Article Gold Open Access 2021

Domestic retrofit supply chain initiatives and business innovations: an international review

Buildings and Cities
Journal · Vol. 2 · Issue 1 · pp. 533-549
Abstract

A systematic review of international evidence on housing retrofit supply chains was undertaken for the UK government: a Rapid Evidence Assessment (REA) summarised the most relevant research from outside the UK; key emerging themes were examined via analysis of 10 expert interviews with European and UK stakeholders, selected for the depth and breadth of their experience in developing retrofit business models. Market development requires concerted efforts from industry and policy, including the regulation of minimum standards. Conservatism in the industry means that opportunities for retrofit will be ignored in preference for the less risky, more familiar repair, maintenance and improvement (RMI) market. Successful retrofit involves customer engagement and after-care, which is outside customary practice. Financing mechanisms are important for firms’ cashflow and for customer acceptance. Skills governance needs to take account of national vocational education systems, and is more complex than simply providing a few new courses. Local partnerships are needed to mobilise and organise the supply chain, whether through local government involvement or new business models enshrining collaborative quality assurance. More formal quality assurance implies some consolidation of supply chains. All these elements must be integrated into a service package, whose overall purpose is to minimise the risks of retrofit for supply chains and customers. POLICY RELEVANCE A functioning, large-scale energy-efficiency retrofit market needs to have some of the attributes of the existing RMI market, with energy performance grafted on. When compared with the ideal requirements for effective policy, existing policy support is inadequate, being too short-lived, too inconsistent and too easily sidelined by market realities. Retrofit requires high-quality outcomes achieved through integrated service, but construction industry business culture is focused on inputs (not outcomes) and the service is fragmented. Policy must help deliver a cultural shift, which no country has yet succeeded in bringing about. The task may be slow as it entails coordination and change across policy, education and vocational training, and industry practices. © 2021 The Author(s).

Keywords

Author Keywords

Construction industry Innovation Retrofit Energy efficiency supply chain capability

Index Keywords

Author Affiliations
Ballarat Consulting, Oxford, United Kingdom
Innoweaver Consulting, Stoke-on-Trent, United Kingdom
Association for Decentralised Energy, London, United Kingdom
University of Oxford, Oxford, Oxfordshire, United Kingdom
Funding & Acknowledgements
Department for Business, Energy and Industrial Strategy, UK Government, BEIS
The initial research (the Rapid Evidence Assessment (REA) and stakeholder interviews) were undertaken as part of a project for the UK Department of Business, Energy & Industrial Strategy, \u2018International Review of Domestic Retrofit Supply Chains\u2019, from September 2019 to April 2020. Additional analysis for this paper was partly supported by the UK Research and Innovation (grant number EP/R035288/1) (Centre for Research into Energy Demand Solutions).
Engineering and Physical Sciences Research Council, EPSRC
Grant: EP/R035288/1
The initial research (the Rapid Evidence Assessment (REA) and stakeholder interviews) were undertaken as part of a project for the UK Department of Business, Energy & Industrial Strategy, \u2018International Review of Domestic Retrofit Supply Chains\u2019, from September 2019 to April 2020. Additional analysis for this paper was partly supported by the UK Research and Innovation (grant number EP/R035288/1) (Centre for Research into Energy Demand Solutions).
References 10 References
1 Evaluation of the Supply Chain Demonstrator Project Year 2 Evaluation Report, (2021)
2 Proceedings of the 2016 ACEEE Summer Study on Energy Efficiency in Buildings, (2016)
3 Proceedings of the Eceee Summer Study on Energy Efficiency, (2013)
4 Each Home Counts, (2016)
5 One Stop Shops for Energy Renovations of Buildings, (2018)
6 How can Intermediaries Promote Business Model Innovation the Case of Energiesprong Whole House Retrofits in the United Kingdom Uk and the Netherlands, (2018)
7 Brown, Donal, An energy leap? Business model innovation and intermediation in the ‘Energiesprong’ retrofit initiative, Energy Research and Social Science, 58, (2019)
8 Uk Housing Fit for the Future Committee on Climate Change
9 Inclusive Vocational Education and Training for Low Energy Construction Vet4lec Final Report and Country Summaries, (2019)
10 Clarke, Linda, What kind of expertise is needed for low energy construction?, Construction Management and Economics, 35, 3, pp. 78-89, (2017)
Quick Actions
Full Text via DOI
Citation Metrics
12
Times Cited (Scopus)

References 10
Document Identifiers