Reducing Construction Costs Through Increased Efficiency

Elektrofabrik - Innovative Solutions for a Challenging Time in the Construction Industry

The Elektrofabrik – Innovative Solutions for a Challenging Time in the Construction Industry The construction industry is facing significant challenges. In addition to material shortages and supply chain disruptions, the industry is now burdened with rising interest rates affecting potential customers. This has resulted in construction costs remaining high while demand decreases. At the same time, there is a growing need for housing, and political directives to create affordable housing add additional pressure. In this context, innovative ideas and creative approaches are needed to reduce construction costs across all sectors. This presents an immense challenge, especially considering the generally tight budgets in the construction industry. Martin Dornieden emphasizes that the costs per trade must be reduced by about 20% to continue creating housing. Consultation with Smartfabrik as a Starting Point The Elektrofabrik has taken on this monumental task by starting to analyze the existing installations of the construction company based in Mönchengladbach. Every component of the electrical installation, from the initial cable laying to the final circuit breaker, was scrutinized, and potential cost-saving opportunities were examined. All aspects of the electrical trade were thoroughly considered and optimized. New Approaches in All Areas – From Wiring to Procurement to Prefabrication One of the co-founders, Sebastian Gehmlich, speaks of a radical shift in mindset. The Elektrofabrik questions all processes and develops new approaches. This pertains not only to cable laying but also to procurement and component prefabrication. Traditional approaches are put to the test to significantly reduce construction costs. Sebastian and his team’s vision is to develop more efficient cable routing solutions that not only save costs but also time. This creates room for innovative solutions and enhances the competitiveness of construction companies in these challenging times. In an era when the construction industry faces significant challenges, the Elektrofabrik stands out as an outstanding example of how innovation and creativity can shape the future of the industry. The reduction of electrical installation costs by approximately 20% is a significant step towards cost-effective and sustainable construction projects. Confirmation of Proof of Concept and Future Outlook The proof of concept has already been successfully confirmed in over 50 houses. Installation costs have been reduced, and change orders resulting from additional unforeseen costs have been nearly eliminated. Further cost-saving potentials have been identified and will be examined by Smartfabrik in the next engineering rounds, and then directly implemented by the Elektrofabrik. This allows the construction company to continue generating additional savings and remain competitive in the long term. Expansion of the Business Model This business is now set to expand to other B2B customers in the property developer sector. Currently, the order books are filled with houses from co-founder Martin Dornieden, but the team is poised to grow rapidly and make their expertise available to other clients. Sebastian Gehmlich and Sebastian Strickling see enormous growth potential in the electrical field and have a clear intention to acquire more customers in the coming years. Their goal is to support the construction industry with innovative electrical solutions, making a sustainable contribution to the development of the industry. With the successful proof of concept as a solid foundation, they can confidently embark on this path and establish the Elektrofabrik as a significant partner in the construction industry.