# Thailand’s construction industry continues to grapple with a prolonged crisis

- Link: https://www.thailand-business-news.com/real-estate/227317-thailands-construction-industry-continues-to-grapple-with-a-prolonged-crisis
- Published: 2025-08-17T04:26:00+07:00
- Author: Daniel Lorenzzo

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.

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## 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.

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## 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.