Israel Lags in Industrialized Construction Despite Global Trends
While industrialized construction methods, involving factory-produced components and on-site assembly, are becoming standard worldwide, Israel faces significant hurdles in adopting these technologies. These obstacles include outdated regulations, high investment costs, and traditional work habits that hinder efficiency. This lag is evident in the construction sector's productivity, which has reportedly declined by approximately 10% over the past three decades, contrasting sharply with advancements in agriculture and technology.
Tal Yeshua, owner of the "Metyalim" hotel chain, exemplifies the potential of industrialized building. His chain recently constructed 34 hotel cabins in a kit form from Poland for its "The Village" hotel in Sde Nehemia, and is using industrialized planning for a 120-room hotel in Tel Katzir. Yeshua emphasizes that this approach requires meticulous upfront planning, unlike the "move-as-you-go" culture prevalent in Israeli construction, aiming to create a replicable product that reduces construction time and labor dependency.
Ariel Pokotinsky, CEO of EcoWall, a company specializing in industrialized building envelopes, highlights the disparity between Israel's advanced design capabilities, utilizing 3D modeling, and its lagging execution. He notes that while construction sites in 1982 and today appear similar, global trends have shifted towards pre-fabricated components, turning sites into assembly locations rather than production facilities. This shift is crucial as labor costs rise and the availability of skilled workers diminishes.
Companies like Shapir are developing advanced concrete mixtures to reduce reliance on worker skill, while Kaplankov Group is promoting 3D concrete printing, which can drastically shorten the structural phase of construction. However, regulatory frameworks, particularly licensing regulations from 2016, and outdated or conflicting standards present significant barriers. The process for approving new construction methods is lengthy and has historically approved very few, despite substantial investment. Experts suggest adopting international standards more readily to overcome these regulatory challenges and accelerate the adoption of modern construction technologies.
The benefits of industrialized construction, as demonstrated by EcoWall's facade systems, include significant time savings, up to seven months on a 20-story building, and cost reductions of NIS 50,000-70,000 per apartment. Despite these advantages and growing company output, the broader Israeli construction industry must overcome its conservative nature and regulatory inertia to fully embrace these innovations.
