Skiftarbete i byggindustrin och dess värde för aktieägarna
The foremost objective of business organizations is to generate value for shareholders and to opt for strategies which optimize it. Hence it is of key concern for business leaders to appreciate how operations best are run to maximize value creation. This study explores how financial theory can reveal the link between one particular business strategy and the corresponding effect on shareholder wealth. The question in focus is whether construction companies can enhance their value creation by implementing shift-work to increase the weekly production rate. The thesis particularly targets apartment block projects in Sweden and has the construction company Peab AB as primary object of study. Five categories of effects from shift work implementation are identified. Firstly the projects would be constructed in less time, bringing all cash flows forward in time. In most cases this has a positive effect on total value creation. Secondly and thirdly, higher wages and lower costs of physical capital are expected, generating lower and higher value of the project respectively. It is additionally believed that shift work would enable higher revenues when building leasehold apartments, as landlords earlier receive rental income. Lastly, the business risk is anticipated to alter, as the construction company redirects its operations. The condensed building process is expected to reduce volatility and factor price increases, thereby creating additional value. The accumulated findings have been simulated on six recently completed apartment block projects to quantify the net effect. Shift work proved value enhancing in all cases, with a varying potential depending on project characteristics. For leasehold apartments, project value is estimated to increase by 58,8 % when construction is commenced in densely populated areas and by 80,2 % when working hours are not restricted by noise regulation. The corresponding figures for tenant-owned apartment projects are 7,4 % and 11,1 % respectively. As the distribution of these four project types is unknown for Peab, as well as changes over time, the collective effect on the construction company?s finances has not been established. Yet, the plausible combinations equate approximate value creation for Peab?s share holders of between 5 % and 50 %. Translated into absolute figures, shift work represents a potential value increase of shareholders? capital of between 200 million and two billion SEK. It is further concluded that some additional potential probably is existing, as a few predominantly positive factors proved non-quantifiable. However, possible development of collective agreements might suppress the value creation potential to some extent. Finally, initial evidence indicates that other types of construction projects, primarily within infrastructure development and industrialized building, could prove equally or even better suited for shift work implementation.