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Research Outline
Prepared for Daniel L. | Delivered March 21, 2020
Construction Value Chain
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Goals
To develop an outline of the value chain of residential construction, determine the stakeholders at each stage of the value chain, and then determine the typical ROI/IRR/Margin for each part of the chain.
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Early Findings
The Value Chain
On reviewing literature relating to the construction industry, one can find
several definitions
of the construction value chain.
A typical definition of the value chain defines it as "a
process that transforms
raw construction materials into manufactured materials that are made into a final product."
There are other definitions of the value chain as well that define the
value chain for each project
differently.
A typical value chain in the construction industry is made up of
regulators, services, and inputs
. It is divided into three distinct stages including "
design, production and conversion
of raw materials into manufactured products, and on-site construction." These stages are further broken down into internal phases, processes, and stakeholders.
The Stakeholders
The
stakeholders
at different stages in the value chain include financiers, developers, owners, users, architects & engineers, contractors, and materials & equipment suppliers.
Companies
Some of the largest companies in design and architecture include "
Gensler
, AECOM, AEDAS, IBI Group Inc. and HDR Architects."
A list of building material companies in the US with their revenues can be found
here
. The companies include Whirlpool, Mohawk Industries,
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, Owens Coming, Fortune Brands,
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Wen Holdings,
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, USG Corp, Installed Building Products, and
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Sdot-Yam.
The
largest construction companies
include ACS (
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),
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, PowerChina,
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, Larsen and
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, China Communications Construction Company, STRABAG, Bechtel, TechnipFMC, and
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.
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