Starting A Sofa Manufacturing Business In Thailand?

[sirjimi]

Firstly I would like to say that i am new to this site so please go easy on me

I have been reading the forum's for a while now and i undertsand that it is very hard to make a business successful in the LOS.

I currently own a small furniture retail store in Australia and at present we import from China. We have had many issues with our supplier in regards to quality and continual price increases and this gave me the idea of possibly starting our own small manufacturing plant in Thailand.

You might ask why Thailand? Firstly, i think their is a lot more red time involved in China and i think that the capital required is a lot higher. Some of my colleagues have also indicated that the quality/workmanship is higher in Thailand.

I would only require a small factory which could cater for the export of approx 20 40' containers per month. I would apreciate help from anybody who knows anything about this industry or any general information would be helpful. Some of the things i am interested in finding out are:

1. Cost of renting out factory space and any additional costs involved.

2. Cost of labour - Some would need to be skilled frniture makers who are expereinced in making ultra modern leather and fabric sofas.

3. How is Thailand for sourcing all the required materials such as timber, leather, fabrics, springs, foam etc.

4. Is it possible to compete with China in terms of pricing for these goods, bearing in mind that i wont to do this as a low scale venture hence keeping costs to a minimum.

5. Shipping - I know a bit about shipping from China and Malaysia but how does Thailand compare. I would offer FOB service but obviously it would be a negative if potential customers had to pay a lot more in freight as opposed to say China.

6. Cost of equipment required.

I guess after i get an idea of these factors i could then start to consider if it is worth finding out more information.

I look forward to your replies.

SirJimi.

[desertrat]

I would not invest anything here,it's a minefield, (the headaches of what you are proposing will drive you mad), i suggest that you only source here and ship. Stay and oversee stuff, but open a factory, no way. I've ben in manufacturing here for over 30 years and do know something.