As Thailand continues to develop, it must overcome a number of challenges. However, a new issue it finds itself facing now is one not often found in developing economies. The country seems to be stuck with an aging society and a skilled-labour shortage that it needs to address, according to new research from Knight Frank Thailand.
Based on a recent nationwide survey, nearly 25 percent of businesses are reporting a shortfall in new hires with another report suggesting that are only 77 recruits for every 100 openings. Knight Frank noted that this is an unintended side effect of Thailand’s low rate of unemployment that has averaged around one percent for the past ten years.
The fourth industrial revolution, also known as Industry 4.0, is currently one of the Thai government’s most recent initiatives to address this labour shortage. Thailand’s Board of Investment (BOI) has backed efforts made by a number of manufacturers to shift to smart factories where cyber-physical systems make decentralised production decisions as the machines monitor actual physical processes by themselves.
One of the top manufactures in computer hard drives, Seagate Technology, was among the first multinational firms in Thailand to invest in a fully automated smart factory, where robots assemble hard drives 24 hours a day as it updates human supervisors with real time updates via the internet of things, Miss Risinee Sarikaputra, Director, Research and Consultancy, Knight Frank Thailand explained.
And the factory is not the only place where Industry 4.0 has been utilised. Thai soft drink maker Ichitan operates a fully automated warehouse, which determines the number of packages to be sent for shipping based on the sales data automatically acquired from point of sales devices at retail outlets in the city and connected using cloud technology.
Of course, questions remain about Industry 4.0 and what it will mean to global manufacturers. Some western countries may use Industry 4.0 as a way for companies to bring factories back home. However, Risinee pointed out that competition for direct investment is not over since low cost markets with established industrial bases like Thailand will also be equipped with Industry 4.0 technology.
