Minimum wage can be a good way to predict the cost of labor, but it’s important to note that labor cost varies significantly depending on the factory and region. Bangladeshi garment workers make a minimum of US$94 per month while other non-industry-specific workers make a minimum of US$19 per month. Bangladesh still boasts a significantly lower cost of labor compared to China and other Asian countries. They’re also working towards nationwide electricity accessin 2021.īangladesh’s biggest appeal is their extremely low cost of labor, even though the national minimum wage was last increased in December of 2018 and is now higher than ever before.
#Elucidate the company management patterns in bangladesh upgrade#
The government plans to upgrade the roads from factory cities to ports, cutting travel timein half and decreasing transportation costs. The government is well aware of how poor infrastructure will hinder their manufacturing industry and they’re working actively towards improvements. The 2017-2018 Global Competitiveness Reportranked Bangladesh 109 th in overall quality of infrastructure, and 99 th in transportation. The language barrier can also cause difficulties, as the spoken language is Bengali and it’s less common for factory management to be fluent in English. BIDA will hopefully reduce the incidence of bribery and red tape in the industry and make it overall easier to do business. To help combat this problem, the government set up the BIDA (Bangladesh Investment Development Authority). When working with Bangladesh you may face difficulties like getting electricity or enforcing contracts. Bangladesh is ranked among the lowest in the EODB(World Bank’s Ease Of Doing Business Survey). One downside to manufacturing in developing countries is the ease of doing business, or the lack thereof. The country is also prioritizing increased manufacturing in the automotive, agribusiness and pharmaceuticalssectors. They produce 50 million head of livestock a year, so sourcing is more direct and less expensive. Bangladesh’s huge supply of livestock gives them a distinct advantage. The government is pushing for manufacturing diversity, focusing mostly on the leather industry. Right now, it’s hard to find a manufacturer in Bangladesh for a product outside of the garment/textile industry-but that’s changing. According to the International Labor Organization, the RMG sector dominates the industry with more than 5,000 factories nationwide. Although the industry is young, it is relatively strong. Bangladesh has made manufacturing development a priority since independence in 1971. The country has seen significant economic growth and decreased poverty in the last decade. Production Capabilitiesīangladesh is a developing nation with plans to become developed by 2041. In one of the most environmentally negative industries, Bangladesh is striving to make a positive impact. The movement towards sustainability in Bangladesh has significantly improved the country’s reputation. These green factories are also much safer. The country is home to 90 LEED green factories(Leadership in Energy and Environmental Design), 24 of which are considered platinum and 6 of which are in the top 10 in the world. This developing nation is leading the way in sustainable manufacturing. That’s why Bangladesh is taking steps towards a greener future. The high levels of pollution, waste, and energy depletion caused by the industry are not sustainable. The RMG industry, which is known for its negative impact on the environment, is the backbone of Bangladesh’s manufacturing industry. While manufacturing is still safer in developed countries, Bangladesh has a bright future with a lot to offer. As a result, factory conditions have improved since the accident and are continuing to do so. Bangladesh expects to reach middle-income country status by 2021, and their manufacturing industry is one of the biggest contributing factors.īangladesh is infamous for the Rana Plaza Tragedy, a factory building collapse in 2013 that killed more than 1,100 people. Growing at an annual rate of 7.4%, Bangladesh’s economy is the 3 rd fastest growing economyin the world and the fastest growing economy in Asia. The country is about the size of Iowaand has a population of 163 million people, making it the 12 th most densely populated country in the world. Bangladesh is a developing country in Southern Asia.
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