Value Chain Development in the Construction Industry: A Roadmap for Turning Competitive Advantage into Sustainable Success

Introduction
The construction industry, contrary to traditional perception, is not just "an execution workshop"; it is a complex ecosystem of suppliers, contractors, consultants, investors, operators, and even policymakers.
Today, simply having advantages like cheap labor or domestic resources is no longer a guarantee of survival. What distinguishes organizations from their competitors is the ability to design and manage the value chain. A chain that extends from conceptual design to operation and even material recycling.

Key Components of the Value Chain in the Construction Industry

1. Resource and Material Supply (Upstream Value)

   • Access to sustainable materials (green concrete, recycled steel) has become a global differentiator.

   • Companies that can secure long-term contracts with reputable suppliers or invest in joint ventures for producing green materials will have a competitive edge in regional markets.

2. Design & Engineering

   • The design phase is no longer just about drafting plans; it is where value is created.

   • The use of BIM and Digital Twin enables integration among stakeholders, crisis forecasting, and energy optimization.

3. Construction Delivery

   • Modern technologies like modularization, 3D printing of concrete, and construction robotics increase speed and quality.

   • This phase is where the "cost competitive advantage" transforms into an "advantage in quality and time."

4. Operation & Maintenance

   • Over 70% of a building's life-cycle cost is consumed in this phase (McKinsey, 2024).

   • Companies offering Facility Management services and smart energy management solutions continue their value chain years after construction.

5. Circular Value

   • In Europe, the concept of Circular Construction is rapidly growing: recycling steel and concrete not only reduces costs but is also considered an ESG advantage.

   • This final link in the value chain can be an opportunity for Iran to enter regional green markets.

Roadmap for Turning Competitive Advantage into Sustainable Success

1. Value Chain Integration

   • Many Iranian companies are merely contractors or suppliers.

   • Sustainable success is achieved when an organization can integrate different parts of the chain: from material supply to maintenance and operations.

2. Investment in Transformational Technologies

   • Technologies such as BIM, modularization, and smart materials are no longer options; they determine entry or exit from competition.

   • Example: Skanska in Europe, by digitalizing its entire value chain, has reduced project delivery times by up to 30%.

3. Diversification of Revenue Models

   • Limiting revenue to construction alone is a strategic trap.

   • Leading companies are moving toward service-based models (Facility Management, Operation as a Service) which generate long-term profitability.

4. Commitment to Sustainability (Sustainability as Strategy)

   • International investors no longer focus solely on financial returns; ESG metrics have become an integral part of project evaluation.

   • Adopting low-carbon materials and adhering to environmental standards is not just a moral commitment but a strategy to attract investment.

5. Empowering Human Capital

   • Without engineers and managers capable of working with new technologies and international standards, the value chain will remain incomplete.

   • Investment in training is as crucial as investment in equipment and technology.

Conclusion
The development of the value chain in the construction industry is no longer a "side advantage" but has become the cornerstone of survival and competitiveness in the global market. In a world where ESG pressures, digitalization, and geopolitical crises are redefining the rules of the game, the key question is no longer "Which company builds cheaper?", but "Which company can integrate and manage the complete value cycle — from design to operation and even recycling?"
Organizations that continue to rely on traditional advantages like cheap labor or raw materials will gradually be removed from the competitive circuit. On the other hand, companies moving toward sustainable advantages — including technological innovation, process digitalization, contractual flexibility, and commitment to environmental sustainability — will not only be more resilient in the face of crises but will also use each crisis as a launchpad for creating new value.
In other words, the future of the construction industry belongs to those players who will reinvent their value chains in a way that ensures both short-term competitiveness and long-term sustainability. Such an approach will turn competitive advantage from a temporary asset into a strategic and lasting investment.