• International Journal of Technology (IJTech)
  • Vol 17, No 1 (2026)

A Cost–Benefit Analysis of Importing Complete Prefabricated Steel Structure Buildings from China to New Zealand

A Cost–Benefit Analysis of Importing Complete Prefabricated Steel Structure Buildings from China to New Zealand

Title: A Cost–Benefit Analysis of Importing Complete Prefabricated Steel Structure Buildings from China to New Zealand
Kang Li, Ting Jing

Corresponding email:


Cite this article as:
Li, K., & Jing, T. (2026). A cost–benefit analysis of importing complete prefabricated steel structure buildings from china to new zealand. International Journal of Technology, 17 (1), 187–204


14
Downloads
Kang Li Hangzhou Kenli Building Data Technology Co., Ltd., Hangzhou, Zhejiang province 311121, China
Ting Jing Hangzhou TongMSK Engineering Design Co.,Ltd., Hangzhou, Zhejiang province 311200, China
Email to Corresponding Author

Abstract
A Cost–Benefit Analysis of Importing Complete Prefabricated Steel Structure Buildings from China to New Zealand

The domestic construction industry in New Zealand has long been challenged by persistent material shortages and elevated construction costs. In contrast, prefabricated steel structure buildings from China—backed by substantial technological accumulation, mature industrial scale, and strong innovation capacity—have demonstrated clear competitive advantages in the global construction market. This has created strong strategic demand and structural opportunities for New Zealand to import such buildings. However, as prefabricated steel structure construction is a relatively emerging technology—particularly in the context of cross-border importation—there remains a notable lack of comprehensive research on its cost and benefit profiles, with even fewer empirical studies examining international import scenarios. To address this gap, this study integrates a whole-process cost–benefit analysis model with the grey relational degree method to evaluate and compare three construction approaches in New Zealand:(1) fully imported prefabricated steel structure buildings from China, (2) locally sourced and produced construction materials, and (3) traditional on-site concrete casting. The analysis systematically examines four key phases—design, production, transportation, and installation—and quantifies the synergistic effects of economic, environmental, and social benefits across these dimensions. The findings reveal that fully importing prefabricated steel structure buildings from China yields the lowest overall costs and delivers the most significant composite benefits, making it the most cost-effective and sustainable construction solution under the assessed conditions. This study provides valuable insights for overcoming supply-chain challenges in New Zealand’s construction sector and contributes to the broader discourse on global green building development and sustainable construction practices.

Cost-benefit calculation; Grey relational analysis; Prefabricated steel structure construction; Scheme comparison

References

Adeyemi, A. B., Ohakawa, T. C., Okwandu, A. C., Iwuanyanwu, O., & Ifechukwu, G. O. (2024). Integrating modular and prefabricated construction techniques in affordable housing: Architectural design considerations and benefits. Comprehensive Research and Reviews in Science and Technology, 8, 67–82. https://doi.org/10.57219/CRRST.2024.2.1.0030

Aghasizadeh, S., Tabadkani, A., Hajirasouli, A., & Banihashemi, S. (2022). Environmental and economic performance of prefabricated construction: A review. Environmental Impact Assessment Review, 97, 106897. https://doi.org/10.1016/j.eiar.2022.106897

Almashaqbeh, M., & El-Rayes, K. (2022). Minimizing transportation cost of prefabricated modules in modular construction projects. Engineering, Construction and Architectural Management, 29(10), 3847–3867. https://doi.org/10.1108/ECAM-11-2020-0969

Atkinson, R. D. (2024). China is rapidly becoming a leading innovator in advanced industries [Viewed 13 March 2025]. https://itif.org/publications/2024/09/16/china-is-rapidly-becoming-a-leading-innovator-in-advanced-industries/

Balasbaneh, A. T., Sher, W., Rahman, I. A., Juki, M. I., & Zainun, N. Y. (2024). Greenhouse gas emission evaluation and barrier of implementing modular construction buildings [Viewed 23 January 2025]. In Sustainable construction materials. Elsevier. https://www.sciencedirect.com/science/article/abs/pii/B978044319231900020X

Brown, G., Sharma, R., & Kiroff, L. (2020). Insights into the New Zealand prefabrication industry [Viewed 7 November 2024]. https://archscience.org/wp-content/uploads/2021/03/65-Insights-into-the-New-Zealand-Prefabrication-Industry.pdf

Chauhan, K., Peltokorpi, A., Lavikka, R., & Seppänen, O. (2024). To prefabricate or not? A method for evaluating the impact of prefabrication in building construction. Construction Innovation, 24(7), 65–82. https://doi.org/10.1108/CI-11-2021-0205

Chen, C. H., & Li, G. H. (2024). Study on evaluation of influencing factors of prefabricated housing cost. Academic Journal of Business & Management, 6(1), 208–214. https://doi.org/10.25236/AJBM.2024.060130

Chen, H., & Samarasinghe, D. A. S. (2020). The factors constraining the adoption of prefabrication in the New Zealand residential construction sector: Contractors’ perspective [Viewed 5 December 2024]. https://www.researchgate.net/publication/339897919

Chen, W., Chen, A., Liu, J., & Deng, S. (2021). Research on production cost optimization of PC exterior wall panel based on hybrid genetic algorithm [Viewed 14 December 2024]. In International Conference on Computing in Civil Engineering. https://ascelibrary.org/doi/abs/10.1061/9780784483848.078

Cheng, Z., Zhang, T., Zhou, X., Li, Z., Jia, Y., Ren, K., & Hong, J. (2023). Life cycle environmental and cost assessment of prefabricated components manufacture. Journal of Cleaner Production, 415, 137888.

Deng, B. (2016). Research and application of indicator weight determination method based on combined weighting approach. Electronic Information Warfare Technology, 31(1), 12–16. https://doi.org/10.3969/j.issn.1674-2230.2016.01.004

Diakoulaki, D., Mavrotas, G., & Papayannakis, L. (1995). Determining objective weights in multiple criteria problems: The CRITIC method. Computers & Operations Research, 22(7), 763–770. https://doi.org/10.1016/0305-0548(94)00059-H

Doan, D. T., Wall, H., Ghaffarian Hoseini, A., Ghaffarianhoseini, A., & Naismith, N. (2021). Green building practice in the New Zealand construction industry: Drivers and limitations. International Journal of Technology, 12(5), 946–955. https://doi.org/10.14716/ijtech.v12i5.5209

Elhag, T. M., Boussabaine, A. H., & Ballal, T. M. A. (2005). Critical determinants of construction tendering costs: Quantity surveyors’ standpoint. International Journal of Project Management, 23(7), 538–545. https://doi.org/10.1016/j.ijproman.2005.04.002

Gil-Ozoudeh, I. (2024). Integrating modular and prefabricated construction techniques in affordable housing: Architectural design considerations and benefits. Comprehensive Research and Reviews in Science and Technology, 15(3), 123–144. https://doi.org/10.57219/CRRST.2024.2.1.0030

Guo, C., Yan, W., & Guo, Z. (2025). Research on the implementation effect of incentive policies for prefabricated buildings based on system dynamics: A Chinese empirical study. Applied Sciences, 15(10), 5627. https://doi.org/10.3390/app15105627

Han, J. Q. (2008). Research on industrialization of steel structure residential buildings [Viewed 11 November 2024]. https://wenku.baidu.com/view/8426e2186bd97f192279e936

Li, Z., Shen, G. Q., & Xue, X. (2014). Critical review of the research on the management of prefabricated construction. Habitat International, 43, 240–249. https://doi.org/10.1016/j.habitatint.2014.04.001

Liu, J., Liu, H., & Liu, Y. (2025). A sustainability-oriented framework for life cycle environmental cost accounting and carbon financial optimization in prefabricated steel structures. Sustainability, 17(10), 4296. https://doi.org/10.3390/su17104296

Liu, L., Tai, H. W., Wang, T., Qiao, L., & Cheng, K. T. (2025). Analyzing cost impacts across the entire process of prefabricated building components from design to application. Scientific Reports, 15(1), 9300. https://doi.org/10.1038/s41598-025-92786-z

Liu, S., Li, Z., Teng, Y., & Dai, L. (2022). A dynamic simulation study on the sustainability of prefabricated buildings. Sustainable Cities and Society, 77, 103551. https://doi.org/10.1016/j.scs.2021.103551

Lou, N., & Guo, J. (2020). Study on key cost drivers of prefabricated buildings based on system dynamics. Advances in Civil Engineering, 2020, 8896435. https://doi.org/10.1155/2020/8896435

Ma’ruf, A., Nasution, A. A. R., & Leuveano, R. A. C. (2024). Machine learning approach for early assembly design cost estimation: A case from make-to-order manufacturing industry. International Journal of Technology, 15(4), 1037–1047. https://doi.org/10.14716/ijtech.v15i4.5675

Men, B. H., Zhao, X. J., & Liang, C. (2003). Application of multi-criteria decision grey relation projection method in hydro-engineering development. Engineering Journal of Wuhan University, 36(4), 36–39. https://doi.org/10.3969/j.issn.1671-8844.2003.04.009

Ongley, P. (2013). Work and inequality in neoliberal New Zealand. New Zealand Sociology, 28(3), 136–163. https://doi.org/10.3316/INFORMIT.8295

Pang, X. F. (2019). Research on life-cycle cost-benefit analysis of prefabricated buildings (Doctoral dissertation, Xi’an University of Architecture and Technology). https://cdmd.cnki.com.cn/article/cdmd-10743-1019868969.htm

Sarkar, D., Sheth, A., & Ranganath, N. (2023). Social benefit-cost analysis for electric BRTS in Ahmedabad. International Journal of Technology, 14(1), 54–64. https://doi.org/10.14716/ijtech.v14i1.3028

Schindler, M. (2024). A missed opportunity for health promotion? Perceptions of large-scale housing developments in Aotearoa New Zealand. New Zealand Geographer, 80(1), 16–29. https://doi.org/10.1111/nzg.12382

Shahzad, W. M., Hassan, A., & Rotimi, J. O. B. (2022). The challenges of land development for housing provision in New Zealand. Journal of Housing and the Built Environment, 37(3), 1319–1337. https://doi.org/10.1007/s10901-021-09896-z

Shen, K., Cheng, C., Li, X., & Zhang, Z. (2019). Environmental cost-benefit analysis of prefabricated public housing in Beijing. Sustainability, 11(1), 207. https://doi.org/10.3390/su11010207

Singh, G., & Pandey, A. (2024). Environmental sustainability integrated supplier selection in electric vehicle supply chains: A grey relational analysis approach. Environment, Development and Sustainability, 1–29. https://doi.org/10.1007/s10668-024-05294-x

Sun, L. Z., & Yang, F. (2003). Grey relational method for evaluating residential building design schemes. China Civil Engineering Journal, 36(3), 25–29. https://doi.org/10.3321/j.issn.1000-131X.2003.03.006

Sunindijo, R. Y., Wang, C. C., & Haller, D. (2023). Benefits of prefabrication on health and safety in the Australian housing sector. In Handbook of construction safety, health and well-being in the industry 4.0 era (pp. 296–304). Routledge.

Tavares, V., Gregory, J., Kirchain, R., & Freire, F. (2021). What is the potential for prefabricated buildings to decrease costs and contribute to meeting EU environmental targets? Building and Environment, 206, 108382. https://doi.org/10.1016/j.buildenv.2021.108382

Wang, F., Dai, B., & Song, S. (2024). Comprehensive benefit evaluation for prefabricated buildings based on NSGA-II and simulated annealing optimization projection pursuit method. IEEE Access. https://doi.org/10.1109/ACCESS.2024.3511721

Wang, H., Zhang, Y., Gao, W., & Kuroki, S. (2020). Life cycle environmental and cost performance of prefabricated buildings. Sustainability, 12(7), 2609. https://doi.org/10.3390/su12072609

Wang, H. J. (2019). Research on the ecological cost-benefit of prefabricated buildings in Wanjiang Dacheng, Baotou City (Doctoral dissertation, Inner Mongolia University of Science and Technology). https://d.wanfangdata.com.cn/thesis/CiBUaGVzaXNOZXdTMjAyNTA2MTMyMDI1MDYxMzE2MTkxNhIJRDAxODE0ODkwGgh4bjc2ZWducA%3D%3D

Wang, S., Wang, Z., & Ruan, Y. (2023). Prefabricated concrete components combination schemes selection based on comprehensive benefits analysis. PLOS ONE, 18(7), e0288742. https://doi.org/10.1371/journal.pone.0288742

Wei, F. (2019). Economic analysis of prefabricated concrete structure residential buildings. https://d.wanfangdata.com.cn/thesis/D01778139

Yuan, Z., & Wang, J. (2021). Research on environmental benefits of prefabricated buildings: A literature review method. In Advances in Civil Engineering (pp. 443–452). Springer. https://doi.org/10.1007/978-981-16-3587-8_44

Zheng, X. Y., & Xu, J. X. (2019). Life-cycle carbon emissions of prefabricated buildings based on LCA: A case study of a light steel prefabricated integrated villa in Chongqing. Journal of Construction Economics, 40(1), 107–111. https://doi.org/10.14181/j.cnki.1002-851x.2019.01.107

Zhou, J., Li, Y., & Ren, D. (2022). Quantitative study on external benefits of prefabricated buildings: From perspectives of economy, environment, and society. Sustainable Cities and Society, 86, 104132. https://doi.org/10.1016/j.scs.2022.104132