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30 Oct 2020

Real Estate and Construction

Precast construction: The solution to current and future industry challenges (Current Issue No.3155)

คะแนนเฉลี่ย

​The construction industry is set to face monumental changes in the near future. Given recent labor shortages, Thai construction business, which is labor-intensive, may need to consider an alternative approach that requires less manual labor through a greater reliance upon new construction technology and equipment. One technology that can help address this challenge is pre-fabrication (or precast construction) – this construction method will likely lower the total project cost by approximately 15 percent, while reducing the use of manual labor by around 50 percent and construction time by around 30 percent.

At present, precast is commonly used in private construction, especially for low-rise residential units that are worth not more than THB 10 million. In 2020, the overall value for this type of construction method is estimated to be THB 139 billion, equivalent to 11 percent of the total construction market value, with precast construction projects accounting for approximately 48 percent of all low-rise residential units in 2020. KResearch projects that the number of low rise residential units in the private sector that utilize precast construction will likely increase at an average of 3 percent per year until 2025, thanks in large part to increasing difficulty in acquiring construction laborers and a higher minimum wage.

Not only will precast construction help to control construction costs, but it may also satisfy future market demands. As Thailand is set to becom​e an aged society in 2021[1], the prevailing type of housing may have to change in order to meet the demands in the market.



[1] Based on the projections of the Office of the National Economics and Social Development Council 


Real Estate and Construction