Explosive growth in construction sector stalled - examining the cause for the inactivity
In the pursuit of sustainable and efficient housing solutions, serial construction has emerged as a promising approach. Despite its numerous benefits, such as short construction times, cost savings, and reduced CO2 emissions, the adoption of serial construction in Germany has been slower than expected.
The reasons for this slow adoption are manifold, with systemic challenges in ecosystem integration, digital workflow adoption, regulatory readiness, and supply chain coordination within the construction industry being the primary culprits [1][2][4]. The construction industry tends to innovate in isolated pockets, failing to adopt integrated, scaled technological approaches. This fragmented innovation hampers the full potential of serial construction, as does the complexity of digitization and workflow automation [2].
Regulatory and market readiness issues also pose significant hurdles. Broader energy and sustainability transition reports show that while system performance improves steadily, progress on readiness—the regulatory frameworks, innovation ecosystems, and investment capacity—is slowing and even stagnating in some regions [4]. In Germany, this hesitation in regulatory and infrastructure preparedness can slow the scaling of innovative construction methods like serial construction.
Effective serial construction depends on a well-connected supply chain that can deliver standardized components reliably and on time. Disjointed supplier networks or underdeveloped logistical systems can impede the smooth implementation of serial construction projects [2]. Moreover, Germany's construction sector may be influenced by traditional practices, regulatory requirements, and a cautious approach to adopting new technologies, which further slows uptake despite the methods' advantages.
However, there is hope on the horizon. The German Association of Housing and Real Estate Companies (GdW) brought new momentum to the debate with the renewed framework agreement "Serial and Modular Construction 2.0" in 2023. This agreement aims to shorten planning and approval processes while ensuring architectural quality, energy efficiency, and sustainability [3].
The agreement provides a foundation for 25 system solutions from 20 providers, with examples including Nokera AG, Solid.Modulbau, Lechner Group, and Max Bögl [3]. These providers are pioneering a new generation of industrial manufacturing, with modern technology enabling the production of buildings that are individually designed yet standardized [5].
Examples of successful modular building projects abound, such as "Woodie" in Hamburg, the Gewobag project in Berlin, and Mannheim Franklin Village [6]. Hybrid systems that combine both traditional and modern construction methods are also becoming more popular [6].
Kitchens, bathrooms, ventilation, even heating systems: everything is installed and tested in the factory before the modules leave for installation on the construction site, ensuring high precision and flexibility [6]. Two main systems of serial construction are space module construction and element construction [7].
The Federal Ministry of Housing, Urban Development and Building sees serial construction as a strategically important instrument for making housing construction more efficient [8]. In 2023, around 28,400 apartments were built using prefabricated elements, accounting for 11.5% of all new construction in Germany [9].
Moreover, modular renovation is gaining popularity, with the share of serial renovations increasing from 2% to 23% between 2022 and 2024 [10]. The start-up ecoworks specializes in the serial renovation of multi-family houses [11].
Addressing these hurdles with a holistic strategy involving all stakeholders and scaled digital transformation appears key to accelerating serial construction deployment. By doing so, Germany can reap the benefits of this innovative construction method and contribute to a more sustainable future.
- To fully harness the potential of serial construction in Germany, it's crucial to address systemic challenges such as digital workflow adoption, regulatory readiness, and supply chain coordination, which have hindered the industry from adopting integrated, scaled technological approaches.
- The construction industry's reliance on traditional practices, regulatory requirements, and a cautious approach towards new technologies also slows the adoption of innovative methods like serial construction, despite their numerous advantages.
