construction collaborate Timber Opportunities in the Mid-Rise Market Symposium 11 August 2015 Previous Australian Timber Industry Collaboration

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1 the Market 11 August 2015 sawn collaborate mid-rise engineered commercial construction local softwood imported hardwood Previous Australian Dr Alastair Woodard

2 Frame Australia 2015 Text: text Text Prefabricated timber ground floor systems Text

3 Frame Australia 2015 The timber industry, if it wants to successfully develop, supply and service these new future mid-rise apartment and commercial markets, needs to: act collectively and collaboratively, look at new supply chain dynamics for systems based delivery particularly around prefabrication, add true value along the supply chain, and provide dedicated technical assistance to make the process simple, not hard for designers and builders.

4 Generic Market Development C1 C2 C3 Size of the actual market is dependent on many external factors Manufacturers - (Primary & Secondary Producers) Role (product focussed) Producing products fit for purpose Product quality New product development Product marketing Sales, pricing & supply Product Market Development Generic Market Development External Factors Building Codes & Regulations Government policy Procurement policies and schemes Competitor activities Designer knowledge & preference Broad awareness & acceptance

5 Generic Market Development Effort $ s Industry engagement collaboration & strategy Industry capacity building & market tool development MARKET ENGAGEMENT Winding back generic market develop activity Industry Norm R&D Time Issue/Opportunity Identification Typical Steps

6 Generic Market Development Effort $ s TIME TAKEN MARKET ENGAGEMENT Time taken & effort required o Size of the opportunity o Support by those involved EFFORT REQUIRED Industry Norm Issue/Opportunity Identification Typical Steps Time

7 Past MGP Structural Grading (mid 90 s) Hardwood Natural Feature (mid 90 s) Blue Pine Framing (mid 00 s) MRTFC (mid 90 s) Prefabricated Cassette Floors (2014)

8 MRTFC Market Development Program MRTFC Phase 1 Technical Preparation Opportunity - observed overseas fire rated plasterboard & timber systems Early 1990 s tech transfer trips to the US WWPA Fire Testing R&D (NAFI NMDC Fire reform project) Collective activity with Plasterboard manufacturers developed a series of timber/fire-rated plasterboard systems Produced initial MRTFC Technical Manuals Nov 1994 industry achieved Amendment 7 to the BCA o Class 1 Residential (separating walls) o Class 2 Apartments up to 3 storeys o Class 3 hotels up to 2 storeys

9 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP - National Development Program o overseen by National Development Council o funded by industry companies through the associations Aim of NTDP To increase market opportunities for timber. Outcome An increase in timber demand and hence volume of timber consumed and ultimately increased price and profitability

10 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams o Collective activity with CSR, Boral, James Hardie o Identification of interested designers & builders o Distribution of MRTFC Technical Manuals o Identification of potential projects (Cordells) o Assistance to designers with system approaches o Provision of linkages to suppliers o Assistance to builders during construction o Identification of new issues/opportunities for investigation

11 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams 1995 Kensington Banks Project - Melbourne Seeing is Believing Lutwyche Project - Brisbane

12 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams Generic Market Promotion Activities o Case Studies

13 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams Generic Market Promotion Activities o Case Studies o Promotion & o Newsletters

14 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams Generic Market Promotion Activities o Case Studies o Promotion o Newsletters o Promotional video

15 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams Generic Market Promotion Activities o Case Studies o Promotion o Newsletters o Promotional video Education & Training o Educational resource o Education assistance

16 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Engagement and use of state generic technical teams Generic Market Promotion Activities o Case Studies o Promotion o Newsletters o Promotional video Education & Training o Educational resource o Education assistance Workshops, seminars & conferences

17 MRTFC Market Development Program Phase 2, Market Execution Collaboration of states through the NTDP Building Professionals Architects o Case Studies Engineers o Promotion Building designers o Newsletters Builders Developers Building surveyors Engagement and use of state generic technical teams Generic Market Promotion Activities o Promotional video Education & Training o Educational resource o Education assistance o Workshops, seminars & conferences Engagement of other sectors Organisations HIA MBA BDA Building authorities ABCB Education TAFE o Carpentry o Adv Building University o Architecture o Engineering o Building

18 MRTFC Market Development Program Collaborative Program Effectiveness & Industry Benefit Evaluation of NTDP in 2002, found that the program between 1997 & 2000 delivered $180M in Total Value terms For a Total Investment of $6.3M Economic Return to Australia of $28 for every $ invested In terms of $180M Total Benefits Consumers captured $135.5M processors $28.4M growers $13.3M Return for processors & growers $8.91 for every $ invested

19 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems Issue : the loss of ground floor timber framing to concrete slab Particularly the question : Why were builders no longer constructing elevated timber sub-floors particularly on sites where this option was simply far superior?

20 Benefits: Sloping Sites Lighter on the Land Prefabricated Lightweight Ground Floor Systems

21 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems Builders in Australia currently prefer slab-on-ground to suspended timber floor systems; - Industry Norm Slabs today represent over 95% of the new residential market in some states Issue with traditional built-on-site joist & bearer timber systems the multiple trades and contracts required and the longer construction periods compared to the slab-on-ground alternative. Builders today are used to, and want, one contract, to deliver a working platform, on a site, on a specific date, for a specific cost. This is the challenge for a successful take-up of easy-to-install, cost effective lightweight timber ground floor systems.

22 Prefabricated Lightweight Ground Floor Systems ground floor construction is far from a new concept; what is new, original and innovative is the delivery method and the market offering Prefabricated timber ground floor systems delivered by Australia s Frame & Truss manufacturing sector

23 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems Technical Manual Written for frame and truss manufacturers Introduction Selecting a system Design Fabrication Installation Case Study Project funded by FWPA

24 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems Market Implementation Group participants representatives from: The 3 nailplate manufacturing companies: Pryda, Multinail and MiTek Selected innovative frame & truss manufacturing companies: 3 NSW: Bunnings, Custombuilt Frames & Trusses, High Country Truss & Frame 3 Qld: Bretts Frame & Truss, Australian & Truss, Gold Coast s & Truss 7 Victoria: truss Bowens, Drouin West & Truss, Dahlsens, Able Truss, Emcee Truss & Frame, The Truss Joint 1 Tas: Mc Kay Holmesglen Institute 8 Industry supplier companies Collaboration

25 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems The 8 MIG Supplier Company participants include Collaboration

26 Prefab Cassette Floor Collaboration Prefabricated Lightweight Ground Floor Systems MIG Approach A network of industry members with a common aim Focus is on identifying and addressing the key issues Providing HELP if members need it COOPERATION - NOT COMPETITION Collaboration

27 Market Implementation Outputs Prefabricated Lightweight Ground Floor Systems Assess the different state requirements for: licensing (installation / building), insurance issues OH&S and crane usage Assistance with individual job design optimisation & technical issues Development of a detailed system cost study

28 Market Implementation Outputs Prefabricated Lightweight Ground Floor Systems Priority Generic Activities Development of Prefab Floor Design Tools (Pryda, MiTek, Multinail)

29 Market Implementation Outputs Prefabricated Lightweight Ground Floor Systems Promotional Literature Website Promotion You Tube - Simulations Promotional Advertising New Innovation

30 Market Implementation Outputs Prefabricated Lightweight Ground Floor Systems Date Company Location Description Time taken Feb 2013 Bowens Heathcote Victoria Single storey house: Ground floor: floor truss cassettes on steel piers on ½ day foot ½ day cassette concrete footings July 2013 Bowens Parkville Victoria 5 storey multi res structure for Australand The Green prefab cassette floors Aug 2013 Able Truss Reservoir Victoria Extension to rear of existing dwelling. Floor cassettes on Surefoot. ½ day Surefoot ½ day cassette Aug 2013 Bunnings Warnervale Lidcombe NSW First floor cassette on townhouse. Side by side comparison with conventional install. ½ day cassette Nov 2013 Modular Building Solutions WA Albany WA Single storey dwelling on Surefoot & floor cassettes. ¾ day Surefoot ½ day cassette ½ a day Upper storey cassette floors Nov 2013 DWTT Neerim South Victoria Two storey house: Dec 2013 DWTT Corinella Victoria Single storey house: Ground floor: floor truss cassettes on Surefoots Mar 2014 Apr 2014 Modular Building Solutions WA Modular Building Solutions WA ½ day Surefoot ½ day cassette Spencer Park WA Single storey dwelling on Surefoot & floor cassettes. ½ day Surefoot ½ day cassette Mt Melville WA 2 x single storey units on Surefoot & floor cassettes. 1 day Surefoot 1 day cassette ¾ day panelised walls) ¾ day footing. May 2014 DWTT Cranbourne Victoria 2 x double storey units. (mid floor cassettes & Aug 2014 Emcee Port Fairy Victoria Single storey dwelling with floor cassettes on strip Aug 2014 Emcee Victoria Second floor cassette job on strip footing. (not much info) Oct 2014 DWTT Melbourne CBD Victoria 5x4 project Nov 2014 Custombuilt Hilltop, NSW Single storey dwelling on Surefoot and floor cassettes. (incl. Surefoot supporting garage slab) 1 day Surefoot ¾ day cassette Nov 2014 Emcee Warnambool Victoria Single storey dwelling on Surefoot & floor cassettes. ¾ day Surefoot ½ day cassette

31 Future industry collaboration?

32 New Market Development Opportunity Existing Residential Market New & Commercial Market

33 New Market Development Opportunity Existing Residential Market New & Commercial Market Product Supply Product Supply - Commodity based - Systems based

34 New Market Development Opportunity Existing Residential Market New & Commercial Market Product Supply Product Supply - Commodity based - Systems based Market Share Market Share - HIGH (90%+ in most categories) - VERY LOW Competition in Market Share Competition in Market Share - VERY HIGH - Reality NONE competition is Concrete & Steel Potential Margins -Variable but highly competitive Industry Interest -Everyone involved Potential Margins - Potentially more stable and higher using Systems approaches (add value) Industry Interest - Innovative & visionary companies

35 Lessons Learnt - Collaboration & Innovation Change needs champions Don't be distracted by the naysayers - be unwavering and commited Involve enthusiastic and positive people (visionaries and practitioners) this is the essence of collaboration Develop and encourage a high level of trust between all stakeholders Be knowledgeable - develop close relationships with knowledge based providers and encourage innovative cultures Ensure the correct leadership style is in place for true collaboration Develop close customer relationships - it's about delivering what the customer wants and ensuring you derive benefits from the relationship. Nothing significant is built by people acting alone. It s people working together with a common aim that create change. - You all know that within your own businesses -

36 Where to From Here? Advice from Customers act collectively and collaboratively, look at new supply chain dynamics for systems based delivery particularly around prefabrication, add true value along the supply chain, and provide dedicated technical assistance to make the process simple, not hard for designers and builders. Questions for Consideration: Do industry sectors see this as an opportunity Do industry sectors want to collaborate to pursue this opportunity? If so, then what then needs to be done to ensure success and where to from here?