Abstract
Many studies concerning innovation have been carried out on building contractors, but very few have studied innovation among the suppliers of building materials. In Sweden the cost of building materials is approximately 40% of the total building costs. Some products also need more handeling than others, therefore not only cost but also productivity is affectedby the suppliers of building materials. This article focuses on innovation among building material suppliers which is found to be low. The suppliers are compared to other lines of business to show the level of their innovation processes. The article is based upon slightly over 800 companies of various sizes. Important findings are:A smaller proportion of the Building Material suppliers than of the Other Manufacturers offer new products, invest in R&D, machinery and marketing the introduction of products.The Building Material Suppliers have a greater proportion of their sales from older products and have older equipment than Other Manufacturers.The Building Material Suppliers have poorer production processes and they are not as good at finding new ides as the Other ManufacturersThe study reveals barriers within the trade, where motivation seems to be of great importance.
Highlights
Innovation in the building trade is often described from the point of view of construction companies
They have, he says, fallen behind the rest of the manufacturing industry in terms of productivity, quality and value for money. He claims that there are difficulties in measuring innovation. He says, of industry performance using data organized in SIC (Standard Industrial Classification) categories must either encompass the whole value system for each industry compared, or compare only the same parts of the value system (Winch, 2003)
Processes are only improved among 36% of the Building Material Suppliers compared to 68% of the companies in the group of Other Manufacturers
Summary
Innovation in the building trade is often described from the point of view of construction companies. Winch (2003) has stated that the contractors have not innovated enough. Winch (2003) has stated that the contractors have not innovated enough They have, he says, fallen behind the rest of the manufacturing industry in terms of productivity, quality and value for money. He claims that there are difficulties in measuring innovation. The SIC for construction on the other hand excludes A, but includes all firms engaged in B, C, D (Winch, 2003: 653).
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