The Thai Contractors Association urges immediate state intervention as diesel and material costs skyrocket, warning that without aid, projects will be abandoned.
The Thai construction industry has issued an urgent distress call to the government, warning of a potential wave of abandoned projects and site closures as the cost of essential raw materials and fuel reaches “unsustainable” levels.
Liza Ngamtrakulpanit, president of the Thai Contractors Association (TCA), warned on Wednesday that the sector is facing a terminal crossroads. Operators are now being forced to choose between halting work entirely or continuing at a loss that threatens their solvency.
The Scale of the Surge
Data released by the TCA highlights a staggering rise in overheads. Since early March, diesel prices have climbed by 14.30 baht per litre, triggering a domino effect across the supply chain. Key materials have followed suit:
Steel Rebar: Prices have surged by at least 4.5 baht per kg, with suppliers reporting severe stock shortages.
Concrete: Ready-mix prices have risen by up to £10.15 (450 Baht) per cubic metre.
Logistics: Freight costs for heavy haulage have seen “unprecedented” spikes, with some Southern routes seeing surcharges of up to 78,000 baht per trip.