Housing Supply Chain Model for Innovation Research Report: Housing Supply Chain Model for Innovation Research Report

Abstract

The Australian National Housing Supply Council (ANHSC) estimates that around 3.2 million additional dwellings will be required in the next 20 years to accommodate a population growth from 2008 to 2028. Moreover, the ANHSC also forecasts that the current demand supply gap of 178,400 dwellings will increase to approximately 640,000 by 2028. According to the Australian Bureau of Statistics (ABS, 2010), the country currently needs to be building 17,400 homes every month. Housing supply, however, has oscillated between 10,000 to 16,000 dwellings per month since 1990. Based on the average number of approvals over the first three months of 2010, the current supply is around 14,500 dwellings per month. The shortfall means we are faced with a crisis in our capacity to plan, design and construct to meet our nations needs unless we act immediately to improve our capacity for a more efficient, effective and innovative supply system. The aim of this research is to undertake a case study analysis of successful delivery of an innovation to the Australian housing construction industry. This study is conducted on the “innovator group”; that is, the group that created the idea of an innovation for the housing sector and then were intimately involved in creation, development and diffusion. It is apparent that there were key players involved in this process which are representative of various organisations along the supply chain – designer, developer, subcontractor and supplier. Much rhetoric states that integration of the supply chain actors will solve construction problems, however, in reality we know little beyond this in the Australian context as there has been little research conducted previously. This study will examine in detail the process undertaken by this particular group to deliver an innovation to the housing sector which required an integrated construction supply chain model. An underlying assumption of this study is that we can develop a more structured methodology by understanding a successful exemplar. The methodology will describe characteristics towards developing a pathway for supply chain integration that could in the future guide and enable more effective delivery of innovations - either incremental or monumental, construction product or construction process or construction system, that will improve the performance of the industry. The case study analysed is an example of an innovation that is outside the normal practice of the supply chain participants and their usual business and work processes. The objectives of the study are to Identify the barriers and enablers to the creation, development and adaptation of the innovation; Examine the characteristics of the process of integration of the construction supply chain towards the creation, development and adaptation of an innovation; Define characteristics and initiate the development of a methodological process pathway to innovation creation, development and adaptation for an integrated housing construction supply chain; The overarching research question addressed is: “What is the pathway for creation, development and adaptation of an innovation by the innovator group?” Project outcomes include: Final research report; Publication of two conference papers and one journal paper. The conference presentations will be Australian ERA rated A conferences [CIB international conference]. The journal shall be an ERA rated A* or A publication; An Industry Based Case Study Information report will also be developed. This would be a coloured graphical short brochure of 4 pages that summaries the key findings of the study and is suitable for distribution to selected participants nominated by FMG. Hard copies of the brochure will be developed as well as a web version able to be Downloaded; Industry presentations. The presentations would be organized and sponsored by industry associations and involve Professor London and industry participant as nominated by the Alliance