Value-Adding vs. Value-Extracting Businesses
PUBLIC EDITION
8/15/20251 min read
Two Types of Businesses. Two Very Different Outcomes.
In every market, businesses either add value to the chain or extract value from it.
At BuildWell Industries, we call these:
Value-Adding Businesses (VABs) — Strong links that make the chain stronger.
Value-Extracting Businesses (VEBs) — Weak links that take more than they give.
Value-Adding Businesses (VABs)
They build. They connect. They last.
Solve real, expensive, and urgent problems.
Improve outcomes for customers, partners, and communities.
Leave the market healthier and more resilient.
Stand without hype — sustained by results.
Strengthen the links they connect to.
Impact: Every transaction adds strength to the chain.
Value-Extracting Businesses (VEBs)
They take. They weaken. They fade.
Focus on short-term gains over long-term contribution.
Rely on perception rather than measurable results.
Offer little lasting improvement to customers or markets.
Often collapse when novelty or hype fades.
Weaken trust and increase fragility in the chain.
Impact: Every transaction erodes the chain’s strength.
Why the Difference Matters
When VABs dominate a market:
Costs drop.
Trust increases.
Growth compounds for everyone connected.
When VEBs dominate a market:
Costs rise.
Trust collapses.
Opportunities shrink.
BuildWell Industries
We build VABs. We reject VEBs. We strengthen the chain.
BuildWell Industries™
Expert solutions in construction.
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