Israel Lags in Industrialized Construction Despite Global Shift
Israel is falling behind in adopting industrialized construction methods, a trend rapidly gaining traction worldwide to address labor shortages, rising material costs, and project delays. While countries like Poland are producing prefabricated building kits, such as those used for the "Villages" hotel in Sde Nehemia, Israel's construction sector remains mired in traditional practices.
Tal Yeshua, owner of the "Metyalim" hotel chain, emphasizes that industrialized building requires meticulous pre-planning, contrasting sharply with Israel's "build-as-you-go" culture. This approach, he notes, aims to create a "reproducible product" that shortens construction times and reduces reliance on manual labor.
Ariel Pokotinsky, CEO of EcoWall, highlights a stark productivity decline in Israel's construction sector, with efficiency dropping by approximately 10% since 1995, while other industries have seen significant gains. He attributes this stagnation to outdated construction methods, citing the use of cranes from the 1970s on modern sites, despite increased safety and environmental regulations.
Companies like EcoWall are developing advanced industrialized systems for building envelopes, aiming to reduce construction timelines and costs. Ackerstein Group recently acquired a controlling stake in EcoWall, signaling a move towards broader adoption. These innovations promise significant savings, potentially between 50,000 to 70,000 shekels per apartment, and drastically shorter project durations compared to Israel's current average of 48 months for a 10-story building, versus 24-25 months in Europe.
Despite technological advancements and potential cost savings, significant regulatory hurdles and outdated standards impede the widespread adoption of industrialized construction in Israel. The existing regulatory framework, particularly licensing regulations from 2016, creates a lengthy and complex approval process for new building methods, discouraging innovation. Experts suggest aligning with international standards could accelerate progress, but the current system prioritizes adherence to Israeli standards, creating a barrier for globally approved technologies.
