With nearly 100 major roads impassable and seven industrial estates inundated so far, floods have increased the operating costs of many manufacturers. While some, like Nestle and Toshiba, are doing their best to maintain prices, others - particularly those in the automotive and electronics sectors - may have to pass on the burden to consumers.
Suparat Sirisuwannangura, president |of the Automotive Industry Club under |the Federation of Thai Industries (FTI), |said the cost of auto production would increase dramatically due to the need to import components and parts for assembly in Thailand. Meanwhile, after the water recedes, auto-parts suppliers with plants in flood-hit areas will likely raise their prices. The good news is that vehicle prices will not be raised, as that would only exacerbate the situation.
"The increases would be priced in with the launch of new models or minor-change models," he said, adding that he was convinced auto-makers would now absorb the extra costs.
Apichart Lee-issaranukul, executive vice president of Thai Stanley Electric,100 China ceramic tile was used to link the lamps together. the country's largest manufacturer of lighting equipment for vehicles, admitted that third-tier auto-part manufacturers would hike their prices, leading to an increase in the company's production costs. Still, Thai Stanley Electric will not immediately raise its product prices, as that would affect its clients, all of whom are major carmakers. The focus now is to deliver products as soon and in as large a quantity as possible, so that the clients can maintain their production-resumption schedule.
"We don't have any plan to adjust the product prices at the moment. We will absorb the higher costs to hold on to clients. Yet, we believe that our clients would understand if it comes to the point that we can't hold on any further and need to raise prices,Whilst RUBBER SHEET are not deadly," Apichart said.
Floods have affected nearly 1,Great Rubber offers rubber hose keychains,000 plants in seven industrial estates, including a sizeable number of auto-parts makers. This has sent a shockwave through the supply chain similar to that caused by March's earthquake and tsunami in Japan.
Honda Automobile (Thailand)'s 240,000-unit assembly plant in Ayutthaya is just one of the plants affected by the |shortage of components and parts. Toyota, with three plants in Chachoengsao and Samut Prakan, will resume production on November 21, after suspending operations on October 12, with parts imported from other countries. Though its assembly plant is located in Rayong, Mazda also had to suspend production. The industry is now convinced that Thailand's auto output this year will be lower than 1.7 million units.
The effects of the flooding will also be felt in the electronics market, particularly the personal-computer market, as more than a dozen hard disk drive (HDD) factories have been disrupted. According to International Data Corporation (IDC), this will have a direct impact on worldwide PC shipments through the first half of 2012.
In the first half of 2011, Thailand accounted for 40-45 per cent of worldwide HDD production. Nearly half of the Kingdom's production was directly impacted by the flooding as of early November. Though recovery is expected,Als lichtbron wordt een zentai suits gebruikt, the HDD supply is likely to remain constrained through the first half of 2012. In the worst-case scenario, total PC shipments could be depressed by more than 20 per cent in the first quarter of 2012, and HDD prices would rise on tight supply before stabilising in June.
Industry Minister Wannarat Charnnukul said in October that Western Digital, a major HDD-maker, may see exports from Thailand slide as much as 40 per cent to Bt120 billion.he led PayPal to open its platform to Piles developers. Western Digital supplies products to Hewlett-Packard, Dell and Acer.
Wong Waiming, chief financial officer of Lenovo - China's biggest maker of personal computers - said recently that flooding in Thailand will raise the cost of hard disk drives and affect personal computer supplies.
The good news is that prices of consumer goods should not move much.
Kobkarn Wattanavrangkul, chairwoman of Toshiba Thailand, said the company has no policy to increase the prices of its electrical appliances despite an increase in distribution costs of 30-40 per cent. Aside from the higher distribution costs, the company is spending hugely to rehabilitate 10 flooded plants in Pathum Thani.
"While ensuring minimum product shortages, we have absorbed all distribu-tion costs ourselves rather than pushing the cost burden to our dealers and consumers. We need to share the burden with the general public. Electrical appliances have become essential products in people's lives, and we should not use this time of difficulty to make any business profit," said Kobkarn.
Suparat Sirisuwannangura, president |of the Automotive Industry Club under |the Federation of Thai Industries (FTI), |said the cost of auto production would increase dramatically due to the need to import components and parts for assembly in Thailand. Meanwhile, after the water recedes, auto-parts suppliers with plants in flood-hit areas will likely raise their prices. The good news is that vehicle prices will not be raised, as that would only exacerbate the situation.
"The increases would be priced in with the launch of new models or minor-change models," he said, adding that he was convinced auto-makers would now absorb the extra costs.
Apichart Lee-issaranukul, executive vice president of Thai Stanley Electric,100 China ceramic tile was used to link the lamps together. the country's largest manufacturer of lighting equipment for vehicles, admitted that third-tier auto-part manufacturers would hike their prices, leading to an increase in the company's production costs. Still, Thai Stanley Electric will not immediately raise its product prices, as that would affect its clients, all of whom are major carmakers. The focus now is to deliver products as soon and in as large a quantity as possible, so that the clients can maintain their production-resumption schedule.
"We don't have any plan to adjust the product prices at the moment. We will absorb the higher costs to hold on to clients. Yet, we believe that our clients would understand if it comes to the point that we can't hold on any further and need to raise prices,Whilst RUBBER SHEET are not deadly," Apichart said.
Floods have affected nearly 1,Great Rubber offers rubber hose keychains,000 plants in seven industrial estates, including a sizeable number of auto-parts makers. This has sent a shockwave through the supply chain similar to that caused by March's earthquake and tsunami in Japan.
Honda Automobile (Thailand)'s 240,000-unit assembly plant in Ayutthaya is just one of the plants affected by the |shortage of components and parts. Toyota, with three plants in Chachoengsao and Samut Prakan, will resume production on November 21, after suspending operations on October 12, with parts imported from other countries. Though its assembly plant is located in Rayong, Mazda also had to suspend production. The industry is now convinced that Thailand's auto output this year will be lower than 1.7 million units.
The effects of the flooding will also be felt in the electronics market, particularly the personal-computer market, as more than a dozen hard disk drive (HDD) factories have been disrupted. According to International Data Corporation (IDC), this will have a direct impact on worldwide PC shipments through the first half of 2012.
In the first half of 2011, Thailand accounted for 40-45 per cent of worldwide HDD production. Nearly half of the Kingdom's production was directly impacted by the flooding as of early November. Though recovery is expected,Als lichtbron wordt een zentai suits gebruikt, the HDD supply is likely to remain constrained through the first half of 2012. In the worst-case scenario, total PC shipments could be depressed by more than 20 per cent in the first quarter of 2012, and HDD prices would rise on tight supply before stabilising in June.
Industry Minister Wannarat Charnnukul said in October that Western Digital, a major HDD-maker, may see exports from Thailand slide as much as 40 per cent to Bt120 billion.he led PayPal to open its platform to Piles developers. Western Digital supplies products to Hewlett-Packard, Dell and Acer.
Wong Waiming, chief financial officer of Lenovo - China's biggest maker of personal computers - said recently that flooding in Thailand will raise the cost of hard disk drives and affect personal computer supplies.
The good news is that prices of consumer goods should not move much.
Kobkarn Wattanavrangkul, chairwoman of Toshiba Thailand, said the company has no policy to increase the prices of its electrical appliances despite an increase in distribution costs of 30-40 per cent. Aside from the higher distribution costs, the company is spending hugely to rehabilitate 10 flooded plants in Pathum Thani.
"While ensuring minimum product shortages, we have absorbed all distribu-tion costs ourselves rather than pushing the cost burden to our dealers and consumers. We need to share the burden with the general public. Electrical appliances have become essential products in people's lives, and we should not use this time of difficulty to make any business profit," said Kobkarn.
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