MMC skills report puts designers and project planners first

Australia’s transition towards modern methods of construction (MMC) needs stronger skills among the people who design, plan and procure buildings, according to a report from BuildSkills Australia.

Prepared jointly with the Manufacturing Industry Skills Alliance and Skills Insight, the report finds no strong case at this stage for a dedicated MMC qualification, trade certificate or apprenticeship. Most required capabilities can be developed through existing construction, manufacturing, engineering and professional pathways.

The Housing Industry Association (HIA) welcomed the findings, saying they support an evolution of existing skills and training arrangements.

“HIA has long argued that MMC is not about replacing workers, but about changing where and how work is undertaken across the building and construction supply chain,” said HIA Executive Director Future Workforce, Mike Hermon.

“The report makes it clear that as the industry adopts new construction methods, the need for skilled workers does not disappear. Instead, tasks may shift between construction sites, manufacturing facilities, design functions and supply chain operations.”

The report describes MMC as a continuum spanning established prefabricated components, panelised systems, bathroom pods and volumetric modules. As production becomes more industrialised, work shifts towards manufacturing environments, while site activities concentrate on assembly, installation and integration.

However, it cautions that transferring conventional construction tasks into a factory does not automatically improve productivity. Successful delivery requires repeatable processes, early design resolution, steady demand, integrated procurement and strong quality control.

Without those conditions, a factory can add costs rather than reduce them. The economic test is whether reduced labour requirements generate sufficient savings to justify expenditure on plant, logistics, transport, cranage and coordination, alongside reduced design flexibility.

Skills gaps begin before factory production
The report identifies the most significant capability gap among professional and paraprofessional workers whose early decisions shape MMC delivery. Paraprofessional roles include technical work supporting design, engineering and construction, such as translating designs into production information, coordinating digital models and connecting factory requirements with site activities.

Designers, engineers, draftspersons, estimators, project managers, certifiers and procurement teams need stronger understanding of design for manufacture and assembly, tolerances, transport constraints, lifting requirements and manufacturing-ready documentation.

Their decisions also shape production planning, services integration, quality assurance and digital coordination. Existing qualifications provide relevant foundations, but MMC content remains uneven across training programs.

The report favours continuing professional development, microcredentials, short courses and targeted additions to existing qualifications. It also suggests exploring a national MMC capability framework to identify skills gaps and suitable training options.

“This is an important finding because it recognises that Australia’s building workforce already possesses many of the foundational skills required to support MMC,” Hermon said.

“The challenge is less about creating a whole new workforce and more about ensuring workers, supervisors, designers and manufacturers can build on their existing skills and apply them in new ways.”

Alongside professional upskilling, the report recommends structured workplace learning for proprietary production systems, clearer information about existing pathways into MMC roles, and monitoring adoption before pursuing broader qualification reform.

Manufacturer-specific processes are best taught through employer induction, supervised practice and workplace progression, supported by equipment suppliers where specialist knowledge is required.

The report also anticipates greater reliance on factory quality systems, product certification, traceability and digital evidence as more work occurs offsite. These mechanisms would supplement occupational licensing and site verification, with licensed trades, builders and certifiers retaining essential roles.

For HIA, reform should reflect demonstrated demand.

“It recognises that MMC adoption remains at varying stages across different construction sectors and regions. Future workforce reforms should be informed by actual uptake and demonstrated skills needs rather than assumptions about how quickly these methods may be adopted,” Hermon said.

Find the Build Skills MMC report HERE