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Mount Alexander Shire Councillors, O Mount Alexander Shire Senior Council Staff ECONOMIC DEVELOPMENT PROFILE 2013 June, 2013 Mount Alexander Shire Economic Development Strategy & Economic Profile: DRAFT and CONFIDENTIAL TABLE OF CONTENTS 1. INTRODUCTION ................................................................................... Page 3 1.1 Background ....................................................................................... Page 3 1.2 Project Objectives and Activities ...................................................... Page 4 1.3 Key Project Activities ........................................................................ Page 4 1.3 Geographic Boundaries .................................................................... Page 6 2. FACTORS SHAPING THE MOUNT ALEXANDER COMMUNITY ....................... Page 8 2.1 Economic Development History ....................................................... Page 8 2.2 National Industry and Employment Trends ...................................... Page 16 2.3 Broad Local Trends and the Regional Environment.......................... Page 18 3. COMMUNITY AND ECONOMIC PROFILE ....................................................... Page 22 3.1 Characteristics of the Residential Community.................................. Page 22 3.2 The Shire’s Smaller Townships.......................................................... Page 28 3.3 Jobs ................................................................................................... Page 30 3.4 Visitors to the Shire ........................................................................... Page 36 3.5 Businesses and Business Turnover ................................................... Page 38 4. SECTORAL CHARACTERISTICS AND PERFORMANCE ..................................... Page 40 4.1 Techniques for Assessing Performance ............................................ Page 40 4.2 Primary Sector of the Mount Alexander Economy ........................... Page 42 4.3 Secondary Sector of the Mount Alexander Economy ....................... Page 46 4.4 Tertiary Sector of the Mount Alexander Economy ........................... Page 52 4.5 Quaternary Sector of the Mount Alexander Economy ..................... Page 60 4.6 Quinary Sector of the Mount Alexander Economy ........................... Page 65 5. BUILDING ON THE PAST AND GUIDING THE FUTURE .................................. Page 77 5.1 Where We Are Now – Key Conclusions ............................................ Page 77 5.2 Where We Could Be – Scenarios for the Future ............................... Page 80 5.3 The Policy and Planning Context and New Approaches ................... Page 83 6. STRATEGY FRAMEWORK ............................................................................... Page 85 6.1 An Economic Development Vision for Mount Alexander ................. Page 85 6.2 Economic Development Strategies ................................................... Page 85 6.3 Mount Alexander Shire’s Economic Development Strategies .......... Page 86 6.4 An Implementation Schedule ........................................................... Page 91 APPENDIX A: Broad Industry Sectors ...................................................................... Page 96 APPENDIX B: Location Quotients by Industry and Sector, 2011 ............................ Page 97 APPENDIX C: Shift and Share Analysis by Industry and Sector, 2006 to 2011 ........ Page 98 APPENDIX D: Target Market Segment Characteristics ............................................ Page 99 APPENDIX E: Sectoral Issues ................................................................................... Page 100 08/04/2013/MR694/WS, JG, RD/V5 ACN 002 332 176 P a g e | 2 Mount Alexander Shire Economic Development Strategy and Economic Profile: DRAFT and CONFIDENTIAL 1. INTRODUCTION 1.1 BACKGROUND Mount Alexander had a 2011 population of 17,803 and is currently ranked 66th for municipal population growth in Victoria. The Shire’s average annual growth rate over the past decade has been 0.4%. Castlemaine is the Shire’s main urban centre (with a very large manufacturing base and an emerging reputation for both arts and sustainability issues). There are two other significant towns in the Shire; Maldon (a well preserved historic gold mining town) and Harcourt (a service centre for Victoria’s largest pome fruit producing district). The major employing industries in Mount Alexander Shire are, in order: Manufacturing (food processing is by far the largest sector) Health care and social assistance (hospitals is the biggest sector in this industry) Retail trade (supermarkets is the largest sector) Education and training (led by primary and secondary education) Construction (house construction being the dominant sector). Mount Alexander also supports: A well-known hot rod/street rod sector, which is manifested in body works, magazines/publishing houses, restoration works, automotive electricians, and component manufacturers throughout the Castlemaine district. Castlemaine is the self-proclaimed Street Rod Capital of Australia. Important elements of Victoria’s gold mining history, including “the diggings” heritage area, which form an integral part of the Goldfields/Central Victoria’s push to be classified as Australia’s first national heritage region. Mount Alexander Shire has a current Economic Development Framework (prepared by Street Ryan in 2006). This is a strategic and policy document which identified the role of Council in the economic development function. Mount Alexander’s economic development framework was built around three major objectives for Council’s involvement in the economic development (including tourism) area. These were: Social Objective: “To facilitate economic development supporting a balanced socio- demographic structure, by o creating adequate job opportunities o maintaining a level of services and commercial activity commensurate with the Shire’s lifestyle and cultural attributes”. Environmental Objective: “To create a regional development competitive edge by explicitly targeting environmentally friendly enterprises and nurturing an environmentally conscious workforce and community”. Industry and Business Objectives: o “To support continuing improvement and efficiency among existing manufacturing businesses and the emergence of a sustainable niche manufacturing industry sector” o “To facilitate collaboration and diversity in the Shire’s tourism sector”. o “To ensure the long term retention of a prominent proportion of land dedicated to agriculture and the rural environment as a critical asset and a feature of the Shire’s lifestyle and amenity attributes”. o “To promote a regional service role, improved service outcomes and greater efficiencies for the Shire’s community, business, personal and recreation services”. 22/04/2013/MR694/WS, JG, RD/V5 ACN 002 332 176 P a g e | 3 Mount Alexander Shire Economic Development Strategy & Economic Profile: DRAFT and CONFIDENTIAL Implementation of the Economic Development Framework led to creation of the Economic and Social Development Directorate and the development of Stage Two of the Wesley Hill Business Park. An Economic Development Officer position was jointly funded through Regional Development Victoria and Council from 2007 until 2010, whereby the role then became a permanent full time position within Council. In late 2010, the position of Manager Economic Development and Tourism was also created. The Economic Development Unit has used the policies and objectives contained in the Framework to guide their actions over these years. The Shire is currently going through considerable transformation as a result of factors such as the ‘tree change’ phenomenon, growth of Bendigo and the Calder corridor, increasing focus on regional tourism, the vastly improved transport links by rail and road and improved telecommunications. It was therefore timely for an economic development strategy for the Shire to be formulated in order review the current environment and guide the role of Council in effectively supporting appropriate development over the next five years. 1.2 PROJECT OBJECTIVES AND ACTIVITIES The specified objectives in developing the Economic Development Strategy were to: Outline the current state of the Shire economy and demographic profile. Provide an agreed and clear vision for the economic development of the Shire that; o articulates desired economic characteristics and outcomes for the Shire; and o identifies trends and activity that will influence the Shire’s economy for the next five years. Provide a guide and marketing tool for prospective businesses and residents of the Shire. Ensure consistency with social and environmental objectives of Council. Integrate the strategy with existing Council strategies and the functioning of Council. Provide appropriate policies for Council and stakeholders to deliver over the next five years. Provide an implementation plan. 1.3 KEY PROJECT ACTIVITIES This Strategy has been developed within the context of Council policies and plans and broader regional strategic directions, as well as national and global economic trends. It has involved: a review of circumstances and events that have forged the nature and pace of development, changing approaches by government and other agencies in fostering economic development, and their impacts on the Mount Alexander community, an assessment of the current structure of the Mount Alexander economy and its comparative performance, an assessment of differing global futures and their likely implications for Mount Alexander, 08/04/2013/MR694/WS, JG, RD/V5 ACN 002 332
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