Factory Rentals in Thailand - All you need to know

01 September 2021

Are you looking for factory rentals in Thailand? If so, then you may be feeling a little overwhelmed at the task; trying to find the ideal premises in a strategic location, and for the right price. But don't panic! It's not as difficult as you might think, particularly when you do your research.

In this article, we're going to talk about factory rentals in Thailand and everything that you'll need to know when it comes to making your final decision. Read on to find out more…

 

What is a Factory?

A factory, a manufacturing plant, or any other form of production plant is an industrial site. These are often complex, consisting of a number of different buildings, each filled with machinery that workers use to manufacture items for sale. The type of product produced varies significantly depending on the industry.

 

How a Factory is important for your business?

So, how is a factory important to your business? Well, for one thing, if you are an E-Commerce business that sells a certain product, having a manufacturing plant under your belt can help you take control of your ordering processes and ultimately streamline your operation, without having to rely on too many third parties.

 

Renting your own factory space puts you back in the driver's seat. Certainly, as a small business, taking on production of your own goods might be a big step. However, as you grow, having factory space and the ability to produce your own products for sale can be a huge benefit.

Which type of Factory fits for your business?

And of course, when it comes to choosing factory space to rent in Thailand, the important thing is for you to figure out which type of factory best suits your business. There are a wide variety of different factory classifications, each with their own capabilities, pros, and cons. Thus, figuring out which type is best suited to your requirements is crucial.

 

Factory Classifications (Type of Factories)

Let's take a look at some of the various factory classifications for your reference…

 

1 – Repetitive assembly line factory

A repetitive assembly line manufacturing plan produced single items, multiple times. The machinery in the factory is calibrated specifically to produce once type of product, and the line will then operate faster or slower depending on the amount of demand for the product.

Additionally, a second assembly line may also be introduced seasonally as varying remand requires it.

 

2 – Discrete assembly line factory

And then we have the discrete assembly line manufacturing environment. This type of production line can produce a variety of different items. The machinery installed in this factory setting can facilitate convenient changeovers allowing various productions as the demand calls for it.

Typically, there is more downtime in this type of production environment, as tear-down and set-up takes place between the production of different batches of items.

 

3 – Job shop factory

A job shop factory uses a production area, rather than an assembly line. These types of production areas can be used to produce more than one type of item, or even many. Job shops are more labour orientated as opposed to automated machinery, typically producing fewer items (though often more complex) and a repetitive or discrete assembly line environment.

 

What are the different types of manufacturing?

There are few industries quite as diverse as the manufacturing one. Now that we have a clearer idea about the various factory types, let's look at what kind of items they manufacture…

 

Chemicals, plastics, and petroleum based products: These manufacturing plants turn crude oils into plastic products, and transforms coals and other chemicals into various items such as soaps, paint, or even pesticides.

 

Food products: Food manufacturing can include anything from canned foods, proceed dry goods, to fresh and frozen produce. Packaging and canning are some of the biggest aspects of this production process.

 

Textiles and clothing products: Clothing and textile manufacturing turns various materials like cotton, wool, and flax, into all types of apparel, clothing, bedding, and other home goods. However, any types of product like this which are produced from synthetic materials, will generally be considered as being part of the chemical manufacturing industry.

 

Electronics products: This sector includes all appliances, computers, and the various types of audio-visual products on the market, such as Bluetooth speakers, for example.

 

Metal products: Metal manufacturing plants produce all types of metal products, from aluminium, steel, iron, and more. These factories' will include forges, stamps, and coating machines (among other metal processing machinery).

 

Transportation and motors: These manufacturing plants produce motor vehicles, boats, trains, and all manner of aircraft—including the engines and other parts that power them.

Wood and paper products: And last but not least, we have the manufacturing of wood and paper products made from materials such as wood pulp and other organic mulch.

 

Basic utilities of Factory

What are the basic utilities often found in various factories? It is important that when looking at factory space to rent, that you are mindful of the type of utilities that you will need installed. You should also make a point of finding out whether or not it will be possible to have a certain utility installed, if in the event you find the perfect factory in the ideal location, though without the appropriate utilities. Let's take a closer look…

  • Electricity
  • Water
  • Steam
  • Compressed air
  • Fuel
  • Sewer and drainage
  • Hydraulic fluids
  • CIP (clean in place)
  • And other chemicals that may be required (e.g., carbon / nitrogen).

 

Consider Automation as the Future of Factory Work

When looking to rent factory space in Thailand, and as you continue to explore the advantages of owning your own production and manufacturing requirements, it will be helpful to bring yourself up to speed with automation in a factory setting. Speak with your prospective factory rental companies; what do they have in place in the way of automation and how can they facilitate you streamlining your operations?

What are the benefits of a Factory?

By this point, you should have a clearer idea of what to look for when exploring factory space to rent in Thailand. However, what are the benefits? How can proceeding with this endeavour help to shape your business? If you are still on the fence and need a little more convincing, then let's have a closer look at what advantages come from renting your own factory space…

 

1 – Control your own production requirements

When you have your own factory space you will be able to manufacture your product, precisely as you want it. The quality standards and schedule will be entirely built around you. In the early stages of your business's growth, you may not quite be ready to take on this responsibility. However, in the long run, controlling your own production requirements can be highly beneficial.

 

2 – Shorter lead-times

Another great benefit to renting factory space in Thailand, is the fact that you don't need to go back and forth with your manufacturer. You no longer need to wait for them to fit you into their production schedule. Instead, you get to control and prioritise your production as you see fit.

 

3 – The ability to make bespoke products

When you manage your own production processes, you'll have an opportunity to offer your customised bespoke and customised products. In an ever-competitive market place, this can give you a huge edge over your rival companies.

 

4 – You know precisely how long it will take to make something

When you manufacture your own products, you'll have a full understanding of the manufacturing process. This includes the amount of time required and thus, how and when you will be able to fulfil your orders.

 

5 – You don't need to pay someone else's overheads

When you take manufacturing into your own hands, the only overheads that you have to worry about are your own. That, and when renting factory's in Thailand, there are some amazing deals to be found!

 

6 – You don't need to make anything other than what you sell

Another great benefit to having your own factory, is the fact that you can make to order, allowing you to avoid any of the risks that come with holding dead stock (whilst saving on storage costs as well).

 

7 – You can test new things on the fly

Have you or one of your employee's had an idea on how to improve a certain product that you are producing? Well, the good news is that when you manufacture everything yourself in-house, you'll be able to sample, develop, and get the changes on sale, way ahead of your competition!

 

Conclusion

And there we have it! When it comes to renting factory space in Thailand, that is just about everything you need to know to get started. Certainly, you should do your research and seek legal representation where necessary, particularly commercial lease agreements and thai law Otherwise, the vital part is that you take your time, do your research, shop around, and then do what feels like the best move for your business.

Related Topics
All

Shared

View more in blog

06.06.2024

Thai's Rating of Energy and Environmental Sustainability for New Construction

AMN-M1.7 Plot G702/20 (Ready-built Factory

21.03.2024

Logistics and Connectivity: The Strategic Advantages of Chonburi’s Industrial Estates

Strategically nestled in the heart of Southeast Asia, Chonburi's industrial estates boast unparalleled logistics and connectivity. They're a magnet for businesses looking to tap into dynamic markets. With state-of-the-art infrastructure, these hubs are transforming the landscape of regional trade.

21.03.2024

Bangkok Warehousing 2024: Adapt to Evolving Market Needs

Bangkok's warehousing market is undergoing a transformation as dynamic as the city itself. In 2024, the landscape is defined by rapid technological advancements and shifting economic currents. Businesses are finding that staying ahead means adapting quickly to these changes.

21.03.2024

Sustainable Practices for Modern Warehouses

In today's eco-conscious market, sustainability isn't just a buzzword—it's a business imperative. Modern warehouses are at the forefront of this shift, adopting practices that reduce environmental impact while boosting efficiency. They're proving that going green can mean more than just saving the planet; it can save on costs, too.

14.02.2023

Everything You Need to Know About Getting a Factory License in Thailand

On October 27th, the Factory Act came into effect, creating adjustments to aid factories in becoming more comfortable and adaptable in the market. According to this new act, a factory is define as a building, place, or vehicle with at least 50 employees or machinery with a total power of 50 horsepower or more. This marks a major change from the 1992 Factory Act, which set the criteria for 5-20 horsepower and/or 7-20 employees.

13.12.2022

How Smart Warehouses are Using IoT Devices

The world is changing, and the internet of things is at the forefront of this change. Businesses of all types are beginning to adopt IoT (Internet of Things) technology in order to improve efficiency and bottom lines.

28.10.2022

5 Factors to consider when choosing a location to rent a Factory

There are several points to take into consideration when choosing a proper location to rent a factory in Thailand. These Factors are important for the supply chain and logistical processes of your business therefore the next time you are renting a factory, do proper research and evaluate the options you have. This will affect all aspects of your business from branding, employee workflow to your customers' satisfaction. However, in order to make an informed decision, this article will run through the main points to get the best out of your factory rental.

28.10.2022

Factory for rent in Chonburi – Pros & Cons

Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.

28.10.2022

Warehouse and Warehousing - what is the difference?

Warehouses are associated with storing goods. Many businesses use these facilities to store their products, such as raw materials, packing materials, components, or unfinished goods until they are ready to be shipped to the distributor or manufacturer where it turns into finished goods.

28.10.2022

Warehouse for Rent in Chonburi – Pros & Cons

Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.

01.08.2022

8 Tips When Looking for Warehouse Space

If you are a business owner looking for a new warehouse space, it is paramount that you know exactly what you need before starting your search. First, you must do plenty of research and put together a solid plan of action. That way, when you do start looking at prospective warehouses, you can save time by instantly recognising which units are unfit to accommodate you, and which units should immediately be added to your shortlist of potentials.

07.07.2022

Built-To-Suit Warehouses are on the Rise, why Purpose built Warehouses and Factories make sense for Businesses

As e-commerce demand continues to grow, built-to-suit warehouses are becoming more and more popular. But what is a built-to-suit warehouse and why are they so valuable for e-commerce retailers and logistics companies alike? In this article, we’ll tell you everything you need to know!

22.06.2022

A Guide to Cold Storage Warehousing

Cold storage and transportation is what makes it possible to send fresh foods and medicine all over the world without the risk of unnecessary storage. If you’ve ever wondered how your favourite ice creams gets delivered to your local shop – that’s how!

12.05.2022

How AI and Automation Are Impacting Warehousing in Thailand

The impact of AI in warehouse automation has been revolutionary as it is leveraged across multiple multiple applications such as robotics, computer vision, and language processing tools to streamline warehouse operations. In this article, we’re going to look at how AI and automation are impacting warehousing in Thailand, and what it means for the future

07.04.2022

Buying or Renting a Factory – Which is best?

There are a number of important factors to consider when you are trying to decide whether buying or renting a factory is the best move for your business. In this article we’re going to explore these factors, ask some important questions, and try to determine which would be the best option for you. Read on to find out more.

08.03.2022

Why Warehouses in Asia are on the rise in 2022

Warehouses are in high-demand all across the world at the moment and in 2022 we’re only going to see that popularity rise even higher. But why is that? What’s with all of the hype and desire for warehouses right now? In essence, businesses (especially retailers) are running out of room to hold all of the items that we are ordering online.

03.02.2022

Advantages of Renting a Factory or a Warehouse

When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.

14.10.2021

Good Manufacturing Practice (GMP) – What it is, what it covers and what the benefit are

In this article, we are going to explore GMP (good manufacturing practice), and what benefits it can bring to your business. As with any industry, in order to experience the highest levels of success, one must adopt the best practices in everything that you do, whether it be manufacturing, customer service, or hospitality. By gaining a thorough understanding of these ‘good practices’, you can optimize your business to function at peak performance, increase profits, and bolster your brand reputation. Let’s get stuck in!

14.10.2021

Supply Chain Challenges and how a Warehouse can take your business Forwards

There have always been challenges in the supply chain, and what with the COVID-19 pandemic, many of these issues have been exacerbated. In any case, as business owners are faced with new challenges it encourages innovation—which leads to some surprising ways to overcome said challenges. One thing that can really help drive your business forward and combat a number of supply chain issues is by investing in the appropriate warehousing. But, before we get into that, let’s look at some of the biggest problems faced and what might be done to combat them.

01.09.2021

Factory Rentals in Thailand - All you need to know

Are you looking for factory rentals in Thailand? If so, then you may be feeling a little overwhelmed at the task; trying to find the ideal premises in a strategic location, and for the right price. But don't panic! It's not as difficult as you might think, particularly when you do your research.

11.08.2021

Warehouses in Thailand – What you need to know.

Whether you are a new business owner looking to expand, or you are long-established and simply need to upgrade, having a warehouse comes with a great number of benefits. As someone who is unfamiliar with warehouses or is perhaps looking at them for the first time, then you’ll need to plan your approach with careful consideration.

02.08.2021

Warehouse Security and our approach to Dangerous Goods Warehousing

A large explosion and fire destroyed the Ming Dih Chemical factory compound that had been producing plastic foam and pellets in Tambon, Rachatewa, causing extensive damage to the surrounding communities, earlier this month in July 2021.