Thai Floods Cause Car Shortage!

Nov 28, 2011 By Anita Ramachandran

Flooded Honda plant in Thailand

"When a butterfly flaps its wings in one part of the world it can cause a hurricane in another part of the world."

-Author Unkown

At Youngzine we have followed the floods in Thailand. But did you know that the floods have touched not just the people of Thailand but each and every one of us?

Have you heard anybody use the phrase “The World is Flat”, and wondered if these folks need a little lesson in geography? We know it is not physically possible, however, when we look at the way the world is organized, how we live, buy and depend on stuff, we begin to notice how inter-connected, everything and everybody is around the world. A “Flat world” refers to the production, manufacturing and the global supply chain where each process is dependent on something else – making the world flatter or equal.

The Global Supply Chain

A typical Vehicle supply network. cc: Toyota
Take the car industry for instance. Did you know that over 30,000 parts go to make a car? Yes, you heard that right, 30000! While we may think of GM, Ford and Chrysler as American cars or Toyota and Honda as Japanese, these cars are not actually “manufactured” in these countries but merely assembled (put together) or branded (stamped or  identified) here. If you look under the hood, you will notice that its parts are made all over the world. 

Assemblers outsource (buy or make elsewhere) parts from component or part suppliers, who can make them cheaper. Many parts are specialized and require expensive machines and can only be made in large batches (more than what a car assembler will ever need) to keep them cheap.

Thailand - a manufacturing hub

Over the last two decades, Thailand has become a hub of industrial activity and an important outsourcing center for critical parts for the Automobile and computer industry. So imagine if steering wheels are out of stock, because the factory in Thailand is submerged in water. Well nobody will buy a car without its steering and the entire production of cars will be held up until a replacement becomes available - the link in the chain of production gets broken.

The break affects not just the car assembler, but other part manufacturers who supply to the same assembler. Until the assembling process restarts, there is no need or demand for any other component. Imagine its impact on jobs, economy, goods, services etc which are all linked to that industry!

In the recent floods in Thailand, several manufacturing facilities including those of Nikon, Honda, Toyota, Seagate etc have been serioulsy affected with flood waters of over 3 meters at the facility for several days. Other component manufactureres of phones, electronic toys, and other household equipments have been affected as well. Workers and management have been scrambling to move critical machines and materials to higher levels. This holiday shopping season expect to see more "out of stock" signs on cameras, cars, and other electronic devices.

The world is more connected than we may think possible. Distant events suddenly become very relevant and local. The next time you go shopping for that electronic gizmo, do spare a thought for the flood victims of Thailand. They touch our lives in a lot more ways than we realize.

Watch the video to see the impact of the flood on computers.

 
daryon   1 year ago

wow thats crazy but cool too thats amazing

Johnfan   1 year ago

i can t belive how much people died from the flood hopes its not much

diamond   1 year ago

It is really sad
In many aspects in life we depend on others for things and when they can not supply any more we will not get what we need. This is an example of a chain link isn't that right

kalli   1 year ago

Amazing and sad.

Main Idea- Floods have touched not just the people of Thailand but each and every one of us.

Anne   1 year ago

Thailand produces so many things!!! It would be doing great if not for the flooding...

myriel   1 year ago

The first little paragraph was so funny!! Anyways, floods are very very scary!!

ghanii   1 year ago

I don't like floods but some of my family were in a flood before and it was really hard for them to get out. Floods are dangerous for people they can die from a flood!! 

dasean   1 year ago

ow that sad

jakobm   1 year ago

I think to advoid this happening again they should build their factories on higher ground , because the floods will come again.

vernonh   1 year ago

who does this but i do feel sorry for thailand

isaac   1 year ago

I believe that Thailand is going to have more and worse floods. They need to be more protected ,and they need to know when a flood is going to happen ,and the flood destroyed most of the companies such as phones ,cars ,and other electronic devices.

OliviaAnna   1 year ago

I am so sad for the people who lost their lives.

blakekeith   1 year ago

yikes if cars go out it will be hard to get around ouch!!!

Arjun   1 year ago

They should have a backup importer of car parts. Thailand is susceptible to floods. Now, because Thailand is flooding, the car industry is in jeopardy.

fields   1 year ago

Wow, helpful info. Those poor people!

starguy23   1 year ago

so the world is flat, in a connection.

zack2   1 year ago

That must be so sad 600 died. It makes me remember of hurricane katrina.

mary2   1 year ago

That flood is over the roofs!i feel BAD for those people!It doesnt look like they will be going any where for a while!Hope they went to the store!

Kiwi_FJ   1 year ago

so bad!

Kiwi_FJ   1 year ago

Wow!Thank you for the information!!

mink (not verified)   1 year ago

one natural disaster can turn into another one.

Pranavpn   1 year ago

These floods are really bad for the economy, manufacturing, etc. I remember Hurricane Katrina who made an exteremely dangerous flood.

lona   1 year ago

I feel so bad. My prayers go out to them.

Hanakin   1 year ago

Wow! Flooding is horrible. Did they say how many lives were lost? I remember being really sad and scared watching Hurricane Katrina damage on TV this reminds me of that. Hopefully people can work together to put Thailand back on track.

Anita R   1 year ago

Thank you for your question. Over 600 deaths have been attributed to the Thai floods as of mid November.

Human beings as a species are very resilient. With support from within and outside the country, lets hope Thailand overcomes this calamity sooner rather than later.

ghanii   1 year ago

i do not like floods who likes floods!!!!!

Natalie Anderson (not verified)   1 year ago

Thank you helpful information

Natalie Anderson (not verified)   1 year ago

You can't call this a new decade at all.
Though the information is very resourceful i don't agree to call it the future.

Armaan   1 year ago

"You call this a new decade? Its still snowing. We can't even control weather!"
Paraphrased from Calvin and Hobbes

Why do floods matter? Can't we build higher cities?

Rachel Catherine   1 year ago

That's kind of an insensitive thing to say after reading this article about people loosing their lives because of a flood, don't you think?

Caleb_1   1 year ago

"You call this a new decade? Where are the flying cars, moon colonies, and sky cities? I mean look, we still have weather! You call this a new decade? you call this the future? Gimme a break!"

Aziz (not verified)   1 year ago

very helpful info.

 
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