Busy sector needs 50,000 more workers

The Thai auto-parts industry is experiencing a shortage of more than 50,000 workers as the expanding economy and high crop prices are driving workers to shun the sector, says Prasartsilp On-aht, president of the Thai Auto-Parts Manufacturers Association.

Mr Prasartsilp, who is also president of OEI Parts Group of Companies, said the industry currently employed 350,000 workers and supporting industries another 100,000.

Of the country's 3,000 auto-parts makers, 578 are members of the association, with 10% large companies, 20% medium-sized and 70% small ones. In the first eight months of this year, exports from the sector totalled 7.27 billion baht, a 53.1% increase from last year. The industry expects further improvement next year due to the growth of the automotive industry.

Automotive output is expected to hit 1.67 million units this year including 900,000 exports. By 2020, the industry expects to produce 2.5 million units.

"This target is why we need a huge addition in labour, especially technicians and engineers," said Mr Prasartsilp, who forecast rapid expansion next year as more major carmakers start producing eco-cars.

To solve the labour shortage, the association's 2010-20 strategy focuses on technology, innovation and automation, as well as developing human resources and business operators.

"We expect this will increase productivity by 10% annually," said Mr Prasartsilp.

The association has proposed to Industry Minister Chaiwuti Bannawat that the government set up an auto-parts testing centre by 2015 in order to research and develop technology for manufacturers.

"This way, manufacturers will more easily meet international standards and be able to offer value-added products," he said.

It also wants the government to lower taxes on raw materials that cannot be produced locally, such as reducing steel taxes to zero from 5% to lower costs and create a strong domestic market.