The Thai construction sector continues to grapple with ongoing crises, including structural inefficiencies that demand productivity improvements, escalating costs and liquidity challenges, and the pressing need to align building practices with sustainability trends.
– Labor productivity in the construction sector is still low compared to other industries. In the past 10 years, labor productivity in the construction sector has not been able to increase much, with a growth rate of 2.7% CAGR, which is still lower than other service sectors such as hotel activities and food services. In addition, there are challenges in doing business, including limitations in terms of income, accepting new construction projects, and cost management, which may lead to problems with business liquidity.
– The demand for buildings that are in line with sustainable trends, such as buildings certified for environmental friendliness and user well-being, and smart buildings, is putting pressure on contractors to compete to upgrade their construction capabilities in order to meet the demands of real estate developers or construction project employers.
Using technology to increase productivity in the construction industry
The adoption of technology will help increase productivity and better manage business challenges, as well as create competitiveness in bidding for construction projects.
– Technologies that are widely used by contractors include design and construction software, prefabricated construction technology, and the use of B2B and B2C intermediary platforms. Currently, some large and medium-sized contractors have begun to use BIM and 3D printing. There is also the potential to use AI, such as in the design process and creation of 3D models, data collection and analysis of weather conditions to plan construction projects, and AI can also be used to prevent hazards in construction sites.
– For medium and small contractors, they should accelerate the use of BIM to create competitiveness and become subcontractors for large contractors who already use BIM. However, the initial use of technology requires investment in technology, as well as the development of knowledge and labor skills.
Contractors should partner with foreign construction companies
Contractors should partner with foreign contractors who have advanced construction technology, such as the United States, Germany, and Japan, to receive technology transfer . The earthquake in Bangkok on March 28, 2025, is one event that reflects the importance of developing advanced construction technology. Thai contractors should partner with foreign contractors who have expertise in construction technology that can withstand the impact of disasters. This will help transfer technology and build confidence for real estate developers or construction project employers.
Promoting more technology in the construction industry still requires government support.
Encouraging the construction sector to use more technology still requires supportive measures from the government, such as setting standards for the use of BIM in bidding for high-value government construction projects, reducing corporate income tax, and supporting funds for medium and small-sized contractors who invest in using BIM technology and related software. As for other construction technologies, including 3D Printing, AI, automated equipment and machinery, drones, sensors, smart wearables, and construction technologies that reduce environmental impacts, research and development must also be promoted so that the production costs of equipment, machinery, and software for this group of technologies tend to decrease to a level that creates investment value in using this group of technologies.
