"Throughout the entire process from planning to construction, there are potentials that the construction industry can tap into to increase its productivity and efficiency" writes EY in their newest report published on April 2023. "How the construction industry can develop its potential"
The three major levers described in this study have different effects that also work in combination. The impacts of these productivity levers, at various stages in the construction process, result in a reduction in both costs and time, creating capacity for potential additional projects. According to exemplary calculations, the increase in productivity can lead to a decrease in construction costs of up to 10 percent. This is based on an assumption of increasing element-based construction from 20 to 50 percent, with the benefits being more significant in residential construction compared to non-residential construction due to the higher complexity, where digitally supported process optimization has more impact.
To achieve an increase in productivity in the construction industry, the lever of industrial prefabrication is certainly the largest and most important. When work steps are moved from the construction site to the controlled and (partially) automated environment of a factory hall, much is shortened, improved in quality and simplified. This can have a big effect in terms of cost and time savings. Industrial prefabrication shortens the construction process by up to 30 percent. For example, in the case of a multi-family prefabricated house with 20 to 30 residential units, it can be calculated that up to 15 percent of the costs can be saved in the areas of planning, material and personnel for construction execution.
In addition, there are other effects: Processes can continue regardless of weather conditions. In addition, drying times on the construction site that occur with brick or concrete construction methods are eliminated. The high fragmentation of work sharing is at least partially eliminated. A high degree of prefabrication reduces the error rate, avoids delays and also makes operations on the construction site safer.
Download the full EY report here: https://www.ey.com/de_de/forms/download-forms/2023/04/ausbaufaehig-wie-die-baubranche-ihre-potenziale-entfalten-kann