Prefab Roadmap
Prefab Roadmap
Prefab Roadmap
So, why prefab? The answer is that See Appendix for a summary of the earthquakes and a further
in the face of these significant national and international prefab- 15,000 require repairs worth
challenges, sector-specific related research findings. more than $100,000 each. There
research has shown that prefab are 20,000 homes needed for the
processes are one solution to Why Prefab – Why now? Canterbury Rebuild in the wake
many of these issues. Auckland alone needs of the ongoing earthquakes since
approximately 10,000 new homes late 2010. This work continues
Prefab construction offers a series per year for the next decade, yet to be held up by insurance issues
of practical benefits, including only 3,500 are currently being with each recurring quake. There
climate-controlled environments; delivered.1 At the current rate is an overall estimated cost to
reduced onsite work; onsite of growth, in the next 30 years the economy of $30 Billion.4
staff; heightened quality control; Auckland will need to house ••There are around 42,000 Leaky
enhanced waste capture, reuse another million residents in Homes, as well as schools
and recycling; quality in mass 400,000 new dwellings.2 This and apartment buildings
and custom design; teams rather means that over the next 20 years requiring specialised repair to
than individuals; improved Auckland will be missing 90,000 constrained sites needing repairs
health and safety. The use of houses,3 representing around a or replacement.5 The legacy of
increased levels of automation in quarter of the required stock. The the ‘leaky buildings’ crisis is
offsite construction leads to the wider region faces urban design litigation and a fear of alternative
employment of skilled workers. issues about constrained land materials, products and systems.
Machines do what they can do well, supply and educating the market ••Affordable housing supply is
and humans do tasks that require about well-designed multi-density at a critically low level in urban
skilled hands. Moves towards infill housing options. centres. There is increasing
increased automation can improve ••In Canterbury, between 15,000 awareness of the need to
speed, cost, quality, and minimise and 17,000 homes have been increase density and build on
waste in projects. damaged beyond repair in urban infill sections to reduce
Australia ••Modular building sector supplying mass housing for mining camps
••Architect and manufacturer collaborations for high-end custom houses
••Peak prefab / offsite industry organisation being established 2012 / 2013
••Multi-unit student accommodation projects
Scandinavia ••Pre-cut timber standalone houses and precast multi-unit affordable housing
••Prefab makes up 90% of housing in Sweden 15 and more than 50% in Finland 16
••Ikea partnered with largest builder Skanska to provide affordable housing
••Long acceptance of prefabrication / offsite construction
••Quality focus for prefabrication / offsite construction
••Drive for energy efficiency, environmental protection
Broader Europe ••Long history and acceptance of prefabrication / offsite construction – with prefab housing
making up 5% in Spain and France, and 10% in Germany 17
••Prefab show-home parks in Germany and Austria – 50-100 houses each park
••Focus on timber products, sustainability and family-owned small-scale operations
••Drive for high-quality and cost efficiency through standards and certification
Clients
Public / Developers / Project Managers
Clients are the patrons of design and construction projects as they facilitate the initial need, vision and payment
of the building. However, many clients are dependent on their specifiers for advice and guidance, hence they are
influenced by their specifiers’ knowledge, preferences and prejudices.
Specifiers
Building Professionals (Architects, Designers, Engineers, Builders and others)
Specifiers take the clients’ needs and provide detail to the vision – making sure the building is fit for purpose,
compliant with legislation, functionally resilient, aesthetically appealing and environmentally sustainable.
Producers
Manufacturers, Fabricators, Suppliers, as well as Builders and Sub-contractors
Producers provide the documented elements from the specifiers’ plans – a mixture of products, materials, fixings,
fixtures and elements. These may include prefabricated components, panels or modules transported to the
building site where they are assembled to produce the finished building.
Regulators
Building Officials (Territorial Authorities, Building Consent Authority and Ministry of Business, Innovation and
Employment)
Regulators oversee the translation of building policy through the compliance system.
Government
Political Party in power, together with Ministry of Business, Innovation and Employment
Government has an obligation to set the policy for the design and construction industry, through Standards
and Building Consent regulation. The government is also looked to for leadership on critical issues facing the
industry.
PrefabNZ utilises a range of communication channels including monthly e-newsletters, a portal website,
informative networking events in city centres and regional areas, and major showcase projects such as the HIVE
Home Innovation Village, Canterbury Agricultural Park, Christchurch – a two-year temporary showcase on council
land – opened April 2012 to over 2,000 people in the first weekend.
As of the end of 2012, 9 of the original 15 Kiwi Prefab thesis recommendations are either underway or complete,
however challenges remain; consents are languishing at around 50% of their levels 5 years ago, the Canterbury
industry remains stalled by insurance delays, while an impending wall of work – Auckland, leaky buildings and the
rebuild – looms.
Quality-based misconceptions focus on light-weight, flimsy and cheap materials that represent a poor investment.
Aesthetic misperceptions arise when unconventional materials and appearance are aligned with poor performance.
Socio-cultural misperceptions are that mass-production is an attack on individuality.
Points for Action – changing misconceptions is a cornerstone of mainstreaming prefab building systems in the
New Zealand industry.
Market Size
The constrained market size makes it difficult to achieve economies of scale in manufacture. This is despite a
latent capacity to provide a substantial number of houses. In 2011, PrefabNZ surveyed 46 businesses to find they
had the capability to supply 750 3-bedroom houses. A consistent market demand is limited by the unpredictable
nature of the market and a lack of access to the project decision-makers at an early stage of the process when
prefabrication can be considered.
Market opportunities are further exacerbated by the boom: bust cycle of the design and construction industry.
The companies that survive the fluctuating market are those that respond with flexible strategies and provide a
diverse range of product offerings. It is a challenge to create a transparent pipeline of incoming work that will
enable investment in technology and an economy of scale to be achieved to make larger repeat manufacture more
profitable. A further challenge is to enable an efficient supply chain of materials to be provided on a timely basis
to support delivery.
Points for Action – increasing market penetration in New Zealand and looking beyond our borders to grow
export markets will grow the use of prefab systems.
Start-up Costs
The large start-up investment needed to establish a prefabricated product or system represents a significant
barrier to market entry, which is closely linked to the limited market size which constrains demand, and ongoing
financing and supply-side difficulties.
The industry would benefit from better understanding the parameters required for a successful business case,
including the break-even scale of production, and the period of time required to verify consistent market
demand. Exploring opportunities within the retrofit market could offer new insights into the proportion of prefab
technology being used in new and existing buildings, and how to leverage the retrofit market as a showcase for
prefabrication.
Points for Action – addressing the challenge of large start-up cost investment will go some way to assisting
innovative prefab products and systems to market.
Points for Action – spreading technical knowledge results in a better informed and more prefab-literate design
and construction industry, to deliver better value to clients.
There is a level of risk awareness and risk aversion across the design and construction sector. This is
understandable given the level of investment required and the longevity of the product, in other words choices
made in building have long legacies. Particular areas of concern are around the perceived risks of changing
business as usual. The subsequent challenge is to facilitate a change management process that has industry buy-
in at all levels. Collaboration is key.
Measures of Success:
Clients Specifiers Producers Regulators Government
receive increased collaborate with collaborate early use consistent takes a proactive
value through high- clients and producers on to achieve cost terminology for approach to
quality functional early on, and use and time savings prefab terms, continuous
buildings delivered on digital technology using innovation and are familiar with improvement,
time and on budget to share files with technology where different systems leading by example
producers possible and use online tools and communication
for assessment
Challenges:
Misconceptions Market Size Start-up Costs Technical
••Tainted image from ••Limited market size ••Large start-up Education
historical experiences investment needed ••Lack of product
••Economies of scale
••Standard designs unknown ••Financing difficulties awareness
••Poor site orientation ••Access to design team at ••Unknown pipeline of ••No quality assurance
early stage incoming work system
••Lightweight and cheap
materials ••Boom: bust cycle ••Suppliers disconnected ••Assembly and
from specifiers installation info needed
••Mass-production versus ••Unknown demand and
custom incoming work ••Products need a clearer ••Maintenance and asset
path to market management guidance
••Poor performance ••Existing capacity not
needed
••Risk of non-traditional being utilised
ACTIONS:
••Portal website ••Transparent pipeline of ••Transparent pipeline of ••Agreed terminology
••Online tools and info incoming work incoming work across sector
••Case study precedents ••Client-focused market ••Research on break-event ••Case study precedents
research point for investment ••Events to connect
••Value Case
••Portal website as single ••Develop value case for products and specifiers
••Interactive tools
source of information investment in start-up ••Use established education
••Exhibitions
••Understanding market ••Connect manufacturers deliverers
••Showcase / Demo needs of price: value with major project clients ••Facilitate on-the-job
••Events ••Identify key market areas ••Encourage R&D training
••Conference and decision-makers investment ••Technical series seminar
••Publications ••Investigate export ••Access funding for + publications
••Media, TV, radio markets with NZTE innovation ••Quality assurance scheme
••Leadership ••International site visits ••Product integration with
and events BIM + online consenting ••Online technical info with
••Tap into expat networks ••Consistent consent and BIM product specs
regulation process
2 Keown, J., Dominion Post article: ‘Auckland in grip of housing crisis’. Retrieved 21 October 2012
www.stuff.co.nz/auckland/local-news/7844917/Auckland-in-grip-of-housing-crisis
3 Johnson, A., Adding it all up – the political economy of Auckland’s housing. The Salvation Army – Social Policy
and Parliamentary Unit, 2012
4 Kerr, J., ‘Current Estimate.’ Ministry of Business, Innovation and Employment, August 2012.
7 Matsumara, Dr. Shuichi. ‘Prefabricated House–Building Systems in Japan.’ 10 Internationales Holzbau Forum.
Garmish, 2004.
8 Matsumara, Dr. Shuichi. ‘Prefabricated House–Building Systems in Japan.’ 10 Internationales Holzbau Forum.
Garmish, 2004.
9 Gann, David. ‘Construction as a Manufacturing Process? Similarities and Differences between Industrialised
Housing and Car Production in Japan.’ Construction Management and Economics 14 (1996): 437–50.
11 Jeffrey, Nancy Ann, and Nancy Keates. ‘Upwardly Mobile Homes: is this architecture?’ The Wall Street Journal.
21 January 2004. Retrieved 19 November 2007.
www.realestatejournal.com/homegarden/20040121–jeffrey.html
12 Bergdoll, Barry and Peter Christensen. Home Delivery: Fabricating the Modern Dwelling. Museum of Modern
Art, New York, 2008.
13 Vale, Brenda. Prefabs: a history of the UK temporary housing programme. London: Spon–Chapman and Hall, 1995.
15 Egan, Danielle. ‘The Prefab Home is Suddenly Fab.’ The Tyee. 31 May 2005. Retrieved 31 May 2005.
www.thetyee.ca/News/2005/05/31/PrefabHome/
17 Venables, Tim, and Roger Courtenay. Modern Methods of Construction in Germany: playing the offsite rule.
London: UK Dept. Trade and Industry (Global Watch Mission), 2004.
••Building a Better New Zealand - the research strategy for the Building and Construction Industry – DRAFT,
BRANZ with CSG, CIC and MBIE, NZ, 2012
www.buildingabetternewzealand.co.nz/elements/pdfs/BRZ%207436%20Building%20a%20better%20NZ.pdf
••Kiwi Prefab: Prefabricated Housing In New Zealand, Pamela Bell, March thesis, Victoria University of Wellington, 2009
researcharchive.vuw.ac.nz/handle/10063/1111?show=full
••Kiwi Prefab: Cottage to Cutting Edge, Pamela Bell and Mark Southcombe, Balasoglou Books, 2012
www.aaltobooks.co.nz/2011_index.php?thread=2369&cat=&scat=&bcount=0&detail=3127&sctp=&search=ki
wi%20prefab
••Prefabrication and Modularisation: Increasing Productivity in the Construction Industry, McGraw Hill, USA, 2012
www.nist.gov/el/economics/upload/Prefabrication-Modularization-in-the-Construction-Industry-SMR-2011R.pdf
••Valuing the Role of Construction in the New Zealand Economy, Price Waterhouse Coopers and Construction
Strategy Group, NZ, 2011
www.constructionstrategygroup.org.nz/downloads/PwC%20Report%20-%20Construction%20Sector%20
Analysis%20Final%204%20Oct.pdf
Mass-customisation
This is the use of digital technology and CAD-CAM interfaces to produce individual custom designs from standard
manufacturing technologies.
Mobile
This is an obsolete term for manufactured housing in the United States. It is still used in New Zealand to refer to
transportable buildings. A mobile building is manufactured away from site, and transported to the site in a largely
completed state with minimal on-site labour. A mobile building does not conform to building codes and is not
necessarily fixed to permanent foundations at the site.
Prefab or prefabricated
This widely refers to materials or combinations of materials prepared away from the construction site for
assembly at the final site, and ranging from components, panels, modules, hybrid and complete buildings.
Pre-nailed
This refers to complex components of materials that are cut, sized or shaped and joined together using nail-plate
technology. Nail-plate technology comprises engineering software, computer-controlled cutting machinery, and
steel plate fasteners. It is a technique commonly used for roof trusses and wall framing in traditional housing
construction.
Standardised
Standardised housing utilises components, methods or processes in which there is regularity, repetition and a
background of successful practice. Standardisation is useful to gain efficiencies in prefabrication, but it does not
infer standardised product or system outcomes.
Transportable housing
Housing that is transportable includes any house that is purposely built in order to be moved to another location.
In New Zealand, this includes yard- and factory-built housing which is supplied by a number of businesses.
Phone:
Pamela Bell
PrefabNZ CEO
+ (64) 21 972 635
Email:
[email protected]