Page 59 - TEXtalks. March- April 2023

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Textiles in
Recession
Supply chain disruptions,
highest energy prices due to
the Russian-Ukraine war,
affecting the textile sector
The global recession has been prolonged too long. It
started with the eruption of Covid-19 in December slapped sanctions on Russia after the
2019 in China that spread around the world in a few
months killing millions. By the time it came under
control in 2022, Russia attacked Ukraine. was the main supplier of gas and petrol to Europe.
The gas prices soared to a high level and still are.
The covid-19 resulted in supply chain disruptions that
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costs to an extent that transportation became a major At the same time, the major buyers planned
cost factor. offshoring near home. That spurred more textile
activities in countries close to the major markets of
decline in prices and inflation. But the covid-19 and from Asia to these countries. This is the reason that
In normal circumstances recession results in a
the US and Europe. This transferred many textile jobs
we see exports from Mexico, Egypt, and Turkey
sanctions on Russia finally sent the prices of food
soaring through earthquakes in Turkey that have
and other commodities moving sharply up. The
spiraling inflation particularly in the West forced
reduced exports. These countries grabbed the share
of Asian countries and the trend is expected to
people to cut their consumption. The incomes did not
increase in line with high inflation.
increase production.
In any recession, the first cut that consumers made is The current recession was compounded by supply
chain disruptions that curtailed production for items
on textiles and clothing. It has been well established
that apparel and textiles are underused so in a
for which there was demand. Many Western brands
recession they decide to use them longer or reduce
filed bankruptcy during the peak of covid-19 and
the purchase of textiles and clothing. The worst to
suffer are the countries that produce textiles and
Bangladesh were denied payment for their supplies.
clothing for the West and United States. The textile numerous suppliers among them large suppliers in
The situation became so tense that the Prime
sector is the largest employer in most of these Minister of Bangladesh had to ask the heads of
countries. During recessions, textile and clothing countries where payments were struck to intervene.
This proactive approach of the Bangladeshi
production goes down and resulting in large-scale
layoffs most of whom are women. government gave the apparel sector of the country
the needed confidence. They paid back their
The recession was accompanied by an awakening government by increasing their textile and clothing
exports even during the recession. Bangladesh
among Western consumers to go for used clothing.
grabbed the market share of China which was being
Even the major brands have opened used clothing
shops. A recent survey of the US market reveals that
denied market access in Europe and the United
40 percent of consumers prefer to use clothes. This States. It was the only country that successfully
trend is on the rise due to concerns about the
managed to thwart the impact of the global
recession. China is the only other country that
environment. The trend of sustainability is also on the
rise not specifically due to Covid-19 or global managed to increase its total textile and clothing
exports despite sanctions last year by a paltry $2
recession but because of the intensity of climate
billion mainly on the strength of higher values.
changes due to the overuse of the planet's
resources. Many countries producing textiles and
clothing are not fully prepared for this change. Only a The events of the last three years have changed the
continue to some extent even today. The West few of the suppliers have transformed their industries textile scenario. The largest sales of apparel come
to the new trend. The countries that lead this change from fast fashion. There is a strong campaign to
Russian-Ukraine war that is still going on. These are Bangladesh and Vietnam and of course China reduce the number of clothing they introduce yearly.
sanctions resulted in energy shortages as Russia the three largest exporters of apparel in the world. Fast fashion brands generally use fabrics that do not
Other countries including Pakistan are still not fully last long. The pressure is paying off and fast fashion
prepared for the change. This is an additional burden brands are reducing their new offerings. Another
The Covid-19 disruptions sharply increased shipping over and above recession on these textile and trend is to produce products from quality fabric that
last long. This trend is likely to reduce the use of
clothing countries. Lower orders and changes in apparel in the coming years. But textile production is
consumer trends have played havoc with the textile moving towards new sectors. Technical textile is one
sectors in numerous countries. Millions of workers sector that until recently was the forte of developed
have lost jobs in Pakistan, India, Vietnam, and countries but now the Asian economies are investing
numerous other countries. heavily in this sector also.
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