The federal government has pledged up to $2 million dollars to support the development of a collaborative lab to encourage innovation in the prefabricated building sector.

The aim of the lab will be to help manufacturers design innovative new prefabricated buildings that are more eco-friendly, affordable and can significantly reduce times for construction.

The funding will go to the Advanced Manufacturing Growth Centre, which will undertake a feasibility study and, based on the findings, establish a collaborative innovation lab.

In a media release, minister for industry, science and technology Karen Andrews says the lab would support work on a wide range of buildings, including tiny houses, larger homes and offices and strengthen Australia’s position in the global prefabricated building market.

“This sector is starting to build significant momentum and currently represents 3-5 per cent of Australia’s $150 billion construction industry,” Andrews says.

“This share could grow to 15 per cent by 2025, creating 20,000 new Australian jobs and adding $30 billion to our economy.

“The Morrison Government is committed to helping support and grow this emerging industry and ensure Australia seizes this opportunity.”

The prefabricated modular building industry includes modular houses and offices created in a factory setting and then transported directly to site.

The government is already supporting research in this area, announcing $4 million in funding to the Australian Research Council Training Centre for Advanced Manufacturing of Prefabricated Housing.

Image credit:  Jean-Philippe Delberghe