Industry Focus

Big Projects in Thailandand Its 2024 Fastener Demand Potential
Thailand, Southeast Asia's economic powerhouse, is experiencing a surge in significant infrastructureand development projects. These projects span across various sectors, including transportation, energy,
and construction, and are poised to propel Thailand's fastener industry forward in 2024.

Current Landscape of Thailand's Fastener Industry
Thailand's fastener industry is well-established and boasts a strong exportorientation. According to the statistics, the industry generated trade revenue (Exp.+Imp.)of US$1.63 billion in 2023 (61% is the share of import and 39% is the share of export).
Quantifying the exact increase in fastener demand from these projects is challenging.
However, industry experts estimate a growth of 5-10% in fastener demand in
2024 compared to 2023.
The industry thrives due to several factors, including:•Skilled Workforce: Thailand has a skilled and readily available workforce
experienced in fastener production.

•Competitive Labor Costs: Compared to developed economies, Thailand
offers competitive labor costs, making it an attractive manufacturing hub.

•Strong Manufacturing Base: The country possesses a well-developed
manufacturing infrastructure, supporting efficient fastener production.

•Free Trade Agreements (FTAs): Thailand benefits from a network of FTAs
with major economies, facilitating fastener exports.

However, the industry also faces challenges, including:

268•

Intense Competition: The global fastener market is highly competitive, withplayers from China and other Asian countries exerting pressure on prices.

•Raw Material Price Fluctuations: Fluctuations in the prices of raw materials
like steel can impact production costs.

•Technological Advancements: The industry needs to adapt to advancements
in automation and digitalization to remain competitive.
Fastener World no.206/2024 惠達雜誌Major Projects Fuelling
Fastener Demand in 2024

Several significant projects in Thailand
are expected to drive up fastener demand in2024. Here's a breakdown of some key projects:
Eastern Economic Corridor (EEC): The
EEC is a government-backed initiative aimed attransforming Thailand into a regional economicand innovation hub. The project encompasses
various sub-projects, including:•H i g h - s p e e d r a i l n e t w o r k 1:
Connecting Bangkok to major cities
i n east er n T ha ila nd, t h is projectwill require a substantial number offasteners for rail tracks, stations, andassociated infrastructure. Thailand’s
high-speed rail (HSR) project – whichaims to link the capital Bangkok to
Chinese city Kunming via Laos – islikely to be delayed by about 28 months
a nd requi re a round a n additiona l
4.7 billion baht (US$176 million) infunding. This project alone is estimatedto consume millions of fasteners forrailway tracks, stations, and associatedinfrastructure.

Industry Focus•••

Smart cities 2: The EEC envisions the developmentof smart cities equipped with advanced infrastructure.
This translates to a significant demand for fasteners inconstruction projects related to transportation, utilities, andcommunication networks. Thailand is among the nations in
Asia that are highly active in smart city development aimed
at utilizing Big Data to modernize its urban centres into
smart, sustainable cities. In 2023, Thailand currently has
36 smart cities in 25 provinces. According to "The Nation",
Thailand's Commerce Minister Phumtham Wechayachai
announced the government’s plan to establish 105 smart
cities in large municipal areas by 2027 during the opening
ceremony of the Thailand Smart Expo.

2023, Thailand’s eastern seaboard is a major industrial andbusiness hub and is home to a range of major multimillion
dollar investments, especially in automotive, electronics,consumer appliances, food processing and petrochemical.
Contributing approximately 15% of Thailand’s total GDP, it isalso a major centre for logistics and transportation, with close
access to deep-sea ports and airports that serve domestic andinternational markets.
Government Infrastructure Projects: The Thai government isinvesting heavily in infrastructure upgrades across the country. This
includes projects like:

Industrial estates3: The EEC is attracting investments
in various industries, leading to the establishment of new
factories and production facilities. This surge in industrial
activity will necessitate a high volume of fasteners forconstruction and equipment installation. Over the next
three years, domestic economic growth will translate intorising investment in the manufacturing sector, and thiswill in turn herald an improving outlook for operatorsof industrial estates. The total footprint of land sold andleased on industrial estates is therefore expected to surgeby 18.0-20.0% annually over 2023-2025 to 2,200, 2,700,
and 3,000 rai (1 rai = 0.16 hectares) in each of these years.

•Roads and bridges 4: The development and maintenance ofroad networks and bridges will necessitate a substantial numberof fasteners for construction and repairs. Thailand is assessing
a massive land bridge project in the country’s south, Prime
Minister Srettha Thavisin said involving estimated investments
worth US$27.44 billion which would help boost growth andglobal trade. Bidding and construction would begin in 2025,
and create 280,000 jobs in the southern provinces of Ranongand Chumpon, a government study showed, with the stateplanning agency estimating the project could raise economic
growth to 5.5 percent annually. Thailand’s economy is forecast
to grow 2.8 percent this year and 4.4 percent next year.

•Public transportation5: Investments in expanding public
transportation systems like subways and light rail will requirea significant quantity of fasteners for track installation andstation construction. Thailand's Public Transportation market
is expected to witness a significant surge in revenue, with aprojected value of US$1.33bn by 2024 and a projected market
volume of US$1.27bn by 2028.

•Renewable energy projects 6: Thailand's push towards
renewable energy sources like solar and wind farms will create
demand for fasteners used in the installation and maintenanceof these facilities. Electricity generation in Renewable Energy
market is projected to amount to 24,830.00m KWh in 2024. An
annual growth rate of 3.71% is expected (CAGR 2024-2028).

Eastern Seaboard Development Program (ESDP):
This program focuses on developing Thailand's easternseaboard into a global logistics and industrial hub. In

Last Word
Thailand's robust infrastructure development plans and focus on
industrial expansion are poised to significantly drive up the fastener
demand in 2024. This presents a golden opportunity for fastenersuppliers to capitalize on this growth by adapting their productofferings, streamlining operations, and forging strong industry
relationships. Embracing innovation and sustainability will be key
differentiators in a competitive market. Fastener suppliers who caneffectively navigate these dynamics stand to gain a significant advantage
in the thriving Thai fastener industry.
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https://www.businesstimes.com.sg/international/asean/thailand-s-high-speed-rail-linkto-china-delayed-at-least-two-years-incurs-extra-costs
https://www.asmag.com/showpost/34065.aspx#:~:text=In%202023%2C%20
Thailand%20currently%20has,of%20life%20for%20city%20inhabitants.
https://www.krungsri.com/en/research/industry/industry-outlook/real-estate/industrial-estate/io/io-industrial-estate-2023-2025
https://www.businesstimes.com.sg/international/thailand-assesses-us274-billion-landbridge-project-drive-growth
https://www.statista.com/outlook/mmo/shared-mobility/public-transportation/
thailand#:~:text=Thailand's%20Public%20Transportation%20market%20
is,US%241.27bn%20by%202028.
https://www.statista.com/outlook/io/energy/renewable-energy/
thailand#:~:text=Electricity%20generation%20in%20Renewable%20
Energy,(CAGR%202024%2D2028).

Copyright owned by Fastener World / Article by Behrooz Lotfian

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Fastener World no.206/2024 惠達雜誌