Purpose

The understanding of how to develop or expand logistics service offerings to the construction industry has received limited attention in the research community. The purpose of this study is to investigate how construction equipment rental companies (CERCs) can approach the challenge of expanding their service offerings to include construction logistics services.

Design/methodology/approach

The study builds on a descriptive case study to analyse how a CERC has approached developing logistics services for construction through the lens of New Service Development literature.

Findings

The study shows that the CERC’s ongoing transition from a construction equipment supplier to a logistics service provider requires both back-end and front-end service development. The New Service Development process extends into sales and delivery of solutions where the company’s established customer-base in the construction industry can be beneficial.

Research limitations/implications

The study is limited to the Swedish construction context and further studies are needed to generalize the findings. Future studies should investigate how well service offerings match the contractor’s needs.

Practical implications

The study can be used by contractors and prospective logistics service providers for developing logistics services.

Original/value

The study contributes to construction logistics literature by addressing how construction logistics services can be developed by adopting a New Service Development approach.