How a Bangladeshi garment-maker is fighting the Middle East energy crunch

A garment manufacturer in Bangladesh is weathering a global energy crisis, while many others struggle to maintain production. At 4A Yarn Dyeing, a supplier to major brands such as Walmart, Gap, and Next, workers continue stitching garments without interruption. This factory, which employs nearly 7,500 people, generates a portion of its electricity through solar panels and has backup power sources, unlike many competitors experiencing production halts, shipment delays, and discounted orders due to gas and power shortages.

The crisis has pushed production costs up for 4A by 2% to 3%, adding 5 million taka ($40,950) to its monthly fuel bill. To mitigate future disruptions, 4A plans to install a large industrial battery system to keep operations running for hours if power sources fail. However, not all factories can afford such measures, causing some to seek alternative sourcing options.

The Bangladesh ready-made garment sector, a key contributor to the country's export earnings and GDP, faces significant challenges as energy costs rise, impacting competitiveness against regions like Vietnam and India.