A survey of 134 Bangladeshi knitwear factories has found that 55% have seen buyers cancel or reduce orders since late August because of gas and power shortages, while 78% have partially halted production.

The figures, reported by The Star via The New York Times on 23 September, quantify the commercial damage sweeping Bangladesh's garment sector — the world's second-largest apparel exporter after China — as the Middle East crisis deepens an energy crunch in a country that generates much of its electricity from natural gas, furnace oil and diesel.

Who is still shipping?

At 4A Yarn Dyeing, a supplier to Walmart, Gap and Next, workers continue stitching hoodies and attaching brand logos uninterrupted. The factory stands out for one structural reason: since 2019 it has generated its own power, including through on-site solar panels.

That seven-year head start on self-generation now functions as de facto order protection. While grid-dependent competitors miss production windows, 4A keeps lines running — a rare example in the Bangladeshi industry, where captive generation remains the exception rather than the norm.

What does the survey say about the wider tier?

The knitwear survey results point to two separate but linked failures across the tier:

• Order attrition: 55% of the 134 factories surveyed reported buyer cancellations or cuts tied directly to gas and power shortages since late August.
• Production stoppages: 78% have partially halted output, meaning delivery slippage is likely even where orders survive.

The data covers knitwear specifically, but the underlying fuel shortage affects a gas-dependent national grid serving the whole apparel base, including woven and home-textile producers.

Why energy security is now a sourcing criterion

For buyers, the story reframes a familiar compliance item. Energy self-generation and solar capacity at supplier level have shifted from sustainability talking point to delivery-risk mitigation. A factory that cannot guarantee power cannot guarantee shipment windows, and the survey numbers show buyers are already voting with order books.

For Bangladeshi suppliers, the calculus is equally stark. 4A's experience suggests on-site generation investment made years before the crisis is what separates factories still producing from those partially shut down.

Sourcing teams should now treat verified captive power or solar capacity as a due-diligence question for every Bangladesh placement, and map which of their suppliers sit in the 78% with partial production halts before the next order cycle.