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Thailand suppliers deal with devastating flood

Thailand suppliers deal with devastating flood

By Hpanchal on November 28, 2011

Unfortunately, Dick warned that the situation in Thailand could deteriorate even more. “The area around Suvarnabhumi airport is under threat to get flooded,” he said. “In this area, there are also a couple of industrial estates that have now seen floodwaters on their internal roads, but not yet in the factories. The government is making a rather late effort to try to save these industrial estates.” He added that one of the two highways leading to Suvarnabhumi could be flooded.

Yong is bracing himself for challenging times when the floodwaters recede. “I would expect imports to strain the supply chain,” he commented. “Factories would be trying to import to start up their production again. When the start-up stabilizes, we will see exports surge.”

Not that a manufacturing renaissance is expected immediately. The Thai government estimated that exports should resume in earnest early next year. Most factories will need about three or four months to get ready once the water has been pumped out of them, a spokesman for the ministry for industry declared.

The wait will likely be even longer in the computer sector, Chayanurak remarked, given the need for absolutely clean facilities.

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