One key factor is the increase in minimum wages. While this policy aims to improve worker livelihoods, it can also strain profit margins for manufacturers, especially when coupled with rising energy costs. Additionally, the cost of raw materials like cotton and polyester has fluctuated in recent years, adding another layer of uncertainty to production budgeting. Furthermore, the Thai baht has historically been a relatively strong currency compared to its neighbors. While this can be beneficial for imports, it can make Thai exports more expensive on the global market.

The industry faces a challenge in attracting and retaining skilled labour. Younger generations may be less inclined towards factory jobs, perceiving them as low-paying and lacking career advancement opportunities. Additionally, the physically demanding nature of some garment industry jobs can deter younger workers who might prioritize a better work-life balance. This skills gap can lead to production inefficiencies, hinder innovation, and make it difficult for Thai manufacturers to compete with countries that have a readily available pool of skilled garment workers, such as Vietnam and China. 

Limited investment in automation and modernization can put Thailand's garment industry at a disadvantage in an increasingly technology-driven industry. Automation can streamline production processes, reduce labor costs, and improve efficiency. For example, automated cutting machines can ensure precise fabric cuts with minimal waste, while robotic sewing systems can handle repetitive tasks faster and more consistently than human workers. Additionally, advancements in 3D printing technology have the potential to revolutionize garment production, allowing for on-demand, customized clothing with shorter lead times. 

Many Thai garment manufacturers primarily function as Original Equipment Manufacturers (OEMs) or Original Design Manufacturers (ODMs), While this approach offers stability, it limits their control over brand identity, profit margins, and the ability to capture a wider market share by establishing their own recognizable brands.

The domestic market for Thai-produced garments is relatively small compared to the industry's export focus. This dependence on international markets makes them vulnerable to fluctuations in global demand and economic downturns. 'Cheap', and 'reasonable quality' Chinese garments flow to the domestic market easily through better international logistics and trade agreements.

Beyond technological advancements, the industry might struggle with a general lack of innovation in design and production development. Focusing solely on replicating existing styles might not be enough to capture consumer attention in a rapidly evolving market.

The rise of fast-fashion models, with their emphasis on low prices and rapidly changing trends, puts pressure on Thai garment manufacturers. Their traditional production methods may struggle to keep pace with the fast turnaround times and lower price points demanded by fast-fashion retailers.

Consumers are increasingly concerned about the environmental and social impact of their clothing choices. This includes ethical labor practices, fair wages, and sustainable use of resources throughout the supply chain. 

The growth of online retail platforms, e.g. Shopee, Lazada and Shein has changed consumer behavior, with a greater focus on convenience, personalized shopping experiences, and niche markets. Thai garment manufacturers might need to adapt their marketing strategies and explore online sales channels to reach a wider customer base effectively.

Political turmoil or regional conflicts can disrupt trade routes, increase transportation costs, and create uncertainty for businesses. Thailand's geographical location in Southeast Asia means it's susceptible to instability in neighboring countries, which could impact the smooth flow of raw materials, finished goods, and workers across borders.

Changing demographics in key markets, such as an aging population in Thailand and some developed countries, like Japan and Europe might require Thai garment manufacturers to adapt their product offerings. For instance, there could be a growing demand for clothing designed for older adults, requiring adjustments in sizing, comfort features, and potentially even functionality.

The increasing automation of garment production in developed countries poses a long-term threat. Advancements in robotics and artificial intelligence could lead to a significant reduction in labor costs for countries like the US or Japan, potentially making them more competitive with Thailand's traditional labor-intensive production methods.