Showing posts with label Shortage. Show all posts
Showing posts with label Shortage. Show all posts

Sunday, March 13, 2011

RMG Sector faces Talent Crunch

The apparel industry that accounts for 75 percent of exports from Bangladesh is facing a dearth of skilled professionals, especially at mid-managerial levels.

The current crunch is also likely to deepen by 2021, unless immediate steps are taken to develop and nurture a pool of talent by rigorously implementing structured training and necessary curriculum modifications, say management experts.

“The apparel sector, especially knitting, has witnessed continuous growth over 35 percent in the last few years,” says NEA Shibly, chief executive officer (CEO) of Pro-edge, a leading management and human resources (HR) consulting house in Bangladesh. “But the sector suffers badly from a shortage of skilled manpower as demand is much higher than availability.”


“The gap has widened due to an acute shortage of high-caliber employees, especially for mid-level management,” he adds.

Around 20 years back, some tech-savvy young entrepreneurs, inspired by a group of Koreans who relocated their factories to Bangladesh, ventured into the garments business to try their luck.

“Today, the readymade garments sector is the main engine of our national economy and so, immediate attention is required to develop and groom mid- and senior-level professionals,” says M Zulfiquar Hussain, CEO of Grow n Excel, another leading management consultation organisation in Bangladesh.

“Otherwise, the shortage will be more severe in the next ten years, as yesterday's success cannot be made to face tomorrow's more dynamic and challenging situation, without offering any pragmatic solutions. The waves of change have started to roll in and the sector should address the shortfalls in talent professionally and efficiently,” he says.

“The RMG sector will require around eight lakh skilled professionals in mid-level positions by 2021 to lead the organisations,” says Anwar-Ul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). “Currently, the sector suffers a shortfall of nearly two lakh professionals.”

"Unfortunately, experienced and qualified employees from our neighbouring countries are filling the current shortage," says Shibly.

They are around 15 percent of the mid- and senior-level professionals in the entire industry, he says.

Management practitioners say "our entrepreneurs' lack the eagerness to spend money to train and develop local talents." Inadequate technical and vocational institutions, back-dated curricula, a lack of social recognition of garment jobs, poor compensation packages and unfavourable working conditions are the main deterrents to the talent development.

Most employers are nonchalant about imparting any structured or continuously competent training programmes to employees due to business exigencies and also because they fear losing their trained employees, says Shibly.

But, Mosharraf Hussain, managing director of Standard Group, a leading RMG manufacturer, says, “The RMG sector should arrange training for its workforce to survive in the competitive world markets as market forces constantly demand efficiency. We spend around 5 percent of profits on training and development.”

Shibly says local institutes and training centres in Bangladesh are not equipped to keep pace with the ever-increasing demand for quality employees with appropriate skills, knowledge and abilities.

Recently, both BGMEA and Bangladesh Knitwear Manufactures and Exporters Association have taken initiatives to produce skilled workers for the sector by imparting training at as many as 31 centres.

However, this is not enough because most public and private universities do not offer any courses on RMG related subjects, says Parvez.

Mustafizur Rahman, executive director of Centre for Policy Dialogue, says the government and sectoral associations should forge public-private partnerships to strengthen technical and vocational education. The government will provide infrastructure facilities and the associations will design the course curricula, based on market demands, he added.

Most organisations in the sector have failed to attract quality graduates and professionals due to poor compensation packages, dingy work environments and a lack of career path, says Hussain of Grow n Excel.

However, the Standard Group MD disagrees. He says that most young talents seem disinterested to pursue a professional career in RMG as they are under myriad pressures and challenges.

The Pro-edge CEO says the value of a 'learning organisation', where there is a culture of continuous learning and development, is the immediate solution to meeting the short supply of talent at mid-level positions because changing the national education system or the practical orientation curricula is a long and winding process.

The good news is, some organisations in the apparel sector, like Viyellatex Group, have introduced their management trainee schemes. It is also mandatory for managers at all levels to attend the management development programmes run throughout the year, says Shibly.

The owner and top management have to demonstrate full commitment and involvement along with treating the employees with dignity and respect to make the development programme a success, says M Zulfiquar Hussain.

The Daily Star,  Monday, March 7, 2011

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Saturday, March 12, 2011

Production fails due to power, gas shortages

The country’s garment sector, presently fetching nearly US$13 billion foreign exchange annually, bears an additional cost worth Tk 19.63 billion a year due to power shortage.

Bangladesh Garment Manufacturers and Exporters Association President Abdus Salam Murshedy said this while talking to daily sun yesterday.

“Our 50 to 60 percent garment units use generators run by diesel as a back-up support for ensuring uninterrupted electricity supply to their factories,” Murshedy said adding: “Rest 35 to 40 per cent garment units depend on national grid for electricity supply.”

Apparel (RMG) factories, which are depended on national grid for electricity supply, have to suspend their production for 10 to 12 hours daily due to load-shedding.

“As a result, the garments units that use generators have to purchase about 240 million litres of diesel annually to overcome electricity shortage,” he informed.

Industry owners are spending additional Tk 10.97 billion for buying gas and diesel per year for generating 1,200MW of electricity for their factories, the BGMEA president further told.

“If we are provided with uninterrupted supply of gas and electricity, then we will to spend only Tk 4.05 billion for gas and diesel purpose,” Murshedy told daily sun.

He, however, said that they (RMGs) have been incurring Tk 6.92 billion loss annually due to frequent power failure.

“Damages to machinery and other electricity run equipments are causing another Tk 12.71 billion in annual losses as the power fails three to four times a day,” he said, adding: “The annual loss of the sector is Tk 19.63 billion.”

“We have minimized our production cut by using back-up generators but the units which depend on national grid for power are facing a serious setback due to frequent power cut,” he said expressing his dissatisfaction.

He said a total of 3.5 million people are directly involved with the garments industry, while 30 million people are indirectly dependent on it. “If the government fails to ensure uninterrupted electricity supply in the RMG sectors, then a large number of people will face unemployment,” he feared.

“We are compelled to reduce orders due to power and gas crisis, he said, adding that the garments owners are paying additional cargo charge of US$4 dollar per tonne through air cargo compared to ship cargo due to delay in production.

He called upon the government to keep the power tariff within Tk 3.15 per unit for RMG sector unless an uninterrupted electricity supply could be ensured. “Diesel should be provided to the garments manufacturers at a subsidised price,” he said adding that the garments sector entrepreneurs should be given an uninterrupted electricity and gas supply like the units at export processing zones.”

Readymade garments owners have been facing 25 per cent production loss due to frequent power cut, former BGMEA President Anwarul Kabir Chowdhury Parves told daily sun. “Three hours power cut a day causes 25 percent production fall in garment units,” he said.

He informed that nearly 4000 knit and readymade garments factories require 720megawatts (MW) of electricity daily but we receive only 500MW electricity supply, he said, adding: “Due to frequent power cut, garments owners run production through ‘costly’ diesel run generators.”

The RMG sectors didn’t face such problems three to four years ago, the former BGMEA boss also managing director of Evidence group told daily sun.

The diesel-run generators have a capacity to run three to four hours daily but it comes into inoperative when it took extra load for more than eight to nine hours, he said.

Governments in India, Sri Lanka, Vietnam and China play major role in providing uninterrupted electricity supply for ensuring 100 per cent productivity.

“We have paid overtime to workers to minimise the production loss,” he, further said.

The former president also said that the RMG belt at Asulia and Tangi has low pressure of gas supply that also disrupts the production. “Due to power and gas crisis, our production is reduced drastically.”

Terming the RMG as a first step of industrialisation, he said that the country will go to second phase (installation of capital industry like shipbuilding) and third and final phase (services sector) through the success in RMG and textiles sector. “For this, the government should ensure electricity for RMG and textiles sectors to make it competitive with India, Sri Lanka and China,” he said.

Bangladesh should follow the example of the neighboring India in order to solve the power and energy crisis by taking initiative in this regard, he said.

The crisis for electricity and energy would be reduced significantly if the government prepares an area based industrial mapping under a master plan, he observed. “The government would easily supervise the wastage of valuable lands and ensure power and energy in these sectors,” he firmly said.

He called upon the government to extract coal immediately as the diesel based power plants are not affordable.

The Daily Sun, Fri, 11/03/2011

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