Referring to James Li’s blog, floods have been hailing its effect on the supply chain in the automobile industry. Namely, the Thailand floods have been making a bad situation worse. With the Japanese earthquake already slowing down the supply chain, as the many factories that manufacture parts in Japan are affected, the floods in Thailand means that the Thailand factories are now also affected. Natural disasters, like floods, are disasters for companies that have a complex supply chain. Not being able to obtain outsourced parts means no finished product.
The automobile industry isn’t the only one industry taking a hit. These floods have been having far-reaching effects on the electronic industry also. For Toshiba, only one of their plants were left operating as normal. Delta, has chosen to shift to Chinese suppliers. However, its companies like hard drive manufacturers that magnify the problem. Since they produce components that appear early on the supply chain, all companies that need hard drives are conversely affected. 
All the companies are expecting that it will take several months and a least one quarter before operations return to normal. Importing parts from other plants mean higher shipping costs.Floods cause costly damage.
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