Localized industries can play a great role in the development of a city. But the saga of such industries often remains unsung because of mismanagement, lack of cooperation or lack of sponsorship. These firms often share backward and forward linkages with the subsidiary markets as well as with the labour market directly or indirectly. Firms in cluster enjoy both competitive and marketing advantages. Moreover, the cluster creates an opportunity of specialization. Local government is often unaware of the significant role these industries can play in local development and in national development as well. Considering the disbursed sewing factories or readymade garments of Chittagong as a cluster, this paper tends to overview some characteristics of local sewing factories and seeks to quest for the setbacks of these factories The paper further tries to outline some recommendations to overcome the shortcomings found and how the contribution of this localized industry can be utilized to improvise the situation of garments industry of the economy like the Sillicon Valley of USA.