‘Maybe in a Decade’: Metricon Chief Executive’s Big Bet

Where others have dashed on the rocks, Australia’s biggest home builder has weathered the choppy highs and lows of the nation’s housing market of the past few years. It was not smooth sailing though—the death of Metricon founder Mario Biasin in 2022 and broader market challenges have tested the mettle of the industry many times over. But Metricon chief executive Brad Duggan says that it’s not about being the biggest, it’s about being the best. In a game that has chewed up and spat out its fair share of builders, Duggan knows only too well the dire need for affordable housing and the innovation that is required to get the job done in the current landscape. “We think we’ve got a responsibility to try and help with what is a pretty significant housing challenge out there,” he says. But the builder’s workbook may be about to swell and it is looking for solutions. Heavy lifting is everyone’s job Housing supply and affordability are inseparable for Duggan. Metricon launched its Everyone Homes initiative eight years ago and has delivered about 3000 affordable homes in partnership with government and community housing providers. ▲ Metricon chief executive Brad Duggan says affordable homes should not be discernible within communities. “It’s really up to the builders and now increasingly institutional investors to try and pick up the weight and find solutions. Government can’t do it all,” he says. Duggan says few are in as good a position to capitalise on and deliver for the Housing Australia Future Fund’s third round of funding. The latest and biggest round of HAFF is focused on partnerships at scale, with key-in-door delivery from 2027 and a geographic distribution of at least 1200 homes in each Australian state and territory. “More homes equals more supply, which addresses affordability,” Duggan says. And while it sounds like a simple solution, it’s one that he says often gets caught in red tape. But there is one critical issue holding the industry back, and it’s keeping Duggan up at night. All guns blazing He says the scarcity of skilled tradespeople is a major issue—and there is no silver bullet. “There are trades that are dying, such as bricklayers. It’s hard work, and there aren’t that many of them around. Every year, more of them move on to something else.” ▲ Skilled migration remains a contentious issue within the building sector, but Duggan says we need a multi-pronged approach to dealing with labour shortages. He believes solutions require a multi-pronged approach. “We need all guns blazing. We need better apprenticeship programs. We need better skilled migration [policies]. We need better trades careers for our kids,” he says. Duggan also puts increased retention in TAFE programs and innovations such as robotics and modular construction high on his list. Still a long way to go on robotics Construction innovation has also become a key focus for the broader industry, with research and development in robotics, prefabricated pods and modern methods of construction. Metricon is investing in the space, despite it not looking profitable in the short-term, Duggan says. “I’m a big believer in innovation and change, but it’s still got a long way to go,” he says. “I don’t think new technologies are going to be really worthwhile or valuable in the next five years, but maybe in a decade. “It’s something that we’ve got to keep our eye on because we need to keep innovating and trying to find new ways. Innovation costs money but you’ve got to persist to make sure you can get it to make a difference.” House-in-a-box pilot Work is about to start on a site in Melbourne’s growth corridor where Metricon will trial its house-in-a-box pilot program in partnership with Stockland and Signex, which aims to build a house in 28 days. “We are looking at a ... house-in-a-box solution being brought in from overseas, which we’re piloting at the moment down here in Victoria and there’s some other really great manufacturers that we’re looking at,” Duggan says. ▲ Prefabricated modules drastically reduce the amount of time spent onsite. “But we think that if we can build a single storey in 60 days at a very affordable price, it’s hard to see what the advantage is going to be with a modularised solution. We know it will come with additional cost. It should come with more speed, but relative to 60 days, we’re not quite sure,” he says. “But we want to be part of it because we need to expand our capability ... we feel a responsibility to try and find a way to make these new systems work.” Speed, quality: twin engines of affordability While Duggan acknowledges speed is an important factor in terms of cutting cost, he believes it should never come at the cost of quality—particularly in the affordable and social housing space. “We’re not going to pursue speed over quality,” he says. “No one wants to get into a home that’s not going to be there for decades,” he says. “If the affordable housing quality looks second-rate, then for me it’s a fail. “It has to look and feel like a Metricon home. Great design and quality protect the dignity of the people living in it and the long-term value for government and institutional investors.” Metricon is also pursuing gentle density, incorporating dual-key or secondary dwellings, which Duggan says can increase lot yields without creating overt density that is obvious from the street. Market sentiment and industry recovery The past few years have been turbulent for volume builders, many of whom collapsed under thin margins. But Duggan sees strength and resilience in the market. “We had our best year ever last year. We feel very confident. We feel very focused on making sustainable decisions—not so much about volume and being the biggest, but being the best,” he says. “And I think a number of builders have made that change in terms of focusing upon sustainable profits. ▲ Speed of delivery remains a critical pathway to housing supply—Duggan says Metricon aims to limit activity to what they can deliver in a timely manner. “And the thing that we’ve learned is that we can only build so many homes. So until we get solutions like the things we’re playing around with in the prefab space or building out our trades capability, there’s only so much work that can actually be taken on. “I want to be able to look at every customer and say, I can have this built for you in 60 days.” Duggan says rather than focusing on sales, Metricon now limits its workbook to what the builder can deliver. “We’re not limiting ourselves there, but if we want to do more, we have to go and find the capability to have that capacity to do it,” he says. Duggan says the industry has come out the other side of the pandemic as a “much stronger, more robust and more resilient” industry. Looking ahead For Duggan, the next two years are about consolidation and innovation. “We’re really excited to test out these modularisation projects, evolve our trade base, and focus on meeting gentle density requirements,” he says. The builder is also looking at boosting its trades capability for townhouse construction as part of its greenfield products on offer. At its core, Duggan’s vision is clear: “Australians want space and community. That’s what they want from housing. We need to deliver it with speed, quality, and dignity.”

‘Maybe in a Decade’: Metricon Chief Executive’s Big Bet

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