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Capacity and Capability Report
The capacity to build more homes is already within New Zealand, instead of overseas, new research from PrefabNZ shows. 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 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:
01
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.
02
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!
03
The offsite construction sector is ready to invest a median of 8% of revenue, and up to 20% in some cases, to deliver KiwiBuild.
04
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 up 70% of the way to deliver KiwiBuild's target of 10,000 homes per year over 10 years (assuming 100% production is under KiwiBuild).
05
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 New Zealand 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.