines, with 70 per cent of female workers expressing interest in gaining new skills for operating modern machinery.

Dr. M Masrur Reaz, Chairman of Policy Exchange Bangladesh, moderated the dialogue, where industry leaders and experts discussed the pressing issues.

Kazi Faisal Bin Seraj, Country Representative of The Asia Foundation, delivered the opening remarks, emphasizing the need for collective action to future-proof the RMG industry.

Also speaking at the event were Professor Dr. Engineer Ayub Nabi Khan, Vice-Chancellor of BGMEA University of Fashion and Technology (BUFT), Shams Zaman, Country Manager of PricewaterhouseCoopers (PwC) Bangladesh, and Habibullah N Karim, Founder and CEO of Technohaven Company Limited.

The speakers highlighted a range of strategies for ensuring the RMG sector’s resilience in the face of technological changes, including prioritizing the procurement of updated technologies, enhancing occupational safety, and implementing upskilling and reskilling programs to transition workers into new roles.

In addition, panelists emphasized the importance of integrating circular economy principles to reduce carbon emissions and implementing strategies to ensure long-term security for those affected by automation.

These initiatives are essential in protecting workers and helping Bangladesh continue its growth as a leading global exporter of ready-made garments.

According to data from the Export Promotion Bureau, Bangladesh ranks second globally in ready-made garment exports. In the 2023 fiscal year, Bangladesh exported $47 billion worth of garments.

The RMG sector contributed 10.35 per cent to the country’s GDP in 2023, employing 4.1 million workers, 60 per cent of whom are women, the release adds.