Floods: The final bill?

Expected economic loss 1.12 trillion baht or 10.5% of GDP, 10,000 factories & 660,000 workers affected (30% automotive, 26% electronics & appliances).

Photo of a Honda factory surrounded by floodwaters in Ayutthaya on November 17, 2011 (AFP photo: Saeed Khan)

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FTI: Industrial flood losses will reach B1.12 trillion by Nareerat Wiriyapong & Soonya Vanichkorn

Economic losses caused by prolonged flooding would amount to 1.12 trillion baht or 10.5% of gross domestic product, with exports expected to drop 10% year-on-year in each of the last two months of the year, says the Federation of Thai Industries (FTI). 

Vice-chairman Tanit Sorat said nearly 10,000 factories had been hit by floods, with 660,000 workers affected, of which 30% are in the automotive sector and 26% the electronics and electrical appliance industries.

The industrial sector has suffered losses of 475 billion baht, of which 237 billion was factory damage in the seven inundated industrial estates.

The hard-hit automotive sector will produce 300,000 units fewer than expected, losing revenue of 180 billion baht, Dr Tanit said.

"These factories were forced to halt production but they still have to pay wages. This is a type of business opportunity loss," he said.

Export damages are projected at 148 billion baht, with the household and agricultural sectors suffering losses of 80 and 50 billion, respectively

Pornsil Patchararintanakul, vice-chairman of the Thai Chamber of Commerce, said that by March 80-90% of companies affected directly or indirectly by the floods should have returned to normal.

He noted businesses should pursue improvement plans as a result, putting more emphasis on technology and machinery to improve productivity. Fields that could benefit include agriculture, genetics, nanotechnology and information technology.

The tourism sector is projected to lose 74 billion baht as up to 1 million arrivals are shaved from an original forecast of 19.5 million. This would still represent substantial growth from 15.9 million arrivals in 2010.

Kongkrit Hirunkit, chairman of policy for the Tourism Council of Thailand, said companies should make sure they have enough capital to ensure fluidity when a crisis hits. Secondly, they should work on developing human resources, in particular making sure the cost of labour is more flexible.

He stressed the need for quality control and offering value-added measures to satisfy a wider range of tourists demands. Tourist behaviour has changed in recent years to become more environmentally concerned in addition to a preference for shorter but more in-depth trips. 

(Source: Bangkok Post, FTI: Industrial flood losses will reach B1.12 trillion, 24/11/2011, Nareerat Wiriyapong & Soonya Vanichkorn, link)

Flood Economic Impact Vocabulary

industry (noun) - the production of goods from parts and raw materials by companies in factories อุตสาหกรรม, ภาคอุตสาหกรรม,
industrial (adjective)
industrial flood losses electrical appliance

electrical appliance - electrical devices used around the home such as air conditioner, dishwasher, clothes dryer, drying cabinet, freezer, refrigerator, kitchen stove, water heater, washing machine,  microwave ovens, TV sets, CD and DVD players, camcorders, video game consoles, HiFi and home cinema, telephones (See Wikipedia)
electrical appliance industries

sector - a part of the economy ภาค (เศรษฐกิจ) (public sector = government, private sector = all businesses, household sector = families and consumers, banking sector,...) (See Wikipedia)

industrial sector
household sector
agricultural sector
tourism sector

automotive sector
hard-hit automotive sector  - the companies that make cars have been damaged a lot by the floods

prolonged - continuing for a long time; lasting a long time ยืดเวลาออกไป
prolonged flooding - flooding that continues for a long time

domestic - within the country ภายในประเทศ
gross domestic product (GDP) - total value of all goods and services produced in a country during one year (See Wikipedia)

economic losses caused by prolonged flooding would amount to 1.12 trillion baht or 10.5% of gross domestic product

expected - believe will happen คาดว่า (จะเกิดขึ้น)
year-on-year - compared to the same period last year (month, quarter, half year)
exports expected to drop 10% year-on-year in each of the last two months of the year

inundated - flooded ถูกน้ำท่วม, จมลงใต้น้ำ
revenue - income from taxes or business activities รายได้
factory damage in the seven inundated industrial estates.

losing revenue of 180 billion baht,

halt - stop; stop operations หยุดนิ่ง หยุด
wages - the amount of money earned per hour by a worker
forced to halt production but they still have to pay wages

opportunity - a situation when it is possible to do something that you want to do (See glossary)
business opportunity
business opportunity loss - there was a situation to do business (produce goods and make money) but this situation was not taken (so an opportunity to make money was lost; here: they paid the employees but the factory for them to work in and produce goods was not available)

projected - expected, forecast, what people believe it will in the future
export damages are projected at 148 billion baht

household - a group of people, often a family, who live together ครัวเรือน
suffering - physical or mental pain or problems ความทุกข์ทรมาน
household and agricultural sectors suffering losses of 80 and 50 billion, respectively

affected directly by the floods - the floods damaged their factories or buildings
affected indirectly by the floods - the floods had a negative effect on something that they need to do business (examples: decrease in tourist customers, companies that produced parts used in production shut down by floods, etc)

by March 80-90% of companies affected directly or indirectly by the floods should have returned to normal.

pursue - to work at something or carry it out ทำให้ลุล่วง to try to achieve something พยายามเพื่อให้ได้มาซึ่ง ดำเนินตาม
improvement - when something gets better or when you make it better การปรับปรุง, การทำให้ดีขึ้น
pursue improvement plans

emphasis - special importance or attention that is given to one thing in particular การเน้นย้ำ
improve - to make better ทำให้ดีขึ้น

productivity - producing more for the same amount of resources (labour, capital, machines); the speed at which a worker, company, or country produces goods (some are faster than others)
improve productivity

putting more emphasis on technology and machinery to improve productivity

benefit - to get help or an advantage from something ผลประโยชน์

genetics - the branch of biology dealing with genes of individual animals and plants and those passed from parent to child (inheritance); outside of inheritance epigenetics is also important in fighting cancer (See Wikipedia)

nanotechnology - the study of manipulating matter on an atomic and molecular scale. Generally, nanotechnology deals with developing materials, devices, or other structures possessing at least one dimension sized from 1 to 100 nanometres (See Wikipedia)
information technology (IT) - computers and computer networks (See Wikipedia)

fields that could benefit include agriculture, genetics, nanotechnology and information technology

forecast - a statement about what will happen in the future based on information available now พยากรณ์
shave from forecast - reduce forecast by a small amount
original forecast - the first forecast made (that was changed afterwards)

the tourism sector is projected to lose 74 billion baht as up to 1 million arrivals are shaved from an original forecast of 19.5 million.

substantial - in a large amount or degree
growth - economic growth, the rate or speed at which the economy is getting bigger and real incomes are increasing การเติบโต, การเจริญเติบโต,  การพัฒนา (See Wikipedia)
still represent substantial growth 

policy - a plan of action to guide decisions and achieve outcomes นโยบาย (See Wikipedia)

ensure - to make certain that something happens or is done รับรอง ให้ความมั่นใจ ให้การยืนยัน
crisis - an urgent, difficult or dangerous situation วิกฤตการณ์ วิกฤต

fluidity -
ensure fluidity when a crisis hits

companies should make sure they have enough capital to ensure fluidity when a crisis hits

resources - things needed for proper functioning, to get a job done; the people, materials, money, and other things needed for an organisation to function properly; things used to help achieve goals ทรัพยากร ทรัพยากรที่มีอยู่
human resources - 1. the workers needed to get a job, project or task done (See Wikipedia) 2. the name of the department in a company that deals employee related tasks (hiring, firing, training, wages, salaries, benefits, etc), also called human resources management 
developing human resources - improving the skills of the people working for a company to help the company achieve its goals

flexible -
making sure the cost of labour is more flexible

quality control (QC) - all the processes involved in making sure that goods produced meet quality standards (See Wikipedia)

stressed - nervous and anxious about what will happen (in the future, for example)
he stressed the need for quality control

measures - actions taken to solve a problem มาตรการ
range - a number of different things that are of the same general type ขอบข่าย, ประเภท
demands - the things that someone is asking you to do

value-added - the amount by which the value of a product increases at each stage of the production process, not including the cost of the basic materials
value-added measures - actions taken to add value

satisfy demand - give customers what they need and want
a wider range of tourist demands - more products and services that tourists need 

satisfy a wider range of tourist demands - give customers even more of the products and services they need and want 
offering value-added measures to satisfy a wider range of tourist demands -

behaviour - the way a person does and says things พฤติกรรม
tourist behaviour  - the things and activities that tourists do (what places they like to visit, destinations)

concerned - worried about something มีความกังวล
more environmentally concerned - concerned about the environment (air pollution, preservation of forest, beches, etc)

preference - something that you want or like most ความต้องการ
depth - the distance down either from the top of something to the bottom, or to a distance below the top surface of something ความลึก
in-depth - learning a lot about something
preference for shorter but more in-depth trips