‘Asset lifecycle servitization: the new business model for the construction sector' white paper copywriting, IFS. To improve profit margins, revenue and build quality, construction companies are transitioning to a full asset lifecycle model. Backed by interviews and research, this 3-page thought-leadership executive summary explores the factors affecting constructors.
- COPY: Ian Castle, Freelance Copywriter
- CLIENT: IFS
‘Asset lifecycle servitization’ white paper copy sample, construction sector, IFS (US English)
[Excerpt]:
THE FULL ASSET LIFECYCLE MODEL: SELLING AND BUYING OUTCOMES
More and more asset owners, both in the public and private sectors, are moving towards service and outcome-based models. Just as the aviation sector has embraced ‘power by the hour’ contracts for aircraft engine flying uptime, so we can potentially envisage parallel scenarios for the build and operation of assets: for instance, hospital or hotel contracts being awarded based on quotas for a guaranteed annual availability of usable beds or rooms.
There’s also a downstream impact. Subcontractors, for example a heating, ventilation, and air conditioning company, could price for ongoing operation, maintenance and availability of installed systems within a project.
Some of the interesting consequences of giving constructors cradle-to-grave service responsibility for their built assets surround longevity, quality, viability and cost of maintenance. A constructor who will ultimately hand over the building has no vested interest in minimizing whole-life costs or total cost of ownership for the client. Conversely, if a company will be operating and maintaining the building for its lifetime, it’s in their interest to design and build it in a way that delivers maximum efficiency and sustainability, minimal degradation, and is easy and cost-effective to run, maintain and repair. The net outcome of this model is that clients enjoy the best value from their investment over its lifetime.