However, they said they are now facing an acute shortage of human resources, something which could land them a lethal blow.[break]
While more than 200 exporters have failed over the last five years of the quota phase out in the global apparel trade, Haritage Fashion and NS Exports are still continuing to cater to US importers in hopes of the market bouncing back in future.
“Unfotunately, the acute shortage of skilled manpower has started to hit us. It has undermined our ability to ensure timely supply of the readymade garments," Ashok Upreti, manager of Haritage Fashion, told Republica.
Haritage Fashion is operating at just 25 percent capacity and employing about 140 workers. “We wanted to add some 200 workers to meet orders we have received from the US and EU countries, but have failed so far," he said.
Upreti said he made several trips to different villages in the Tarai to search for skilled garment workers. But he returned empty handed each time. The factory mainly exports half-pants, maxi dresses and trousers and has orders for some 260,000 pieces of garment items from US and European importers.
Hari Dhungel of NS Exports, the other surviving exporter, related a similar story. "We are facing a hard time making timely delivery of goods due to the shortage of skilled workers," he said.
"In the past more than a dozen skilled workers used to approach us every day for work. But the situation has turned just the opposite. We are searching desperately for skilled manpower and finding none," said Dhungel. Such a situation, meanwhile, has reduced the capacity to fulfill demands, deterring exporters from accepting fresh orders.
Where have workers gone?
As the country´s readymade garment industry suffered a collapse, almost all skilled Nepali workers moved to India. Today, Indian manufacturers are offering them better remuneration than in Nepal.
Given the volume of orders the factories are taking, workers can earn a maximum of about Rs 20,000 a month in Nepal, whereas Indian manufacturers pay them much higher.
"And it is not just money. Workers are also uncertain about their jobs in Nepal, especially as the intense politicization of trade unions continues to make factories vulnerable," said Uday Raj Pandey, president of Garment Association of Nepal (GAN).
Nepali manufacturers are failing to lure skilled Nepali workers as they cannot guarantee them regular work in view of the volatile nature of demand from the US.
“Demands from the US do not come year round. Hence, we cannot retain them [skilled workers] for a whole year. In such a situation, it is natural for them to leave for greener pastures. We are helpless,” said Uppreti.
In view of the worsening paucity of skilled workers, GAN -- an umbrella organization of Nepali garment producers and exporters -- is mulling to operate a training school to produce skilled women workers for the industry.
“We are working on the proposal to ensure smooth supply of labor as per the demand in the industry,” said Prashant Pokhrel, former president of GAN.
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