Getting Ahead of the Curve: PrefabAUS's Strategic Response to Offshore Reality

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.