A WIND OF CHANGE

I’ve decided that 2016 is my year to change. Many months ago, I met an old friend that told me he was “an agent of inception” and looking back on that now, I’d like new business cards with that as a job title. Or, maybe I just want something, anything that is tangible, to help me believe that I’m really committed to change in 2016.

As a professional marketer in real estate field, who jump across into another industry so the 1^st assumption that come into my mind which if I ran a manufacturing business, I would evaluate my company’s market competitiveness. Over the past several years, many companies have sourced products from countries with low cost labor, and they experienced the downside of that low cost labor – lack of intellectual property protection, slow response to engineering changes, high inventory levels or shortages, lack of responsiveness to market needs, communication issues, quality issues and labor savings that always seemed to be less than what was expected.

I’ve spent a lot of time trying to figure out why robotics, to some degree with a negative image on high cost of investment. There doesn’t appear to be the same outcry about copy machines, CNC (computer numerical control) machines, ERP (Enterprise Resource Planning) software, 3D printers or hundreds of other hardware and software “advances” that have improved productivity.

I remember in the 90’s when companies implemented personal computers . While the change was difficult, it was embraced. Companies offered classes on how to use word processors, spreadsheets and email programs. Many companies had dedicated personnel to provide training and assist with problems. This also a same old song with the Mobile phone industry.

Can change, similar to the adoption of personal computers, truly be embraced and encouraged?

Can the feeling of discontent and fear be overcome by excitement and new possibilities?

Will Thailand becoming complete ageing society in 7 years?

Will Special Tax Holiday still be given to Thailand without regarding human right watch issue? …. etc

Don’t get me wrong, I certainly understand and respect the viewpoint of some, that if the workplace changes too much, they wonder if they’ll have the skills for the new workplace. But if you’re willing to take the training and grow with the technology, you become a part of the change rather than an idle bystander.

Today, we can recall all recognize that computers provide significant value and improve productivity. Looking back, could one person or any group of people have stopped the implementation of computers? They may have delayed the implementation, but the change was inevitable. In society and across the world, change is the only constant. We are always looking for ways to improve upon the past and strive for a better future.  At no time in history is this more truly than today as we compete in a global economy as the result of the big manufacturer start to moving away for the cheaper labor cost country, so what is the new chapter of Thai manufacturer is going to be … in the near future.

Therefore, Robotics like computing is a productivity tool whose time has come. Industrial robots and automation solutions are more capable than ever with robot vision technology, sensing capabilities, gripping tools and robot software that are now available, also it has been developing into the early adoption for the product life cycle stage in term of marketing.

More on my detailed studies found Cheap Chinese labour has been crucial to the building of “Factory Asia”, the name given to the region’s complex of cross-border supply chains. Asia first emerged as a manufacturing power in the 1960s.

China’s opening up was the gamechanger. In 1990 Asia accounted for 26.5% of global manufacturing output. By 2013 this had reached 46.5%. China accounts for half of Asia’s output today.

The China price is under pressure, though. Since 2001, hourly manufacturing wages in China have risen by an average of 12% a year. The yuan has risen to an all-time high against a trade-weighted basket of currencies.

McKinsey, a consultancy, found that labour productivity increased by 11% a year in China from 2007 to 2012, compared with 8% in Thailand and 7% in Indonesia.

With Chinese factories just starting to pour money into automation, there is scope to improve productivity further. China became the biggest market for robots in 2013, buying 20% of all those made that year, according to the International Federation of Robotics. But it still has just 30 robots per 10,000 workers in manufacturing, compared with 323 in Japan.

(source: The economist)

Certainly, No one country will replace China’s role in Factory Asia—the ten-country ASEAN (Association of South-East Asian Nations) region is home to 630m people, less than half China’s population—but neither does any single country need to. Advances in communications technology mean that manufacturing can be sliced and diced more easily than in the past.

One of the first lessons in Economics book is the concept of comparative advantage. Countries with lots of cheap workers should produce labor - intensive goods; rich countries should focus on those requiring plenty of capital. Richard Baldwin, an economist, argues that simply comparing national advantages is outdated. As supply chains spread across borders, regional comparative advantage matters even more. With its bounty of both labor and capital, Asia has already built up a huge lead in manufacturing. It only stands to grow.

The question is, are you ready to change in 2016? Are you willing to invest in this technology? On a personal level, are you willing to embrace this technology? Are you committed to learning how to use it? Are you ready to grow into your next job?

It can be seen a choice to any size of manufacturer in order to change but I’d rather seen it as more chance will be created by increasing competitiveness and complete with the world digital economy.

Change is inevitable. How you respond to it is up to you or will let the truth give you a bill when the time has come. Let’s work together to make 2016 the year of change, opportunity and to be more competitive.


Danai Tae

www.wi.co.th