Manufacturers for air-conditioners, refrigerators and parts are optimistic for 10% growth this year, thanks to continued sales in local and overseas property markets.

The industry grew 5% last year from a total industry value of 300 billion to 315 billion.

"There are many factors to support my optimistic view," said Phairat Uechooyos, chairman of the air-conditioning and refrigerator club of the Federation of Thai Industries (FTI). "The export market accounts for 70% of local production and orders continue to flow smoothly," he said.

Most exports are shipped to the Middle East, Australia and Africa. Orders from the US have not been affected because shipments only pass through the US and are sold in Latin America.

"Latin America's economy is still strong, unlike the US," Mr Phairat said.

Another factor supporting export growth is the quality and more flexible purchasing terms of Thai operators compared to cheaper products from China.

Mr Phairat said local operators are able to win purchasing contracts from countries or projects seeking smaller purchasing volumes and those with special requests.

Manufacturing in China requires large orders as mass production needs an economy of scale to make a profit, so they can rarely meet the requirements of small customers such as in Bangladesh and Pakistan, he said.

"We are able to accommodate these orders and many small customers can order the same amount as one vast order," he said.

There is still local demand, but he blames last year's airport seizure for dampening consumer spending.

"The local market should be growing quicker than it currently is, so I hope political factors continue to improve so that the industry can expect better domestic orders from the second quarter onward," he said.

FTI's air-conditioning and refrigerator club has about 90 member companies with total employment of over 10,000 workers. With the industry's bright outlook, it faces a labour shortfall of 2,000-3,000 workers.

"You will not see any unemployment reports from this industry. In fact, we need an additional 3,000 technicians and service installation workers to support industry growth," he said.

source : www.bangkokpost.com