Concrete Circular Business Models

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Concrete is the single most used construction material in Switzerland. The use of Recycling concrete (RC) seems to reduce landscape use for gravel mining and for landfill of demolition material. More RC concrete should be used to close the material loops and the cement content in recycled as well as in primary concrete should be kept as low as possible. Zirkulit developed the first circular concrete, but a viable business model to compete with traditional concrete is missing. Traditionally, gravel, cement and concrete producers focus on their role as material or resource suppliers. The most important share of their value creation is situated up-stream in the production chain of construction. This includes the value chain stages excavation/mining, crushing/screening, cement production, concrete production and transport. This traditional business model is directly linked to the turnover of material. The higher the material turnover, the higher the economic success. However, this business-model is in conflict with the societal goal of increased resource efficiency. Zirkulit launched a innovative product “Zirkulit”, a concrete with almost 100% recycled mineral materials. However, the selected business model is a traditional business model, where the material turnover determines the revenue. This study attempts to develop a viable business model which can a) compete with traditional concrete suppliers and b) scale the uptake of Zikulit. This study uses System Dynamics modelling to (1) develop an alternative business model and (2) simulate the long-term feasibility of alternative business model.

Project Idea Metadata

• Project Idea Name: Concrete Circular Business Models
• Date: 3/30/2022 8:00:36 AM
• Administrators:

Project Idea Description

Traditionally, gravel, cement and concrete producers focus on their role as material or resource suppliers. The most important share of their value creation is situated up-stream in the production chain of construction. This includes the value chain stages excavation/mining, crushing/screening, cement production, concrete production and transport. This traditional business model is directly linked to the turnover of material. The higher the material turnover, the higher the economic success. However, this business-model is in conflict with the societal goal of increased resource efficiency. Zirkulit launched a innovative product “Zirkulit”, a concrete with almost 100% recycled mineral materials. However, the selected business model is a traditional business model, where the material turnover determines the revenue. This study attempts to develop a viable business model which can a) compete with traditional concrete suppliers and b) scale the uptake of Zikulit. This study uses System Dynamics modelling to (1) develop an alternative business model and (2) simulate the long-term feasibility of alternative business model.

Concrete is the single most used construction material in Switzerland. The use of Recycling concrete (RC) seems to reduce landscape use for gravel mining and for landfill of demolition material. More RC concrete should be used to close the material loops and the cement content in recycled as well as in primary concrete should be kept as low as possible. Zirkulit developed the first circular concrete, but a viable business model to compete with traditional concrete is missing.