Page 44 - Anual report STi 2022_eng

4. Participation as a speaker in training skills and In 2022 - 2024, the revenue of contractors focusing

knowledge in construction project management and various on large-scale government projects is likely to continue to
architectural and engineering designs for educational grow as government construction investment remains the

institutions, government agencies, private companies, and main driver while the income of those focused on private
organizations related to the engineering circle to create sector projects remained sluggish in 2022 before gradually
public relations for the Group improving in 2023 - 2024.

The management of the Company Group, together ● Construction contractor for large civil engineering
with relevant personnel, is responsible for monitoring news, projects expected that revenues will recover as government
movement information, and/or investment plans for new infrastructure investment accelerates. The large and medium-

construction projects that will occur which has disclosed sized enterprises will continue to grow their revenues because
information to the public through various media or news they are ready to bid on work and have the potential to manage

distribution channels of each organization to prepare in various large-scale construction projects, both ongoing government
ways, which helps increase the chances of getting a job from investment projects, such as electric trains, double-track railways,
a construction project. motorways, and megaprojects linking to the EEC area, as well
as other infrastructure projects that are likely to expand.
● Market Situation and Competition
● Private construction contractor’' income from
According to Bank of Ayudhya Public Company
Limited research, it indicates that the construction business residential buildings, general buildings, high-rise buildings,
in 2022 is likely to face risks from rising costs in terms of and large buildings is likely to gradually recover in 2023 - 2024,

transportation costs and construction materials prices from with revenue likely to remain stable in 2022 due to the burden
the Russian - Ukrainian war, which pushes up oil prices and of high oil costs and expensive construction materials. It is

important construction materials, especially steel and cement. expected that the income of large and medium-sized
For 2023-2024, the business tends to grow in accordance contractors will recover first, especially those focusing on
with the overall construction investment value, which is mixed-use projects, which should have a continued increase

expected to grow at an average rate of 4.5-5.5% per year. in the backlog. In addition, large contractors have the
opportunity to undertake construction work in the private
The main driver Is the government”s investment in sector in neighboring countries, especially residential projects,
mega-projects, especially projects related to the Eastern commercial buildings, and industrial factories, which will
Economic Corridors (EEC), which are likely to accelerate in expand investment according to the economic recovery trend.

order to achieve the goals of the transport infrastructure As for the income of small groups, there is a slowdown trend
action plan in the EEC area, phase 2 (2022 - 2026). Meanwhile, due to the slow recovery in small-scale construction projects,
investment in private construction, both residential and coupled with cost management constraints and labor

commercial real estate projects, tends to gradually recover shortages. This may cause this group of contractors to remain
in line with purchasing power that is likely to improve in line at risk of operating results and financial liquidity problems.
with economic conditions and more progress in infrastructure.

In addition, large contractors also have the opportunity to Public-sector construction: Most of them are
undertake construction work in neighboring countries infrastructure investment projects, accounting for 82% of the

where the economy tends to recover and there is continuous total public-sector construction cost. The remainder were
investment in infrastructure. construction projects for government buildings (16%) and

42 Annual Report 2022 (56-1 One Report)