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News Update

Industry Outlook 2024-2026: Construction Contractor

 Construction contractors can look forward to an improving business environment from 2024-2026, with growth driven by an expected 3.0-4.0% annual expansion in construction spending. This will be led by 3.5-4.0% growth in government spending on construction, guided largely by the Action Plan on Thailand Logistics Development 2023-2027. The focus will therefore be on megaprojects, most notably those connected to the development of the Eastern Economic Corridor (EEC). Private construction on both residential and commercial developments will also improve with 3.0-3.5% growth due to a better economic environment, strengthening consumer spending power, and greater progress on government infrastructure projects. However, challenges will remain, notably in the form of the rising cost of labor and materials. In addition, higher fuel costs have kept transport overheads elevated, while over the longer term, the need to address climate change and the race to net zero will force contractors to invest more heavily in the technology needed to reduce consumption and to cut waste. 


Credit: Krungsri Research

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