
25 Apr What Is Industrial Construction? Key Differences Explained
The construction industry covers many project types — from homes and offices to large-scale manufacturing facilities. But what is industrial construction, and how does it differ from commercial or residential projects?
In this article, we’ll dive into what is meant by industrial construction, its key features, and how it stands apart from other types of building projects.
What is industrial construction?
Industrial construction involves designing, engineering, and building facilities used for manufacturing, processing, storage, or distribution of goods and materials, such as factories, refineries, and tank farms.
Due to their industrial purpose, these sites require specialised infrastructure like heavy machinery, industrial piping, and robust structural systems built to withstand large-scale operational loads and environmental exposure.
Getting to know: Industrial Building System (IBS)
In Malaysia, one method of industrial construction worth noting is the industrial building system (IBS), but what is it?
IBS is a pre-engineered, standardised approach to construction using prefabricated components like steel frames, concrete panels, and modular units. These components are constructed off-site and assembled on-site. It is similar to the process of prefabrication in other countries, offering advantages in streamlining construction timelines, improving quality control, and enhancing sustainability.
H2: How industrial construction differs from commercial and residential projects
Compared to commercial and residential projects, industrial construction is undertaken on a larger scale and are subject to more stringent rules and regulations.
Feature | Residential | Commercial | Industrial |
---|---|---|---|
Purpose | Living spaces | Retail, offices, hospitality | Manufacturing, processing, storage |
Design complexity | Low to moderate | Moderate | High — requires MEP, automation, ventilation |
Materials used | Wood, light steel | Reinforced concrete, glass, mild steel | Heavy-duty steel construction, industrial piping, chemical-resistant materials |
Regulations | Local housing codes | Business occupancy rules | DOSH, DOE Malaysia, BOMBA, CIDB, and relevant SIRIM or MS standards |
Project scale | Small to medium | Medium to large | Large-scale, long-term, high-load environments |
Specialised systems | Basic electrical and plumbing | HVAC, data wiring | Piping systems, cranes, automation, explosion-proof zones |

Industrial construction comprises several heavy-duty and larger-scale requirements.
Key components of an industrial construction project
A successful industrial build involves multiple layers of engineering and coordination. Some of the key components that go into a project are:
1. Structural steel and frameworks
Strong load-bearing steel frameworks are essential for supporting equipment, walkways, and storage areas. They are often engineered for durability and flexibility.
2. Piping and utility systems
Industrial piping systems are used for transporting gases, liquids, or chemicals across different sections of a facility and are designed based on pressure, temperature, and material requirements.
3. Foundations and flooring
Reinforced concrete foundations and durable flooring are used to support heavy equipment and resist vibration or chemical exposure, especially for factory floors.
4. Safety and compliance systems
Ventilation, fireproofing, spill control, and emergency access systems are standard features installed to meet regulatory and safety standards.
5. Automation and infrastructure
Automation systems like SCADA and smart sensors support monitoring, control, and integration with production processes.
Work with the right industrial construction partner
Given its complexity, industrial construction services require experienced contractors who understand the technical, regulatory, and operational demands to build facilities that meet operational needs and compliance standards. Success depends on having the right partner, such as SJEC, that can manage that complexity with precision and reliability.
With decades of experience and in-house capabilities encompassing industrial construction services, steel fabrication, and more, SJEC delivers efficient, high-quality solutions across various sectors such as petrochemicals, renewable energy, and heavy manufacturing.
Planning an industrial project? Reach out to us today for a tailored consultation on your industrial construction project.
FAQ
What is industrial construction?
Industrial construction involves designing and building large-scale facilities like factories, processing plants, and storage terminals. These projects often require heavy-duty materials, systems, compliance standards, and safety protocols.
What is the difference between commercial and industrial construction?
Commercial construction focuses on business spaces like offices, malls, and hotels, while industrial construction focuses on facilities built for production and storage, and is generally more complex and heavily regulated.
What is an example of industrial construction?
Examples of industrial construction include refineries, food processing plants, and power generation facilities. Their scale of construction is bigger than residential or commercial ones, like houses.
What is an industrial building system?
In Malaysia, the industrial building system (IBS) is a technique in the construction industry of prefabricating modular steel or concrete components to speed up and improve build quality.