MEM Cuts Costs as Interest Rates Rise/ Interest rates are on a roller coaster ride and that roller coaster is heading up. This is a very real, and can be a very damaging problem for the US economy and the construction industry. As the chart below demonstrates the march higher began prior to April of 2022 and continues to this day. The purpose is to slow inflation to around 2% by putting downward pressure on economic activity through Federal Reserve rate hikes. In other words if money becomes too expensive, then industries such as construction will slow. The economy does not shift at a whim especially when all the forces are aligned for inflation at this time regardless of Fed policy. The point is that this maybe a long trend and not just a blip. Inflation has been very sticky and continues to be.
So what can be done in the construction industry to combat high interest rates that maybe here for sometime? Borrow less. Our industry engages in long-term commitments and obligations with slim margins. That applies more pressure as we build, meet payroll and see operating costs explode as simultaneously financing those costs increase. Suddenly, we grasp for every potential savings available by trimming general costs and seeking alternatives.
The right alternative is a commercial quality elevator that has a long-term history of success and that can replace the need for a construction elevator on the jobsite. By consolidating the tasks of a permanent elevator and a construction hoist, costs can be significantly reduced. But, only an elevator fully installed at the beginning of the project and ready for start up early on can meet the need.
The MEM Elevator System can cuts costs as interest rates and inflation holds firm. Below are just two recent projects that we just finished installing where the permanent elevator doubled as the construction hoist. Not having to employ a construction elevator can reduce costs immensely. This option is not just a way to save during inflationary times, but just smart business.
In both cases the elevator unit or MEM System was placed early in the project. The system is designed to be self-supporting, so it is placed and awaits power, set up and inspection. Placing the fully installed elevator takes less than four hours and the set up portion of the project is usually less than a week in total hours. This makes it not only plausible to save significantly, but a certainty of reducing costs.
As you can see from the photo the elevator operates just like any other construction hoist with a set call box for access. We also go to great lengths to protection the cab interior. Protective panels and wraps are in place during the build. You can also see that it is not a project dependent on any one type of construction method. the MEM System is at home in modular construction to stick built applications.
Additional project savings are due to fact that the MEM Elevator System arrives with the elevator fully installed in the factory produced hoistway. This includes elevator doors and frames. That means no call backs on tape and mud crews, painters and flooring contractors. It is estimated that $40,000 per elevator opening can be saved on most jobs.
If you want to find out more about how choosing the right elevator cuts costs click below. You can either get a thumbnail budget number for the MEM System for your next project or, your can schedule a live virtual tour. During the tour we will pull back the curtain, so you can see how we produce the best elevator solution for all mid and low-rise applications.
Elevator cuts costs as inflation rises. Inflation is not just a term thrown around by the Wall Street crowd or economists. Inflation is very real, very damaging and turns out not transitory (whatever that means). As the January numbers reveal inflation is with us. And an economy does not shift at a whim especially when the all the forces are aligned for inflation and the social psychology for it has set in. The ripples are felt throughout the nation in every home and every sector.
That is especially true in the construction industry. We are engage in long-term commitments and obligations with slim margins. That puts more pressure as we build, meet payroll and see operating costs explode. Suddenly, we grasp for every potential savings available by trimming general costs and seeking alternatives. Surprisingly, the elevator cuts costs as inflation rises, but only if you choose the right alternative.
The right alternative is a commercial quality elevator that has a long-term history of success and that can replace the need for a construction elevator on the jobsite. By consolidating the tasks of a permanent elevator and a construction hoist, costs can be significantly reduced. But, only an elevator fully installed at the beginning of the project and ready for start up early on can meet the need.
This month’s project spotlight is really several projects, but two in particular that we just finished installing where the permanent elevator doubled as the construction hoist. Not having to employ a construction elevator can reduce costs immensely. This option is not just a way to save during inflationary times, but just smart business.
In both cases the elevator unit or MEM System was in place early in the project. The system can be engineered to be self-supporting, so it is placed and awaits power, set up and inspection. The set up portion of the project is usually less than a week in total hours. This makes it not only plausible to save significantly, but a certainty of reducing costs.
The Miss ECB project fully demonstrates the time and costs savings. As you can see it operates just like any other construction hoist with a set call box for access. Finish protection is key. Protective panels and wraps are in place during the build. You can also see that it is not a project dependent on any one type of construction method. the MEM System is at home in modular construction to stick built applications.
You can see there are two sections as pictured above. They are stackable units that make up the hoistway. The entire process took less than four hours to set. As a result, the fully installed elevator through the MEM System was ready for start up and inspection once power was supplied.
If you want to find out more about how choosing the right elevator cuts costs click below. You can either get a thumbnail budget number for the MEM System for your next project or, your can schedule a live virtual tour. During the tour we will pull back the curtain, so you can see how we produce the best elevator solution for all mid and low-rise applications.
When you get over a couple of stories in a building project a man lift or construction elevator becomes a reality. Numbers bear it out even if it is a requirement based on number of stories. The need is there due to the cost of having a construction team without one tromping up and down stairs all day. Workers are simply less productive, so although the cost is often hidden in hours lost by using a staircase, it is real and real expensive.
But, then you have the added cost to your project for the temporary elevator, plus availability, the set up and inevitable delays. It seems you are either paying too much for the savings if you get one or you simply don’t have a construction elevator onsite at all because for a low or mid-rise project it seems cost prohibitive. So, here’s the question: Why use a temporary construction elevator at all when a permanent modular elevator could be used instead?
It makes perfect sense. A commercial quality, modular elevator can be placed and turned on when electricity is available at the jobsite. When construction is finished, it becomes the permanent elevator.
Now before I get started, let me say up front that this is not the perfect solution for every job. If your desired use is not a low or mid-rise project it is probably not a good fit. We are simply not the best solution for high-rises.
Also, if you are wanting to move tons of palatized materials, likewise we are not a match either. Elevators designed for passenger use usually have a capacity of between 2000lbs and 5000lbs. We, of course, can make elevators that have a huge capacity weight-wise, but the cost would outstrip the benefit once the building is opened.
In addition, passenger elevators are limited in size generally. First, you have the cab size. We can make elevators with a cab big enough for a hospital bed (the only limitation is getting elevators under the overpasses on a flatbed truck). But then you have the door issue as well. Usually, passenger elevators have door openings of 36 or 42 inches, although some can be wider. Keep in mind the door opening does not extend across the entire elevator cab. So, if you want to take items to the top floor larger than the cab or the door opening our elevator is not the best way.
There are plenty of other solutions that do not involve an elevator at all if moving big, heavy items is needed. But in most construction scenarios we are the solution or at least worthy of consideration.
I like to say that this blog is designed to be informational and not just a sales pitch. The above is exhibit A of just that. Shoehorning us into a project where it is not a solution makes no sense and damages our credibility. It also damages the credibility of the modular concept overall. We can think outside of the box, and have even made round pegs fit into square holes (see this corner post project) but, modular is not always the best solution.
However, in the majority of construction projects, at the low and mid-rise level we are the solution. This is especially true if you are looking to cut costs regarding the use of a temporary elevator during the construction phase.
In other words, if moving men, tools and some materials is needed on building site, that role could be filled by the modular elevator quite easily and at minimal additional costs.
So, when you start looking at your construction schedule and logistics think about the elevator first. This is not an earthshattering thought. It is common practice for the hoistway or hoistways to be the first item on the drawing board along with stairs. But, here’s the change… don’t think just hoistway. Think fully installed elevator.
MEM elevators are the hoistways and fully installed elevator. They are a steel shaft wrapped in drywall for fire protection with a complete elevator already inside. The elevator car, rails, wiring, doors and frames are in place when it arrives at the site. In the example video below, that is what you are seeing; a fully installed elevator being set in a building.
Most projects require about 4 hours to get the elevator craned into place.
Then the start up can begin once there is electricity at the building site. Because everything is generally already installed, it takes about a week to get the elevator running. With the inspection, and following the appropriate rules for a construction elevator the modular unit can be used during the building phase.
To make the above possible keep this in mind regarding modular elevators:
Modular elevators (especially from MEM) can help you on the jobsite as both a construction elevator and passenger elevator. It can replace the cost of a construction elevator or it can bring a construction elevator to a job where one was not considered due to cost. It maybe time to consider the benefits of a modular elevator as your construction elevator solution. Click the button below below for a Fast Track quote and to get the process started.