Bangladesh’s garment industry is facing significant challenges amid a regional energy crisis exacerbated by conflicts in the Middle East, but some manufacturers are employing innovative strategies to maintain production. Among them, 4A Yarn Dyeing, a major supplier to global retailers including Walmart, Gap, and Next, has managed to sustain operations without interruption despite widespread power and gas shortages.

Since 2019, 4A Yarn Dyeing has invested in self-generated power infrastructure, combining solar energy with gas and diesel generators. Approximately 40 percent of the company’s electricity needs are met through solar panels, while the remainder comes from its own gas and diesel facilities. This diversified energy portfolio has allowed 4A to mitigate the impact of national shortages that have crippled much of Bangladesh’s garment sector.

The energy crunch in Bangladesh has intensified due to heavy reliance on natural gas, furnace oil, and diesel, all of which have become scarcer and more expensive amid ongoing turmoil in the Middle East. A recent survey revealed that 55 percent of knitwear factories in Bangladesh have faced order cancellations or reductions related directly to these supply and power deficits, with 78 percent reporting partial production stoppages.

Co-owner Abdullah Hil Nakib emphasized the importance of reducing dependency on a single energy source as a way to weather such disruptions. He noted that recent fuel price increases have significantly raised production costs, adding roughly Tk 5 million monthly to the company’s fuel expenses. Fuel prices in Bangladesh were raised by up to 17.4 percent following global spikes tied to Middle East events. These increased costs have resulted in a 2 to 3 percent rise in overall production expenses for 4A.

To further safeguard operations against unstable power supplies, 4A Yarn Dyeing is planning to implement an industrial-scale battery storage system that would enable continuous production during outages. This proactive approach contrasts with many other local factories, which have been forced to adopt costly measures such as air shipping goods or offering discounts to meet export deadlines.

The broader industry faces mounting pressure as fuel price hikes threaten profit margins and undermine competitiveness, with some manufacturers reporting waning confidence from international buyers. Bangladesh’s energy challenges are reportedly more acute than those experienced by rival apparel-producing countries such as Vietnam and India, which has raised concerns about the nation’s industrial growth prospects.

The garment sector remains a critical pillar of Bangladesh’s economy, accounting for more than 80 percent of total exports, employing around four million people, and contributing approximately 10 percent to the country’s gross domestic product. How manufacturers respond to the evolving energy landscape will be crucial in sustaining the industry’s international standing and economic significance.