Floods pace 2012 machinery sales

By Krissana Parnsoonthorn, Bangkok Post, Thailand

Product manufacturers and suppliers whose factories were hurt by last year's flood are buying more high-tech and automated machines to replace damaged ones.

"The flood crisis damaged much of Thailand's heavy industry. But it also became a catalyst to encourage Thai producers and suppliers to look for new machines with modern technology and automated systems," said Sanchai Noombunnam, project director of UBM Asia (Thailand), a leading fair and exhibition organiser.

Around 600-700 factories were damaged by the floods. Many of them are still buying new machines as they just received insurance claims.

"Technology plays a vital role in manufacturing. Several automated machines allow companies to maintain a lower number of workers, which helps solve labour shortages too," he said.

Several industries face a shortage of skilled workers, even as the daily minimum wage rose to 300 baht a day in Bangkok and many provinces.

Proper machine replacements will increase production efficiency and competitiveness for Thai manufacturers in preparation for the ASEAN Economic Community (AEC) in 2015, which will attempt to create a single market in Southeast Asia of 600 billion people.

The AEC will likely mean Thailand cannot attract investors merely with low wages, as China, Myanmar, Cambodia and Laos can all undercut the kingdom.

"We should develop our production skills and use high-quality or value-added products to attract buyers worldwide," said Mr Sanchai.

UBM Asia (Thailand) in collaboration with the Board of Investment is organising Intermach 2012 from May 17-20 at Bitec Bang Na.

Adjacent to Intermach 2012 will be Subcon Thailand 2012, a match-making venue for suppliers and major manufacturers.

The exhibition is for manufacturers looking for new machines and machinery companies showcasing their latest innovations.

He expects 40,000 local and foreign visitors to the fair.

UBM is confident that Intermach and Subcon Thailand will have 3,100 business transactions generating income of over 7 billion baht, said Mr Sanchai.

? 2012 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post at www.bangkokpost.com

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