This practice-based research presents insights into the potential and challenges for augmented and mixed reality (AR/MR) technology to enhance Australian small-to-medium (SME) custom manufacturers’ agility to overcome existing Industry 4.0 (I4.0) workforce productivity and efficiency challenges. Moreover, it seeks to understand the technology’s ability to support custom manufacturers and the architectural, engineering and construction (AEC) sector transition to a more human-centric Industry 5.0 (I5.0) model, whereby the well-being of the fabricator is placed back at the centre of manufacturing processes. This qualitative study draws on interviews with eleven Australian custom manufacturing industry professionals to inform pertinent themes around fabricators’ current use and perceptions of mixed reality technology. Results indicate benefits for fabricators in reducing 2D drawing and task-related ambiguities in fabrication and assembly practices and reveal factors surrounding underutilisation. Synthesising insights and reflecting on Teixeira et al., (2021)’s XR-PACT framework, key research areas are identified for future AR/MR development centred on fabrication users’ distinct needs to improve accessibility, empower fabricators and ultimately assist the competitiveness of custom manufacturers and the AEC sector.