The role of suppliers in the market of reused construction materials A supply chain perspective

Abstract

The construction industry is the industry that is using the largest amount of natural resources. The model of the construction industry has for decades been to “take, make, use, dispose”, a linear model not allowing materials in properties to be reused. Changing the construction industry to a circular model including reuse of construction materials is a way to reduce the impact on the climate from the construction industry. The suppliers of construction materials possess an important role in the transformation of scaling up the market of reused materials. Thus, the purpose of this thesis is to identify and analyze the Supply Chain role of suppliers in the market of reused construction materials. The research is based on interviews with 29 actors in the construction industry. First, actors involved in three projects were identified and interviewed, to create a holistic view of how the market of reused materials function. Thereafter, other actors, for instance suppliers, were interviewed to create an understanding of how different stakeholders in the construction industry work with reused materials. The interviews resulted in information about three projects and the processes of working with reused materials from a supplier’s and reuse hub’s point of view. Furthermore, it contributed with information about market drivers for the reuse market, challenges, collaboration and opinions about the future of the reuse market. Seven actors were identified as included in the market of reused materials. These are property owner, construction company, reuse consultant, supplier, reuse hub, architecture firm and demolition firm. Furthermore, several resources controlled by the actors and activities performed by them were identified. A number of key factors influencing the reuse market is discussed in the thesis. These factors are environmental sustainability, costs, market requirements, collaboration, communication, procurement process, logistics, matching supply and demand, and supplier capacity. The result from the study implies that suppliers possess an important role in the transformation of the reuse market. There are four main activities suppliers should implement to establish work with reused materials. First, they need to adapt operations to enable circular flow. Secondly, they need to focus on the take back process. Furthermore, the process at the suppliers must be updated, and finally the selling process of reused materials needs to be implemented.