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Economic Development Strategy 2020-2025

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Economic Development Strategy 2020-2025 2020-2025 Mackay Region Economic Development Strategy Mackay Region Economic Development Strategy 2020-2025 Strategy by Lucid Economics Pty Ltd 2 Mackay Region Economic Development Strategy 2020-2025 3 Mayor’s Foreword A message from the Mayor This Economic Development Strategy 2020-2025 Within this strategy, we have set a clear Economic reflects the Mackay region – diverse, innovative, Development Framework designed to support forward thinking and full of exciting opportunities. employment and investment outcomes through advocacy and leadership, investment attraction, The previous edition of the strategy, which set out industry development and workforce and skills. an action plan for 2015-2020, was put in place when the Mackay region was recovering from a downturn Council will support the local economy by in the resources sector. This had placed enormous delivering a range of specific initiatives and actions pressure on our community, both socially to demonstrate economic leadership and instil and economically. confidence in the local market. Attracting investment not only provides a significant economic stimulus, it attracts new technology and innovation, as well as stimulates additional The economic environment of today however, is investment and job creation through supply chains. “much different to the one we found ourselves in five years ago. The Mackay region we all know, We see the region well placed to move forward and and love is back, and our future in terms of capitalise on new opportunities. economic prosperity looks bright. Our strengths are in the METS sector, our underpinning agricultural base, a burgeoning There is still plenty of work to do as we continue tourism industry and a council focussed on building to diversify and evolve to ensure our region is a liveable community. We will also continue to best placed to attract investment and capitalise on pursue new opportunities ranging from biofutures to economic growth opportunities, but the time is right innovative start-ups. to build on some great foundations. That’s what we We are confident of a sustainable economic future. are outlining in this document. Mayor Greg Williamson - Mackay Regional Council 4 Mackay Region Economic Development Strategy 2020-2025 5 Contents Mayor’s Foreword 4 Table of Contents 7 1. Introduction 8 2. We are Mackay 10 3. The Backdrop 14 4. What Sets us Apart 18 5. Our Future 20 5.1 Vision for the Future 20 5.2 Our Principles for Economic Development 22 5.3 Our Growth Opportunities 24 6. Economic Development Strategy 26 6.1 Economic Development Framework 27 6.2 Advocacy and Leadership 28 6.3 Investment Attraction 29 6.4 Industry Development 30 6.5 Workforce and Skills Development 31 7. Action Plan 32 8. Measuring and Tracking Success 42 References 45 6 Mackay Region Economic Development Strategy 2020-2025 7 Figure 1.1. Mackay Region The Mackay region spans 7,600 km² Bloomsbury Bloomsbury The Gross Regional Product Calen Calen (GRP) of Mackay is Eungella EungellaNational Park National Park Kuttabul Kuttabul Mackay $7.1 billion Eungella Finch Hatton Mirani Mackay Eungella Finch Hatton Mirani Bakers Creek Bakers Creek (2018) Sarina Sarina Koumala 1. Introduction Koumala The Mackay Regional Council encompasses 7,600 square kilometres and is located approximately As the existing Strategy comes to a close, 950 kilometres north of Brisbane. there have been a number of changes in the Traditionally, the area developed on the back of a local region and the broader state, national thriving sugar industry that supported the region and global economic context. As such, it is and its diverse range of towns (usually tied to a Cairns timely to review and update the Strategy Cairns local Sugar Mill) for many decades. In the 1970s moving forward in order to continue the and 1980s, a variety of coal mines were developed region’s economic evolution. across the Bowen Basin and the export terminals Townsville Northern Territory Townsville of Hay Point and Abbott Point were developed, This strategy has been developed based on Northern Territory which created a mining services sector in Mackay. detailed economic research and analysis as During the mining investment boom a decade well as engagement with a diverse range of stakeholders. Queensland ago, Mackay’s capability and capacity in terms of Queensland mining equipment, technology and services (METS) expanded greatly, creating a globally significant Western Australia industry cluster. Western Australia The end of the mining investment boom in 2011/12 Brisbane triggered a downturn in the local economy, given South Australia Brisbane South Australia the considerable demand pressures and capacity issues that it had previously created. The Economic Development Strategy 2015-2020 (the first of the amalgamated Mackay Regional Council) was created New South Wales to drive sustainability and diversity through the New South Wales Australian Capital Territory economy. The Strategy was successful in advancing Australian Capital Territory a number of initiatives that delivered economic outcomes for the Mackay region. Victoria Victoria 8 Mackay Region Economic Development Strategy 2020-2025 9 Tasmania Tasmania We have one of the only regional clinical trial research 2. We are Mackay centres in Australia. We produce nearly one quarter of sugar We have one of the highest manufactured in Australia. levels of average personal weekly income in the State. We have one of the largest biofuel producers in Australia. We have Australia’s most significant We have a diverse range of pristine mining equipment, technology and beaches, lush rainforests, tropical services (METS) clusters. islands, the Great Barrier Reef and the Eungella National Park. We have unique companies, producing products that are not We have one of the highest available anywhere in the world. rates of Gross Regional Product We have three ports that per capita in the State. combined represent the second largest bulk export terminal in Queensland. We recently recruited Qantas’s second Pilot We have one of the largest and Academy, a demonstration of our region’s most diverse regional industrial ability to work together and its estates in Australia. We are the fourth largest attractiveness for major investments. local government area in Queensland (outside of South East Queensland). THE MACKAY WE ARE REGION IS VIBRANT, CONFIDENT IN OUR LARGE AND SIGNIFICANT. ECONOMIC FUTURE. 10 Mackay Region Economic Development Strategy 2020-2025 11 12 Mackay Region Economic Development Strategy 2020-2025 13 3. The Backdrop The Mackay region has a population of 116,539 people making it the fourth most populated local government area outside of South East Queensland. Many of these companies are exporting and are on the cutting edge of mining technology. At the same Combined with the Isaac and Whitsunday Councils, time, agriculture and food production also make the broader region is the second largest in the important contributions through large companies State (outside of South East Queensland). Mackay such as Mackay Sugar, Wilmar and Borthwicks as continues to grow and will have almost 160,000 well as smaller producers. Mackay receives people by 2041. Population growth in Mackay has 1.8 million visitors annually that contribute been volatile, ranging from one of the fastest local $194 million to the local economy and employ government areas in the country to experiencing 2,600 people. periods of population decline. Given the strength of the local economy, there The population volatility is tied to local economy, are significant job opportunities available across which is reliant upon coal mining in particular and the broader region and across a range of sectors. to a lesser extent agriculture and food production Businesses have identified that finding suitably (sugar and beef). The Gross Regional Product (GRP) skilled workers has become an issue. There is a of Mackay is $7.1 billion (2018), which is the fifth need for a comprehensive workforce development largest in Regional Queensland. Mining directly solution to ensure the region can access the skilled contributes 24% to the regional economy and workers it requires for future growth. other directly related sectors such as Transport equipment manufacturing, machinery and During the mining investment boom, there was equipment manufacturing, fabricated metal product considerable demand placed across all local manufacturing, heavy and civil engineering, road infrastructure, particularly residential housing and transport and rail transport, contribute another 11%, short-stay accommodation. Since 2011, 4,000 combining for over a third of the economy. The residential dwellings have been added and Paget Industrial Estate represents one of the largest numerous hotels have been built. concentration of mining related companies in the The region is better prepared today for future country, and includes Hastings Deering, Cummins, fluctuations in the economy and is prepared UGL, Komatsu as well as the numerous SMEs for growth. specialising in mining products or services. Mackay plays an important role in the broader region of Mackay-Isaac-Whitsunday, not only as the area with the greatest population, but more importantly, as the main service centre providing a range of core services for the region. 14 Mackay Region Economic Development Strategy 2020-2025 15 There are a number of local organisations involved in the University economic development of Mackay, including the Greater Resource Centre of Excellence Whitsunday Alliance (GW3),
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