Industry Update Coronavirus (COVID-19): Likely Impacts on the Prefabrication Sector

Coronavirus (COVID-19) is sweeping the globe and the impacts on Australians, and our prefabrication sector, have yet to be fully realised. PrefabAUS remains in close contact with the Government and all relevant authorities keeping a watching brief as the situation evolves over time.

Importantly, some of our members will be impacted by disruptions in the global supply chain due to the effects of the virus. However, other members have on shore suppliers and are ready to meet the challenges in the delivery of projects.

COVID-19 is having an impact on some building contractors, who have significant reliance on supply chains throughout Asia. Such companies are warning clients of potential delays on projects. It is our understanding, however, that manufacturing and exports in China are beginning to return.

“China is showing signs of returning to economic normality as traffic congestion, air pollution, airline travel and property sales started returning to levels not seen since the coronavirus outbreak shut down the country” (Smith, 2020, Financial Review).

Of course, China is not the only economy where the supply of parts and components are exported. Substitution of like-for-like components is possible through other channels offering a relief to more traditional supply routes. Indeed, the opportunity to switch to locally produced technologies offers a significant advantage in terms of reduced risk to supply and project timescales.

PrefabAUS is optimistic about our industry sectors capabilities to deliver during the current COVID-19 crisis. Those concerned about specific projects should enquire with individual prefabricated technology providers to understand any supply chain issues. It is not surprising given the trifecta of drought, bushfires, and virus fears that a general slowing of the construction economy is likely. PrefabAUS reinforces its message to the federal government to investment in the prefabricated construction sector to stimulate the broader economy and create more jobs.

PrefabAUS is the peak body for Australia’s off-site construction industry and acts as the hub for building prefabrication technology and design.