To Dream the Possible Dream Automated systems…dreams that seem far away But not beyond reach

Ultimately, Thailand must enter the state of a fully aging society. Investing in automation to enhance production potential along with solving labor shortage problems is one way to prepare your business.

In my career as a banker, I've found one unfortunate thing: many Thai entrepreneurs see their desired goals but fail to venture beyond their current position, despite having significant potential for growth. They are limited by their mindset, confined to a limited scope. For example, many entrepreneurs know that exporting to foreign markets would increase their customer base and sales, yet they still refuse to export because they feel it 's too far-fetched, missing out on great opportunities.

This is because from statistical data analysis, it was found that SMEs that export have an average income of 4 times more than SMEs that sell only to the domestic market. At the same time, Thailand is a country that invests in research and development (R&D). ) is relatively small, only 1.1%, lower than the world average of 2.3% in 2562.

This is partly because entrepreneurs still perceive that research and development investments take too long to recoup their investment ( Too long to be successful). Alternatively, despite the global emphasis on sustainability, they hesitate to adapt their production processes to align with sustainable practices because they don't believe that investing in environmental and social sustainability will improve company performance (Too good to be true). Instead, they see such investments as increasing costs and decreasing profits.

Furthermore, the need to upgrade production in the long term, coupled with setting organizational performance indicators based on annual cost reductions, prevents decisions about investments that will benefit the future. Changing the mindset that investments are too costly is a key point I want to address in this discussion.

Investing in robots and automation

It is an investment that is not beyond your reach.

In the past, Thai entrepreneurs have continually faced the problem of labor shortages. and tends to become more and more severe This is mainly due to the population structure of Thailand that has entered the aging society since 2548, and most recently in 2565, Thailand has become the first developing country to completely enter the aging society (Aged Society). That is, there are more than 60% of the total population aged 20 years and over.

This is considered a very rapid transition from an aging society to a fully aging society, i.e. only 17 years, compared to Western countries that take more than 100 years. It is expected that in the future, in just 9 years, Thailand will become an aging society. fully (Hyper Aged Society) or having a proportion of the population over 65 years of age as high as 20%, which is faster than Japan which took 11 years. For this reason, the working age population of Thailand has decreased significantly. Compared to the past

In addition to the labor shortage problem Thailand's labor wages are higher than those of its neighbors and continue to increase. Most recently, in October 2565, Thailand's minimum wage was increased by another 8-22 baht per day, which is another factor that affects the competitiveness of Thai entrepreneurs. Especially in labor-intensive industries. In addition, if there is a rapid adjustment to the minimum wage base, as happened in 2556 when the minimum wage was adjusted to 300 baht per day nationwide. This causes the wage rate in some provinces to increase to 78 baht per day, which will have a severe impact on entrepreneurs.

One solution to these problems is to use robots and automation to replace the scarce human workforce, especially in repetitive tasks such as moving goods or parts, wrapping and packing products, and arranging merchandise, as well as hazardous tasks involving chemicals, fire, or heat. In addition to alleviating labor shortages, this will also increase safety and reduce work stoppages due to accidents.

However, there are still quite a few entrepreneurs who are still hesitant to switch to robots or automatic machines because they see that investing in automatic machines requires a very high investment.

The idea that The cost of installing robots or automatic machines is so high that it is considered to be at a level that normal operators maintain. “Out of reach” used to be true decades ago. But recently, the unit price of robots has become much cheaper. In other words, the price of robots today has fallen to only about 15% of the price in 2538.

It is also expected that by 2568, the unit price of industrial robots will drop to only around 1 US dollars (or just over 3 baht). The idea that robots or automatic systems are so expensive that Unable to invest, it may just be past information that we remember. until an illusion was created

Companies around the world are increasingly investing in automation. A 2565 survey by McKinsey, a leading consulting firm, found that companies surveyed will spend an average of one in four investments in robotics and automation. of the company's total investment budget over the next 1 years by companies in the logistics and online warehousing industry (Logistics and Fulfillment) and the automotive industry It is an industry where the average investment in automation is over 4% of the company's total capital expenditure.

while companies in the retail and consumer goods industries Even though the proportion of investment in automation is less than 20% of the company's total investment budget. But in terms of value, it is the group with the highest investment value. 23% of respondents in this group said their company plans to invest more than $500 million in automation within the next five years.

Today is a good time to invest in automation to improve production. Regardless of whether looking at it in terms of government support that the BOI gives promotion to businesses related to robots and automation systems. Both on the manufacturer's side and businesses that use robots and automation systems Businesses that use robots and automation systems will be exempt from corporate income tax for 3 years in the amount of 50-100% of the investment in automation systems. (Depending on the level of industrial connectivity in the country) and in terms of the exchange rate, at present the baht is strengthening. This reduces the cost of importing robots or automatic machines from abroad.

Including the pressure factor from labor shortages. This will cause manufacturers to quickly adjust their production processes to still produce the same or increase products under a limited number of workers. In addition, labor wages that are likely to increase will also lead to investment projects in robots and automation. Reach the break even point faster.

When maintaining competitiveness is the key for every business. And eventually, Thailand must enter the state of a fully aging society. Investing in automation to enhance production potential along with solving labor shortage problems is one way to prepare your business.

There is a saying that "Victory or success is the result of the perfect timing of opportunity and readiness." When opportunity is something that cannot be predicted when it will come. What we can do is Prepare yourself as best you can. In order not to miss the moment when the opportunity comes