Knitwear machinery trade feels pinch of global financial meltdown
Wednesday, 3 December 2008
Mehdi Musharraf Bhuiyan
The global financial meltdown along with the shortage of energy supply is taking its toll on sale and import of knitwear machinery albeit the ever-increasing growth in export of knitwear and other garments as the knitwear manufacturers are shying off from bigger investments due to high interest rate.
This was quite evident in the KNIT+TEX Bangladesh-2008 international exposition, which concluded in the city Sunday. Many of the leading knitwear machinery suppliers participating in the exposition portrayed a gloomy picture of the event.
The three-day exposition was held at a time when the country's knitwear manufacturing sector, the single largest forex earner, is thriving recording 15 per cent growth per annum. The volume of exports is also set to reach US$ 5.5 billion (550 crore) this fiscal as the knitwear manufacturers are boasting uninterrupted growth in exports despite the global financial turmoil.
Despite this rosy picture of the country's major export earning sector, the industrial machinery import for the burgeoning knitwear sector was not unscathed by the global economic downturn as the leading machinery suppliers reported a significant downtrend in sales over the past six months.
"It is undeniable that the knitwear export is rising; but behind the scene, the manufacturers are less confident in making big investments like buying new industrial machinery than ever before due to the less bank support they are receiving," opined Sultan Mahmud of Anam Corporation; one of the participating companies, which imports and supplies sewing machines for the knitwear industry.
"Also add to that the timing of the fair, which falls just before the Eid and the manufacturers are more busy making quick shipment of their products prior to the upcoming holidays than making new investment in machinery," he added.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fozlul Hoque told the FE, "Despite the increasing export; lower investment in the knitwear sector is prevalent for some time now, and this is not only due to the lack of confidence amid the global downturn but also due to the high interest rate and the apparent energy shortage".
"With the recent energy price hike and the prevailing energy shortage, the proper operation and maintenance of the machinery and equipment have become a tougher task," he observed.
Albeit the poor response, some spectacular sales have been reported in the fair. More than 90 companies participated in the fair showcasing a wide range of industrial machinery and equipment essential at various stages of manufacturing knitwear.
A gigantic knitting machine with the brand name 'Ssanyong' imported from South Korea by Daika Limited which was imposingly on display at the fair, has already been sold on the spot for US$ 27000 to a local manufacturer, Shapla Textiles Limited.
ABC Power, an importer and supplier of industrial transformer, on the other hand, has sold one such transformer showcased during the fair to Packman Bangladesh Limited, another knitwear manufacturer.
The global financial meltdown along with the shortage of energy supply is taking its toll on sale and import of knitwear machinery albeit the ever-increasing growth in export of knitwear and other garments as the knitwear manufacturers are shying off from bigger investments due to high interest rate.
This was quite evident in the KNIT+TEX Bangladesh-2008 international exposition, which concluded in the city Sunday. Many of the leading knitwear machinery suppliers participating in the exposition portrayed a gloomy picture of the event.
The three-day exposition was held at a time when the country's knitwear manufacturing sector, the single largest forex earner, is thriving recording 15 per cent growth per annum. The volume of exports is also set to reach US$ 5.5 billion (550 crore) this fiscal as the knitwear manufacturers are boasting uninterrupted growth in exports despite the global financial turmoil.
Despite this rosy picture of the country's major export earning sector, the industrial machinery import for the burgeoning knitwear sector was not unscathed by the global economic downturn as the leading machinery suppliers reported a significant downtrend in sales over the past six months.
"It is undeniable that the knitwear export is rising; but behind the scene, the manufacturers are less confident in making big investments like buying new industrial machinery than ever before due to the less bank support they are receiving," opined Sultan Mahmud of Anam Corporation; one of the participating companies, which imports and supplies sewing machines for the knitwear industry.
"Also add to that the timing of the fair, which falls just before the Eid and the manufacturers are more busy making quick shipment of their products prior to the upcoming holidays than making new investment in machinery," he added.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fozlul Hoque told the FE, "Despite the increasing export; lower investment in the knitwear sector is prevalent for some time now, and this is not only due to the lack of confidence amid the global downturn but also due to the high interest rate and the apparent energy shortage".
"With the recent energy price hike and the prevailing energy shortage, the proper operation and maintenance of the machinery and equipment have become a tougher task," he observed.
Albeit the poor response, some spectacular sales have been reported in the fair. More than 90 companies participated in the fair showcasing a wide range of industrial machinery and equipment essential at various stages of manufacturing knitwear.
A gigantic knitting machine with the brand name 'Ssanyong' imported from South Korea by Daika Limited which was imposingly on display at the fair, has already been sold on the spot for US$ 27000 to a local manufacturer, Shapla Textiles Limited.
ABC Power, an importer and supplier of industrial transformer, on the other hand, has sold one such transformer showcased during the fair to Packman Bangladesh Limited, another knitwear manufacturer.