Singapore’s construction boom strains large prefab component storage, putting project timelines at risk

SINGAPORE: As Singapore’s construction boom continues, companies manufacturing large prefabricated components are running into an unexpected constraint – limited storage space that is slowing production and straining project timelines.

Some of these building blocks – which can be stacked like Lego pieces to construct homes and offices – can stretch up to 10m long, making storage a critical bottleneck.

To ease the strain, Jurong Port is stepping in with shared, pay-per-use options at its upcoming integrated construction and prefabrication hub (ICPH).

It will be Singapore’s seventh ICPH, which houses high-tech factories that automate the production of building components.

Industry watchers caution, however, that space alone is not the silver bullet, pointing instead to the need for tighter coordination between off-site production and on-site construction.

STORAGE BOTTLENECK INTENSIFIES

For prefabrication firm Jin Cheng, output has more than doubled since pre-COVID-19 levels. It is struggling, not because of productivity issues, but due to rising demand.

Mr Peng Guangzheng, the firm’s executive director, said project schedules often change because of various delays.

When delays cause multiple projects to overlap for longer than expected, production demand can exceed the firm’s available space, he added. “This is happening in the market. (It’s) very common.”

These delays can snowball, as components that need to be stored for longer periods eat into production space, further slowing projects.

To address the space crunch, the firm plans to expand into the new facility at Jurong Port when it is completed in 2027.

“The good thing is that the port has quite a large surface area to operate with and if ever they need some surge storage capacity, we're always ready to provide,” said Jurong Port CEO Terence Seow.

“It's not something that they need to set up by themselves and it can be all done on a pay-per-use basis, which will be much more affordable and much more competitive for those located here.”

Mr Seow said proximity to raw materials needed for precast components will also help.

A ready-mixed concrete hub at Jurong Port has been operational for more than a year.

“Whatever they need will be nearby. So storage really becomes much less of an issue if they are located here,” said Mr Seow.

COORDINATION KEY TO FIX

But analysts highlighted that proximity alone is not enough – coordination is just as critical.

Mr David Ng, chair of the Institution of Engineers Singapore’s civil and structural engineering technical committee, said the root cause lies in poor coordination between construction-site installation schedules and precasting production.

Delays at construction sites may mean they cannot receive precast units on time, but this is not always communicated to precasters.

As a result, precasters may continue production even when sites cannot accept deliveries, leading to the need for additional storage space.

Mr Ng said: “We need to streamline the planning and the programming of site installation and the precasting production in a seamless way, meaning that the two have to communicate closely … such that the ICPH will be able to plan production of the precasting unit so that it will be delivered to the site just in time for the installation.”

He said this may include leveraging artificial intelligence to help firms better anticipate delays and time production more accurately.

Meanwhile, the Building and Construction Authority (BCA) says it is engaging the industry on more effective, longer-term storage solutions.

Over the next four years, construction demand is expected to remain strong.  

BCA expects the total construction demand to reach an average of between S$39 billion and S$46 billion a year from 2026 to 2029.