Overview
The construction and building products industry is at a pivotal moment, facing extraordinary change and opportunity due to economic downturns, lockdowns, trade wars, and significant infrastructure investments. Rising construction costs are impacting both commercial and residential sectors, necessitating a shift from outdated strategies to adaptable approaches.
With over 350+ successful engagements, our infrastructure and construction consultants have empowered leaders across materials, services, wholesale, and distribution to achieve remarkable results. As sustainability becomes essential, we help clients rethink operations, investments, and future planning—whether they are manufacturers or engineering firms.
Our global experts accelerate digital innovation, enhance cost structures, and strengthen supply chains. We’ve supported the industry’s top companies with commercial due diligence for major projects and excel in post-merger integration, specializing in sustainable building materials like green steel.
As global populations shift in their work and living patterns, profound transformations are imminent. Only the boldest and most innovative companies will thrive, and we are here to ensure you remain among them.
Market Insight
Setting New Standards for Efficiency: Industrialized Design and Construction Benefits
Leading markets are increasingly adopting modular construction techniques, but challenges hinder widespread scalability. While manufacturing has embraced assembly-line efficiency for decades, the construction industry is only now beginning to transition to more efficient, off-site methods, often referred to as industrial design and construction (IDC). This involves producing building components in factories, which are then transported to sites for assembly.
IDC offers significant benefits, particularly for large projects, such as a 20% reduction in labor and material costs, a 30% decrease in on-site labor needs, and construction time savings of 20% to 50%. Additionally, it can lead to better design focusing on residents’ needs, higher construction quality, and adherence to specifications. Moreover, IDC practices can promote sustainability by generating less waste and emissions.
However, the construction industry remains fragmented, with many contractors still assembling buildings piece by piece under unpredictable conditions. This, combined with inefficiencies from bespoke project requirements, fluctuating economic conditions, and varying building codes, impedes the adoption of modular construction.
To facilitate this transition, stakeholders need to collaborate and share transitional costs. Designers must learn to create buildings suitable for off-site construction, and builders will need to train workers in new skills. Regulatory differences also necessitate close cooperation with local authorities to ensure compliance with varying standards.
Each segment of the industry must act to ensure success. Real estate developers can drive demand for modular construction by focusing on higher returns and standardization, while architects need to refine their designs to align with manufactured components. Manufacturers have a unique chance to redefine their operations, and construction companies must adapt by expanding into off-site assembly and enhancing digital design capabilities.
Ultimately, while challenges exist, the shift toward modular construction presents a significant opportunity for efficiency and innovation within the construction sector.
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Sanjay Dudani
Founder & CEOSanjay Dudani is Elaron’s Co-founder and CEO. An IIM Lucknow & NIT Calicut alum & backed by a...
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