THAILAND STEEL CONSTRUCTION
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1 THAILAND STEEL CONSTRUCTION O V E R V I E W, C U R R E N T S I T U A T I O N & F U T U R E T R E N D 14 Nov 2016 Mr. Nuttapon Suttitam Advisor: Federation of Thai Industries (FTI) AVP, Sahaviriya Steel Industries (SSI)
2 SYNOPSIS Steel construction stakeholders Problem statement & analysis Current situation Future trend 2
3 STEEL CONSTRUCTION STAKEHOLDERS Owner Regulator Developer Home builder Producer & Trader Association Fabricator Detailer Academic & Researcher Contractor & Builder Designer 3
4 Steel Construction Stakeholders Owner Regulator Developer Home builder Producer & Trader Association Fabricator Detailer Academic & Researcher Contractor & Builder Designer 4
5 PROBLEM STATEMENT & ANALYSIS Deficient product standard, design & construction standards Deficient skills of design engineers and fabricators Internal Factor Deficient supports from government Deficient innovation & technology through construction supply chain 5
6 PROBLEM STATEMENT & ANALYSIS Hot rolled section Problem Causes Solutions Exist. Product Hot-rolled coil Cold-formed section Product Standard TIS TIS Standard Committee Company Standard Hollow Steel Section New product??? Deficient Standard Design Standard EIT Standard DPT Standard EIT 1227: Hot-Rolled Steel Design Standard EIT 1228: Cold-Formed Steel Design Standard Department of Public Works and Town & Country Planning have commissioned Kasetsart University to issue 4 standards on (1) steel product (2) seismic design (3) durability design (4) tool & manual TSSS Standard Thai Structural Steel Society plan to issue fabrication design standard Construction Standard Not yet available: In Need of a person in charge 6
7 PROBLEM STATEMENT & ANALYSIS Problem Causes Solutions Action Plans Interview Focus Group Questionnaire Deficient Skill Deficient knowledge Deficient Practice Seminar & Training More practices More practices Technology transfer Promote the Use of Steel Construction Offer Right Benefit to Users Right Communication Consumer Need Identification Operational Excellence Exhibition, Events Contests & Viral Deficient Tool Developed Adopt new technology KU are developing design chart & manual under DPT project. Steel producers shall develop design tools for their customers. 7
8 PROBLEM STATEMENT & ANALYSIS Problem Causes Solutions Lack of Government Infrastructure Application Steel Bridge Introduction to Top Management & Bridge Engineers R&D - Trial Section Monitoring Calculation Highway Construction Standard Plug-In Perform Rigorous Communication Deficient Government Support Exclude from Thailand 4.0 Industry Focus Propose Steel Construction Promotion Center Fire Rating Demand Steel Construction Audit Program Energy Rebate Program Encourage R&D Enforcement Lack of Local Content Regulations for Infrastructure Application Railway 8
9 PROBLEM STATEMENT & ANALYSIS Contractor Problem Causes Solutions Lack of Collaboration Academic Institutions Collaboration Collaboration with Other Associations and Other Sectors Academic Institution Steel Producer Other Sectors Association EIT ASA TREA TCA HBA Machinery Construction Product Deficient Innovation & Supply Chain No Steel Construction R&D Center Propose ISIT or EIT or TSSS to be National Innovation Center Mills to Transformers Cut-to-Length Cut-to-Size Just-in-Time Fragmented & Deficient Supply Chain Establish Supply Chain Integrated System Encourage SME Steel Fabricators Transformers to Traders Mills or Transformers or Traders to Constructors Waste & Time & Stock Optimization E Marketplace + BIM Operation 9
10 PROBLEM STATEMENT & ANALYSIS Problem Causes Solutions Activities Deficient Internal R&D Internal Communication HR & Financial Investment Training R&D Optimization Technology Internal Factor Production Inefficiency Productivity Improvement Waste Reduction (Optimization) Automation Investment Energy Reduction Investment Incomplete Human Skill-Set Energy Saving Scheme Develop Structural Steel Knowledge Identify Users Needs Training R&D Survey Big Data 10
11 CURRENT SITUATION Based on the study the cost effectiveness of steel construction in economics aspects performed by ISIT in 2008, it can be concluded that RC cost (baht/m 2 ) 1, RC vs. Steel 18 cases each Concrete 2,550 baht/m 3 Steel cost (baht/m 2 ) 2,034-3,383 Span No. of Stories Live load Rebar 19.5 baht/kg % More expensive 17% No fire proofing 4m 6m HRS 25.0 baht/kg 8m Labor 220 baht/day
12 CURRENT SITUATION Based on latest unit cost together with following assumptions. % cost of steel rebar in RC structure 40% % Labor cost 2008: 30% (expensive material + cheaper labor) Concrete 2,550 baht/m 3 Rebar 19.5 baht/kg 28 Rebar 42 Conc. 70 MAT. Steel 82 HRS 25.0 baht/kg Labor 30 Labor 35 Labor 220 baht/day RC (2008) = 100 STL (2008) =
13 CURRENT SITUATION Based on latest unit cost together with following assumptions. % cost of steel rebar in RC structure 40% % Labor cost 2008: 30% (expensive material + cheaper labor) Concrete +12% 2,850 baht/m 3 22 Rebar 47 Conc. 69 MAT. Steel 64 Rebar -23% HRS -22% 15.0 baht/kg 20.5 baht/kg Labor 45 Labor 53 Labor +50% 330 baht/day RC (2016) = 114 STL (2016) =
14 CURRENT SITUATION Conclusions from the above More optimization (value engineering) can be applied to steel structures than concrete structures. Design skill and construction efficiency for concrete structures are about to reach the best possible practices for Thai engineers and constructors. High strength steel (Fy > 360 MPa) and innovative form of steel structures have been introduced to construction market. Construction cost of steel structures will no longer be much more expensive than reinforced concrete structures. Steel price in foreseeable future will unlikely be reaching steel price in Labor cost will never be reduced, however will be subject to political situation. Concrete cost will gradually increase based on labor cost, energy cost, etc. Note: Steel construction has prevailed factory & warehouse segment, as well as petrochemical segment. Therefore, it is reasonable to address segments at which steel construction has potential growth. 14
15 CURRENT SITUATION FACTS Some home builders have started implementing structural steel construction. Prefabricated concrete load bearing wall system, which has been well developed recently in Thailand, will not be used by homebuilder sector because it is not economy of scale. Homebuilder believe that steel framing will eventually be replacing RC framing. Therefore, the sooner they start, the more skills they will gain. Prefabricated steel framing can be erected from the ground up within 7-10 days, which is much faster than RC beams & columns since formworking, shoring and concrete curing are all time consuming process. However, faster steel construction could not pick up construction speed because brick wall manual construction was time consuming. 15
16 16
17 FUTURE TREND Shop fabrication + Field installation system Prefabricated wall panel system with insulation capability 17
18 FUTURE TREND Shop fabrication + Field installation system Prefabricated wall panel system with insulation capability Prefabricated Prefinished Volumetric Construction (PPVC) 18
19 FUTURE TREND High strength steel products Seismic resistant steel structures Steel bridges for Highway Construction 19
20 THANK YOU VERY MUCH For more information, please contact. Nuttapon Suttitam 20
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