Wesfarmers, one of Australia’s largest retail conglomerates, is partnering with Built Group, a digital-first construction contractor, in an innovative initiative aimed at addressing the country’s housing crisis. This collaboration has plans to establish a new manufacturing facility in 2023 with the capacity to produce over 2,000 apartments annually, significantly contributing to the housing supply in Australia.
The initiative seeks to reduce the cost of apartment construction by 20% compared to traditional building methods while also halving the time required to complete projects. Dale Connor, the CEO of Built Living—a joint venture between the two companies—highlighted the emphasis on high-quality, scalable apartments through advanced manufacturing processes and industrialised construction techniques.
Drawing inspiration from successful models in Europe, such as in the Netherlands and Germany, this project aims to transform the residential construction landscape in Australia. Wesfarmers, known for its extensive portfolio that includes Bunnings and Kmart, intends to leverage its robust supply chain and logistics capabilities, which are pivotal in sourcing materials and streamlining operations for the new project.
Connor noted the pivotal role of digital solutions in enhancing construction productivity and affordability, stating that the project will employ AI-enabled technologies to redefine Australia’s residential construction supply chain. The goal is to find a resolution to fundamental issues related to housing affordability and supply shortages by integrating manufacturing and assembly through advanced digital systems.
Rob Scott, Wesfarmers’ CEO, expressed confidence in the partnership’s ability to provide high-quality housing using proven international construction techniques. He underscored the urgency of addressing Australia’s housing challenges and the necessity for collaboration across industries and government sectors to create meaningful solutions.
The venture is supported by the Western Australian Government, which has committed to investing $48 million in the establishment of housing and manufacturing facilities aimed at producing large-scale prefabricated homes. This support includes a long-term land lease at the Neerabup Automation and Robotics Precinct in Perth.
Built Living’s first manufacturing outputs are anticipated to commence in early 2028, contingent upon regulatory approvals. Premier Roger Cook highlighted that investing in innovative building methods will not only accelerate the construction of medium- and high-density housing but could also contribute to significant infrastructure projects in the region.
In summary, the partnership between Wesfarmers and Built Group represents a bold and forward-thinking approach to combat Australia’s acute housing shortage, aiming to harness advanced manufacturing technologies and efficient supply chain practices to deliver affordable and high-quality housing at scale.
