Precast concrete—will this technology become more common on Polish construction sites?

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Precast concrete—will this technology become more common on Polish construction sites?

Last year was yet another year in a row in which the value of the construction market increased. However, the accumulation of projects carried out simultaneously across many segments of the construction industry generated numerous problems, one of the most acute of which for construction companies was the limited availability of workers. As the difficulty in recruiting workers increased, solutions and technologies that reduce labor intensity gained in importance. It is therefore not surprising that an increasing number of construction market participants were looking more favorably toward prefabricated elements than in previous years, especially since their use allowed for a significant acceleration of project completion. What is the current picture of precast concrete that emerges from the survey conducted by PMR among investors, architects, and contractors, and how is the future of this technology perceived?

Precast concrete has become a permanent fixture on construction sites

Precast concrete elements are a well-known and relatively common solution in most types of construction projects. On average, three out of four respondents involved in industrial and warehouse construction projects use precast concrete elements. However, the ratings in other segments are not significantly lower, which indicates that these types of solutions are quite popular.

It is worth noting that the widespread use of precast concrete elements in a given segment of the construction industry does not necessarily translate into large-scale application or a significant share of this technology in the context of the entire project.

What is the most important factor in deciding whether to use precast concrete elements on a construction site?

The distribution of responses varies depending on the group of respondents. When this question was posed to investors, the most common response cited shorter construction times. This factor proved to be crucial for more than half of the respondents in this group. At the same time, a shorter construction time was consistently the most frequently cited factor among investors, regardless of how we analyzed their responses (by region or project size).

Concrete Prefabrication Technology from the Perspective of Contractors

According to a survey conducted by PMR among construction companies, the ratings for precast concrete products are very favorable. On average, three out of four contractors rate precast concrete products positively (good or very good). Contractors from the southwestern region rated concrete prefabrication technology the highest, with 100% of responses being positive. On average, one in four surveyed companies rated this technology neutrally (neither good nor bad)—such opinions were particularly common among companies from the eastern region (one-third of respondents). Notably, there were virtually no negative ratings (only 1%) across the entire surveyed population.

Is the share of construction companies using precast concrete elements growing year by year? According to the construction companies surveyed, this is indeed the case. This year, too, the number of companies that will begin implementing such solutions in practice is expected to rise. More than a quarter of the construction companies surveyed expect the share of companies using precast concrete elements to increase compared to 2019. However, the relatively high level of adoption of these solutions means that the potential for further growth in these statistics will diminish in the future.

Contractors have no doubt whatsoever about the time savings resulting from the use of prefabricated components. In the contractors’ opinion, none of the elements listed in the study can be completed faster using traditional technology. Only in the case of walls did a noticeable percentage of companies (31%) believe that both technologies are comparable in terms of time. However, when it came to balconies, stairwells, and stairs, the contractors surveyed had absolutely no doubts. All of them indicated that the use of prefabricated technology results in time savings.

COVID-19 has derailed the economy from its previous trajectory, but will this affect the growth prospects for prefabrication?

There is no doubt that the coronavirus pandemic will leave its mark on the pace of economic growth, and the full impact cannot yet be estimated. Nevertheless, it is already clear that the construction sector has been affected to a relatively small extent in the short term, meaning that the outlook for its future growth has not deteriorated drastically. Unfortunately, the indirect effects of the lockdown may result in fewer orders for construction companies over the next dozen or so months. Will a decrease in construction projects make it easier to assemble construction crews, and will the advantages of prefabrication be forgotten? It does not appear that this development will be able to reverse the current trend. Even if it becomes slightly easier to find workers (which is by no means certain given the outflow of foreign workers), shorter construction times and the consistent quality of factory-produced components will continue to make this technology a compelling choice. In fact, this technology has many more advantages, although some people stubbornly view it through the lens of the “great panel” buildings from the communist era.

Process automation is a global trend that will not bypass even a sector as conservative as construction. This is all the more true given that precast manufacturers are not standing still; for years, they have been expanding their production capacity and modernizing their production lines, thereby increasing the number of products and solutions they offer and improving their performance—including economic efficiency. A significant barrier to the wider adoption of this technology in our country remains the issue of market participants’ mindset and preferences. However, as our study shows, favorable changes are taking place in this regard, largely driven by the positive evaluations provided by those who are already using this technology. The promotion of projects built using ready-made, prefabricated components—which we should expect to see more of in the coming years than ever before (especially in residential construction)—will also play a significant role in raising awareness and improving public perception.

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