Reusing precast concrete elements in construction: assessing the economic conditions

The reuse of building components such as precast concrete elements (PCEs) is a promising strategy for reducing construction emissions, but its economic feasibility remains a barrier to wider adoption. Although technical and value creation aspects have been studied, microeconomic conditions remain underexplored. This study identifies several economic factors and boundary conditions that influence firms and supply chains to reuse building components. An economic framework based on the supply chain is developed to compare demolition, reuse and virgin material pathways. The analysis draws on academic, industry and project documents (n = 54) interpreted through economic theories. The economic viability of reuse is context-dependent. It depends upon a sequence of interdependent economic decisions by several actors, as well as the alignment of system-level conditions and economic mechanisms across those decision points. Reuse is driven by trade-offs between avoided disposal and material costs and higher deconstruction, logistics, storage and coordination costs. Wider adoption requires sufficient supply of and demand for reusable elements, and cost management. Future research should focus on cost structures, regulation, technological change and supply-chain dynamics to support investment and policy decisions.

PRACTICE RELEVANCE

The reuse of PCEs can reduce greenhouse gas emissions from construction, but economic feasibility remains a key barrier to wider adoption. This study identifies economic boundary conditions under which reuse becomes feasible in practice. Results indicate that reuse involves trade-offs between a) avoided disposal and material costs and b) higher deconstruction, logistics, storage and coordination costs. Long-term profitability depends on market formation, capacity investments and learning effects. Evidence suggests feasibility already exists in specific cases. The findings can inform managers, investors and policymakers in assessing feasibility, risk and supply-chain alignment with a view to creating appropriate conditions and opportunities in policy and practice.