Prefabricated Homes: Australia’s New Advanced Materials & Plastics Manufacturing Gold Rush?

Prefabricated and modular homes might be the solution to Australia’s current housing crisis  and you could be the one manufacturing them. In bulk. 

Between millennials looking for affordable first homes, baby boomers downsizing, and an influx of migration, demand for homes is high; and people want them NOW. 

As we learned at Composites Australia and AMW 2025, many advanced materials and plastics manufacturers are starting to produce elements for modular houses, ordered by property developers. The opportunities for growth are huge.

Here’s the big-picture overview:

Modular homes In Australia: the outlook

Normally, a single-storey home takes around 10-12 months to build using traditional construction methods. Builders come to the site, cordon off the allotted section, and build in bursts. Often, the soon-to-be homeowners face obstacles like bad weather, labour delays, or issues with materials; making the process take longer.

By contrast, prefab homes take around 10-12 weeks to manufacture, and a few short days to assemble. Orders come through to manufacturers directly from developers who design the kit homes, with little to no changes on previous runs.

The question many people ask is: do these houses stand up to traditional builds?

“It depends on the design,” says a leading UK developer.

With Australia’s new sustainability-focused Building Code in place, these homes must be sustainable from start to finish – and many are. Better insulation, less materials used, and a predictable assembly process often make modular homes more sustainable than traditional builts. For some, that alone plays a part in the decision-making process. For others, it’s the time and price that win them over.

Either way, it’s hard to deny the appeal – and demand is growing by leaps and bounds.

The opportunity for composites manufacturers

Until recently, predictably producing parts for homes was something that best suited Australia’s Stone and Glass industries. With modular houses on the rise, the Advanced Materials and plastics sector is now getting involved.

Working with a machine like the CMS MX5 or Poseidon, large-scale components can be manufactured quickly, with the CNC running all day. One machined, the final parts are sent to contractors, ready for assembly in a matter of days.

The process is so streamlined, it could be automated through an online order form. That’s huge for companies looking to maximise their productivity and get into a new market.

Depending on the needs of the developer, you might already have a machine that is suited to the kind of parts required – which range from insulation to thermoformed components. If not, there are plenty of advanced materials CNC machines that would get you in the game.

With mew manufacturing grants announced by both State and Federal governments, the potential to grow is massive. Scope out your options now – it’s about to get competitive.