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Productivity Trend in the Off-Site Construction Sector of Wooden Houses
Linnaeus University, Faculty of Technology, Department of Mechanical Engineering. (Industrial engineering)
Linnaeus University, Faculty of Technology, Department of Mechanical Engineering. (Industrial engineering)
2015 (English)In: Pro Ligno, ISSN 1841-4737, E-ISSN 2069-7430, Vol. 11, no 4, 432-439 p.Article in journal (Refereed) Published
Abstract [en]

With rising production costs and an insufficient production development, firms in the Swedish industry for wooden single-family houses might face severe problems in productivity. This is gaining in importance, considering that this industry highly tends towards perfect competition, i.e. firms mainly have to compete by prices. This study investigates the productivity of Swedish firms producing wooden single-family houses off-site, by analysing the ratio between turnover and number of employees as factors affecting productivity. 48 firms were studied from 2010 to 2013 and the results show that the average firm productivity in the industry worsened by 6.56 %, with a slight improvement from 2012 to 2013. 23 firms increased and 25 firms decreased their productivity during the investigated time span, yet, from 2012 to 2013, 31 firms improved productivity. Almost half of the 23 firms with increased productivity achieved that betterment even though their turnover decreased and 12 firms improved productivity with declining turnover. Another 12 firms tried to compensate declining turnover with resigning employees, yet, could not keep their former productivity level.

Place, publisher, year, edition, pages
Brasov, 2015. Vol. 11, no 4, 432-439 p.
Keyword [en]
wooden single-family houses, productivity, off-site construction, industry analysis, key performance indicator
National Category
Production Engineering, Human Work Science and Ergonomics Economics
Research subject
Technology (byts ev till Engineering), Industrial economy; Economy, Ekonomistyrning; Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-42428OAI: oai:DiVA.org:lnu-42428DiVA: diva2:805509
Conference
WOOD SCIENCE AND ENGINEERING IN THE THIRD MILLENNIUM
Available from: 2015-04-15 Created: 2015-04-15 Last updated: 2017-12-04Bibliographically approved
In thesis
1. Market structure and economic status for firms producing single-family houses in Sweden
Open this publication in new window or tab >>Market structure and economic status for firms producing single-family houses in Sweden
2016 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

The gradually changing behavior of the population, towards urbanization, ledto an increased shortage of available housing. This development has resultedin a serious issue in Sweden, where too few firms are providing solutions formulti-family houses in wood. Potential firms that could fill this increasingdemand are those in the single-family house industry. Yet, these firms mightface considerable problems with productivity, predominately derived fromincreasing production costs and inadequate production development.Developing these firms are associated with long-term investments, whichis investigated by evaluating the industry structure for sellers, highlightingthe financial and market situation within their industry. These factors aregrowing in importance due to the current market concentration, where morefirms are required to focus on product development driven by the demand toprefabricate wooden elements, volumes or modules in an industrialized way.This thesis studies Swedish firms producing wooden single-familyhouses, with the aim to investigate their possibilities to enter the woodenmulti-family house industry in Sweden.Investigations will be conducted by applying Altman’s Z’ value, riskposition model, the Herfindahl-Hirschman index, the Herfindahl-Hirschmannumber equivalent, productivity ratio model for profitability and finally amodel measuring market Concentration Ratio.Results show that the industry tends towards perfect competition with toomany firms involved, i.e. firms mainly have to compete by prices. Further,firms are grouped into three zones; risk, grey or safe zone. The levels withinthese zone show a reduction of firms in the red zone over time. Related to thecurrent risks, many firms have promising positions to invest in productdevelopment towards wooden multi-family houses, in addition to theircurrent products, even though firm productivity has declined during thestudied time frame. The results that the investigated firms have goodpossibilities gaining a competitive advantage by diversifying into thegrowing wooden multi-family house industry.

Place, publisher, year, edition, pages
Växjö: Linnaeus University, 2016. 122 p.
Series
Faculty of Technology : Report, 47
Keyword
Wooden Houses, Wooden single-family houses, Wooden multi- family houses, Financial Performance, Risk Position, Economic distress, Z- score model, Industry Structure, Productivity, Off-site construction, Industry concentration
National Category
Mechanical Engineering
Research subject
Technology (byts ev till Engineering), Mechanical Engineering
Identifiers
urn:nbn:se:lnu:diva-60000 (URN)978-91-88357-52-6 (ISBN)
Available from: 2017-02-17 Created: 2017-01-20 Last updated: 2017-02-17Bibliographically approved

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