Robots at the construction site

Abstract

Context - After the recession of 2008, the real estate market is picking up again. Amongst others due to the urbanisation and the increasing world population the real estate demand is growing. However, the current scarcity of workforce in the construction industry might become a huge issue in the future. In order to deal with the future real estate demand, the conventional construction industry needs to change. Although other industries are gratefully using newly developed technologies such as robots, innovations on the construction site are hardly used.
Objective - This thesis aims to investigate how a business model of a Dutch construction company has to change to make on-site robots feasible. This research provides different strategies for construction companies to implement robots for the construction of row-houses, in order to deal with the emerging issues.
Methods - This research is divided into three parts. The first section is a literature review providing an overview of currently developed robots, the status of the construction industry and the business models of construction companies. Secondly, an empirical part in which interviews are conducted to find out what the current business model of Dutch construction companies looks like. In addition, a case study in the dairy industry has been conducted as inspiration. In the final part, the operational section, all gained knowledge is combined and formulated as input values for the design of the adjusted business model. This is validated and complemented through a focus group with experts from the construction industry. For this research, the Business Model Canvas of Osterwalder and Pigneur is used as a framework.
Results - Three different strategies are designed, based on the current business models of construction companies. These proposed models are adjusted to the input of the chosen robot, the case study in the dairy industry and the outcomes of the focus group. In the business model of the first strategy, the construction job is outsourced to a sub-contractor, who responsible for the operation of the robot. Within this model, minimal adjustments are needed for the construction company itself. However, this is the most expensive way to construct. In the second strategy, the robot is also implemented as key partner in the current business model, in this case not as sub-contractor but as a supplier. The robot is rented by the construction company from an external equipment party. This scenario will require adjustments of the current business model. Although this business model is less costly than the first model, it is still more expansive than currently used construction methods. The last strategy implies the purchase of a robot by the construction company itself. The impact/influence on the business model is shown for a worst and a best-case scenario. This strategy will cause several changes within the current business model, of which the most important is the robot as new key resource. The difference in costs depends on the worst or best scenario. The worst scenario, turned out to be the most expensive one, while the best scenario will just have minimal impact on the costs.
Conclusions - Three different strategies are designed with matching business models for the implementation of on-site robots by construction companies. Therefore, it is impossible to develop one generic business models. Hence, the adjusted business models matching to the three possible strategies are based on a merged business model of all the participating construction companies. For each of the strategy, specific adjustments need to be made in the current business model. The first business model, in which the robot will be implemented by a sub-contractor turned out to be the most expensive scenario. Nevertheless, according to the practice, this will be the most promising scenario to start implementing robots. The fact that construction companies take a passive position towards innovations confirms the findings from the literature study that concludes that construction companies are described as traditional and conservative. However, when the urgency for the use construction robots grow, due to an increasing shortage of workforce, it is more likely that the last strategy will be implemented; the purchase of a robot by the construction company itself. This will be the most obvious one, regarding costs, efficiency