Hello, I’m a relatively new UE user, no more than 100 hours in the program. I’m developing a game, or rather a game concept, where construction is based on blocks and elements. The brightest examples of such games are Scrap Mechanic, Space Engineers, Robocraft, Trailmakers, Brickrigs and TerraTech.
In the game, the player builds the technique from pre-prepared elements and blocks. Since each block has its own collision, it is affected by physics and each of these elements can be destroyed, the presence of several buildings on the map can cause serious performance problems.
My goal is to minimize these problems.
At the moment I have a rough idea of what to do, for example, as in Scrap Mechanic if possible to combine blocks into a single grid, or as in Brickrigs to bake all the blocks into a single object. However, to be honest, I don’t have enough knowledge to realize it properly. It is also not very clear how in such a situation, let’s say, when a projectile hits the blocks that are united in a single grid, to calculate which block should be destroyed. It is even more difficult for me to understand how to calculate a certain block if a cluster of blocks turns into a whole object like in Brickrigs.
I would like to hear your opinion on this, because, as I said before, I can’t manage 
I’m also not sure which method is better, maybe I don’t understand something and there are more efficient methods. I will be glad to any suggestions.