KKP Research reports that Thailand’s manufacturing production index declined over 15 months between December 2022 and March 2024, despite a global trade recovery.
The number of factory closures in the country has been rising since the second half of last year. In 2021, the average number of factory closures per month stood at 57. The average increased to 159 per month in the second half of 2023.
“From 2023 through the first quarter of 2024, about 1,700 factories closed, affecting roughly 42,000 workers,” said the research house.
Meanwhile, from January 2023 to March 2024, the cumulative number of factories closing exceeded the number of new factory openings. On average, 150 new factories per month opened from January to July 2023, but from July 2023 to January 2024 the average number of new factories opening fell to around 50 per month.
KKP Research notes that sectors such as leather, rubber, agriculture, wood, and machinery have faced significant challenges, experiencing both a contraction in manufacturing and higher closure rates.
Most closures involved large factories, while most openings were small factories. This trend suggests that structural issues are a significant problem rather than just business operations.
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