In Bangladesh, 78% of garment workers recently surveyed reported experiencing greater summer heat, with about half becoming weak and ill from soaring temperatures. Factories often cut power, impacting ventilation and increasing health risks for the workforce, according to Devdiscourse. Direct hardship for workers signals a deeper crisis for Bangladesh garment suppliers facing economic pressure in 2026.
Bangladesh remains the world's second-largest garment exporter, but the low wages, scale, and preferential access that built its success are rapidly eroding. The industry's reliance on extreme cost-cutting, evidenced by these power cuts, directly undermines its core 'low wage' competitive advantage by reducing productivity and increasing health risks for its labor force.
Bangladesh's garment industry is likely to experience a significant contraction, leading to widespread job losses and a re-evaluation of global supply chain ethics. This unsustainable model risks its global market share to rivals who can offer better conditions or more reliable production.
Workers and Factories Under Duress
The minimum monthly wage for Bangladeshi garment workers stands at 12,500 taka, approximately $113. This figure is less than a quarter of the estimated local living wage of $460 per month, according to economicsobservatory. Extreme wage disparity strains the workforce.
Out of approximately 1,500 factories under NAP monitoring by DIFE, only about 300 are currently operational in Dhaka and Chattogram, as reported by Bangladesh Sangbad Sangstha (BSS). This suggests a significant portion of Bangladesh's garment production capacity is either defunct, non-compliant, or operating outside formal oversight. Unlivable wages for workers combined with a drastic reduction in operational factories paint a grim picture of the industry's current state and its impact on livelihoods.
The stark contrast between Bangladesh's status as the world's second-largest garment exporter and the fact that only 300 out of 1,500 monitored factories are operational in key areas suggests a significant portion of the industry is either non-compliant, defunct, or operating in a shadow economy, creating an unstable foundation for future growth.
