The expansion of garment export facilities in Delhi-NCR is being hampered by a labor shortage
16 December 2021, Mumbai:
Hundreds of clothing exporters in the Delhi-NCR area are facing new hurdles due to a labor shortage in garment manufacturing operations. 'Labor required' advertisements are issued even though e-rickshaws, and there are boards outside several factories searching for workers.'
Due to a labor shortage, factories are being compelled to work overtime and night shifts in order to meet deadlines. The labor shortage can be attributed to a number of things.
The majority of firms have excellent orders right now, and many workers are returning to their communities for weddings and other agricultural-related festivities.
Labor shortages have always been an issue for the sector during this season, but this year's battle is a little more intense, as a large number of workers who left after Covid have not returned or have moved to other industries or businesses.
It's also worth noting that, despite the labor scarcity and the ongoing effort to recruit new workers, manufacturers are not giving attractive pay packages to entice workers. Aside from minimum salaries, manufacturers provide a monthly incentive of Rs. 1,000 for complete attendance.
"Yes, there is a labor shortage, but the industry is unable to offer greater salaries in order to recruit people since pricing pressure is already strong."
The cost of raw materials has risen like everything else, making it extremely tough," stated Vivek Saxena, Director, Moissanite Apparels. The firm is one of Noida's biggest garment exporters, working with prominent retailers such as Carrefour and others.
The scenario is similar in Gurugram, where local exporters have lots of orders and workers are primarily migrants. "Orders are there left and right," said HKL Magu, MD, Jyoti Apparels, and ex-Chairman of AEPC, "but we are handling it somehow since labor scarcity is a concern."
Despite extensive efforts to improve skill development in the textile manufacturing business, there is still a shortage. Many corporations in the Delhi-NCR region have established facilities in states where labor is plentiful.
One such manufacturer is Matrix Clothing, Gurugram, which has a plant in Ranchi (Jharkhand). "Orders are projected to be excellent in the next season as well," says Adarsh Sharan, the company's CEO. "As a result, the sector has to look at the labor issue from a long-term perspective."
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