Team Group used smart manufacturing to lift output as wages rose

Bangladesh’s garment sector faced rising wages, scarce workers and competition from Vietnam and Cambodia. Its buyers, including H&M and Zara, wanted mass-produced clothes delivered quickly, pushing factories toward smart manufacturing.

Team Group installed Nidle devices made by its Intellier subsidiary and semi-automatic machines. Nidle counted pieces and idle minutes in real time; managing director Abdulla Hil Rakib said the technology lifted production by up to 10% and let the same workforce produce more.

The outcome was operationally positive but socially uneven. At 4A Yarn Dyeing, automation reduced a line from 58 machines to 48 and workers operated up to three machines; unions said each machine could replace one to six workers and that women were leaving because they could not keep up.

The shift continued because factories needed lower labor costs and better margins, and brands were pleased by smart factories. But workers and academics said wage gains came from protests, not automation, leaving the success dependent on whether factories share productivity gains and provide training.

Team Group said Nidle and semi-automated machines raised production by up to 10%, helping the sector protect export competitiveness.

Wages rose while workers became harder to find.

Vietnam and Cambodia increased competition for garment orders.

Fast-fashion brands rewarded factories that could make garments quickly and efficiently.

Real-time data exposed bottlenecks that supervisors could not see from the line.

A productivity tool becomes a durable turnaround only when training, targets and pay change alongside the machine; otherwise output rises while trust and labor capacity fall.

Automation was spreading: a 2023 survey of 20 Dhaka factories found 80% planned to buy semi-automated machines within two years, while top factories anticipated cutting 22% of their workforce. The industry gained speed, but its long-term competitiveness remained tied to whether training and gains reached workers.