Similar to other markets, the manufacturing market in Southeast Asia faces some new challenges due to the Covid-19 pandemic. Business owners and investors need to understand these challenges if they plan to enter this market.
The first and second waves of the Covid-19 have swept Southeast Asian countries. Now, they are entering a new chapter with various problems in their hands. These problems surely affect the manufacturing market of the region.
Challenges in the Manufacturing Market in Southeast Asia
The emerging economies in the SEA have been the destinations for global companies seeking low-cost labor. Vietnam, Thailand, Indonesia, Malaysia, and the Philippines together create a range of well-established manufacturing clusters.
However, the pandemic disrupted this well establishment. It resulted in new challenges for the manufacturing industry in the region. One of them is supply chain disruptions that are caused by a shortage of certain parts or raw material. Consequently, many manufacturers in SEA suffer from profit loss.
In addition, the pandemic also caused some SEA companies to fail to reach the goal of harnessing industry 4.0 systems. As a result, they cannot compete effectively in the manufacturing market.
Aside from the problems above, the manufacturing companies in this region also need to deal with other issues, such as lowering gas emission and applying sustainable manufacturing practices.
Some Alternatives to Overcome the Challenges
The problems found in the manufacturing market in Southeast Asia can be solved effectively if the manufacturing companies and business owners in the region apply certain strategies. One of them is planning to diversify their supply chains.
They can also choose to adopt the twinning models. In adapting the models, they need to distribute the value chain segments across two or more countries in SEA. Therefore, they can leverage low costs and, at the same time, advanced logistical and manufacturing capabilities.
Regarding the adoption of the industry 4.0 systems, manufacturing companies and business owners need to work with experts and educate their employees in operating the new systems. They can also choose to have their manufacturing base in an SEA country that has better support for advanced technology.
The Importance of SEA Market Research Firm Assistance
Applying the solutions above is easier said than done and not all of them are suitable for all businesses. Therefore, manufacturing companies and business owners need to consult an SEA market research firm beforehand.
This consultation is also important for those who plan to enter the SEA manufacturing market. Therefore, they can create the right strategy in entering and competing in the market.
The SEA market research firm has a wide and precise knowledge on Southeast Asia market trends. This firm also has excellent expertise in helping its clients in dealing with various issues in the SEA manufacturing market.
Helping companies in improving supply chains and adopting the industry 4.0, digitization, effective manufacturing processes, and industrial power and energy are the firm’s usual tasks. The firm is surely capable of helping its clients facing any challenges in the SEA manufacturing market effectively.
Therefore, those who want to enter the SEA manufacturing market or already in it don’t need to worry about finding the best solution to face the challenges in the manufacturing market. With the help of the SEA market research firm, you will surely achieve excellent growth.