Network driven model for industrialized constrution

The high cost of housing construction in Sweden is well-documented, leading to a shortage of housing and unaffordable living costs Despite extensive research and development efforts, construction costs continue to rise over time, making it increasingly difficult for developers to meet their investment budgets.

There is a pressing need for housing that is economically viable, expanding accessibility across locations and demographic groups.While research has targeted cost reduction in both traditional and industrial construction, long-term cost trends remain unchanged. We believe that new approaches hold the potential to significantly reduce construction costs and break this trend.

The core principles of industrialized construction are sound, but challenges have impeded widespread adoption and cost reduction.

Valuable insights can be drawn from supplier chains and production systems within and outside the construction sector.We see an opportunity to collaborate in constructing affordable housing through an open building system.

Our project proposal introduces a business model that integrates industrialization and supplier networks into a novel value chain.

Drawing from recent insights in industrial construction and dialogues with leading Swedish housing developers, our ambition is to revolutionize housing production based on accumulated knowledge, existing suppliers, solutions, and available production capacities.

We aim to utilize the potential of digitalization to create an efficient production system and customer-specific solutions within a standardized and open building system.By addressing the building system, supplier network, and production system, we believe it is possible to achieve cost-efficiency and high flexibility in construction.

These three components form a partially new value chain in the construction industry, constituting an untested business model.

Today, being a key player with access to building systems, digital tools, and the required construction processes for an integrated value chain is possible without necessarily owning production facilities or on-site assembly personnel.

Leveraging existing resources also minimizes the need for substantial production investments.The project´s purpose is to describe and validate the principles within the building system, supplier network, and production system, enabling practical implementation in subsequent pilot projects.

The project outcomes will include knowledge-building regarding the structure and central principles of the building system, supplier network, and production system. This knowledge is a prerequisite for later stages of practical application.

The results will provide insights into cost levels, environmental performance, buildability, and the business principles required to establish a critical mass of suppliers.