A circular economy in the construction industry

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13 November, 2020

REXCON system Aps develops and produces constructive systems within the construction sector. The company specialises in residential construction projects, as well as other projects of a similar nature. Thanks to its commitment to the circular economy, this company stands out in the construction industry.

This Danish company is working on ways of implementing an innovative solution that will enable to trace the constructive components that it manufactures. This monitoring system will help the company discover where their pieces have been, what they have been used for, and which phase of their life cycle they are in. This will allow them to recondition their products before sending them out for a new use cycle.

Why should the construction sector change from linear economy to circular economy models?

REXCON highlights the responsibility that a company has for the products that it designs and places on the market. Part of their social responsibility involves maintaining their products within a recycling cycle, as by doing so, it is possible to reduce, not only the consumption of natural resources, but also the CO2 emissions and the volume of waste generated by the construction industry.

An innovative spirit is very much ingrained in the company’s values. Through their pioneering experience they are hoping to serve as an inspiration for the rest of the industry, showing that it is possible for businesses to make money by adopting circular economy models.

What challenges does the construction industry have to tackle in order to adopt a circular model?

One of the major challenges that they have to overcome is getting end-users to promise to recycle these types of products. Although these products are designed to be recycled, in order for this to happen, the products have to be returned after use. REXCON has emphasised that this isn’t something that we are used to doing, and, in fact, we are not actually aware that many of the materials used in this industry can actually be recycled.

Another challenge involves determining the ways in which circular business models can be implemented, both internally and externally. The company is currently working on a deposit, leasing and re-purchasing business model, which takes the different types of clients and their different needs into consideration.

One piece of advice that REXCON would give based on their experience is that companies must ensure that our products are designed in such a way that it is possible for the components to be separated. By doing so, it will be possible for a circular solution to be implemented and it will also be easier for the waste to be managed. It may be necessary for subcontractors to get involved in this process in order to ensure that all or part of the value chain follows a circular economy model.

How is C-VoUCHER helping the company to implement circular solutions?

The resident designer has been a great help to REXCON during the first stage of this project. In the words of Jesper Sørensen, Founder & CEO: “we have acquired considerable knowledge about the proposed commercial models”. A lot of the work involved investigating the possibilities, advantages and disadvantages that each of the models offered, depending on the different client segments.

The support that they received from Blumorpho and econet in terms of the company’s future development is also worth mentioning and they also had the chance to identify opportunities within this new economic scenario.