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Capacity and Capability Report

PrefabNZ Capacity and Capability Report released 08-03-2018

The capacity to build more homes is already within New Zealand, instead of overseas.

Instead of shipping in from abroad, the PrefabNZ ‘Capacity & Capability’ report demonstrates that Kiwi-based housing manufacturing firms and construction companies can deliver for KiwiBuild using offsite methods. The five key points are:

1. There is much more latent capacity in panels and pods than in traditional components (pre-nail) and complete buildings (transportable) - ie. more potential in newer innovative methods of construction, than in the status quo

2. Some companies in the offsite construction sector are prepared to re-invest up to 5% in order to deliver KiwiBuild - this shows that they are committed to the cause!

3. The offsite construction sector is ready to invest a median of 8% of revenue, and up to 20% in some cases, to deliver KiwiBuild

4. A total of 7,000 homes could be delivered each year from 2020 if the wider Prefab industry scales up at 140% (as survey recipients have indicated they will do) over the next three years - this will go 70% of the way to deliver KiwiBuild's target of 10,000 homes per year over ten years (assuming 100% production is under KiwiBuild) -

5. We can summise that the local industry may not need a single large offshore disruptor in order to successfully deliver at scale and at pace.... (if investment logic assumptions are followed) -

This means NZ could utilize offshore IP with local skills and regional economic development to nurture and grow a handful of early adopters into a long-term sustainable transformative built environment sector

Download the PrefabNZ CnC Report 180306 and the Literature Review here

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