A South Australian startup is building one of the world’s most advanced prefabricated panel manufacturing facilities — and its founder says the housing crisis demands nothing less.

Words: Alicia Brown

5North founder Wayne Hughes was running along the Linear Trail beside the River Torrens in Adelaide when he noticed the tents. First one or two, then more — appearing week after week along the riverbank in a city that had never seen rough sleeping at this scale.

Hughes and his wife, Nicola, who both volunteer at a local soup kitchen, found the conversation around them echoed their own concern — but nobody seemed to know where to start. “Everyone felt strongly that something needed to be done,” he recalls. “And so my wife and I thought about what’s driving this. We think it’s housing. What can we do differently?”

What followed was three years of research, risk-taking, and 5North was born from what Hughes describes as a “this is dumb, we should just use robots” revelation. The result is an advanced manufacturing business in Adelaide’s northern suburbs that is installing one of the most sophisticated robotic prefabricated panel production lines in the world, with first saleable product targeted for August 2026.

From COVID to KUKA

The seeds were planted during the pandemic. Hughes, watching material price volatility and labour shortages bite the construction sector, began researching how other countries drove housing supply differently. “Sadly, a lot of the answers are abroad for this sort of thing,” he says. “I believe the solution lies on the supply side.”

The original plan was to import prefabricated components from international factories — 5North had signed exclusivity arrangements with several overseas fabricators — then invest in domestic robotics. But the research kept pointing toward a more ambitious path. “We realised the change needed to be quite radical,” he says. “It was never going to be basic machinery with some tradespeople under roof.”

That path led to KUKA, the German robotics and automation giant. In December 2024, 5North signed a proposal with KUKA and spent the following eight months in intensive engineering sessions — Tuesday and Thursday nights, four hours at a time — adapting the technology for Australian residential construction. “They had incredible expertise in robotics automation,” Hughes explains, “but they knew very little about residential construction here in Australia.”

The collaboration was accelerated by circumstance. When a UK-based modular manufacturer — which had ordered KUKA robotics before winding down its operations in late 2024 — folded, 5North approached KUKA about re-engineering the existing brand new hardware for Australian conditions. “That allowed us to bring our manufacturing horizon forward quite significantly,” Hughes says. The hardware suited their purposes, though the software had to be completely reworked. “You build differently in the UK than you build here.”

104 Metres of Robotic Precision

The 5North Advanced Manufacturing Facility sits on a 46,000-square-metre site in Edinburgh, near the RAAF base north of Adelaide, with around 12,000 square metres of production space under roof.

At its heart is a 104-metre robotic production line — roughly the length of a football pitch — with 14 industrial robots across six automated stations. Australian-produced radiata pine enters the facility and passes through a Hundegger automated saw, processing around 4,000 cuts per day. Pre-cut timber feeds into framing stations; sheeting products into sheeting stations; carpenters prepare sub-assemblies for windows and doors. The robots then frame, square, glue, sheet, fasten, route, and mill each panel before it discharges into four integrated mechanical, electrical, and plumbing lines, where operatives complete services work.

The average cycle time is 10 minutes per finished panel, with a maximum throughput of 37.2 square metres of completed product per cycle. On a standard 38-hour, four-day working week across 48 weeks, the facility can produce components for approximately 1,000 homes per year. With a three-shift operation, that rises to around 3,000.

The first containers of equipment were expected to arrive as Smart Building Review went to press, with installation, commissioning, and testing keeping the facility on track for first saleable product in August 2026.

Supplier, Not Builder

Hughes is emphatic on one point: 5North is not a builder. It is a specialist supplier of prefabricated wall, floor, and ceiling components to builders, developers, and housing programs.

“If we were the builder with a capacity of 3,000 homes per year, that would make us one of  the largest builders in the state overnight,” he says. “Which is completely ridiculous as a viable business model. To be impactful and to offer the industry the opportunity to be more impactful as well, we wanted to work with a wider range of clients.”

Clients bring their own designs. 5North’s DfMA team, led by Alessandra Yokota, value-engineers those designs for manufacturing efficiency, sometimes with remarkably subtle interventions. Hughes describes one project in which reducing the height of a first-floor external wall by 28 millimetres had a profound impact on costs and site speed. In another, moving an internal staircase just 23 millimetres unlocked significant manufacturing efficiencies. Once designs are optimised, they are converted into machine language that feeds a Siemens platform driving the robotic line.

The output ranges from basic framing through to fully clad panels with external cladding, battens, membrane, insulation, first fix electrical and windows and doors hung, the scope determined by what each builder wants from the factory versus the site. On pricing, 5North has entered the market at parity with traditional procurement. “The difference is time and certainty,” Hughes says. “You put a piece of wood on our line, ten minutes later, you have a panel.”

Purpose-Driven, Commercially Grounded

5North was established by a group of South Australian private investors, supported by the Commonwealth Bank of Australia (CBA) — remarkable, Hughes notes, for a business that is, by any measure, a startup. “I cannot say enough about CBA really walking the walk” on social licence, he says. The company’s environmental commitments are backed by third-party audits against ESG metrics, and 5North is commissioning Australian-specific lifecycle assessment data to complement its existing UK-benchmarked performance claims of more than 80 per cent less embodied carbon and 90 per cent less waste.

The timber-based material system is deliberate. “You don’t get much in the way of sequestered carbon and whole-of-life embodied carbon from steel as you do in timber,” Hughes explains. “If you’re going to go down this path of industrialisation, you may as well pick up all of the different benefits.” The company is committed to local content procurement, sourcing Australian-produced pine, and engaging supply chain partners on issues such as formaldehyde in sheeting products.

5North are equally deliberate about the workforce. “We’re absolutely not about replacing trades,” he says. “Carpentry is a huge part of our building industry. Carpenters should be working with timber — that’s what they do.” The factory model shifts repetitive, physically demanding work into a controlled environment, while qualified trades on site focus on skilled installation. The four-day working week is a deliberate choice — and 5North sees the model as opening doors that traditional construction has kept closed. With women comprising roughly three per cent of trades nationally, he points to a US partner factory operating with 36 per cent female operational workforce as evidence of what becomes possible in a risk-engineered manufacturing setting. Three of 5North’s five senior leaders are women — not by design, Hughes says, but by hiring the right person for the right job.

Scaling the Mission

5North is already working with developers and builders in South Australia, including those on the SA Housing Trust’s panel, and is involved in active tenders. The company has engaged with Renewal SA and community housing providers through the Housing Australia Future Fund. 5North are circumspect about naming clients — NDAs are in place — but confirm the business has engaged with government at all levels to communicate its advanced manufacturing investment in the state.

The national ambition is clear. “We’re not set up like the US, where you could drive three hours in any direction and hit another big city,” he says. “If you’re going to be real about cost, when you add freight on, you’re starting to not be real. If you’re going to be real about ESG and you want to freight things across the country, that is not the best way to look after your carbon footprint.” The answer is more factories. 5North’s goal is at least three additional facilities on the ground by 2030 — a timeline the 5North team describes as “a scary goal” that “really focuses the mind.” Crucially, the engineering work in Adelaide is already shortening lead times: “The timeframe for factory two, three, or four to production is almost half of where we started.”

5North recently joined prefabAUS — a decision Hughes describes as straightforward. “They’ve been influential and successful in driving change already. Having people out there who have got your back, advocating on your behalf as an industry — all credit to prefabAUS.”

Asked what one thing 5North would change, Hughes points beyond the build itself to the planning, consents, and approvals that precede it. “Let’s make it simpler to get to construction,” he says — a message that echoes prefabAUS’s own advocacy priorities.

It speaks to a founder who sees the venture not as a silver bullet, but as one essential part of a larger transformation. “5North will never be the silver bullet, and we’re not pretending to be,” he says. “But we have a part to play. It was a risk, and it remains one we believe we have to take. We believe ‘Everyone deserves an address”, so if you’re going to do anything in this space to be impactful, we just don’t see how else you do it.”

prefabAUS member JMB Modular Buildings has completed construction of its new Advanced Manufacturing Centre (AMC1) in Shepparton, marking a significant step forward in purpose-built modular manufacturing capability in regional Victoria.

AMC1 is built around an eight-station production line, enabling volumetric modules to progress through structured stages of assembly, services, linings, and finishes with predictable cycle times and rigorous quality control. Modules are completed to 95% fit-out in the factory in under eight weeks.

The facility integrates a suite of advanced technologies rarely seen in Australian modular manufacturing. Calibrated laser projection systems guide the precise set-out of framing, services, and fixings on the factory floor, reducing rework and manual marking. LiDAR and AR headset systems support quality assurance throughout production, while 50-tonne overhead gantry cranes enable safe, precise handling of heavy modules. Digital modelling is embedded from the outset, with all designs optimised for DfMA to ensure every element is rationalised for off-site manufacture, transport, and installation.

The completion of AMC1 positions JMB to significantly increase its scale of operations — demonstrating exactly the kind of investment in industrial capability that the prefabAUS Industry Roadmap calls for in building Australia's Smart Building ecosystem.

In a market where imported SIPS panels arrive one at a time and builders remain deeply sceptical, an emerging Melbourne manufacturer is assembling complete wall sections in-factory and erecting entire homes in 48 hours — then daring the industry to look away.

PanelTech exists because a property developer got tired of waiting. Founded in 2024, the Victorian SIPS manufacturer grew out of a partnership with Miravour Property Group, whose director had watched traditional build programs blow out from eight months to twelve — and decided there had to be a faster way. For founder James Coghlan, that frustration became a business case.

“He was a forward-thinking developer who was willing to get involved with this construction method,” Coghlan says of the relationship that gave PanelTech both its founding capital and, crucially, a guaranteed pipeline of work at the Cobblebank estate, 33 kilometres west of Melbourne’s CBD in the fast-growing City of Melton — more than 300 lots that would become the company’s proving ground.

A Kit of Parts, Not a Box

PanelTech positions itself as a “kit of parts” company rather than a modular builder — a distinction Coghlan is keen to draw. Where modular delivers completed volumetric units, PanelTech manufactures complete wall sections pre-cut for windows, doors, and services, then ships them flat-packed for crane installation. The approach preserves design freedom while capturing off-site speed.

The company claims to be the only Australian manufacturer delivering SIPS as fully assembled wall sections. Imported panels, constrained by shipping container dimensions, must be installed one at a time. PanelTech’s locally manufactured sections allow entire walls to be dropped onto bottom plates in a single crane lift.

“It’s not physically intensive,” Coghlan explains. “You’ve got a crane lowering walls, you’re nailing off — as opposed to some of these panels that can be upwards of 70 kilos each. I wouldn’t want to be the tradie lifting 70-kilo panels for eight hours a day.”

From Drawing to Delivery

At the heart of the operation sits a million-dollar Spanish lamination machine that bonds EPS foam cores to structural skins using hot-melt adhesive, producing up to 180 panels per day on a single shift — enough for two to three complete homes. Architectural drawings are translated into a SIPS takeoff specifying every panel size, cut list, and service core, with electrical and plumbing pathways cored directly through the foam in the factory.

From there, panels move to cutting and assembly, where they’re built into complete wall sections, flat-packed onto pallets in installation sequence, and loaded onto crane semi-trailers — numbered walls, stacked in erection order, with a floor-plan guide any competent crew can follow.

Coghlan is refreshingly candid about what still needs work. The transition from lamination to assembly remains a bottleneck — cutting is manual, and nailing is done with traditional guns from a ladder. Conveyor systems, automated cutting, and rail-mounted nailing machines are on the horizon for investment. “We’ve spoken with government bodies about trying to get some sort of incentive to invest in that,” he says. “We’ll see what happens.”

Proving It at Cobblebank

The Cobblebank development has been PanelTech’s laboratory and showroom in one. Rather than playing it safe with the flat-roofed boxes the market associates with prefab, Coghlan pushed his architects toward gable roofs, skillion roofs, and vaulted ceilings — deliberately challenging perceptions.

“A lot of people have walked into these houses, had a look at these massive vaulted ceilings, and thought, okay, this is great,” he says. “Once the house is ready, you wouldn’t know the difference [from a traditional build], apart from the fact you can feel [the insulative and acoustic properties] when you’re in there in terms of livability.” 

The numbers tell their own story. Five homes completed, with a sixth imminent. Slab to lock-up achieved in two days. A target total build program of three months, against the eight-to-twelve-month traditional benchmark. And a minimum 7-star energy rating straight off the production line, without solar or additional measures — at a time when many conventional builders are struggling and spending heavily to meet that same threshold.

"They can put three claims in the space of a week," Coghlan says. "There's no having to delay because we're not cash positive. With our construction method and enclosed structure, you can send in the internal trades the following day – meaning no onsite delays and builders with predictable programs."

Building the Workforce from the Factory Floor

With Australia short approximately 90,000 tradespeople, PanelTech’s system has been deliberately designed to lower the skills barrier. A site crew needs just one qualified carpenter to lead; apprentices learn the numbered-wall installation process on the job. The company also employs qualified carpenters in its factory, bridging site knowledge and manufacturing quality, and is exploring a dual-role model where factory staff travel to the site for installation, reducing reliance on scarce, expensive site labour.

Longer term, Coghlan has ambitions to develop SIPS installation as a TAFE course module in partnership with prefabAUS, a formal training pathway that could feed both PanelTech’s growth and the broader Smart Building workforce pipeline.

What Comes Next

Current capacity sits at around 100 homes per year, with plans to scale to 200 by FY26. Coghlan sees medium-density townhouses as the greatest growth opportunity — the repetitive box-on-box geometry plays directly to SIPS’ strengths. Interstate expansion across the eastern seaboard is the five-year vision.

Three to four builders are now working with the product, some drawn by their own curiosity, others pushed by clients who’ve seen the time-lapse footage and want in. It’s early days, and Coghlan knows it. But at Cobblebank, the evidence is going up in two days flat — and it’s getting increasingly hard for the industry to look the other way.

With five resorts approved, a steel framing factory, an in-house building company, and solar microgrids powering hundreds of homes, Providence Lifestyle’s Brad Denison is demonstrating what happens when deep modular construction expertise meets vertically integrated development at scale.

When Brad Denison stepped down as CEO and Managing Director of Fleetwood Limited after 25 years — 15 as CFO and a further decade at the helm — he had built the company into the largest modular building operation in Australia, expanding it from a Perth-based caravan and mining accommodation business into a national force with major operations in Sydney, Brisbane, and Melbourne.

But stepping away from the corporate office didn’t mean stepping away from the industry. Today, as Chairman and Chief Operating Officer of Providence Lifestyle Group, Denison is applying his decades of offsite construction knowledge to a different challenge: delivering hundreds of high-quality, affordable homes for the over-50s land lease market in Western Australia — and demonstrating how Smart Building principles can underpin an entire business model, from factory floor to solar microgrid.

A New Vehicle for Old Expertise

Providence Lifestyle was founded approximately three years ago by John Wood — who’s father was the original founder of Fleetwood in 1964. John was also the driving force behind National Lifestyle Villages — together with fellow Fleetwood alumnus John Green and long-time industry consultant James Turnbull. When Wood invited Denison to chair the new venture, it was a natural convergence of land lease development experience and modular construction expertise.

The business has moved quickly. Providence now has five resorts approved and three in active construction, with a further six in various stages of the development approval process. Providence currently constructs approximately 30 homes per month, with a proportion built by Fleetwood and the balance built on-site by Providence’s own in-house building company.

“The end product is essentially identical, whether Fleetwood builds the home or we build it ourselves. They’re made from the same materials and both supply methods are fully modular homes capable of being transported to another site if the need arises. The reason we build a proportion ourselves is that there are economies of scale for our shareholders’’.

This hybrid approach reflects a pragmatic understanding of construction logistics. To support this capability, Denison has established a steel framing factory in Wangara, Western Australia, producing light guage steel framing for floor joists, wall frames and roof trusses — for the homes Providence builds itself.

Sixteen Designs, Hundreds of Homes

One of the most striking aspects of Providence’s approach is its disciplined design standardisation. Across all of its resorts, the company works from a library of just 16 home designs, which can be mirrored as left-handed or right-handed configurations. These 16 master files are loaded directly onto the computer-controlled machinery that manufactures the structural components.

“If the homes were a bespoke design every time, the engineering and detailing required would impact gross profit percentage. But because we’ve been able to develop a library of 16 designs that our customers like, they get loaded onto the machine from a library of engineering, that’s been a massive efficiency gain.”

This is where the true advantages of a Smart Building approach become apparent. The standardised design library doesn’t just drive manufacturing efficiency — it cascades through the entire value chain. With predictable forward volume and consistent specifications, Providence has commenced importing components directly rather than ordering through local suppliers, and is actively exploring further overseas procurement of standardised components to feed its in-house building operation.

Consistency Breeds Quality

The land lease model, with its concentrated, repeat-build environment, creates conditions that are particularly well suited to Smart Building methods. Rather than dispatching trades to scattered suburban sites, all construction activity takes place within a single resort development, where subcontractors move from one home to the next.

“If you are a subcontractor and all of your jobs are on the one site. You can move from one home to the next, creating economies of scale and opportunities to improve efficiency.”

This concentrated approach delivers multiple benefits. Subcontractors are retained through the consistency and volume of work, and the model supports a higher ratio of apprentices to master tradespeople, directly addressing the industry’s chronic skills shortage. Supervision and safety systems can be applied across an entire site rather than being stretched across individual suburban builds, and quality control is maintained by having Providence and building company staff permanently on-site.

The precision of computer-controlled manufacturing further elevates build quality. With steel framing produced to millimetre tolerances, the initial structure is, as Denison puts it, “absolutely perfect from the beginning” — a marked departure from the variability inherent in traditional hand-built framing. Combined with trades who refine their skills through repetition on identical designs, the result is homes that Denison maintains are “far superior in terms of build quality” compared to conventional residential construction.

Smart Homes, Smarter Communities

Providence’s integration of technology extends well beyond the construction process itself. Every home features 5 kilowatts of solar panels and a battery storage system. While these look like standard residential solar installations individually, their real power lies in their interconnection: across a resort like Piara Waters, which comprises approximately 250 homes, all batteries are linked together to operate as a single, community-scale microgrid.

The business model is elegant. Each resident is provided with 8 kilowatt-hours of free electricity per day. Residents who consume more than the 8 kWh allowance simply pay for the excess at a standard rate. The system also powers all communal facilities, village lighting, and shared infrastructure.

The technology integration doesn’t stop at energy. Providence has developed what it calls a Total Communication Solution (TCS) package, delivering fibre optic internet to every home and bundling phone, internet, automated gate access, and number plate recognition into a single resident service.

“It’s quite a technologically advanced home.”

A Housing Solution Hiding in Plain Sight

Western Australia’s housing market faces acute pressure. Perth alone requires approximately 25,000 new homes annually, but the industry can currently deliver only around 15,000 — a supply gap that mirrors the national housing crisis demanding 1.2 million new homes by 2030.

Denison argues that the land lease sector’s contribution to addressing this shortfall is well recognised by government but poorly understood by the general public. State and local governments have been particularly supportive, with state government incentives for investment in manufacturing machinery and enthusiastic local council backing for developments that can bring affordable housing to parcels of land otherwise unsuitable for traditional residential use.

“We can take parcels of land that, in some cases, couldn’t be used for traditional residential building and build two to three hundred homes using a product that is also socially conscious and promotes social wellbeing.”

The land lease model also offers a distinctive proposition in the housing affordability conversation. Residents purchase their home outright as a chattel, not a fixture, and hold a 99-year lease on the land. Providence has deliberately avoided the exit fees and deferred management fees that have attracted scrutiny in other parts of the sector, instead building this value into a slightly higher upfront home price. The combined home-plus-lease asset appreciates broadly in line with the surrounding suburb, meaning residents may purchase at $700,000–$800,000 and later sell for $1.3–$1.4 million without any exit fee deductions.

A Message for Manufacturers

Having spent a career building Fleetwood into Australia’s dominant modular manufacturer, Denison now sits on the other side of the table as a major client — and his perspective on the manufacturing sector is candid. He observes that some large modular companies have become too corporate, losing the entrepreneurial spirit and client relationships that once drove growth.

“Some companies require a deposit on order, then progress payments until the home is completed. This represents a barrier for our industry as many land lease home clients are cash buyers who pay for the home at settlement. Someone in the supply chain has to provide the working capital in that chain. Several Australian banks are currently developing loan products to allow for progress payments to modular builders, but we are still a way off.”

It’s a perspective that carries particular weight from someone who, as Fleetwood’s CEO, used to actively seek commercial partnerships with developers. The message to manufacturers is clear: maintain client focus, invest in relationships, and recognise that developers with the scale and capability of Providence now have alternatives, including building the capacity themselves.

Vertical Integration as Strategy

Looking ahead, Providence’s strategy centres on progressive vertical integration across the supply chain. The company already operates an in-house steel framing factory, an in-house building company, and is establishing an in-house funds management business with an Australian Financial Services Licence to raise capital for developments, alongside an in-house development team.

But Denison’s ambitions extend further. With predictable volume and standardised designs, Providence is systematically examining its supply chain to identify where external suppliers earn margins that could be captured in-house. Future possibilities include manufacturing other components such as wall and ceiling battens, aluminium extruding, and direct importation components from overseas — building on the window importation program already underway.

“We simply look at the supply chain from material procurement to completion of a home and where there are opportunities to use our scale to create economies we will continue to do so.”

The Smart Building Equation

Providence Lifestyle’s story illustrates a powerful case for Smart Building as more than a construction methodology — it’s a business strategy. By combining standardised design, computer-controlled manufacturing, on-site build efficiency, energy technology integration, and progressive supply chain ownership, the company has assembled a model that delivers affordable, high-quality homes at a scale and consistency that traditional construction methods cannot match.

For the broader Smart Building sector, Providence represents a compelling proof point: that when deep offsite construction expertise is directed toward a repeatable, scalable housing product, the benefits compound across every dimension — cost, quality, speed, sustainability, and social impact. As Western Australia’s largest land lease developer and a company delivering 30 homes per month across multiple resorts, Providence is living evidence that the future of Australian housing is being built not on individual sites, but on systems, standards, and the relentless pursuit of efficiency.

About Brad Denison

Brad Denison is Chairman and Chief Operating Officer of Providence Lifestyle Group, Western Australia’s largest land lease lifestyle resort developer. He is the former CEO and Managing Director of Fleetwood Limited, where he spent 25 years building the company into Australia’s largest modular building operation. He is also a non-executive director of prefabAUS, Australia’s peak industry body for offsite construction.

providencelifestyle.com.au

Queensland: An Industry Reset

Queensland fired the opening shot on 21 January 2026, when the Crisafulli Government released its response to the Queensland Productivity Commission’s Final Report into construction industry productivity. The findings were stark: productivity in the sector has declined 9 per cent since 2018, equating to 77,000 fewer homes — and labour productivity has grown just 5 per cent over the past 30 years, against 65 per cent across the broader economy over the same period.The government agreed or agreed in principle to 51 of the report’s 64 recommendations. For the Smart Building sector, the most significant commitments include the permanent removal of Best Practice Industry Conditions (BPICs) from procurement policy — already enacted in January 2026 and projected to save taxpayers up to $20.6 billion over five years — alongside a commitment to performance-based, production-neutral procurement that removes a structural bias against MMC in government projects.On regulation, the government explicitly acknowledged the QPC’s advice to equalise the playing field between conventional construction and MMC. It committed to participating in the ABCB’s voluntary manufacturer certification scheme (expected to be delivered in 2028) and engaging with the National Competition Policy reforms. A TAFE Queensland training review will also ensure MMC skills are appropriately represented in workforce programs — critical as Queensland scales its 50 per cent MMC target for government projects ahead of the 2032 Olympic and Paralympic Games.

NSW: Ending the ‘Moveable Dwelling’ Trap

For years, one of the most frustrating barriers facing NSW prefab manufacturers has been a piece of legislation designed for caravans. Under Section 68 of the Local Government Act 1993, manufactured homes intended as permanent dwellings have been classified as ‘moveable dwellings’ — a framework built for holiday parks, not high-quality modular homes. The result has been inconsistent council assessments, financing complications, and approvals uncertainty that has deterred investment.That is now set to change. The Minns Labor Government’s Building Productivity Reforms, announced November 2025 and due before NSW Parliament in 2026, will formally recognise prefabricated and modular building work as ‘building work’ under law, mandating compliance with the Building Code of Australia and replacing the patchwork of inconsistent council approvals with a single statewide pathway. The reforms also introduce clear rules for manufacture, supply, transport, delivery and installation; a new licensing framework for key roles; and consumer protections including statutory warranties and prescribed progress payment structures. NSW Building Commissioner James Sherrard described the changes as providing “long-needed clarity” for the sector.Critically, the reforms are expected to improve access to finance. By requiring a contract in place and BCA compliance, banks will have the certainty needed to lend against prefabricated homes — addressing a structural barrier prefabAUS has long identified as central to sector growth. The reforms arrive alongside NSW’s commitment to 80 per cent prefabricated components in its housing pipeline by 2031.

Victoria: Roadmap Recommendations Become Policy

Victoria made its own landmark contribution in December 2025, publishing ‘Shaping the Future of Construction in Victoria: Modern Methods of Construction’ — a formal government statement that consolidates a suite of MMC commitments into a single policy framework. For prefabAUS members, the document is concrete evidence that the Industry Roadmap is working.Multiple Roadmap recommendations are now reflected in Victorian policy: MMC has been formally named a driver of outcomes in the Victorian Industry Policy; the 2024–25 State Budget has funded regulatory reform aimed at achieving parity with traditional construction; the Domestic Building Contracts Act 1995 has been amended to recognise projects with moderate and high proportions of MMC, with regulations to adjust progress payments accordingly; and the $50 million Future of Housing Construction Centre of Excellence at Melbourne Polytechnic’s Heidelberg campus is now underway as the first national hub for MMC training, skills and applied research. Government procurement across schools, health infrastructure, social housing and regional worker accommodation continues to be deployed as a lever to build market confidence at scale.

A Sector at an Inflection Point

Taken together, these developments represent exactly the systemic change that prefabAUS’s advocacy has been working toward. The regulatory barriers, financing obstacles and approval inconsistencies that have constrained the Smart Building sector for years are being addressed simultaneously, in multiple jurisdictions, as part of coordinated national housing policy.As prefabAUS Executive Chairman Damien Crough has noted, the sector is “winning nationally, and winning state by state.” Queensland, NSW and Victoria have each, in their own way, confirmed that Smart Building is no longer asking for a seat at the table — it has one.

A builder who came in ‘kicking and screaming’ and a manufacturer with 13 years of pioneering experience have forged one of Victoria’s most productive partnerships in light gauge steel construction.

In an industry grappling with labour shortages, rising material costs, and the pressure to deliver 1.2 million new homes by 2030, the partnership between SAW Constructions and Dynamic Steel Frame stands as a compelling example of how collaboration and modern methods of construction can transform housing delivery at scale.

SAW Constructions is a Melbourne-based medium-density builder with two decades of experience specialising in two and three-storey townhouse developments. Dynamic Steel Frame, led by founder Peter Blythe, has spent 13 years pioneering light gauge steel (LGS) framing across residential, commercial, and modular construction — setting the benchmark in Victoria’s LGS sector.

From Reluctance to Revolution

The partnership’s origins are a story familiar across the prefabrication sector: initial resistance giving way to rapid conversion. SAW’s first encounter with Dynamic came through a 54-townhouse project in Brunswick, driven by a developer who insisted on steel framing. As Blythe recalls, every builder who tendered initially refused to use steel. SAW came in “kicking and screaming,” he says — but once the project was underway, the advantages became undeniable. SAW has essentially never gone back to timber.

Chris Stewart, who joined SAW’s leadership team in 2020 with prior LGS experience, accelerated the transition. “For me, it was a no-brainer. Let’s go all in on light gauge,” he says. Stewart acknowledges the challenges of integrating LGS into a traditional building business — trades accustomed to timber initially resisted, with mechanical, electrical, and plumbing contractors even charging surcharges for working with steel frames. Through close collaboration with Dynamic, service holes and penetration locations are now pre-determined and incorporated into each design, eliminating those surcharges and streamlining the build sequence.

Design-Led, Waste-Free Construction

At the heart of the partnership’s success is the design-led approach that LGS demands. Dynamic uses 3D modelling to resolve every detail with the builder before manufacturing begins — from structural loads and service penetrations to parapet heights and building levels. The result is accuracy to within half a millimetre.

“There is no waste on site. Nothing is cut on site. It all goes together like a Meccano set,” Stewart confirms. By contrast, traditional timber construction generates bins full of offcuts, and the inherent variability of timber — bowed studs, knots, inconsistent density — creates quality issues that compound through the build.

The weight advantages are equally significant. LGS framing weighs approximately one-third of an equivalent timber frame, dramatically reducing the structural steel needed for multi-storey construction. Blythe estimates that structural steel content on a typical townhouse project may be as little as 15-30% of what a timber-framed equivalent would require. Dynamic’s proprietary Hyperspan system — a deep-section purlin weighing around 12 kilograms per metre — can replace structural steel beams of 45 kilograms per metre, making installation faster and lighter.

Speed and Scale in Action

The partnership’s current flagship is the Maidstone project — 78 two and three-storey townhouses in Melbourne’s inner west, expected to be fully framed within approximately four months. SAW is Dynamic’s largest customer in the townhouse sector, with medium-density housing representing around 60–65% of Dynamic’s total pipeline.

The relationship has deepened to the point where SAW is planning to vertically integrate by rolling a portion of its own frames in-house. “Dynamic and Peter have given us the confidence to do that,” Stewart says.

A Broader Industry Shift

Both partners see LGS framing as central to addressing the structural challenges facing Australian construction. Stewart points to deteriorating timber quality and a shrinking trade labour pool as key drivers. “The industry is in a position where labour and resources are deteriorating, much like timber,” he says. “Having a fully resolved product is part of the solution.” SAW is actively training new framing crews, including converting timber framers and onboarding new entrants to the industry.

Blythe is equally confident about the sector’s trajectory. At three storeys, he notes, steel no longer needs to compete with timber on price — the structural requirements of multi-storey timber construction make it inherently more expensive. “At three storeys, we don’t even have to try to be more cost-effective — we just are.”

The sustainability case adds further weight. Steel framing is 100% recyclable at end of life, produces zero manufacturing waste, and generates significantly less freight emissions due to its lighter weight. When the full lifecycle is considered, Blythe argues steel is materially better than timber on environmental grounds.

The SAW Constructions and Dynamic Steel Frame partnership powerfully illustrates what the prefabAUS Industry Roadmap envisions: strategic collaboration between manufacturers and builders, driving productivity, quality, and scale through modern methods of construction. As Australia’s housing challenge intensifies, partnerships like this are not just promising — they are essential.

When physiotherapists Laura Stefani and Tom Hol decided to knock down and rebuild their family home in Heathcote in Sydney’s south, they wanted a fundamentally different approach to construction — one aligned with their values around sustainability, efficiency, and thoughtful design.

Their journey to a custom modular home with MODE Homes demonstrates both the potential of prefabricated construction for everyday Australian families and the critical role that new finance products — like CommBank’s groundbreaking prefab loan — are playing in making it accessible.

A Values-Driven Decision

The couple’s interest in modular construction was sparked at a TEDx conference highlighting the waste generated by traditional building — estimated at nearly 40 per cent of all locally produced waste. “The waste reduction set us off on this trajectory,” says Tom. “In a factory, if you’ve got trimmings from one house, you can use them on the next, rather than chucking them in a skip bin.”

Beyond waste, they were drawn to reduced transport emissions and the superior thermal performance of factory-built homes. “We wanted a relatively passive design with good insulation,” Tom explains. “With the modular builders we were looking at, double-glazed windows and solid insulation were standard.”

Finding the Right Builder

Using the prefabAUS website and other research, the couple narrowed their search to builders who could deliver an architecturally designed custom home within budget. When they met MODE Homes’ architect-director Matt, the connection was immediate. “I thought they’d be way outside our budget,” Tom recalls. “But Matt said that [our budget was in line with] the majority of houses he builds. Within an hour and a half, we’d basically done our design.”

The resulting home — around 170 to 180 square metres internally plus generous decking and a plunge pool — is a modest but well-resolved split-level design that responds to the sloping block. Bedrooms are treated as places to sleep, with the design prioritising open-plan living, transparency, and connection to the outdoors.

Smart Design, Efficient Delivery

MODE Homes uses a pragmatic hybrid approach that keeps costs down without compromising design. Standard modules are just 3.5 metres wide, so they travel on standard roads without police escorts or pilot vehicles. Transport costs for each module came in at around $2,000 to $2,500, compared to up to five times that for wider modules.

More complex elements like the open-plan living area are built on-site using panels that connect to the factory-built modules, delivering factory efficiencies where they matter most while enabling larger living spaces that would be impossible to transport.

The build demonstrated prefabrication’s speed advantages. Laura and Tom lived in their existing home for 11 weeks while the new house was constructed in the factory. Once the old home was demolished, MODE’s team completed footings in a week and craned the modules into position the following Thursday. “By the end of three weeks, they expect to have the roof and externals on,” says Tom.

Breaking the Finance Barrier

Perhaps the most significant barrier the couple faced wasn’t planning or design — it was finance. Their mortgage broker contacted around 39 lenders and came back with a blunt recommendation: choose a different builder. “He said we should just build the normal way, because we wouldn’t have any trouble securing finance,” Laura recalls.

The problem was that traditional construction loans are structured around on-site milestones — slab, frame, lock-up. With prefabricated construction, the bulk of work happens in a factory before anything is visible on site, and most lenders couldn’t accommodate that.

Then CommBank announced its dedicated prefab home loan in early 2025, allowing customers to access progress payments before the home is affixed to land — up to 60 per cent of the contract price, rising to 80 per cent for accredited manufacturers. For Laura and Tom, it was transformative. “Once we provided the Section 68 approval, they’ve been really quick with payments,” Laura says.

Worth Every Step

Laura and Tom are candid that the journey hasn’t been without frustration. New South Wales planning legislation still categorises modular homes under outdated caravan park regulations, which added months of delays and required their home to be set back two metres from side boundaries rather than the standard 900mm — a challenge the NSW Government is now actively working to resolve.

Yet even with these hurdles, the couple have no regrets. “We’d still do it again,” says Laura. “We know it will be worth it. We’ll have a home that connects with our values.”

Their story illustrates a pivotal moment for Australia’s housing sector. With finance products like CommBank’s prefab loan removing the biggest barrier to entry and governments modernising planning frameworks, custom prefabricated homes are becoming a genuinely viable option for families who want quality, sustainability, and affordability.

Melbourne Polytechnic’s Future of Housing Construction Centre of Excellence, which includes a showcase building at the Institute’s Heidelberg campus, is a $50 million investment in Australia’s Smart Building workforce. Born from a convergence of industry vision and educational ambition, and anchored by a partnership between prefabAUS and one of the nation’s leading TAFE organisations, the Centre aims to become the engine room for a new generation of construction professionals.

The partnership between prefabAUS and Melbourne Polytechnic’s Centre of Excellence in the Future of Housing Construction grew from parallel convictions that Australia’s construction industry needed a fundamentally new approach to workforce development. Gabriel Solorzano Torres, Executive Director of Melbourne Polytechnic, had long been struck by the gap between the potential of modern methods of construction and the reality of the Australian market. “I’d had professional exposure to prefabrication and modular construction throughout my career overseas”, he says. “I was always amazed that the industry had not established itself in Australia.”

When Melbourne Polytechnic’s Chief Executive, Frances Coppolillo, asked Solorzano Torres to lead an internal project to identify growth opportunities, MMC was identified as a strategic growth area for Melbourne Polytechnic. Solorzano Torres then led a team that began developing a business case and commenced conversations with government partners about the possibility of having a Centre of Excellence on MMC. The prefabAUS Industry Roadmap emerged as a critical reference point. “The Roadmap came through in our research, and we definitely used it as an inspiration,” he says. “What we wanted to do was very much aligned with what the Roadmap was saying. It became a foundational document.”

The connection ran deeper than a shared document. Melbourne Polytechnic’s board member Michael Grogan had contributed to the Roadmap’s development, and it was through Grogan that Melbourne Polytechnic connected with prefabAUS Executive Chairman Damien Crough.

For Crough, the Roadmap’s recommendation to “co-locate TAFEs with future factories” was finding its natural home. “They saw the opportunity through the establishment of the National Centres of Excellence,” he says. “They asked me to assist in writing the business case, and I provided input based on the Roadmap’s recommendations.”

Submitted to the government in late 2024 and announced shortly after, the Centre secured $50 million in joint Commonwealth-State funding — the first node in what prefabAUS envisions as a national Innovation Hub network.

A New Model for Construction Education

The Centre’s ambition extends well beyond putting a new building on the Heidelberg campus. Solorzano Torres describes a fundamental shift in how construction skills are taught — from task-based competency to also include broader capability development.

“We will always need to teach people how to do things,” Solorzano Torres explains. “If you are installing a pipe, you still need to demonstrate that you can do it properly. That practical competency remains fundamental. What we are adding is a stronger focus on capabilities alongside those skills, capabilities like project management, teamwork, critical thinking, and understanding how production systems work. Practices drawn from advanced manufacturing, such as Lean production and Six Sigma quality approaches, help workers understand how different trades and processes connect. The aim is not just to perform a task, but to understand the broader context so workers are operating as part of a connected system.”

This philosophy directly supports what Crough calls the “super tradie” concept from the Roadmap — a multi-skilled worker who understands how their trade connects with others in a factory environment. “Why couldn’t a carpenter on a production line also be installing some electrical cabling and plumbing pipework?” Crough asks. “We’re talking about a hybrid skill base of construction, trades, and manufacturing.”

Solorzano Torres frames the same idea through the lens of collaboration. In traditional construction, he explains, trades typically arrive on site, complete their portion of the work, and move on. The Centre aims to change that by training workers who understand the broader production cycle and how different trades interact within it. “What you end up with is a tradie who is more capable,” Solorzano Torres says. “And if that tradie returns to traditional construction, they are even more effective, because they understand how the decisions made by one trade influence the work of others and the performance of the building as a whole.”

Building for Sustainability

Both leaders are candid about the Centre’s most pressing long-term challenge: its government funding runs for approximately four years, after which it must be self-sustaining.

For Crough, success means the industry sees the Centre as indispensable. “It needs to become a self-sustaining model,” he says. “Industry will see it as a really valuable tool — not only to train, but also to learn through technology showcasing, industry forums, and applied research.” PrefabAUS has proposed that the new $25 million building include facilities for prototyping, conferences, and a dedicated podcast and webinar studio to amplify the Centre’s reach.

Solorzano Torres approaches sustainability from the demand side. “This is a national Centre of Excellence, so the materials, curriculum and knowledge developed here are designed to be shared across the TAFE network,” he says. “But at the same time, we have relationships with companies that are interested in the Centre because of the capability it can offer. There are companies across the ecosystem willing to invest in training and capability development if it helps them build the skills they need.”

“The government investment gives us the opportunity to create real depth in the materials and curriculum,” he adds. “As the initial funding period concludes, it will ultimately be industry’s choice whether they continue to access that capability and support it. The national value comes from the quality of what we develop and the extent to which the sector sees it as useful.”

That quality will be shaped by prefabAUS’s role as co-chair of the Centre’s Industry Advisory Panel, which will guide curriculum priorities based on real workforce needs. PrefabAUS will also provide subject matter expertise for course development, help co-design and co-deliver pilot programs, and connect the Centre to its national network of manufacturers and builders.

National Reach, Local Impact

As a nationally networked TAFE Centre of Excellence, courses developed at Heidelberg will be shared with TAFEs across the country — free of charge. “Whatever gets developed here gets shared nationally,” Crough says. “That’s how we get scale and change in the industry.”

Solorzano Torres explains that Melbourne Polytechnic is also developing the infrastructure needed to support national sharing, including an online platform that will act as a repository for industry-informed learning materials developed through the Centre. “The intention is that TAFEs across the network can access and use this content while maintaining a shared approach to quality and consistency,” he says. At the same time, some of the more advanced hands-on components may still require learners to spend time at Heidelberg, where the Centre’s showcase building will house specialised demonstration equipment and emerging construction technologies.

The scale of opportunity is significant. Solorzano Torres notes that more than 600,000 learners are currently enrolled across Australia’s TAFE system, with a substantial share undertaking trade-related training. “When you think about the workforce challenge Australia faces, the strength of the TAFE network is its reach,” he says. “The ability to develop knowledge in one place and share it across the national system is a powerful mechanism for lifting capability across the whole industry.”

Meanwhile, the broader Innovation Hub network is expanding. Crough confirms that additional nodes are developing in New South Wales and Queensland, and the published Roadmap progress reports identify emerging partnerships in South Australia’s Tonsley Innovation Precinct and at Sunshine Coast University’s Moreton Bay campus.

A Partnership Built on Values

When asked what makes the partnership work, Torres offers a reflection that captures something deeper than strategy.

“Strong partnerships rarely work on commercial logic alone,” Solorzano Torres says. “They tend to work because organisations share values and a sense of purpose. Our alignment with prefabAUS, particularly around the future of Australia’s construction industry, has been very strong. The collaboration has been constructive from the beginning, and we are genuinely excited about what we can continue to build together.”

PrefabAUS will be physically co-located with the Centre at the Heidelberg campus from March2026, with the  new Centre of Excellence MMC Showcase building expected to open around 2028. For an industry racing to deliver 1.2 million new homes while addressing an 83,000-worker shortage, the partnership between Australia’s Smart Building peak body and one of its leading TAFE organisations could not be more timely.

When Grove Group set out to construct a three-storey modular building at Glen Waverley Secondary College, they faced a formidable engineering challenge: convincing a sceptical consulting engineer that helical screw piles could safely support a multi-storey structure within the constraints of an active school environment. Eight weeks later, the project was complete, the engineer was convinced, and FTA had demonstrated why they've become Australia's most trusted name in engineered foundation solutions.

The Glen Waverley project exemplifies how strategic early engagement with specialist foundation expertise can transform potential roadblocks into competitive advantages. By bringing FTA's in-house engineering team into the conversation from day one, Grove Group was able to address every concern, deliver a fully certified solution, and save 15 days in build time compared to traditional concrete foundations.

The Science Behind the Success

Foundation design isn't guesswork—it's precise engineering that demands both geotechnical understanding and structural expertise. As FTA's director Steve Hassett explains, "You can't screw around when it comes to foundation design. Success hinges entirely on two crucial investigations: understanding what lies beneath and designing for the load above."

The geotechnical investigation reveals the ground's capacity—soil types, bearing strength, groundwater levels, and potential corrosivity that could affect long-term durability. This data directly informs every aspect of the screw pile's physical design: diameter, length, helical plate configuration, and the critical torque-to-capacity correlation that ensures each pile can safely carry its designated load.

Simultaneously, the structural investigation determines what the foundation must support—total loads, load distribution, and acceptable deflection limits. The magic happens when these investigations are integrated, creating an engineered solution that bridges ground capacity with building demands.

At Glen Waverley, this rigorous approach delivered remarkable results: 71 piles were installed, cut to required levels, and fitted with connectors in just two days. With no concrete curing time required, modular units were placed the following day—a workflow impossible with traditional foundations.

Addressing Modern Construction Challenges

The construction industry faces unprecedented pressures, including labour shortages, weather delays, environmental concerns, and increasingly tight project timelines. FTA's helical screw pile system systematically addresses these challenges.

Labour reliability becomes manageable with FTA's specialised installation teams. Weather delays are virtually eliminated—unlike concrete pours that can be postponed by rain, screw pile installation continues regardless of conditions. Environmental impact is dramatically reduced with no soil removal, no concrete trucks, and no concrete pumps disrupting site operations.

For modular and prefabricated construction, these advantages are amplified. The speed of installation aligns perfectly with the accelerated timelines that make modular construction competitive. The precision of engineered connections ensures structural integrity while maintaining the flexibility that makes modular solutions attractive to developers.

Beyond Single Projects: Systemic Solutions

The Glen Waverley success story has generated a lasting industry impact. This initial trial resulted in over 30 additional projects delivered using helical screw piles for single, double, and triple-storey schools. The ripple effect demonstrates how one well-executed project can establish new industry standards.

Brett Nicol, Program Director at Grove Group, captures the value of this partnership approach: "FTA is a highly regarded subcontractor known for its meticulous planning, technical capability, and consistent commitment to project success. They go above and beyond to meet program timeframes and collaborate with us as a true partner, always prioritising the needs of our clients."

This testimonial reflects what sets FTA apart in the foundation industry: technical excellence combined with collaborative partnership. When consulting engineers express scepticism, FTA responds with data, certification, and proven performance. When builders need reliability, FTA delivers specialised teams and weather-independent installation. When developers require speed, FTA provides solutions that eliminate traditional construction bottlenecks.

The Future of Foundations

As Australia's construction industry embraces modern methods of construction to meet the 1.2 million homes target, foundation solutions must evolve accordingly. The traditional approach of pouring concrete and waiting for curing simply doesn't align with the speed and efficiency that modular and prefabricated construction can deliver.

FTA's helical screw pile technology represents this evolution—engineered solutions that match the precision of factory-built structures with foundation systems that can be installed rapidly, precisely, and with minimal site disturbance. The combination of in-house engineering capability, independent certification, and collaborative project delivery creates a foundation partner capable of supporting the most ambitious construction timelines.

For architects, engineers, and developers working in the Smart Building sector, the question isn't whether screw piles can deliver—the Glen Waverley project and 30 subsequent successes have answered that definitively. The question is whether your current foundation approach is optimising project timelines, minimising site impact, and delivering the reliability that modern construction demands.

Foundation Technologies Australia doesn't just install piles—they engineer solutions that transform construction challenges into competitive advantages. When your next project requires a foundation partner that combines technical expertise with collaborative delivery, the choice is clear.

Contact FTA: Steve Hassett | 1300 382 745 | sales@ftapile.com.au |www.ftapile.com.au

A remote island. A brutal deadline. And a bold promise to build faster than logic says possible. In the opening episode of EPIC Builds: The 90 Day Challenge, Adam Spencer heads to King Island to see whether modular construction can really beat the clock.

Now Showing on 9HD and 9NOW

The Queensland Government has demonstrated national leadership in construction industry reform, with the release on 21 January of its response to the Queensland Productivity Commission's Final Report on opportunities to improve productivity of the construction industry.

The Government has agreed or agreed in principle to 51 of the report's 64 recommendations, signalling a comprehensive commitment to transforming the state's construction sector. The Treasurer and Minister for Housing and Public Works have confirmed that work will continue across government to prioritise and coordinate implementation, with further targeted consultation with stakeholders.

prefabAUS Contributing Industry Expertise Through BMAC

prefabAUS serves as a member of the Building Ministerial Advisory Council (BMAC), contributing industry expertise to shape policies that support construction productivity and Modern Methods of Construction (MMC). BMAC provides a two-way forum enabling the Minister for Housing and Public Works to engage with key industry stakeholders about matters relevant to the building and construction industry.

The Council has had several conversations about the Queensland Productivity Commission's inquiry into construction productivity, with prefabAUS providing direct input on how MMC can address the sector's challenges. At Offsite 2025 (the prefabAUS annual conference), Assistant Minister for Planning, Housing and Better Regulation, The Hon Rebecca Young MP, announced that a dedicated MMC sub-group would be added to BMAC, providing Modern Methods of Construction with focused attention within this influential reform body.

Alignment with Building the Future We Want Roadmap

Many of the adopted recommendations directly align with the priorities established in the prefabAUS Building the Future We Want Roadmap. Key areas of alignment include:

Regulatory Reform and Standards: The Roadmap calls for changing planning system requirements to standardise definitions of prefabrication and modernise building regulations to support use and approval of prefabrication through clear standards. The QPC recommendations address regulatory barriers that have made construction more difficult and expensive, with the government committing to reducing administrative burden and removing policies that add complexity.

Construction Productivity: The Roadmap targets demonstrating a 20 per cent cost advantage over conventional construction and reducing home construction times significantly. The QPC report identified a 9 per cent decline in construction productivity since 2018, with the government's response focused on removing barriers to innovation and competition to rebuild productivity.

Strategic Procurement: The Roadmap recommends applying strategic public procurement principles, favouring MMC. The government has agreed to permanently remove Best Practice Industry Conditions (BPICs) from procurement policy and remove pre-qualification requirements for sub-contractors on government construction projects, enabling greater market participation.

Workforce Development: The Roadmap emphasises building the future workforce to address Australia's construction skills shortage. The QPC inquiry acknowledged the critical shortage of workers to build homes, community infrastructure and 2032 Games projects, with reforms aimed at supporting a more capable construction sector.

Industry Development and Innovation: The Roadmap calls for creating an ecosystem that supports industry awareness and capability development. By removing barriers to innovation and competition, the government's response supports the Roadmap's vision for a more capable and scaled Smart Building sector.

Congratulations to Queensland

prefabAUS congratulates the Queensland Government on its leadership in responding comprehensively to the Queensland Productivity Commission's inquiry. By agreeing to 51 of 64 recommendations, Queensland is positioning itself at the forefront of construction industry reform in Australia.

This commitment builds on Queensland's existing momentum in Modern Methods of Construction, including the QBuild MMC program, which has delivered over 300 homes and has 600 in the pipeline, and the state's 50 per cent MMC target for government projects as it prepares for the 2032 Olympic and Paralympic Games.

The alignment between the government's response and the Building the Future We Want Roadmap demonstrates that Queensland recognises the transformative potential of Smart Building approaches to address the state's housing and infrastructure challenges.

prefabAUS looks forward to continuing its engagement through BMAC and other forums to support the implementation of these reforms and advance the shared goal of a more productive, innovative construction sector for Queensland and Australia.

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For more information:

The QPC Final Report and Queensland Government's response are available at: 

treasury.qld.gov.au/research-and-publications/reviews-and-inquiries/

The prefabAUS Building the Future We Want Roadmap is available at prefabaus.org.au/industry-roadmap

Industry leaders and government officials explore how Queensland's Games preparation presents opportunities for lasting transformation for Modern Methods of Construction in Queensland and the opportunity to fundamentally reshape Australia's construction industry. But as a distinguished panel of industry leaders and government officials acknowledged, realising this potential requires coordinated action across capacity building and industry support, policy and regulatory environment, and long-term strategic thinking.

The panel brought together Jackson Hills from Q Shelter as MC, Matthew Mackey from Arcadis, Grant Perry representing the Queensland Government, and Sheree Taylor from BlueScope—with perspectives spanning social and affordable housing advocacy, infrastructure consulting, policy development, procurement and supply chain leveraging and manufacturing expertise.

The state government's $7.1 billion Brisbane 2032 commitment and much bigger $116.8 billion infrastructure program, create both enormous opportunities and risks to be managed. "There's a capacity delivery risk in this space, and there's a huge opportunity," noted Hills, highlighting the dual challenge facing the industry

Regulating for Growth, Not Just Risk

A central theme emerging from the discussion was the opportunity for the governments to shift from risk-averse regulation to policies that facilitate industry growth. Taylor referenced recent advice from the Brisbane Chamber of Commerce: "We should be regulating for growth or regulating for risk."

This philosophy extends beyond simple deregulation. "Industry and government could work together around getting the right policy setting, the right policy design that actually stimulates growth," Taylor explained. "It doesn't need to be an ongoing legacy subsidy that goes nowhere. Government and industry need to regulate for growth, not just risk."

The federal government's recent abolishment of 500 regulatory requirements for businesses represents movement in this direction, but the panel discussion suggested more targeted intervention is needed to unlock MMC's potential.

Building Capacity Through Collaboration

Face-to-face engagement between government and industry emerged as a critical success factor. "The relationship is fantastic. We've seen that through some of the government agencies in their energy sector. They literally got on a bus and went around to local suppliers because they wanted to shake up their procurement," Mackey observed.

This hands-on approach enables more sophisticated contracting arrangements. "Once you open that procurement relationship, you can really start to drive real conversation," Mackey noted. "We could potentially look at collaborative contracting. If we don't have Australian operators big enough, half a dozen fabricators could band together—competitors one day, collaborators the next—to structure a project so it doesn't go offshore."

Learning from International Experience

Australia's latecomer status to large-scale MMC adoption was acknowledged as both a challenge and an opportunity. "Australia is way behind. We need to learn from international frameworks and start thinking broader," Mackey emphasised.

However, this creates urgency around capacity development. The industry needs to "make mistakes in order to improve," but time is limited with multiple major projects competing for the same constrained resources.

Olympics Legacy: More Than Infrastructure

The panel identified the 2032 Games as a potential catalyst for lasting industry transformation beyond the immediate infrastructure requirements. "The legacy items from the Games come from the choices we make today. Standardisation of design could create a blueprint for a stronger MMC market," Mackey suggested.

This legacy thinking requires coordination across government departments and a longer-term vision that transcends electoral cycles. "We can't get scale and efficiency out of one project. Election cycles impact the long-term view in terms of derailing investment. We need to find a way to get a long-term view," Mackey warned.

Whole-of-Government Coordination Needed

The discussion highlighted the need for programmatic oversight to support Queensland’s current booming investment conditions. Coordinated planning will be critical for the Olympics delivery given the firm 2032 deadline.

Education, health, and social housing programs can all present opportunities for MMC, but require better coordination. "Everyone at the moment is sprinting. There’s an opportunity to coordinate a bit better to give a bit more sustainability to it," Perry noted.

The panel also referenced lessons from Queen's Wharf, where COVID supply constraints led to large structural elements being supplied through Design for Manufacture and Assembly. "Evolution comes through stress,"  observed, suggesting that a crisis can accelerate innovation adoption.

Evidence, Information, and Persistence

The path forward requires sustained engagement built on solid evidence. As Hills concluded, success depends on "evidence, information, and persistence"—qualities that will determine whether the 2032 Games become a transformative moment for Australian construction and manufacturing or simply another missed opportunity.

With the Queensland Government engagement already evident through recent ministerial announcements and procurement, the foundation exists for the kind of collaborative approach needed to deliver both Olympic success and lasting industry transformation.

International manufacturers are eyeing Australia's construction crisis as an opportunity. At prefabAUS's annual general meeting on 28 August 2025, members voted to establish an international category of membership—a strategic move designed to shape an inevitable trend rather than simply react to it.

"They're entering the market regardless of what we do," says Damien Crough, Chairman of prefabAUS. "Either we can remain unaware of what's happening, or we can be proactive and exercise some control over how this unfolds."

With Australia's well-publicised need for 1.2 million new homes by 2030, offshore manufacturers see substantial opportunity. Developers, desperate for solutions, are attracted by competitive pricing. But the reality of offshore modular construction in Australia is far more complex—and expensive—than either party often realises.

A Strategic Response

Understanding these challenges, prefabAUS's decision to establish an international membership category isn't capitulation—it's strategic positioning. "Our objective is to gain visibility into who's entering the market and establish clear expectations regarding how international companies should engage with Australia," Crough explains.

International applicants will face rigorous vetting. "Entry won't be automatic. We're implementing a comprehensive code of conduct and detailed application process." These requirements will examine five-year and ten-year business plans, commitments to engaging with the local supply chain, and genuine long-term investment intentions for the Australian market.

The preferred outcome isn't perpetual importation. "The ideal pathway would see international companies potentially import some product initially, but with a clear commitment to establishing manufacturing operations in Australia," Crough says. This could mean building Australian facilities, partnering with local manufacturers, or acquiring existing building companies.

The Knowledge Exchange

There's genuine value in what international members can contribute. "Our fundamental goal is to shift the entire industry towards industrialised construction—the Fourth Industrial Revolution, Industry 4.0, digitisation, and advanced manufacturing," Crough explains. Leading prefabrication nations have already navigated this transition, offering valuable lessons in robotics, automation, and advanced manufacturing techniques.

The value proposition works both ways: international members bring manufacturing expertise and technological advancement, while Australian members provide essential local knowledge. "The local supply chain possesses deep expertise in the National Construction Code, state-by-state legislative requirements, and the practicalities of delivering compliant buildings. Strategic partnerships that combine international technology with Australian regulatory expertise could accelerate our industry transformation."

The Bottom Line

By creating visibility into market entrants and establishing clear expectations around local engagement, prefabAUS gains a strategic advantage. Rather than watching offshore competitors stumble through the compliance maze—potentially damaging the entire industry's reputation in the process—the association can guide them towards meaningful partnerships with Australian manufacturers.

"Our priority remains building Australian capability," Crough emphasises. The international membership strategy is designed to channel inevitable offshore interest into outcomes that strengthen rather than undermine Australian industry.

“We want to ensure prefabAUS’s overseas industry members contribute to the capacity and capabilities of Australia’s production and onshore prefabrication. We cannot import our way into Smart Building. That will not meet the challenges posed by lagged productivity and poor affordability, of climate change and adaptation, nor of the needs of Australia’s increasingly diverse households. Achieving these things means having a strong onshore manufacturing sector able to originate and innovate the solutions to these challenges across a vast and changing continent.”

It's a pragmatic response to an unavoidable reality. International interest is intensifying. The question isn't whether to acknowledge it, but how to shape it into something that builds Australian industry rather than bypasses it entirely.

The Mounting Crisis

Holzer began by highlighting Australia's stark housing reality. The nation is falling dramatically short of its National Housing Accord targets, with actual dwelling approvals continuing to diverge from desired targets. Perhaps most troubling is that Australia has actually become slower at building homes over time—the average period between commencing construction and completion has extended from around six quarters a decade ago to more than nine quarters today.

When asked to explain this paradox in an age of technological advancement, Holzer was unequivocal: "It is often not just what we can do within the design and delivery side of things that determines how effective we are," he explained. "It is often also constrained by contracts; it is constrained by government overregulation associated with application and approval processes."

This decline in productivity occurs against a backdrop of severe skills shortages. Australia currently faces a deficit of 83,000 tradespeople, creating a perfect storm that threatens to derail housing delivery targets.

Why AI is Different This Time

The construction industry, traditionally one of the slowest adopters of new technology, must now confront whether AI can provide solutions to these systemic challenges. Holzer believes AI represents a fundamental shift from previous technological advances.

"There are numerous patterns of information and knowledge management that can be boosted by the capabilities of AI," he said. "It can really affect a whole different range of parts of your information flows and knowledge systems."

This breadth of application sets AI apart from previous technologies like Building Information Modelling (BIM), which primarily benefited spatial coordination but had limited impact on project finance, procurement, fabrication processes, or logistics.

AI Applications Across the Construction Workflow

Holzer's presentation mapped out comprehensive applications across the entire prefabrication process. In finance and feasibility, AI can assist with market analysis, demand forecasting, site suitability assessment, and dynamic financial modelling that updates projections as conditions change. For production management, AI enables predictive analysis for optimising schedules, reducing production cycle times, and automating compliance checks when interfacing with BIM systems.

On the factory floor, AI applications include risk forecasting, inventory management, and automated quality inspections. "You have computer-supported visual checks where you have quality checks that would allow you to detect any defects or any deviations from what was designed," Holzer explained, noting this could "speed up your QA processes dramatically."

The technology extends to logistics through process simulation, supply chain vulnerability detection, and route optimisation. For site management, applications include minimising construction risks, supporting crane movement optimisation, and facilitating augmented reality installations.

Avoiding the Implementation Trap

Perhaps even more impressive than federal recognition is the systematic state-by-state adoption of Smart Building priorities. Queensland has set a 50% MMC target for government projects while preparing for the 2032 Olympics build.

At the conference, Assistant Minister for Planning, Housing and Better Regulation, The Hon Rebecca Young, announced that a dedicated MMC sub-group would be added to the Queensland Building Ministerial Advisory Council (BMAC). This provides Modern Methods of Construction with focused attention within an influential reform body where prefabAUS already serves as a council member.

New South Wales launched a $10 million Modular Housing Pilot with Pattern Book fast approvals for modular construction.

Victoria committed $50 million to a Future of Housing Centre of Excellence, Western Australia allocated $50 million to its Housing Innovation Program, and both South Australia and Tasmania established dedicated MMC social housing programs.

The financial sector has also shifted dramatically. CommBank now offers prefab-specific products allowing 80% contract price access before home installation—a crucial breakthrough that addresses the sector's unique procurement requirements. A Federal Treasury Working Party is actively addressing remaining MMC finance barriers.

The Data Foundation Challenge 

Central to Holzer's message was the critical importance of data preparation—a step many organisations overlook in their rush to implement AI solutions. "The biggest investment probably would have to be this sort of data cleansing, data tagging exercise that needs to happen to then really reap the benefits over time," he explained.

This data work involves several key components. First, organisations need to establish in-house reference databases that are "specific to your organisation, specific to what your core business is about." The goal isn't about homogenisation of approaches across the industry—Holzer stressed: "We don't want AI to lead to everyone doing the same thing and just hoping to do it quicker and cheaper."

The process begins with historical project analysis. "For many, it has to do with information tagging, where you look at your organisation's history and projects, you standardise some of the data, and you allow the AI to harvest information and extract some trends and analysis."

This historical data mining can reveal patterns in everything from financial performance to technical details that proved successful on previous projects. However, Holzer noted a fundamental industry weakness that makes this challenging: "We are such a project-by-project-based industry. We have been really bad in knowledge management and knowledge sharing, even within organisations."

Navigating Legal and Technical Obstacles

Legal issues present complex challenges that the industry is only beginning to address. On the critical question of liability when AI systems make errors, Holzer was direct: "You can't blame an algorithm for making decisions that led to wrong outcomes... You will not win a legal case if you say, Sorry, it's not my fault, it's the AI's fault."

He argues that the solution lies in "expert-in-the-loop systems" where human oversight remains integral to AI-assisted decision-making processes.

Data ownership and intellectual property protection create additional complications. There are substantial risks of inadvertent competitive intelligence sharing, particularly given AI's appetite for data. "AI is very hungry and keen to grab information from everywhere," Holzer noted, emphasising the need for careful data governance and new AI-inclusive policies by insurers.

The Low-Hanging Fruit

For organisations ready to begin their AI journey, Holzer identified several accessible starting points, all of which depend on proper data preparation. The biggest opportunity lies in addressing the industry's knowledge management failures by "establishing systems that allow you to bring up information in real time, and to help you make decisions based on more informed background information that's available to you much quicker than you were able to do in the past."

Other accessible applications include automated quality assurance on factory floors, transport logistics optimisation, and improved site management through crane movement optimisation and automated visual checks. However, these applications require standardised, tagged data to function effectively.

The Foundation: Data Strategy

When asked what construction professionals should do immediately to start their AI journey, Holzer's response was emphatic about data fundamentals: "They should set up an AI steering group that discusses their data and how they deal with information clearly. AI can only work if it's clean, consistent and high-quality. It's the same trash-in, trash-out conversation about data we’ve always had."

This requires what he called "a homogenisation of data structures across your business" that links different processes—from supply chain integration to design, fabrication, scheduling, transport, and finance—under unified logic. "You want AI to be able to query across, and so that really depends on how clean and purposefully appropriate the data that you deal with is."

The data strategy must also address IP and security concerns. Organisations need "a group of people within the organisation who look at this IP question, who ensure that whatever data you train your AI on is yours, or it's publicly available to the point where you're not infringing on anyone's IP."

From his consulting experience, Holzer emphasised that "data safety is the number one priority. You don't want to expose yourself to any risk." This involves establishing "very solid back-of-house data and data integration system, and a very clear understanding ethically and legally, on what data sets you’re drawing on."

Skills Transformation and Collaboration

The workforce implications are profound, with production planners, quality inspectors, and material handlers likely to see significant changes. However, rather than simply eliminating jobs, AI-enabled prefabrication requires workers who can collaborate with evolving, non-human intelligence systems.

Holzer advocates for coordinated responses involving government, education, and industry. This is also where the prefab sector needs to assist government institutions in finding more efficient ways to process building applications using AI. The problem isn’t overregulation as such, but the time it takes to manually check submissions against the myriad of compliance requirements in place. AI could play a significant role in automating a substantial number of tasks here. The prefabrication sector, being relatively small and cohesive, is well-positioned for collective action, though he acknowledges the challenge of balancing data sharing with competitive advantage protection.

Environmental Consciousness

Holzer concluded with an important warning about "meta-cognitive laziness"—the need for awareness regarding AI's environmental impact, particularly the substantial energy demands of data centres. "Not everything you could do using AI... you should do using AI," he cautioned, emphasising the importance of thoughtful, sustainable implementation.

The Path Forward

The transformation of Australia's construction industry through AI represents both an unprecedented opportunity and a complex challenge. As Holzer noted, the technology is evolving rapidly—"ChatGPT hasn't even existed in any useful way up until, let's say, 3 years ago"—requiring urgent but strategic responses.

However, his message was clear that success hinges on proper preparation: "Don't be naive, don't think it's like a tool that you plug in and it will suddenly boost your productivity. You really need to be quite strategic about what it is that you want to use it for."

Success will require unprecedented collaboration between government, education, and industry, built on a foundation of clean, well-structured data. For the construction sector to realise AI's potential in addressing Australia's housing crisis, the focus must shift from viewing it as a simple technological tool to understanding it as a comprehensive transformation of how the industry captures, manages, and leverages information to make better decisions and deliver projects more effectively.

The message is clear: AI adoption in construction isn't just about technology—it's about reimagining an entire industry's relationship with data, knowledge management, and systematic learning from past experience.

Associate Professor Dominik Holzer is deeply involved in researching the impact of AI across the AEC sector, and he lends his expertise on strategic AI adoption to industry via his consultancy AEC Connect.

In an industry often resistant to change, Western Australian company OFFSITE represents a bold departure from traditional building practices. By bringing forward a five‑year plan to completion in less than a year, OFFSITE has proven that speed, scale and performance can coexist - and that affordable living is a design choice backed by a manufacturing system, not a compromise in quality.

What began as a 2009 venture focused on sacrificial formwork has evolved into one of Australia's most ambitious modern methods of construction (MMC) operations, with the mass production of prefabricated wall panels, floor and roof cassettes, stair cassettes, and other timber components, enabling the delivery of thousands of homes annually.

From Russia with Ambition

OFFSITE's transformation story begins with an unlikely journey to Russia in 2019. The business, originally built around innovative concrete formwork patents, identified a need for timber frame capabilities to complement their existing operations. This led them to acquire a 2014 Weinmann timber framing line from Russia—one of the first HOMAG Weinmann lines in Australia. 

"That Weinmann equipment became the backbone of initial operations in timber frame prefabrication," explains Chief Strategy & Operating Officer Clarinda Ho, who, alongside Executive Chair Norm Roberts, had been engaged as ad hoc consultants with the business for over a decade before leading its acquisition.

The turning point came in late 2023 when the original owners sought an exit. Ho and Roberts assembled a consortium of founding Western Australian shareholders to acquire and recapitalise the business, setting the stage for dramatic expansion.

Manufacturing at Scale

Today, OFFSITE operates from a facility that Ho describes as "three lines that go down the length of a rugby field"—three automated production lines capable of manufacturing wall panels with remarkable efficiency. The operation includes additional hand-built capacity for architectural nuances and houses one of only two Hundegger SPEED-Cut 480 machines in Australia.

This is the mindset behind modern methods of construction (MMC) and design for manufacture and assembly (DfMA). It is also the mindset OFFSITE have applied to turn a fragmented pipeline into industrialised housing production.

The manufacturing process is highly systematised: automated lines frame and nail panels together, add exterior components and cladding, then place finished products onto cradles for shipping. On-site installation of a house's exteriors using cranes can be completed in 2 to 3 days—a stark contrast to traditional builds, which can take up to 18 months, including fit-out and finishing trades.

"Our Manager - Design Ron Sommerlatt describes the Hundegger SC-480  as having the equivalent productivity of 30 skilled carpenters working around the clock," Ho notes, emphasising the remarkable efficiency gains achieved through further automation.

Ron Sommerlatt was recruited from CarbonLite in Victoria via Germany and brings international experience crucial to DfMA — skills and expertise that Ho describes as scarce in the Australian market.

Delivering Value Beyond Cost

While OFFSITE achieves 15-25% cost savings using scale and repeatability compared to masonry builds, the value proposition extends far beyond initial construction costs. The company approaches housing as asset manufacturing, considering lifecycle management (LCAM), maintenance costs, and energy requirements, viewed through both design and manufacturing lenses.

"We've been looking at that from that angle [LCAM] from day one, so it's allowed us to move away from traditional procurement criteria, which tends to lean towards price as a criterion," Ho explains.

The manufacturing approach enables significant site work reductions and allows for easy upgrades to Passivhaus standards for an estimated 15-20% additional cost. 

Executive Chair Norm Roberts explains the economics, "Keep in mind we're a very small cost of the total build between the land and the finishings. They can upgrade either through wraps or actually nominate passive for about 15-20% more of our cost... and now, all of a sudden, you've got a Passivhaus."

Perhaps most significantly, OFFSITE’s building methodology enables approximately 20% increases in lot yields due to their ability to install on-site in closer proximity without sacrificing amenity.

Scaling to Meet Demand

The company's expansion story accelerated dramatically in September 2024 when an opportunity arose to acquire two production lines from a Geelong operation. 

Within weeks, OFFSITE had secured the equipment, shipped it to Western Australia, and then relocated in April 2025 to accommodate the expanded product capacity.

The housing “product” is not a single design; it’s a platform: common structural grids, MEP zones, panel interfaces and envelope systems that allow typological variety without re‑engineering each time. Mass customisation via façade options, internal packs and performance tiers, without breaking flow on the lines.  Critically, this product mindset clarifies where margin is earned: in throughput and reliability, rather than in one-off markups on components.

The company has achieved a nameplate capacity of 2,500+ units annually. The Perth market alone demands 25,000 houses annually, but the industry can only supply 15,000.

"Our production order book is full until March next year," Ho reports, driven primarily by developer adoption of buying the houses (60% complete with installation by OFFSITE) as a product at scale rather than traditional builders building on site.

Educating the Market

OFFSITE’s market education approach emerged from a frustrating reality: builder markups were undermining their value proposition. When a government agency questioned whether OFFSITE delivered promised speed and cost benefits, the truth revealed a different story. While OFFSITE completed installations in 1-3 days, builders took 11 months to finish projects. More significantly, builders marked up OFFSITE quotes by 65% to 98% to end clients.

This prompted a strategic shift. Committed to affordable, energy-efficient housing, OFFSITE developed standardised designs and worked directly with MMC-familiar builders to demonstrate true capabilities and pricing,

“We’re deliberately not a builder, but we have our own designs for manufacturing, then DfMA’ing them,” Ho explains. This strategy proved actual pricing points while demonstrating how manufacturing at scale with repeatable designs delivers programs over 26 weeks—bypassing traditional builder margins that obscured MMC’s real benefits.

OFFSITE is working with several builders who program their schedule to the product, not the other way around. “We are working with the broader delivery team to achieve a completion time of about 26 weeks after OFFSITE completes installation, targeting a 12 to 14 weeks in the future, explains Ho. “The gold standard overseas for this type of build is 10 weeks to completion.

The company engages extensively with government stakeholders, advocating for procurement reform and clearer definitions of MMC. Ho argues that the government could be more impactful if they specified outcome requirements more precisely. For example, through standardising particular housing configurations procured at scale, nominating a 26-week program, requiring minimum asset performance and energy efficiency, and setting target price points in which the built form is to be delivered, and mandating specific methodologies to be used where appropriate.

Future Ambitions

Looking ahead, OFFSITE’s priorities are clear: complete the commissioning of the expanded capacity, broaden the ready-to-build design library, and continue to compress cycle times from installation to handover. OFFSITE’s focus remains firmly on improving manufacturing and construction productivity.   Longer-term plans include a second "Bravo site" facility, although Ho acknowledges that this represents a four-year, $150 million-plus investment decision.

Roberts explains why competition isn't an immediate concern, pointing to the massive barriers to entry and the Nullarbor as a physical logistics barrier for possible east coast competitors. Any competitor would face a minimum four-year timeline to achieve installed capacity, necessitating substantial financial resources to operate at the necessary scale. "Even at $150 million, that hasn't paid for the completed factory," Roberts notes. "That's basically you've got your site and your down payment on the equipment."

The company has already received inquiries from interstate markets, with backloading economics making supply to Adelaide a viable option. Queensland has also expressed interest, despite the distance.

Beyond expansion, OFFSITE maintains broader industry development goals, promoting and advocating MMC. "Our purpose is to infect the Western Australian community with the benefits of MMC," Ho states. "We are on a mission."

Industry Transformation

OFFSITE’s rapid growth reflects broader industry momentum around modern construction methods. Ho notes an increasing alignment between their messaging and recent government reports, industry publications, research, and member peak body initiatives through organisations like prefabAUS.

The company's philosophy extends beyond its own success to supporting the broader supply chain ecosystem. "If everyone wins, we win. There is a stronger and sustainable supply chain," Ho emphasises, describing their approach in ensuring local and national SME and corporate suppliers remain as strategic supply chain partners.

As Australia grapples with housing supply challenges, OFFSITE’s combination of manufacturing scale, design innovation, and strategic market development offers a compelling model for addressing critical infrastructure needs through industrial-scale housing production.

For the wider industry, the call to action is immediate: developers must establish repeatable typologies and confirm quarterly volumes; builders must reprogram for MMC and protect manufacturing and installation production windows; the government needs to procure based on outcomes and aggregate demand.

OFFSITE's trajectory from concrete formwork specialist to major MMC manufacturer demonstrates how strategic vision, technical capability, and market timing can converge to create transformative industry change. “Industrialising housing is how we make affordable living - not just cheaper building - a reality. The only way out of a supply crisis is scale, and the only way to scale is to manufacture.”

In one of Australia's most remote mining regions, 1,500 kilometres from Perth, they needed to deliver 14 self-contained dwellings, Administration, two Group Rooms and Utility Block—fast, with uncompromising quality, and within strict federal time and funding milestones.

The solution emerged through an exceptional collaboration between three organisations whose partnership proved as crucial as the prefabricated methodology itself: The Salvation Army (Client), Lanigan Architects (Lead Designer), and Fleetwood Australia (Manufacturer).

A Strategic Decision Born from Necessity

"We always understood that appropriately skilled tradespeople would be an issue for Karratha," explains Simon Mallabone (The Salvation Army - Development Manager). 

Architect Tim Lanigan recalls the collaborative decision-making: "I think the client had sensed that prefab was probably the likely way forward, given the way the industry is at the moment. Working remotely in a mining town where resources have been drawn that way, it was unlikely we’d find a contractor for an conventional/in-situ build."

The urgency was compounded by federal time and funding requirements. "There were relatively strict milestones that had to be adhered to," Mallabone notes. "It was a two-pronged situation—we wanted to get it on the ground very quickly, and we had to meet strict milestone requirements from the department."

Quality Control Through Proximity

One unexpected advantage of the prefabricated approach proved transformative for all parties. As one of seven Fleetwood manufacturing facilities nationwide, the Perth Airport location made site inspections remarkably accessible for a remote project.

"It was a 20-minute trip for a site meeting/inspection," Mallabone notes. "The ability for the client to retain quality control, with the Architect able to do progress inspections throughout fabrication—that was invaluable."

Lanigan appreciated this transparency: "There were regular site visits out to the Fleetwood manufacturing facility. A variety of interested parties were able to attend, not just the core stakeholders. It brought everyone along and meant it was logistically far more feasible."

The project demanded a sophisticated design response that delivered cyclonic engineering and associated storm surge requirements, cultural sensitivity, and trauma-informed design principles. Tim Lanigan describes it as "a fascinating learning curve, trying to understand the complex nature of the site and different demands placed on the design—from security, but also creating spaces that provide sanctuary without appearing institutional."

The modular approach initially constrained Lanigan, who admits being “more constrained with the design than I needed to be in retrospect.” However, Fleetwood’s flexibility surprised him: “I’m realising I probably had a little bit more latitude than I gave myself the first time around.”

Mallabone echoed this discovery: "I was pleasantly surprised that they could accommodate, with only minor amendments, our design. Very surprised by how easy it was—how the design we wanted got delivered, figuratively and physically."

Navigating Complexity Together

The project demanded a sophisticated design response that delivered cyclonic engineering and associated storm surge requirements, cultural sensitivity, and trauma-informed design principles. Tim Lanigan describes it as "a fascinating learning curve, trying to understand the complex nature of the site and different demands placed on the design—from security, but also creating spaces that provide sanctuary without appearing institutional."

The modular approach initially constrained Lanigan, who admits being “more constrained with the design than I needed to be in retrospect.” However, Fleetwood’s flexibility surprised him: “I’m realising I probably had a little bit more latitude than I gave myself the first time around.”

Mallabone echoed this discovery: "I was pleasantly surprised that they could accommodate, with only minor amendments, our design. Very surprised by how easy it was—how the design we wanted got delivered, figuratively and physically."

Coordinated Delivery Across Multiple Teams

The project’s scope required seamless coordination between Fleetwood’s manufacturing and transportation operations and Perth-based CDI Group, who handled the on-site installation. Dan Courtney, Fleetwood Australia’s General Manager, acknowledges the potential complexity: “There was a high level of contractor interaction between us and CDI.”

The collaboration proved particularly valuable during the installation phase. “We ended up working quite closely as we were going through fixing up any travel damage,” Courtney explains. “CDI were on site alongside us doing site work—they were really good to deal with.”

This parallel workstream capability—where site preparation and services could progress whilst modules were being manufactured—delivered the time savings that made the 21-week completion possible.

Overcoming Stigma, Exceeding Expectations

"When you're working up north, everyone hears 'prefab' and thinks of mining camps and modular construction," Lanigan explains. "This was a great chance to showcase a better outcome using the same construction process."

The final result silenced doubters. "It doesn't look prefabricated," Mallabone emphasises. "They’re not ‘dongers’. They feel like homes, and that's important."

Courtney highlights the architectural window screening that "reminded me of the screening on old Queenslanders in cyclone regions. Aesthetically, it was really nice, but it also protected windows from foreign objects. Although an aesthetic feature, it really added to the building's robustness."

A Model for Replication

Completed in just 21 weeks with zero safety incidents, delivered on time and within budget, Safe Spaces (Karratha) has catalysed further collaboration. "We've got a couple of projects we're looking at now with The Salvation Army to replicate what was done here," Courtney confirms. "It was well received by everyone. It would be fantastic to build more Safe Spaces around the country."

For the not-for-profit sector, Mallabone sees prefabrication as essential: "Time being the key one, cost secondary. Federal and State Government departments are enquiring, 'Is modular being considered?' It's a procurement strategy our sector should be looking at."

Lanigan believes the industry is only beginning to tap prefabrication's potential: "As people's knowledge of the sophistication possible improves , we'll see it becoming more popular. To compress timeframes and have greater control over projects is a great plus."

Yet beyond the technical achievements and delivery metrics, the project’s true measure of success became evident at the opening. “We spend a lot of time building mining camps and homes,” Courtney reflects. “At the opening, we saw the beds made, teddy bears tucked in, games for kids, nice pamper packs for the residents, which made you think about the people who are going to use this space. Everyone at Fleetwood was really touched by that. It felt good to have built something that will genuinely impact people in a profoundly positive way. We’re very proud of it.”

Fleetwood Australia was the winner of the Social/Affordable and Resilient/Emergency Housing category for the Safe Spaces Karratha project at the prefabAUS 2025 Smart Building Industry Awards.

prefabAUS's systematic advocacy has transformed Modern Methods of Construction from an industry outlier to a central pillar of national housing strategy in just 24 months

In what prefabAUS Executive Chairman Damien Crough describes as "extraordinary gains," Australia's Smart Building sector has achieved a dramatic transformation that seemed almost impossible just two years ago. From near-invisibility in national housing policy to securing hundreds of millions in federal and state commitments, the sector has moved decisively from recognition to implementation—and now to genuine momentum.

Speaking at the industry's flagship conference on the Gold Coast, Crough reflected on the sector's remarkable trajectory: "In a few short months we have advanced from almost nonrecognition to major uplift in support for MMC in these critical national areas. We are winning nationally, and winning state by state.

A Strategic Fight Worth Winning

The turnaround didn't happen by accident. At the 2024 industry gathering, prefabAUS leadership acknowledged they were "frankly downbeat" about progress. Modern Methods of Construction remained conspicuously absent from major national programs despite offering clear solutions to Australia's housing crisis.

"Smart Building was barely recognised within the Housing Accord," Crough noted, referring to the government's ambitious target of 1.2 million affordable, well-located, energy-efficient homes by 2030. The sector was similarly overlooked in the government's flagship reindustrialisation policy, "A Future Made in Australia."

But rather than accept this marginalisation, prefabAUS declared it "a fight we simply must win" and embarked on a systematic campaign to elevate Smart Building to national priority status.

Federal Breakthrough: $174 Million in Commitments

The campaign's success is now evident in concrete policy outcomes. The federal government has committed $54 million specifically to MMC development—$49.3 million supporting state and territory programs to grow the prefab and modular housing industry, plus $4.7 million for a voluntary national certification process.

This followed November's $900 million National Productivity Fund, which included specific incentives for states to accelerate prefabricated housing adoption, and an additional $120 million in National Productivity Fund competition payments to fast-track prefab housing.

Industry Development Specialist Lance Worrall emphasises the strategic importance of this recognition: "Smart Building is now explicitly recognised within the National Housing Accord, and in the Future Made in Australia industry programs. Furthermore, the 2025 election delivered a definitive outcome that implies the government can act with greater urgency."

The Australian Building Codes Board has also responded with new national standards for offsite construction, addressing design, approvals, production, and performance requirements—alongside a framework for manufacturer certification that could deliver a $2.9 to $5.7 billion boost to the national economy.

State-by-State Victories Build Critical Mass

Perhaps even more impressive than federal recognition is the systematic state-by-state adoption of Smart Building priorities. Queensland has set a 50% MMC target for government projects while preparing for the 2032 Olympics build.

At the conference, Assistant Minister for Planning, Housing and Better Regulation, The Hon Rebecca Young, announced that a dedicated MMC sub-group would be added to the Queensland Building Ministerial Advisory Council (BMAC). This provides Modern Methods of Construction with focused attention within an influential reform body where prefabAUS already serves as a council member.

New South Wales launched a $10 million Modular Housing Pilot with Pattern Book fast approvals for modular construction.

Victoria committed $50 million to a Future of Housing Centre of Excellence, Western Australia allocated $50 million to its Housing Innovation Program, and both South Australia and Tasmania established dedicated MMC social housing programs.

The financial sector has also shifted dramatically. CommBank now offers prefab-specific products allowing 80% contract price access before home installation—a crucial breakthrough that addresses the sector's unique procurement requirements. A Federal Treasury Working Party is actively addressing remaining MMC finance barriers.

Innovation Hub Network: From Strategy to Reality

The momentum extends beyond policy recognition to tangible infrastructure development. The Melbourne Polytechnic Future of Housing Construction Centre of Excellence represents a $50 million Commonwealth-State co-investment that will become Australia's first national MMC training and applied research facility.

Worrall describes the facility's significance: "It will deliver MMC workforce skills within purpose-built facilities, demonstration equipment and Industry 4.0, including a holographic training suite, digital design labs and modular construction workshops."

This centre anchors an emerging national Innovation Hub network. New South Wales features a $400 million BlueScope-TAFE partnership developing 200 hectares in the Illawarra for education, training, and industrial development, potentially creating 30,000 jobs. South Australia is developing an MMC node at the Tonsley Innovation Precinct—the former Mitsubishi auto assembly site—featuring a Cross Laminated Timber facility focused on robotics and automation testing.

Queensland is exploring similar development at the Sunshine Coast University's Moreton Bay campus, while all nodes operate under a national partnership agreement ensuring coordinated development.

Manufacturing Mission: Building the Future Here

For prefabAUS leadership, this momentum represents more than industry development—it's about Australia's economic future. Worrall frames the choice starkly: "Smart Building is more than manufacturing and production, but make no mistake: there is no Smart Building without a strong, capable onshore manufacturing sector."

The organisation warns against what it terms "Stupid Building"—a race-to-the-bottom scenario involving basic imports that would "reinforce inequality" rather than counter it, delivering environmental mediocrity instead of climate-effective solutions.

"The future for Australian Smart Building is a future built here, manufactured here," Worrall emphasises. "We will not have a Smart Building future unless it is A Future Built in Australia."

The mission encompasses productivity, affordability, speed, climate and resource efficiency, quality and mass customisation, social inclusion, and industry development—all delivered through offsite factory production using digital manufacturing.

Strategic Coordination Creates Compound Impact

PrefabAUS's approach demonstrates sophisticated strategic thinking. Rather than attempting everything simultaneously, the organisation's ten-year roadmap targets actions that build momentum over time. The "Building the Future We Want" strategy operates as both "a map of where we have been and where we are today, and a compass pointing us to where we need to go," according to Crough.

The coordinated approach is delivering compound benefits. Federal recognition enables state programs, which create demand for Innovation Hub development, which builds manufacturing capability, which supports workforce development—creating a virtuous cycle of sector growth.

The Momentum Accelerates

As Year 3 of the decadal strategy begins, prefabAUS challenges the sector to accelerate engagement across investment, advocacy, collaboration, and innovation. Crough's assessment captures both achievement and ambition: "Our campaign has taken Smart Building and MMC from Nonrecognition, to Recognition to making critical Investments, to Implementation, starting Year 3."

The momentum is undeniable. With $174 million in federal commitments, systematic state adoption, emerging Innovation Hub infrastructure, financial sector engagement, and national standards development, Australia's Smart Building sector has achieved systemic transformation in record time.

As Worrall concludes: "A future built in Australia starts here, starts now, starts with you, and with all of us. Now is the time to come together to seize the opportunities and build more momentum."

The question is no longer whether Modern Methods of Construction will transform Australian building. The question is how quickly the sector will embrace the future that prefabAUS has systematically created.

The NSW Government has opened the state’s first modular housing showcase, marking a pivotal moment in Australia’s adoption of Modern Methods of Construction (MMC) and the official launch of the groundbreaking System 600 project.

The showcase, held in September 2025, invited the community to experience firsthand how the innovative “kit-of- parts” approach developed by Building 4.0 CRC and Homes NSW could transform housing delivery. Leading industry suppliers exhibited their contributions to the system, including the following prefabAUS members: Xlam/Hyne’s mass timber solutions, Modscape and Modbotics’ volumetric modules, Sipform’s structural insulated panels, SYNC’s engineered wall systems, Green Timber Tech’s CLT products, Rothoblaas’s timber connectors, TBS’s prefabricated timber systems, and Multipanel’s internal wall solutions.

“Modular housing is shaping up to be NSW’s secret weapon in tackling the housing crisis,” said Minister for Housing and Homelessness Rose Jackson. “These are beautiful, modern homes built to last.”

Ambitious Targets Drive Innovation

The NSW Government has committed to 80% prefabricated components within its MMC pipeline by 2031. Unlike traditional modular construction requiring massive capital investment in single facilities, System 600 leverages Australia’s existing manufacturing capacity across a distributed supply chain. “Modern Methods of Construction are central to how our government is reshaping housing delivery in NSW,” Minister Jackson explained. “We’re not just building homes, we’re building a smarter, faster, and more sustainable housing system.”

Breaking the Traditional Model

System 600’s innovation lies in breaking buildings into standardised, interchangeable components rather than entire modules. Professor Matthew Aitchison, CEO of Building 4.0 CRC, describes the system as having “standard parts, not standard designs” that can be recombined to create diverse architectural solutions. The project targets approximately 80% standardised components with 20% site-specific elements, essentially reversing the current construction model. Rather than an overnight transformation, Homes NSW is gradually introducing products into existing projects to build supplier capability and demonstrate benefits. Over the 2025-26 financial year, NSW will deliver 90 modular homes across the state as part of its record $6.6 billion Building Homes for NSW program, which delivered 1,711 new social and affordable homes in the past year alone.

A team of six students, named Six Degrees, from Deakin University Geelong have taken home the Autodesk Challenge Cup in 2025 for their architectural submission ‘Solace’ which uses prefabricated building methods (smart building) to deliver high-quality homes that incorporate universal design principles and integrated assistive technologies.

A Uniquely Australian Solution

"We've probably got the same ingredients that many others in the industry are working on, but we've got a slightly different recipe," explains Mathew Aitchison, Director of the Building 4.0 CRC. "The recipe is sort of tailor-made for the Australian market."

The system addresses a fundamental challenge facing Australia's existing prefabrication industry. Traditional modular construction requires massive capital investment in single facilities and typically locks clients into proprietary systems with limited design options. For Professor Daryl Patterson from Monash University, who leads the technical development, this creates an unsustainable risk concentration: "I don't think a lot of clients are comfortable with that idea that they've got to go to this super company with a super factory that's going to make everything."

Instead, System 600 leverages Australia's existing manufacturing capacity across a distributed supply chain. "We have a lot of capacity in the Australian industry," Patterson notes. "There's a lot of intelligence in the supply chain... So what if we just create the system that lets all those parties come together on a project with their standardised parts."

The Kit-of-Parts Approach

The innovation lies in breaking buildings down into standardised, interchangeable components rather than entire modules. Using what Patterson describes as a "Lego analogy" - though acknowledging buildings are far more complex - the system enables architects to combine standard parts in countless ways to create diverse designs.

"We have standard parts, not standard designs," Aitchison emphasises. "Those standard parts can be recombined in many different ways to create non-standard designs... You could walk down a street where both sides of this street have been made using this system, and you wouldn't know that because they would look completely different."

The system operates across four main subsystems: structure, exterior, services, and interior finishes. Rather than monolithic building elements, System 600 breaks components into multiple subsystems. 

This decomposition is philosophically strategic - by breaking complex assemblies into discrete jobs, each component can be optimised for repeatability. A façade becomes separate layers handling water exclusion, thermal performance, and architectural expression independently. This approach may initially seem counterintuitive - adding more parts rather than fewer - but enables the critical shift from bespoke fabrication to standardised, scalable products that can be manufactured efficiently while maintaining design flexibility and a competitive supplier environment.

Economic Logic and Learning Effects

The economic rationale centres on achieving manufacturing-scale economies through repeatability. While individual buildings remain unique, the underlying components achieve massive scale across multiple projects. "We might be going to a particular manufacturer and saying, can you give us a thousand of these things?" Aitchison explains, describing how orders could scale from thousands to tens of thousands of identical parts.

This approach unlocks what researchers call "Wright's Law"—the manufacturing principle where costs decline by approximately 20% for every doubling of cumulative production. By standardising at the component rather than building level, System 600 can achieve these learning effects while maintaining architectural diversity.

Balancing Flexibility and Repeatability

The system's sophistication lies in its strategic distribution of complexity. "Can we make some parts really complicated so that the other parts can be really simple?" Patterson asks. Components are classified as "Fixed" (never changing, highly engineered), "Flexible" (adaptable within parameters), or "Free" (completely variable).

For example, the External Services Module represents a highly complex, fixed component that integrates hot water systems, air conditioning, electrical distribution, ventilation, data services, and even clothes drying into a single prefabricated unit. This complexity enables other building elements to be simpler and more adaptable.

The system targets approximately 80% standardised components with 20% site-specific elements, essentially reversing the current construction model, in which 80% of work happens on-site from scratch.

Implementation Strategy

The NSW Government has committed to ambitious targets, with Minister Rose Jackson indicating that 80% of buildings should use MMC content by 2030. System 600's implementation follows an incremental approach, gradually introducing products into existing Homes NSW projects to build supplier capability and demonstrate benefits.

"We call this approach incremental implementation," Aitchison explains. "We're not trying to suggest that from one day to the next, suddenly we just flip the switch... But we are saying we can introduce more and more products over time."

The strategy addresses procurement challenges that have historically hindered MMC adoption. By creating standardised products that can be ordered in volume, the approach enables competitive tendering whilst building the pipeline certainty manufacturers need for investment.

The Demonstrator Project

A demonstration apartment currently under construction in Mascot, NSW, showcases the system's potential. The project involves multiple Australian manufacturers—from modular wiring companies to bathroom pod specialists—and proves the distributed supply chain concept.

"We wanted to walk the talk," Patterson explains. "We distributed the work amongst a series of Australian established players who would generally do bespoke work for clients. And here we're saying, here's the first idea of a product."

The demonstrator will be exhibited in Sydney during Q3 2025, providing a tangible example of how standard components can create sophisticated, habitable spaces.

Looking Forward

System 600 represents more than a technical innovation - it's a new model for industry collaboration that could influence global prefabrication development. As Patterson observes, "having spent many years looking worldwide for these kinds of solutions, there are few compelling examples. But there is a train wreck of capital invested in things that just got nowhere."

For an industry facing unprecedented challenges, System 600 offers a pathway to harness manufacturing principles without sacrificing the diversity and adaptability that Australian housing demands. The project's success could provide a template for other markets grappling with similar productivity and supply challenges.

This article was originally published in the Smart Building Review Australia, the official publication of prefabAUS, Australia's peak industry body for prefabrication and Smart Building.