TEXTILES AND GARMENT

The textile and garment industry is one of the leading sectors with its great weight in production and employment in our country’s economy, along with many countries in the economic development process, due to the added value created in the world’s production process and its high share in export revenues.

In this sector, which is largely export-oriented, garment workshops and factories have been established to meet both domestic and international demands. Apparel is a branch of the textile industry and is called the industry branch that produces garments.

The development of risks in this growing and developing sector is monitored by all consultants and risk managers. NART Sigorta ve Reasürans Brokerliği provides services to industrial organizations in the leading position in the Textile and Garment sector, and responds to the insurance needs of the sector by constantly updating its risk analyzes in the developing and changing world order.

The following problems, which emerged with the Covid-19 pandemic, have increased the vulnerabilities in the supply process more specifically, as well as the search for solutions for the losses caused by the problems and the need for insurance products.

The main problems encountered in industry companies due to the Covid-19 pandemic are as follows:

• Suspension of production
• Exchange rate fluctuations
• Supply problems (raw materials, textile chemicals, etc.)
• Demand fluctuations due to Covid-19
• Infrastructure not suitable for e-commerce
• Key personnel loss – long quarantine period
• Low labor productivity
• Cost increases
• Disruption in logistics.

MAJOR RISKS IN THE TEXTILE INDUSTRY

The workflow in the textile industry consists of cotton spinning weaving, finishing and garment production stages. The risks that businesses usually face at these stages are listed below.

• Risks arising from moving parts
• Fire Risk
• Noise risk
• Dust related occupational diseases
• Risks from hazardous chemicals
• Risks arising from work equipment
• Risks due to Chemical Factors (Dye, Acids, Bases, Salts)
• Risks arising from non-ergonomic ways of working

INSURANCE SOLUTIONS FOR THE INDUSTRY

In these competitive and challenging market conditions, the existence of effective risk management systems is inevitable for each of the textile, garment, leather, yarn, fiber main industry and sub-industry facilities and wholesale/retail outlets in the textile industry, each of which also has its own unique and complex risks.

• Acquisitions and mergers, investments
• Occupational Health and Worker Safety
• Environmental risks
• Natural disasters, fires
• Machine breakage,Electronic device
• Business interruption,
• Strikes and lockouts, Terror
• Product liability and recalls
• Employee responsibilities
• Supplier Chain/raw material Risks
• Credit Risks
• Cyber Risks