Construction material market
In Thailand, basic construction supplies such as cement and construction steel are essential materials. In 2019, construction steel held the biggest share in the construction material market, accounting for 21 percent. This was followed by cement and ready-mixed concrete. Furthermore, it was forecasted that the ready-mixed concrete would have the highest growth in terms of domestic sales. In contrast, the onset of the COVID-19 pandemic was expected to impact the retail trade of construction materials in Thailand. However, following a challenging year in 2020, this market was expected to start to recover as the demand rebounds.
Leading construction contractors in Thailand
As of 2018, there were approximately 80 thousand registered construction contractors in Thailand, out of which only 55 played a major role, accounting for about half of the income. These key players in the construction industry are registered in the Stock Exchange of Thailand. The three leading construction companies are Italian Thai Development PCL, Ch. Karnchang PCL, and Sino Thai Engineering and Construction PCL. In 2019, Italian Thai (ITD) generated the highest revenue, amounting to around 63 billion Thai baht. The company also held the largest market share in the construction industry in the previous year.
Impact from COVID-19
Like most of the world. the pandemic heavily impacted the Thai economy. Interestingly, most of the Thai construction contractors were not as affected as ongoing construction projects. This was primarily due to binding contracts and the possibility of continued work. New constructions, on the other hand, in heavily-affected markets were held off or delayed. This led to a decreased projection in the market value of the country’s construction industry for 2020 compared to the previous year. As a countermeasure to the COVID-19 pandemic, the Thai government planned to promote investments in the public sector constructions such as public utilities, communication, and irrigation. The aim was to create more job opportunities and encourage the growth of construction material trading. This plan reflected in growth for this sector of the construction industry.