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Thailand: Latest Example of Offshoring Risk

Posted By Jeff Moad, May 30, 2014 at 11:24 AM, in Category: Redefining the Supply Chain

As the leadership crisis continues to play out in Thailand, manufacturers are receiving a clear reminder of the risks that social and political upheaval can mean to offshore production.

The country’s Office of Industrial Economics this week said Thailand’s manufacturing production index slipped 3.9% in April to its lowest point in two and half years as the country struggles to contend with social and political disruptions that, on May 22, culminated in a military coup.

The April drop in manufacturing production followed a 10.4% contraction in March.

Automobile production has been hit particularly hard, falling 14.3% in April following a 29.3% drop in March.

A drop in domestic demand has been blamed for much of the manufacturing production declines. But exports have been affected also, falling .87% in April.

Written by Jeff Moad

Jeff Moad is Research Director and Executive Editor with the Manufacturing Leadership Community. He also directs the Manufacturing Leadership Awards Program. Follow our LinkedIn Groups: Manufacturing Leadership Council and Manufacturing Leadership Summit


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