Business and Value Chain Logics for Reusable Structural Components

Abstract

The transition to a circular economy, and consequently the reuse of materials, is a prerequisite for reducing the environmental impacts of the built environment. Design for Disassembly (DfD) offers a promising pathway by enabling components to be dismantled and reused, but its widespread adoption in the absence of regulatory mandates requires economically feasible business models, which are currently lacking. This study addresses this gap by investigating the value creation and value capture opportunities associated with reusable structural components. Drawing on circular economy literature, business model theory, and logical reasoning, the study develops and compares four value chain models: a broker model, a leasing model, an extended producer responsibility model, and a rental housing group model. These models serve as possible scenarios for future value chain formation in DfD construction, with keystone actors playing a central role in their operation. The findings show that the broker model supports market formation but provides weak adoption incentives, whereas leasing reduces upfront costs without ensuring reuse. Extended producer responsibility promotes reuse through take-back and deposit mechanisms but depends on regulatory and social acceptance. The rental housing group model lowers transaction costs through internal reuse but has limited scalability. Combining leasing-based financing with producer responsibility appears most promising for aligning adoption incentives with future reuse value. The study clarifies the business logic and value chain structure of reusable structural components and provides a basis for empirical assessment. Realizing these models’ potential depends on value chain actors’ willingness and capacity to adopt and coordinate these arrangements.