Product Service Systems in Construction Supply Chains

Abstract

The shipbuilding, automotive and aerospace industries are examples of industries offering product service systems (PSS) to their customers, i.e. they combine physical products with services to add increased value. While product service systems are well established in many manufacturing industries, it has barely emerged in the fragmented and project-based organisation of construction. The objective of this study is to identify and critically review examples of product service systems in construction supply chains, with the purpose of describing how it challenges prevailing business systems and organisation of construction work. The study rests upon two case studies carried out at Gyproc Saint-Gobain in Denmark and Celsa Steel Service in Sweden. The findings reveal significant challenges related to the implementation and marketing of the product service systems provided. Companies that develop and expand their business offers by providing new product service systems tend to find themselves operating in two parallel market segments, i.e. the traditional market of construction components and the new market of product service systems. The PSS-offers reviewed in the case studies show a strong focus and emphasis on the development of the offer and the operational platform, while the companies’ market positions remain unchanged. Thus, the case study companies organise and operate their businesses and market relations as before the implementation of the product service system. The conclusion is that development and implementation of product service systems in construction supply chains requires awareness in the companies’ offer of products and services, well-established operational platforms, and particularly, a renewed market position.