This section will present the business case by describing the requirements of the customers and several scenarios of the INDU-ZERO offer. The first target customers will be housing associations and big home owners. They are an attractive group to first aim the business to, because they have a large volume of similar properties within their portfolio.
INDU-ZERO investigated the needs concerning the housing stock of this group. There was a wide range of wishes but 4 main themes were common:
- The need for a sustainable method of making houses net Zero towards 2050. They preferred to avoid demolishing and rebuilding their houses as this results in high costs, a lot of waste and raw material losses.
- The renovation of a terraced house is currently costing housing associations between €80.000 to €110,000 to make it energy neutral. These costs depend on the number of houses that can be renovated at once but even €80,000 per house is still expensive. A cheaper option is therefore required.
- A total offer was preferable, without hidden costs appearing after the project begins or finishes.
- The need for a full-service solution including maintenance.
These wishes have been considered during the development of renovation scenarios. Differences between rental market conditions in the seven target countries have also been considered. For example, in the UK housing is partially free for the less fortunate of the society. In the Netherlands, 70% of the residents must agree to any renovation work. In Belgium and Germany, rental costs often include gas, water and electricity. All these differences will be considered when calculating the costs and benefits of the various scenarios. The most detailed business case was developed for the first factory in the east of the Netherlands. This factory could deliver and mount packages in the Netherlands and a part of Western Germany and Northern Belgium. INDU-ZERO also investigated several scenarios for the business focus of the factory. The first scenario is that the factory is responsible for all phases. From selling the packages to mounting them on houses as well as providing the maintenance afterwards. The advantage of this is that the factory maintains control over the quality and cost of the whole process. In one of the alternative scenarios, the factory only focusses on the production of the renovation packages and the other tasks will be outsourced to contractors. The factory maintains responsibility for the products and warranties but committed parties will take care of operational duties. The advantage of this scenario is that the existing expertise, machinery and personnel can be used whilst maintaining the INDU-ZERO factory flexibility in anticipating future opportunities. Of course, there are also several possible scenarios in between these two scenarios. The best scenarios will be calculated and discussed during sessions with the housing associations and large homeowners.
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A bid book of the offer for the renovation of terraced houses has been developed. In terms of employment, it is estimated that the factory itself will have around 440 people employed fulltime to product the planned 15.000 retrofitting packages per year.
In any chosen scenario for development of the factory, dedicated teams will carry out the renovations. Around 1.022 people, grouped in teams of 4-5, will be employed fulltime for mounting these 15.000 retrofitting packages. The use of fixed teams with specialised workers will result in a fast, cost-efficient and high-quality process.
The cost numbers in the “calculation business case of the total INDU-ZERO process” are based on the available price information on March 2022. The final cost prices will be subject for changes. The “calculation business case” is based on processes and products that were developed within the INDU-ZERO project.