Light engineering output slides as energy crisis drives up manufacturing costs

The light engineering industry in Bangladesh is grappling with reduced output levels as persistent energy deficits force manufacturers to curtail operations and absorb escalating production costs. Power cuts and irregular gas supply have disrupted factory schedules across the sector, compelling businesses to seek alternative energy sources at significantly higher prices or operate below full capacity.

Manufacturers report that diesel and liquefied petroleum gas—used to compensate for inadequate grid electricity and piped gas supply—have substantially eroded profit margins. The cost pressures are particularly acute for small and medium enterprises that lack the financial buffer of larger competitors and cannot easily invest in backup power infrastructure.

Industry associations have flagged concerns that prolonged energy instability could deter both domestic investment and foreign buyers seeking reliable production partners. The light engineering sector, which produces components for appliances, machinery, and automotive applications, plays a crucial role in Bangladesh's manufacturing export base.

The energy crisis arrives at a challenging time for the sector, which already faces competitive pressures from regional rivals and sluggish global demand. Industry representatives have called on policymakers to prioritize gas allocation to manufacturing and expedite investment in power generation capacity to sustain growth momentum in the coming months.