Singapore’s Construction Surge Faces Storage Challenges

Singapore’s ongoing construction boom has led to a significant challenge for manufacturers of large prefabricated components. Limited storage space is hampering production and jeopardizing project timelines, as companies struggle to manage the growing demand for these essential building blocks.

Prefabricated components, some measuring up to 10 meters in length, are crucial for constructing homes and offices. The sheer size of these units makes storage a critical issue. In response to this challenge, Jurong Port is set to introduce shared, pay-per-use storage options at its upcoming Integrated Construction and Prefabrication Hub (ICPH), which will be the seventh of its kind in Singapore. This facility will host advanced factories designed to automate the production of building components.

Addressing Storage Constraints

For companies like Jin Cheng, the increase in demand has more than doubled output compared to pre-COVID-19 levels. However, the firm faces difficulties, not due to productivity issues, but because of the overwhelming demand combined with logistical challenges. Peng Guangzheng, executive director of Jin Cheng, noted that project schedules frequently shift due to various delays. This overlap often results in production demands exceeding available storage space. “This is happening in the market. (It’s) very common,” he stated.

Delays can create a domino effect, causing components to require longer storage, which further complicates production timelines. To counteract this issue, Jin Cheng plans to move into the new facility at Jurong Port upon its expected completion in 2027. Terence Seow, CEO of Jurong Port, emphasized the advantages of the new space: “The good thing is that the port has quite a large surface area to operate with. If they need surge storage capacity, we’re always ready to provide.”

Coordination Challenges Persist

While storage solutions are essential, industry analysts stress that improved coordination is equally critical. David Ng, chair of the Institution of Engineers Singapore‘s civil and structural engineering technical committee, pointed out that the underlying issue stems from inadequate communication between construction-site schedules and precasting production. Delays at construction sites often mean precast units cannot be received on time. This lack of communication can lead precasters to continue production without knowing that sites are unprepared for delivery.

“We need to streamline the planning and the programming of site installation and the precasting production in a seamless way,” Ng advised, advocating for closer collaboration between both sectors.

He suggested that leveraging artificial intelligence could help firms anticipate delays and better synchronize production timelines. Meanwhile, the Building and Construction Authority (BCA) is actively engaging with the industry to explore more effective, long-term storage solutions.

Looking ahead, construction demand in Singapore is projected to remain strong. The BCA estimates that total construction demand will reach an average of between S$39 billion and S$46 billion annually from 2026 to 2029. As the industry adapts, addressing these storage and coordination challenges will be vital for maintaining the momentum of Singapore’s construction sector.