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University of New South Wales Study Shows the Value of Prefabricated Steel Framing — 39% Cost Savings and More
2025-07-29 14:49 UTC by Steel Framing Industry Association

The construction industry has been adopting offsite methods to boost efficiency, reduce risk and control costs. And now, data from real-world industrial building projects is available to support the advantages of prefabricated steel framing systems over steel assemblies that are cut and framed on site.

A 2025 University of New South Wales study entitled, “A Case-Study-Based Comparative Analysis of Using Prefabricated Structures in Industrial Buildings” published in the journal Buildings, provides comparative data for four common wall systems: factory-made precast concrete, on-site tilt-up concrete, prefabricated cold-formed steel (CFS) panels and traditional on-site steel framing. 

The comparison data showed that CFS — especially in non-structural applications — offers clear advantages in cost, time and resource efficiency.

“Among the clearest findings was the performance of prefabricated [CFS] panels in non-load-bearing applications,” said a Built OffSite article about the study. Built Offsite uses the term light gauge steel (LGS), which in this context is equivalent to cold-formed steel. The UNSW researchers use the term cold-formed light steel in their paper.

“Cold-formed light steel is durable, light, flexible, and easy to manufacture and handle and it also has better corrosion-, fire-, and termite-resistant properties,” the researchers write. 

Researchers at UC San Diego tested a 10-story prefabricated cold-formed steel (CFS) structure—the tallest ever on a shake table—to explore new height limits for CFS buildings in seismic zones.

Prefab Steel Framing Cuts Cost by 39%, Labor by 70%

Using a warehouse development in Dapto, New South Wales, Australia, the research team gleaned data to support the exceptional performance of prefabricated, non-load-bearing CFS wall panels compared with steel framed walls cut and assembled on site. Prefabrication excelled in three areas:

    1. Cost: According to the Built Offsite report, “[CFS] panels … delivered a 39% cost savings” compared to steel walls cut and framed on site
    2. Labor: To produce steel-framed walls, prefabrication “reduced installation time from 13 to 4 working days (70%),” the report noted
    3. Time: Prefabricated steel framed walls provide a time savings of around 10.5%

These improvements were primarily attributed to faster installation cycles, reduced labor requirements and less reliance on onsite trades — all of which contribute to more predictable outcomes and lower overall construction costs.

A South Valley Prefab install team prepares to attach an exterior panel at Denver’s “Bellevue North Tower.” Photo courtesy of Mark L. Johnson.

A South Valley Prefab install team prepares to attach a cold-formed steel (CFS) panel at Denver’s “Bellevue North Tower.” Photo courtesy of Mark L. Johnson.

Fewer Workers, Faster Results

In addition to cost savings, prefabricated CFS framing proved effective in simplifying job site logistics. 

“The reduced labor requirement — two workers for four days compared with four workers for nearly three weeks — translated directly into lower labor costs, reduced equipment hire and simplified site operations,” the report stated. 

These efficiencies are valuable in today’s environment of labor shortages and compressed construction timelines, offering a scalable approach to improving both productivity and site management.

framecad steel framing

Cold-formed steel (CFS) framing is durable, lightweight and flexible—offering resistance to corrosion, fire, and termites. Credit: FRAMECAD

 

The Steel Framing Advantage

Cold-formed steel (CFS) leads the way as the preferred framing material for prefabricated structures for multiple reasons. CFS is:

  • A pre-engineered material that can be cut to exact lengths
  • Dimensionally stable and does not expand or contract with changes in moisture content
  • Lightweight compared to wood and concrete
  • Resilient and will not warp, split, crack or creep when exposed to the elements
  • Sustainable and 100% recyclable
  • Durable and has a high tensile strength
  • Non-combustible and is a safeguard against fire accidents

 

‘Consistent Advantages’ for Non-Structural Walls

While the study reviewed several alternative framing and wall systems, CFS emerged as a consistently strong performer in non-structural roles. 

“[CFS] showed consistent advantages for non-structural walls,” the report concluded. 

The use of offsite fabricated steel panels supports repeatable quality, tighter tolerances and improved integration with other building systems. For developers and contractors seeking greater certainty in execution, CFS offers a reliable, high performance option that aligns with modern construction priorities.

Read the full article

Additional Resources

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