Balancing Continuity and Survival: Lessons for Overseas Manufacturers from Thailand’s 2011 Flood
The 2011 Thailand floods inundated more than a thousand factories, disrupting both local and global supply chains. Examining decision-making during the crisis reveals how organizational responses shaped the scale of damage.
At a glance
Event
2011 Chao Phraya River Flood, Central Thailand
Impact
US$40+ billion in economic damage; 70%+losses in the industrial sector
Case Focus
Risk Management, Supply Chain Disruption, BCM/BCP, Disaster Preparedness
Abstract
In 2011, Thailand faced one of the most severe nationwide natural disasters in its contemporary history, with flooding affecting large parts of the country for more than five months. Combined damages and losses were estimated at THB 1.43 trillion, approximately US$43.9 billion in 2025 value, and more than 16 million people were affected. Geographic and structural factors caused floodwaters to stagnate in central Thailand, particularly within the Chao Phraya River Basin, where seven major industrial estates and parks were located, forcing widespread production shutdowns. Among the 1,823 affected factories was Hoshitech Industries, the Thai subsidiary of a Japanese precision manufacturing company, which suffered losses estimated at THB 950 million (US$30 million) due to the damage to production equipment, the loss of inventory, and the inability to fulfill customer orders.
Through an investigative narrative examining decision-making before, during, and after the disaster, the case study demonstrates how incomplete quantitative information, delayed authorization resulting from back-and-forth communication with headquarters, production pressure arising from supply chain hierarchy, and Business Continuity Management (BCM) and Business Continuity Planning (BCP) frameworks oriented toward partial disruptions shaped Hoshitech’s crisis response and contributed to extensive losses. Rather than attributing the disruption solely to the flood itself, the case study examines the interaction between environmental conditions and institutional constraints, particularly the obligation of supplier responsibility that limited managerial autonomy to evacuate assets and halt production before threats became physically evident. It further examines post-disaster recovery and subsequent organizational reforms to illustrate how lessons from the crisis were translated into changes aimed at strengthening future preparedness. The case invites discussion on risk exposure in multinational manufacturing operations and underscores the importance of continuity strategies in an era of increasingly unpredictable, climate-driven disruptions.
Cover Photo: ACNews
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