Apparel industry in major setback
The apparel industry is facing a 15-20 per cent drop in orders and revenue this season as a result of the economic downturn in its main exporting markets and with a possible outbreak of a war the future remains bleak.
Joint Apparel Association Forum (JAAF) Spokesman Yohan Lawrence told the Business Times that they expect a 15-20 per cent loss in revenue as orders too have dropped by that same amount for this season.
This will be a significant drop for the Sri Lankan apparel industry as they are facing this crisis in the wake of the global economic slowdown, he said. A similar situation is perceived in other regions as well where orders are said to have dropped.
This drop in orders for the next season is experienced for this production period from September – November, it was noted. Orders from all three markets namely the US, UK and Europe have been impacted.
However, they expect things to turn around for the next season, Mr. Lawrence said.
Statistics indicated that the apparel industry has been performing well upto now but the next few months would be the worst affected.
Total exports for August recorded a 19.05 per cent increase compared to the same month last year, obtaining revenue of US$534.85 million. There was an increase of 18 per cent from the US market that generated revenue of $229.91 million; a 24 per cent increase in revenue from the EU generating $156.38 million; and 3.58 per cent increase from the UK market recording $60.18 million.
In the meantime it has been found that there is an increased demand for jobs in the apparel sector in addition to other factories in the free trade zones.
Manufacturers Association Secretary Dhammika Fernando told the Business Times that they found an increased number of people seeking jobs almost on a daily basis and recruitment is not an issue today.
It is learnt that with some of the large scale factories closing shop with about 4000 persons being affected today, an increasing number are in need of jobs.
In this respect, employers who at one time were found to be initiating campaigns to attract workers to their factories is now seeing increased numbers opting for work in the apparel industry.
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