Inno Precast moves away from housing
Songsak Piyawannarat, the company's deputy chief executive, said the housing sector, which has remained sluggish since last year, is unlikely to rebound within the next 18 months, with signs of improvement expected from 2027 onwards.
"During this period of weak market activity, residential developers reduce their inventory cycle from five years to three. This will impact our business, so we need to adapt by seeking alternative projects," he said.
"Once inventory reaches a certain low level, developers will begin replenishing it, which may take place over the next few years."
This year, the company plans to pursue more non-residential development projects such as factories, particularly in the Eastern Economic Corridor, which have been growing since last year.
It also aims to expand the scope of its work for factory clients by taking on additional orders, such as walls, in addition to the columns it previously supplied. Other opportunities include infrastructure projects, such as retaining walls for small-scale dams.
In addition to project-based clients, the company will expand its reach to end users, including self-built homeowners, through Plantnery, a homebuilding firm wholly owned by SET-listed developer Pruksa Holding, one of Inno Precast's major shareholders.
It is also studying and testing precast swimming pools, as pool villas are popular in both Bangkok's luxury housing market and major resort destinations, particularly Phuket where loft-style designs are currently in trend, said Mr Songsak.
"If the residential market was not in crisis as it is now, our revenue would grow or at least stay at the same level as in 2024," he said. "However, due to the economic stagnation, now further dampened by the US tariffs, we will not meet this year's revenue target."
Inno Precast set a revenue target of 2 billion baht earlier this year, but the company may fall short of that goal.
Spinning off from Pruksa's wholly owned subsidiary in 2023 to take on external projects, the company has an annual production capacity of 5 million square metres, equivalent to around 1,500 housing units a month, with a break-even point at 50% capacity utilisation.
At present, it utilises 40% of its annual production capacity, with 80–90% allocated to residential projects, roughly half of which comes from Pruksa, down from 70% last year. The remainder primarily supports factory projects.
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