Oct. 3, 2019 - The cement and construction business are closely linked and inseparable in the supply chain, and they are key businesses in the country’s economy. However, most construction businesses have several obstacles that they must face, from the lack of expertise, the lack of access to innovation and technology, and the lack of management knowledge. Thus, to elevate the standard of Thailand’s construction industry, we need to support large and small businesses alike. “SCG”, with its Cement-Building Materials Business, understands the importance of uplifting the cement and construction business in Thailand, and is ready to use its accumulated knowledge, innovations and technology to support Thailand’s construction ecosystem to grow sustainably.
Mr. Chana Poomee, Vice President – Cement and Construction Solution Business, SCG Cement-Building Materials, revealed that, “SCG has been recognized as a leading manufacturer of cement and concrete in the region for over 100 years, and we have been transforming our business to ensure our competitiveness in many aspects. However, in driving the business forward, we must work with all stakeholders, including the construction industry which is worth 1.44 trillion baht. Still, the standards of most Thai businesses are not yet on par with international businesses. To address this issue, SCG has set a goal to drive Thailand’s construction industry to become a wealth community in which all stakeholders in the supply chain benefit and grow together sustainable, while creating a green society where we can efficiently manage resources from raw materials, human resources, to capital in order to create tangible economic value.”
Promoting Innovation and Digital Technology with 3 Strategies
SCG is improving the work process for the Cement and Construction Solution Business through strong local and international networks. Mr. Chana explained that to drive changes, SCG is implementing 3 strategies: 1. Using construction solution technology to cater to the demands and challenges posed by customers, 2. Employing digital technology to use resources to its full potential in line with circular economy, and 3. Creating a hub for construction businesses at the “CPAC Solution Center”
Mr. Chana expressed his belief that by passing on the knowledge about construction innovation combined with SCG’s accumulated knowledge, the organization will be able to solve problems that have occurred between customers and contractors. In the past, SCG has been trusted to take part in various construction projects, allowing the organization to understand the needs and issues from the customer’s end. Moreover, SCG understands the importance of delivering quality products on time, selecting appropriate materials for different types of construction, using management technology to create value, ensuring safety at the work site, and employing experts to fix problems.
“We have transformed the organization from being a seller of construction material to offering construction solutions by carrying out trials with local ecosystems in order to see real problems and solve them using innovation, technology, and our accumulated knowledge.
A reason that we have chosen to enter the construction industry is because we see the huge amount of waste in this industry which is a large industry that has a key part in driving the nation’s economy. Thus, we are determined to find a way to develop this ecosystem and develop sustainably.”
Achieving “Quality Work – Fast Construction – Controlled Budget – Less Waste” with Digital Technology
Mr. Chana explained that the first strategy is to use construction solution technology to cater to the demands and challenges posed by customers by offering this technology to customers in the public and private sectors, as well as constructors, contractors, large and small property developers, and all stakeholders in the industry with efficiency and the high service quality. CPAC, under SCG Cement-Building Materials business, has joined a network of alliances to offer cutting-edge and international standard technology and tools combined with high quality products and its expertise to develop new construction solutions called the “CPAC Construction Solution”. Under this project, CPAC is providing solutions for home owners, constructors, and individual contractors, as well as solutions for contractors and large property developers that will help build quality projects quickly within a controlled budget.
The second strategy is employing digital technology to use resources to its full potential, as one of the key issues in construction is the huge amount of waste, especially from storing too much construction materials. In Thailand’s construction industry, the rate of waste is around 20 percent, or worth 300 billion baht, from the total market value of 1.44 trillion baht. However, with Building Information Modeling or BIM technology, a 3D model that combines architectural, structural, and systems together in construction design from the beginning of the project, contractors can accurately plan how much material to use and to order, while allowing them to check for inaccuracies in each area through the model before construction starts. Thus, contractors can lower the amount of waste from over-buying, save storage spaces, save time and cost, as well as reuse leftover construction material such as concrete again and benefit all stakeholders in line with the “From Waste to Wealth” concept.
Distributing Knowledge through Networks, Elevating Constructors-Contractors to Create Local Wealth
The final strategy is the establishment of the “CPAC Solution Center” which serves as a hub for professionals in the local construction business to exchange knowledge, learn about construction management, and seek solutions in their area. CPAC is helping to provide innovation and technology from experts as well as offer total solutions for constructors in each area. At the center, constructors can choose the appropriate model to use along with the work schedule that matches the budget, while the quality of construction will be consistent throughout different projects. Moreover, the center enables them to control the amount of waste from construction and helps to lower costs and waste in order to sustainably care for the environment.
The first CPAC Solution Center has already been launched in Chiang Mai province, and CPAC aims to launch all 9 branches of the center – in Chiang Mai, Khon Kaen, Pitsanulok, Phuket, Surat Thani, Ubon Rachathani, Pattaya, Nonthaburi and Nakon Pathom – by the end of 2019. Moreover, in 2020, CPAC will expand the network of local constructors and contractors to 2,000 people in all areas of the country in order to sustainably develop Thailand’s construction industry.
“SCG’s main goal is not just to help contractors perform their jobs better, but we want to elevate the standard of Thailand’s construction industry to match international levels. We are starting regionally such as in the Northern, Northeastern, and Southern regions, as there are still gaps in the quality of work and the knowledge in the industry. We can help contractors at the local level and turn waste to wealth by changing the construction method to become more standardized, and ultimately develop the industry towards higher growth,” said Mr. Chana.