Please turn your device to portrait.
Online industry briefing confirms the state is seeking established manufacturers, technology-neutral solutions and long-term advanced manufacturing capability.
An online industry briefing held on 8 July has provided the clearest insight yet into how the NSW Government intends to expand modular manufacturing and modern methods of construction (MMC) across New South Wales, confirming it is seeking established manufacturers capable of delivering long-term production capacity rather than project-based suppliers.
The briefing, hosted by the Department of Planning, Housing and Infrastructure and attended by representatives from Homes NSW, Investment NSW, Infrastructure NSW and the Government Architect, expanded on the recently launched Modern Methods of Construction Industry Expansion Program (MMCIEP), which is seeking Expressions of Interest from domestic and international manufacturers to establish or expand advanced manufacturing facilities in the state.
While the government’s announcement last week outlined the objectives of the program, the online session provided greater detail on how proposals will be assessed, the types of businesses the state hopes to attract and the commercial principles underpinning the initiative.
Market led investment rather than fixed grants
Deputy Secretary of Property, Workplace and Development Leon Walker described the program as a “reverse tender”, with proponents invited to identify the level and form of government support required to establish commercially sustainable manufacturing operations.
Rather than offering a predetermined grant, the government will consider a range of support mechanisms including financial grants, equity investment, concessional loans, planning assistance, workforce development initiatives and government-owned land under concessional tenure arrangements. Successful proponents will generally be expected to match government investment on at least a dollar-for-dollar basis, with proposals offering higher levels of private co-investment expected to receive favourable consideration.
Walker said the objective is to help establish manufacturing businesses capable of operating successfully beyond government support and contributing to the long-term expansion of industrialised construction across New South Wales.
The briefing also confirmed the program is designed for established manufacturers with proven operational capability, financial capacity and experience delivering projects at scale.
While start-up businesses are not excluded from participating, officials acknowledged they would face difficulty demonstrating the capability and operating history required under the program’s evaluation criteria. Early-stage businesses were instead directed towards separate innovation grant programs administered by Investment NSW.
Technology neutral approach
Government officials also sought to clarify the relationship between the Industry Expansion Program and the Commonwealth-backed System 600 initiative.
While proposals capable of supporting System 600 principles will be viewed positively, officials stressed the program is technology agnostic and will evaluate a broad range of industrialised construction approaches, including volumetric modular construction, panelised systems, kit-of-parts manufacturing, structural and non-structural components, additive manufacturing and hybrid solutions.
Walker also said the government is conscious of avoiding reliance on proprietary building systems, indicating one objective is to foster manufacturing capability that can support multiple delivery models rather than locking future projects into a single technology platform.
Building a sustainable manufacturing sector
Homes NSW used the briefing to reinforce the scale of future demand for industrialised construction while making it clear that government procurement alone will not underpin successful proposals.
The agency confirmed it is targeting the delivery of 2,200 social and affordable apartments using MMC through its residential flat building program by 2031, alongside the continued use of offsite construction across secondary dwellings, dual occupancies and other housing typologies.
Officials said different housing types require different construction approaches and reiterated that no single MMC solution is expected to suit every project.
However, Homes NSW also confirmed projects will continue to be awarded through competitive tendering, with manufacturers expected to develop commercially viable businesses serving both government and private sector markets rather than relying on guaranteed government offtake.
The briefing also highlighted the Industry Expansion Program as one element of a broader strategy that combines planning reform, procurement, regulation and investment incentives to expand advanced manufacturing capacity and accelerate the adoption of modern methods of construction across New South Wales.
The government will hold a second online industry briefing on 16 July ahead of the 3 August deadline for Expressions of Interest. Shortlisted proponents are expected to progress to a Request for Proposal process later this year before commercial negotiations commence with successful applicants.
Find the NSW Modern Methods of Construction Industry Expansion Program HERE
