The COVID-19 pandemic has had a significant impact on the textile, apparel, and fashion manufacturing industry supply chain. The global fashion industry is facing a major crisis, with millions of people losing their jobs and a decline in apparel sales and profitability. This has resulted in a 10-15% decline in employment in the industry.
In countries like Bangladesh, order cancellations from western countries have affected about 1.44 million textile and apparel industry workers. Many factories in Bangladesh and other countries have been forced to temporarily close, leaving workers without income or severance pay. This has led to a significant economic and social crisis in these regions.
The pandemic has also caused the closure of several garment manufacturing industries, leading to tens of thousands of people becoming unemployed. The International Labour Organization predicts that approximately 305 million jobs could be lost globally due to the pandemic, but a breakdown of this number based on the industry has not been provided yet.
The economic slowdown and social distancing restrictions have affected retail sales, with the fashion world experiencing the largest month-to-month drop since 1992. Consumers are now more cautious about spending and saving money for future emergencies, making it challenging to predict consumer behavior. This has resulted in manufacturing plant closures, employee layoffs, and significant financial losses in the textile, apparel, and fashion manufacturing industry.
Although China has restarted manufacturing on a small scale, the overall impact is expected to continue for the foreseeable future. Manufacturers and retailers are uncertain about when retail and production will return to normal conditions. The reopening of businesses will require further investments in safety and protective measures to ensure the well-being of employees and customers.
In summary, the COVID-19 pandemic has caused a severe economic and social impact on the textile, apparel, and fashion manufacturing industry supply chain. It has led to job losses, factory closures, financial losses, and a decline in retail sales. The industry is facing uncertainty and challenges in recovering from this crisis.