JAAF urges industry involvement in local exhibitions

The Joint Apparel Association Forum (JAAF), the representative body of Sri Lanka’s garment industry, wants maximum participation at industry exhibitions this November.

Two garment industry specific exhibitions – The Apparel Industry Suppliers Exhibition (AISEX) and Fabric and Accessory Suppliers Exhibition (FASE) – will take place at the Sirimavo Bandaranaike Memorial Exhibition Centre from November 9 to 11. The two exhibitions are structured to provide total solutions for garment companies and are endorsed by the JAAF, the Garment Buying Offices Association of Sri Lanka and the Sri Lanka Apparel Institute.

The AISEX is aimed at providing machinery and technology solutions for garment manufacturers while FASE targets fabric and accessory supplies for the industry, the organiser said in a statement.

“We encourage factories to send as many people as possible to view the exhibitions. At JAAF we realise that unless we go into a quantum leap in technology we will be left behind. Unless we learn to use technology to the utmost we will not survive in this business,” said Ajith Dias, from JAAF.

He points out that although Sri Lankan companies visit international machinery exhibitions, such visits are generally limited to top management due to cost constraints. As a result, middle and lower management are often not so well informed about available technologies, their application and what technologies will enter the market in the future.

Exhibitions like AISEX bring manufacturers as well as machinery into the island. This allows companies to discuss specific factory requirements directly with manufacturers and to source machinery accordingly.

Sri Lanka’s apparel industry is now adjusting its production processes to accommodate post-quota market changes. With profit margins eroding due to competition from lower cost producers like India, China Vietnam and Bangladesh, Sri Lankan garment factories have been forced to cut costs and increase productivity to remain in business.

However, while larger manufacturers have invested in technology upgrading to improve productivity and backward integration, many small and medium companies are still lagging behind. The JAAF says that relevant investments in new technology and machinery can deliver long term benefits despite the higher initial costs.

“Machinery can help reduce costs and increase productivity. We are not advocating that factories lay off workers but introducing technology in certain areas of the production process will benefit both workers as well as the company,” said Dias.

The JAAF says that manufacturing costs in Sri Lanka have increased while buying prices have reduced. The biggest concern is the increased cost of electricity.

“The increasing cost is where our competitiveness is being eroded. The cost of power is a major problem.

When power costs increase there is a cumulative effect down the line from the point of fabric manufacture. In addition, transportation and food prices have also increased. So workers are asking for larger wage increases but companies cannot afford to increase wages to those levels because margins are coming down,” he said.

The JAAF says the two exhibitions in Colombo may help companies find better production solutions that could contain costs and retain competitiveness.