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Home » Procurement Guidelines » Off-site collaboration and construction methods are gaining momentum in PEB

Off-site collaboration and construction methods are gaining momentum in PEB

By | June 8, 2023 3:58 pm SHARE

Off-site collaboration and construction methods are gaining momentum in PEB
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Rapid expansion and technological advances in the pre-engineered building sector are reshaping the global construction industry. The discussion that follows provides a quick summary of promoting integrated designs and expanding collaboration efforts both onsite and offsite to achieve effective pre-engineered and warehouse building.

According to a recent report by Grand View Research, Inc., the global market for pre-engineered buildings is projected to reach USD 30.79 billion by 2025. This growth is anticipated to be driven by a compound annual growth rate (CAGR) of 15.5 percent during the forecast period. The construction industry is experiencing rapid technological advancements, and pre-engineered buildings (PEBs) are gaining popularity due to their numerous benefits, including reduced construction time. As a result, the demand for PEBs is expected to surge in the coming years.

The adoption of off-site construction methods for commercial buildings is witnessing a significant rise. These structures are manufactured in a controlled factory environment, which ensures that they remain unaffected by adverse weather conditions. Furthermore, advanced machinery used in the manufacturing process helps reduce material costs, making it a cost-effective solution.

To meet the increasing demand, industry players are integrating across the value chain by providing turnkey engineering, procurement, and construction (EPC) solutions after the manufacturing of pre-engineered buildings. This integration is expected to drive the demand even further. However, manufacturers may face challenges due to the fluctuating prices of steel, which is a vital component in PEBs, throughout the forecast period.

When it comes to selecting a site for PEB warehousing, several factors need to be considered. These include logistics parameters, prospects, target segments, and corporate objectives. Ritesh Bhandari, the Managing Director of
Willus Infrastructure Pvt. Ltd. Elaborating on this aspect, say, “It’s crucial to carefully assess these considerations as they play a significant role in determining the economic and technological viability of the facility while also contributing to the overall environment. Making strategic, long-term, and well-thought-out decisions is key. Additionally, incorporating a degree of imaginative future planning can greatly aid in the final decision-making process.”

Latest advancements in pre-engineered building technology
Rajan Singh, the CEO of Modern Infra, sheds light on some exciting developments. First, there’s design flexibility with standing seam roof systems. These systems offer tapered and curved sheets, allowing them to meet even the most challenging design criteria. They are particularly suitable for roofs with large spans.

The standing seam roof system also offers a modern and clean look, making it ideal for architectural applications. In addition to its sleek lines, this roof system can be customised in various colours, including custom shades, to match any structure. The high design flexibility, along with multiple profile shapes, makes it an architecturally superior choice for roofing. This weather-tight and versatile design make standing seam roofs an excellent option for architecturally prominent commercial, industrial, and warehouse buildings.

Challenges faced in the PEB and warehousing sector
Ritesh highlights some of the challenges that arise in this industry. One challenge is the risk of delivery delays when purchasing steel directly from mills. This can lead to shortages, order closures, or even selling at a loss if steel prices decrease during the waiting period. On the other hand, end users may delay placing orders when prices drop, resulting in higher inventory carrying costs.

To cope with rising steel prices and pending orders, there is often a need to procure materials from existing stocks at inflated prices demanded by traders. The most viable solution has been to procure materials on the same day as the order. However, this can increase project delays and subsequently raise inventory carrying costs.

Despite these challenges, there is optimism that steel prices will stabilise soon, especially with the peak period for the infrastructure segment approaching. This would create a more stable procurement environment and minimise the impact on inventory costs.

Now, let’s address the challenges in matching cost differences while catering to sustainable and long-lasting demand for products and services.

Rajan acknowledges the global supply chain disruptions faced by industries, including the metal fabrication sector. Balancing costs with prices to maintain competitiveness becomes challenging due to rising energy and raw material expenses, as well as increased borrowing costs. It is vital to manage costs while upholding quality, revenue, and sales.

Seamless stakeholder coordination is ensured in PEB warehouse construction
When it comes to the success of a project, effective collaboration among stakeholders is essential. Ritesh emphasises the involvement of each stakeholder from the concept stage to the final creation. Clear communication, understanding of drawings, adherence to site compliances, and conducting kick off meetings all play a significant role in achieving seamless stakeholder coordination. By adopting best practices for collaborative design, engineering, fabrication, and execution, projects can be completed on time and within the allocated budget.

Fast and efficient construction
Fast and efficient construction is a notable advantage of preengineered steel structures, as highlighted by Dr. Saurabh Singh Bhadauria, Director & Founder of Stelloid Infrastructure Pvt. Ltd. Unlike traditional building methods, pre-engineered steel structures expedite the construction process. This is achieved through off-site prefabrication, where steel components are manufactured simultaneously in a controlled factory environment while the foundation is being prepared.

The adoption of off-site construction methods for commercial buildings is increasing, providing advantages like weather resistance and cost-effectiveness. Integration across the value chain by offering turnkey solutions further fuels the demand for pre-engineered buildings, although fluctuating steel prices remain a concern. Effective stakeholder coordination plays a crucial role in project success, necessitating clear communication and collaborative efforts. Additionally, advancements in pre-engineered building technology, such as design flexibility and on-site roll-forming, contribute to faster and more efficient construction processes. Despite challenges in the PEB and warehousing sector, optimism remains for stable procurement and minimised inventory costs.

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