Installers and SME contractors offside on sustainable renovation

The transition to sustainable housing is seen as an opportunity in the construction and installation sector for installers and SME construction companies. Research by Utrecht University has found that the roles of installers and SME construction companies in the Netherlands are severely depressed in the sustainable housing renovation sector.

According to researchers at the Copernicus Institute of Sustainable Development at the University of Utrecht, independent contractors and small to medium sized construction companies do not play to their full potential in the sustainable housing renovation market. At the same time new parties are entering the market providing more competition.

New trends changing renovations

The researchers describe how emerging trends in the traditional workflow of installers, wholesalers and manufacturers may permanently alter leading to changes in the renovation sector for the entire housing market. With the rise of local energy cooperatives and repair shops, installers are increasingly no longer the first point of contact for individuals. In addition, housing associations are increasingly choosing renovation plans that give smaller installers and construction companies no role to play.

Project managers leave installers out

In an effort to maintain their positions, workflow partners of the installers (wholesalers and producers) are developing alternative initiatives to resist the changes and hence maintain their position. Their preference is to raise this with the installers and SME contractors (their current customers). Workflow partners will take matters into their own hands if this does not work and begin looking for new markets (e.g., direct delivery to housing associations or private individuals). In this situation, installers and SME construction companies are left off the playing field by project managers.

Acting quickly and appropriately

Given that the trends described are (to a greater or lesser extent) in their infancy, change within the industry will be a gradual process. If installers and SME contractors act quickly and appropriately, they can acquire a position in the new renovation workflow. Opportunities for SME installers and construction companies will manifest in smart coalitions with parties that shape the current trends and supply workflow partners by jointly developing an alternative to the emerging trends. Smaller SME installers and construction companies, often with limited resources and little overview of market developments, would not be in this position without the help of partner organisations and/or trade associations.

This research was funded by the Rexel Foundation.

More information

Faculty of Geosciences: a sustainable Earth for future generations