Abstract
This paper establishes that the emergence of integrated manufacturing-service businessesis a key trademark of innovative industries and ‘the new economy’. Having establishedthe benefits of such integration, the phenomenon is reviewed in relation to theAustralian building and construction (B&C) sector. It is hypothesised that manufacturerssupplying building and construction work are adding value to their own activity, and that ofthe sector, by enhancing their product offerings via the provision of services. A small surveyis undertaken, with the findings revealing the nature of service provision by manufacturersin the Australian B&C sector. It appears that the ‘bundling’ of products and servicesby these manufacturers is a key competitive strategy yielding significant benefits for themand the sector as a whole.
Highlights
The focus of this paper has been prompted by:z emphasis in the ‘knowledge-economy’ literature on the increasing role played by services in economic growth; and z recent analysis which suggests that the most dynamic sector of many economies is an integrated manufacturing-services sector.The paper initially describes the emergence of an integrated manufacturing-services sector in the context of increasingly knowledge-based economic systems
It reports on the results of a survey of manufacturers in the Australian building and construction (B&C) sector, investigating their involvement in service provision
The findings reveal the nature of service provision by manufacturers in the Australian B&C sector
Summary
The focus of this paper has been prompted by:. z emphasis in the ‘knowledge-economy’ literature on the increasing role played by services in economic growth; and z recent analysis which suggests that the most dynamic sector of many economies is an integrated manufacturing-services sector. Such services primarily involved providing clients with information regarding the characteristics of the material, product, machinery or equipment supplied This included, for example, the provision of advice regarding strength, durability, weight, operation, systems integration and installation, for example. Project work primarily involves work carried out on a construction site, but it includes site-related work such as product supply, transport services and the components of design/engineering/software services provided off-site. At least one survey respondent was involved in the system to this extent, if all the businesses controlled by the parent company were considered This manufacturer provided all of the project services noted above, viz., installation, earth-moving, landscaping, plumbing, electrical, project management, ownership and facilities management.
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