Building a Sustainable Future: Aligning Demand with Supply in the Construction Industry

🏖️ Vacation Lessons: Aligning Demand with Supply for a Sustainable Future

Last summer, I had the pleasure of spending time on one of the beautiful Wadden Islands. The tranquility, open space, and stunning beaches provided the perfect backdrop for relaxation. However, there was a minor setback - the limited sunny hours meant that the demand for charging our family's iPhones and iPads far exceeded the available solar energy supply. Consequently, we found ourselves with dead batteries just after the first weekend! Our fallback solution was candlelight, which was cozy but not practical. Luckily, a friendly neighbor lent us their battery charger. This small-scale experience made me realize the importance of consciously aligning our demand with the available supply, as if we were on vacation all year round.

🔌 Going on Vacation with a Passport

To achieve full circularity in the construction sector by 2050, our focus must extend beyond renewable energy to include the prioritization of secondary material (re)use. While progress has been made, there is still much to be done for the use of secondary materials to truly take off. Digitizing the supply chain is crucial to provide clear visibility into available materials and their status. In a previous column, I advocated for the implementation of a materials passport, a feasible and necessary step. It's encouraging to see that tenders, such as those by the Provincie Noord-Holland , are now requesting materials passports. I urge all clients involved in new construction, existing buildings, and demolition projects to make materials passports mandatory. This way, valuable resources can be reused in a high-quality manner, driving true progress.

💡 Dutch "AEX" for Material Reuse

To align supply and demand, it is essential to establish an online marketplace where materials and resources can be made visible and tradable. While some initiatives exist, we still lack a true "AEX" or "Aalsmeer flower auction" for secondary building materials and products. It is crucial that such a marketplace initially focuses on the material and resource flows with the highest volume and CO2 impact. This solution cannot be left to individual market players; it requires a cross-sector approach to benefit the entire market, from major players to small businesses.

🔄 Managing the Supply Chain

Recent events, such as major investors acquiring shares in mining companies for crucial resources like cobalt, highlight the urgency of effectively managing the entire supply chain. The surge in demand for materials like wood, steel, and aluminum, combined with reduced supply, has led to price hikes reminiscent of a gold rush. This "war on materials" demonstrates the need for all stakeholders in the construction industry to prioritize establishing a circular supply chain that reduces our dependence on primary resources.

📚 Engineers, Broaden Your Horizons!

From a design perspective, material choices should consider factors such as value, quality, availability, disassembly, transportability, and the potential for high-quality reuse in new functions. Engineers face a more complex task than ever before, as unrestricted access to new primary resources is no longer a given. Fundamental knowledge of materials and their degradation is crucial for making the right assessments. Designs should be based on the available materials at hand. It's a form of reverse engineering, where we design based on what materials are available when and where. To embrace this shift, engineers must broaden their horizons and update their knowledge fields. Training and education programs offered by organizations like the Betonvereniging , Bouwen met Staal can help engineers stay ahead in this regard.

⚙️ Asset Managers Take the Lead

For asset managers in large construction companies, anticipating the demand for or emergence of material flows within their own portfolios is vital. The combination of construction and waste streams presents significant opportunities. At Royal Schiphol Group , BAM Infra Nederland has made considerable progress by establishing a "construction hub" where material and element storage, inspection, and guarantees for reuse are integrated. By consciously aligning supply and demand in this multi-year storage and handling space, we create an environment that mimics being on vacation all year round.

Let's work together towards a sustainable future where demand aligns seamlessly with the available supply. By implementing materials passports, establishing a marketplace for material reuse, managing the supply chain effectively, and fostering continuous learning among engineers, we can build a construction industry that thrives on circularity and reduces our impact on primary resources.

This column was previously published in Dutch on the website of www.cementonline.nl: Piek en dalen op vakantie (cementonline.nl)

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