Perfect Sourcing - October 2018
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Can Labour wages break or make an industry? The foremost aspect that affects garment production is the cost factor, which depends on many variables like raw material, machinery, logistics and the wages of workers. Apparel production, spread out all over the world, has been facing issues in handling manpower as, with upwardly mobile economic conditions, the demand for an increase in wages must also come up. No matter which manufacturing hub it is, all have been facing issues related to wages. In fact, garment production over the years has shifted from countries like the US and EU to China and other low cost SE Asian countries namely, India, Bangladesh, Vietnam and Cambodia and is now expanding to Myanmar and Indonesia because of wages. In this issue of PERFECT SOURCING you will read about the factors affecting wages and an analysis of all named countries in terms of wages. Moreover, you will read about Bangladesh, which is in the news these days because of unrest in their workforce as they too demand higher wages. Our team has also analysed the impact of the overall increase in wages on India, as it will definitely bring some business back to India which it had lost due to the wage factor impacting costs, which were higher as compared to Bangladesh and which were steering buyers to our eastern neighbor.
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