strategies to grow service sector economy
TRANSCRIPT
Local Strategies to Grow the Suburban and Regional Service Sector Economy
Presented by Robert Hall
Economic Consultant
September 2015
↑Services = ↑ Face to Face Contact =
↑ ↑ Importance of Place
Employment is Concentrating into Cities
89% of job growth was accommodated in Capital Cities between 2011-2014 (Source: NIEIR)
What does this mean for our suburban and regional employment precincts?
Many employment locations are not well positioned to take advantage
Historical role and function – not about services, skills, agglomeration
Need to reposition our places. But what does the service sector value?
Colliers Tenant Survey (2012): How important are attributes in terms of attracting and retaining staff?
– Public transport: 76% consider this important
– Service-Related Amenity: 51% consider this important
– Accessibility / Central Location: 51% consider this important
Let’s look at some successful examples
Highlights the importance of Place / location attributes
A little friendly competition. Where am I?
The game:
Name the suburban/regional employment precinct based on a series of photos.
Hands up if you know the location
First in with the right answer wins a prize.
Example 1. The Second CBD – Parramatta, Parramatta LGA, Sydney
Parramatta, Sydney Parramatta CBD (2011)
HEADLINE INDICATORS
Value Added: $5.4 billion
Jobs: 37,472
Worker productivity: $145,000 per
worker
JOB PROFILE
14,000 Business Services
11,300 Govt.
2,700 Retail
2,200 Health
Very high labour productivity
Example 2. Middle Ring Employment Cluster –Notting Hill, Monash LGA, Melbourne
Monash, Melbourne Monash- Clayton (2011)
HEADLINE INDICATORS
Value Added: $3.7 billion
Jobs: 37,690
Worker Productivity: $98,169
per worker
JOB PROFILE
6,900 Business Services
5,800 Health
5,600 Education
5,160 Manufacturing
5,100 Wholesale
Major Economic Anchors to support service sector growth
Example 3. Business Parks – Norwest, The Hills LGA, Sydney
Norwest Business Park (2011)
HEADLINE INDICATORS
Value Added: $1.9 billion
Jobs: 17,590
Productivity: $108,000 per worker
JOB PROFILE
4,180 Business Services
3,949 Retail
2,600 Manufacturing
1,806 Health
High amenity location + Attracted Major Brands
Economic Development Opportunities
Using place to take advantage of services, higher skills, ideas and agglomeration
1. Spatial Strategies to Encourage Service Sector Density
2. Cluster Led Development
Anchors are a major economic driver in suburban and regional economies
WestmeadHospital
HEALTHCARE
Monash University
HIGHER EDUCATION
Brisbane West WellcampAirport
GATEWAYS
Bendigo Art Gallery and Theatre
CULTURAL
2. Cluster Led Development
HEALTHCARE Key Roles:Major purchaser of goods and services
Workforce / skills / research
Community development
Mixed Use Precinct – Health as the Anchor:Deepen Health Offer
Accommodation / Conferencing
Aged Care/ Retirement
Office (health + non-health)
Retail, Cafes & Restaurants
Food services / food catering
Education and Research links
Amenities – child care, gyms, library, recreation
Hospitals spend over $55 billion each year and employ 350,000 people
3. Positioning places to take advantage of the opportunities
Amenity
Recreation
Public transport
Accessibility
Planning controls
Need to unlock the potential to take advantage
4. Know your place – information is power
What are the dominant industries?
What are the growth industries?
Which industries are the biggest exporters?
Which industries have a specialization / over representation?
Who are the key businesses / anchors?
What are the gaps?
Building the business case for investment / grants
There is no substitute for rigorous and transparent economic analysis
5. Don’t forget about housing…
Kelly, J-F., Donegan, P., Chisholm, C., Oberklaid, M., 2014, Mapping Australia’s Economy: Cities as engines of prosperity, Grattan Institute
There is a risk that escalating house prices will reduce the labour force pool available
Time to Embrace the Importance of Place
Economic Importance of Place: Services skills, ideas, agglomeration
Health & Education as major economic drivers
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