Abstract

Off-site manufacturing is emerging as an advantageous production model in the construction industry. In recent years, many tier 1 construction companies are including off-site production as part of their portfolio. Likewise, this change of model is attracting new entrants to the sector. The shift from the traditional on-site construction model to off-site manufacturing is unleashing positive impacts on projects in terms of cost, time efficiency, sustainability, and improved quality. Nonetheless, this phenomenon has yet to be analysed from the perspective of how this change in production processes influences the inclusion of services in company business models. This study explores whether and how industrialisation arises as an enabler for servitization in the construction sector. By means of an in-depth case study, our research identifies different product-service system (PSS) typologies associated with industrial construction and reveals their potential to increase additional services. Furthermore, the research sheds light on how industrial construction provides an opportunity to integrate offers and features that work towards reducing the environmental impact of construction projects and the operation and maintenance of built assets.

Highlights

  • Ferran Vendrell-Herrero and LoreaOver the last decade, we have seen how different industries have changed their way of conducting business by increasing customer orientation and evolving the way in which the offer of products and services is developed, integrated, and delivered [1]

  • On the grounds of this research, we argue that adopting industrial practices is an enabler for developing servitization in the construction industry

  • The unit of study is a company belonging to an industrial construction cluster, and has been operating in off-site construction for the last 5 years

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Summary

Introduction

Ferran Vendrell-Herrero and LoreaOver the last decade, we have seen how different industries have changed their way of conducting business by increasing customer orientation and evolving the way in which the offer of products and services is developed, integrated, and delivered [1]. The deployment of product service systems (PSS) in the construction sector still remains marginal [8], while in other industries, such as manufacturing, the servitization of businesses is becoming the “new normal” This increased integration of offering services is mainly explained by two important factors: (1) service advantages: stable revenue streams, enhanced customer satisfaction, and difficulty of being replicated [9,10], and (2) the advent of the ongoing technological revolution, enabling advanced services to be introduced that are capable of bringing added value to businesses and end-customers alike [11]. Some factors have been recognised as barriers preventing the deployment of servitization in construction: the lack of standardisation, lack of capabilities, Narvaiza Cantin

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