The industry that is involved with the design and manufacture of prefabricated homes and other structures is heavily reliant on computer technology. In every stage of the prefab industry, from initial design and prototyping through to final assembly and testing, computers play a vital role. The first stage in any prefabricated home build is the design phase. This normally takes place using a process and piece of specialised computer software called CAD, or computer aided design. CAD is a term used to define the use of computer technology in the design phase of any object, along with the design documentation and drafting of plans to accompany the design. Prefab homes are mostly designed in CAD software environments, where initial sketches can be layed out and virtual prototypes can be constructed.

Computer aided design (CAD) is also known as computer aided design and drafting (CADD). The output of final CAD engineering drawings is used to convey important information to the next stage of a project, so it is vital that all information is accurate. In terms of a prefabricated home design process, some of the information that needs to be conveyed would include information on materials, processes, dimensions, tolerances, and shapes. All of this information is of vital importance in the final build, so it is essential that all measurements and application specific conventions are translated and made ready for the next stage of the manufacturing process.

There are several differen types of CAD software on the market, from simple 2D applications through to complex 3D programs. It is likely that prefab home designers have access to professional 3D applications, including geometric modelling, vector based drafting, solid and surface modelling, and comprehensive rotation functionality. Prefabricated homes are generally manufactured hundreds and sometimes even thousands of times, so it is vital that the initial stage of design and drafting is completed without any mistakes. Computers are intrinsic to the design and manufacture of all prefab structures, from garages and carports through to industrial buildings and homes. Computer aided design plays an important role in this process, and is in many ways the cornerstone of the entire manufacturing process.