经济学论文代写 Apparel Industry Of Sri Lanka Garments Without Guilt
3.2 Insufficient Product Diversification
Unavailability of diversified range of products in the apparel sector is identified as another major issue at present. The garments exports accounts for more than 90% of the total exports of the industry and has been identified to be a similar figure for the past two decades.
Source: Brandix Annual Report, 2009
Figure 2: Production Section Sri Lanka yet focuses on four major types of items in the product coverage, which can be identified as shirts, blouses, trousers and jackets. Though 50 new items were introduced to the product coverage in year 2000, still the industry is highly concentrated on a few product categories. The quota restrictions imposed by major importers now limit the export of these popular items further.C:\Users\user\Desktop\images.jpg
3.3 Heavy Dependence on a Few Large Scale Industry Players
Though there are 300 – 400 factories existent in Sri Lanka, the distribution is as 26% small scale factories with less than 100 employees, 51% medium scale factories and only 23% large and very large scale manufacturers with more than 500 employees.
Though 77% of the factories are identified to be small and medium scale factories, 62% of the current total employment is accounted by the 23% large scale industry players and above 60% of the industry volumes are also being produced by these large scale industry players.
3.4 Lack of Solid Raw Material Base
Lack of production of raw materials and accessories, within the country is identified to be another major issue faced by the industry. This has affected the competitiveness of the local garment exports, as a whole in comparison with the other competitors in Asia.
More than 70% of the total fabrics used in the industry and 70% to 90% of the total accessories used in the production are estimated to be brought in as imports. Around 70% of the total production cost is accounted to be from these two components, and Sri Lanka is faced with higher level of issues at the present context with regard to these imports, which subsequently increases production cost/cost of final output.
As lead time in today’s context act as a major aspect in determining competitiveness, the time taken for the arrival of raw material acts as another constraint, secondary to the issue discussed above . The costs incurred in transportation etc. further increases the cost of final product which ultimately decrease the competitiveness and result in low profit margins.
3.5 Wage Differentials
The cost of labour acted as one of the major reasons for the textile industry to move from developed western countries to developing Asian countries. In analyzing the current context of Sri Lanka, it is identified not to be a low cost producer in comparison with the other Asian competitors and countries such as Vietnam, Cambodia, Caribbean nations and sub-Saharan countries which also have preferential access to the major markets.
Issues in relation to labour are expected to arise in the future context as the labour supply of Sri Lanka is currently facing a stage of decline in sectors such as apparel industry. The preference to work in Middle East household sector also has an impact on the above.
3.6 Lack of Skilled Labour and Productivity of Labour
Figure 2: Working Woman – BrandixAs the industry expanded at the early stages, a higher level of job opportunities was created. Though this a majority of the labour used can be identified as unskilled labour compared to other countries, caused due to lack of training, development etc. F:\MBA\1st Semester\Assignment\ME Group\4yq075f.jpg
Source : Brandix Annual Report, 2009The productivity of labour employed in the apparel sector of Sri Lanka is identified to be low in comparison with the competitors, caused due to factors such as, lack of properly trained labour, poor working conditions, higher level of labour turnover and rigidities in labour laws etc.
Though skilled labour is lacking in Sri Lanka in comparison with its competitors, this was initially identified to be a prime reason in order for Sri Lanka to obtain the advantage in apparel sector, as unskilled labour was identified to be cheap. As long as the wastage is maintained at the desired percentage of revenue, it is not feasible to incur expenses in training the labour.