Small factories choose to stay small

Small manufacturers in Karachi’s industrial districts are choosing to limit output as higher scrap, raw-material, transport and electricity expenses erode already narrow margins, The Express Tribune reported on October 23. Packaging producers, plastic recyclers and makers of everyday household goods say that adding machinery or workers can quickly increase rent, power and operating costs.

A corrugated-box operator said he keeps production modest with four workers rather than take on debt, while a plastic moulding business cited electricity and machine upkeep as pressures on earnings. Small packaging sellers also find it difficult to pass higher polymer costs on to shopkeepers, leading some owners to focus on managing inventory and cash flow instead of expanding.