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Dr. Constantin
Greiner
Dr. Martin
Handschuh
Dr. Constantin Greiner
Dr. Martin Handschuh
WHITEPAPER
10 / 2024
Whitepaper: Serial renovation – cost reductions, efficiency gains and new industry structures through industrial prefabrication in refurbishment
Our new whitepaper, which we produced together with the consultancy eco2nomy, shows that serial renovation offers considerable potential for reducing costs and increasing efficiency.
As part of the climate targets for the building sector, more than 70% of multi-family homes in Germany must be renovated to make them energy-efficient by 2045 in order to achieve climate neutrality.
Serial renovation as the key to climate neutrality
The whitepaper emphasizes that serial renovation must play a central role in achieving the goal of climate neutrality in the building sector. “Without industrial prefabrication and optimized construction processes, we will not be able to achieve the necessary renovation rate,” says Dr. Martin Handschuh, industry expert at eco2nomy. “Serial renovation enables a more efficient and cost-effective renovation, which is essential in ight of the shortage of skilled workers and low productivity in the construction industry.”
According to the study’s calculations, heating systems or district heating connections will need to be replaced in over 70% of apartment buildings by 2045. In addition, more than 60% of buildings will require insulation measures and the replacement of building envelope components. This requires an annual renovation rate of 3%, which would be achievable achievable through serial renovation in a realistic scenario.
20% cost savings through serial renovation
Compared to conventional renovation processes, up to 20% of costs can be saved through serial prefabrication. This is achieved by shifting the work to standardized, industrial value-added stages such as planning, prefabrication and logistics. “Prefabrication significantly reduces construction site costs and increases productivity through industrial economies of scale without the need for more tradespeople,” explains Dr. Constantin Greiner, construction expert at Munich Strategy.
Up to 120,000 residential units per year could be renovated serially
The analysis also shows that buildings with up to 120,000 residential units in Germany could be renovated serially every year. The focus here is on unrenovated apartment buildings from the 1950s to 1970s, which are particularly suitable for serial renovation due to their design. The criteria for suitability are, for example, a living space of over 1,000 square meters, a number of storeys between two and eight, simple cubatures and façade structures as well as easy access to the property. Around 20% of buildings meet the criteria, which corresponds to a potential of 10,000 to 15,000 apartment buildings with up to 120,000 residential units per year.
Clients only partially satisfied with renovation specialists
The whitepaper points out that the renovation specialists in pilot projects have so far only partially met the expectations of clients. “There is potential for optimization both in terms of the design of offers and prices as well as in terms of interaction with customers. It is important to offer customer transparency so they can make good and well-considered decisions,” says Dr. Martin Handschuh. Better coordination between real estate companies, manufacturers and refurbishment specialists will therefore be crucial in order to exploit the full potential of serial renovation.
Dr. Constantin Greiner underlines the importance of service integration: “Only if all parties involved work together in an integrated process can we realize the efficiency gains.” Such an ecosystem enables interface-reduced work, clear responsibilities and learning effects that lead to further optimization of the renovation process.
Contents of the whitepaper (excerpt)
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Specific energy consumption of buildings by year of construction
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Cost estimate after building efficiency improvement [schematic]
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Costs along the value chain of serial vs. conventional renovation [schematic]
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Savings potential along the value chain [schematic]
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“Sweet spot” serial renovation: Building stock of German multi-storey residential buildings
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Forecast number of serially refurbished buildings [in units/p.a.]
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Pilot projects serial renovation
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Conventional vs. serial renovation process
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Ecosystem of specialists along the value chain
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23 pages
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KONTAKT
Connecting knowledge.
Would you like to know how your company can benefit from serial renovation? We are happy to be your sparring partner.
If you would like to order our whitepaper (nominal fee: EUR 199.00 plus VAT), please send an e-mail with your billing address to presse@munich-strategy.com.
Munich Strategy is an international management consultancy for the construction supply industry. We develop growth and internationalization strategies, support mergers & acquisitions and shape transformation processes for leading companies in the construction industry.
Contact
Munich Strategy GmbH & Co. KG
Türkenstraße 5
80333 München
t +49 – 89 – 1250 1590
presse@munich-strategy.com
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