Many Japanese companies are still feeling the pinch of heavy flooding in Thailand because of supply chain disruptions, according to an emergency survey conducted by the Ministry of Economy, Trade and Industry (METI).
METI conducted the emergency survey of 67 major Japanese companies in various industries, including auto and auto parts, to measure how much their production is still being affected by the Thai disaster and how long they expect to take to restore their supply chains.
According to the survey, 81 percent of the major Japanese companies’ production bases in Thailand are still producing less than they did before the heavy flooding broke out in July.
The comparable percentages for the major Japanese companies’ production bases in Japan and third countries stood at 35 percent and 28 percent, respectively.
Asked about how long they expect to take to return to pre-flooding production levels at their production bases in Thailand, only 24 percent said they will be able to do so by the end of February.
The comparable percentages for their production bases in Japan and third countries stood at 45 percent and 43 percent, respectively.
The major Japanese companies secured enough alternative suppliers for all of their production bases in Thailand, but have yet to secure enough alternative suppliers for 18 percent of their production bases in Japan and 20 percent of their production bases in third countries.
Thailand, dubbed the “Detroit of Asia,” is Southeast Asia’s production hub for many Japanese manufacturers, especially automakers. According to polled companies, 61 percent of products made in Thailand are sold in the Thai market and the remaining 39 percent are exported, according to METI.