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City of Swan Our Swan 2030 Discussion Paper – Our Vibrant Economy

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City of Swan Our Swan 2030 Discussion Paper – Our Vibrant Economy City of Swan our Swan 2030 discussion paper – our vibrant economy s e c l a p e r s e i v d y i t c n e o 2 our Swan 2030 – our vibrant economy Contents 1. Background 4 2. Trends 5 3. Key Considerations 6 3.1 Jobs and Skills 6 3.2 Land Use and Infrastructure 6 3.3 Business Growth and Investment Attraction 6 4. What this means for Swan 7 4.1 Jobs and Skills 7 4.2 Land Use and Infrastructure 7 4.3 Business Growth and Investment Attraction 7 End Notes 7 3 1. Background Building vibrant The City of Swan has a diverse economic base business centres and and strong economic sectors including construction, retailing, manufacturing, property and business ensuring our business services, wholesale trade, agriculture/livestock environment supports and tourism. our growing local As well as a significant growth in population over the last 20 years, industrial, communities, providing commercial and tourism areas have also grown with the development of the Malaga industrial area, the expansion of the Midland retail sector and growth of the Swan Valley jobs, goods and wine region. services and investment The City of Swan is the northern and eastern gateway to regional Western Australia with Great Eastern Highway, Great Northern Highway and the Midland train line all leading opportunities. into Midland. The City of Swan also has major metropolitan arterial roads of Tonkin Highway, Reid Highway and Roe Highway running through or around it, making the City of Swan easy to get to for visitors and an attractive base for businesses with ease of access to metropolitan and regional Western Australia. 4 our Swan 2030 – our vibrant economy 2. Trends The global economy is currently warehousing, wholesale trade, or recovering from the 2009 economic agriculture, forestry and fishing. crisis. Australia coped with the crisis The City of Swan has a smaller well and was one of only a few proportion of people holding formal developed countries in the world not to qualifications (Bachelor or higher experience a recession. Most business degree; Advanced Diploma or Diploma; sectors are still experiencing patchy or vocational qualifications) and a larger growth, however the overall economic proportion of people with no formal outlook for Australia is positive with qualifications compared to the Perth the economy predicted to grow and area. Overall, 34.8% of the population the unemployment rate expected to hold educational qualifications and decrease over the coming year. This 52.2% had no qualifications. To a certain growth is expected to be led by the extent, this reflects the lack of access mining industry with iron and coal prices to university institutions for young and remaining high due to continual strong mature residents in the City of Swan. demand from China and India.Western Australia’s unemployment rate is lower More than 95% of businesses in the City than the national average at 4.5% in of Swan are small businesses, with over January 2011. It is expected that Western half of these being sole traders and Australia will experience substantial non-employing. Advances in technology economic growth driven by the mining are allowing more and more small industry. The Chamber of Commerce businesses to operate as home based and Industry Western Australia predicts businesses, making them a vital part of that Western Australia will require an the City of Swan economy. additional 488,500 workers between Tourism is a growing industry within 2010 and 2020. This is a significant the City of Swan. The Swan Valley growth in the number of jobs. is the most established tourism In addition to the workers required to area. It is a unique area with one fill new jobs that are expected to be of the oldest wine regions, historic created by 2017, approximately 186,000 attractions, restaurants, cafes, additional workers are expected to be breweries, food, art, recreational required to fill jobs vacated by current attractions, scenery and nature. In the workers leaving the workforce through last three years the average number retirement and permanent emigration. of tourism visitors to the City of Swan comprised of 75,300 domestic visitors Recent analysis by the Department of and 12,700 international visitors. Training and Workforce Development While the occupancy rate for visitor indicates approximately 275,000 accommodation in the City of Swan workers will be provided through is below the metropolitan average natural population growth and and ranged between 40.5% in August migration. This suggests that Western 2009 and 67.7% in February 2008, it is Australian employers may experience a a potential area of growth as tourism deficit of between 133,000 and 150,000 expands in the Swan Valley. workers by 2017. In November 2010, the State Within the City of Swan, the three Government designated Midland as a largest industries are Manufacturing special trading precinct allowing Midland followed by Construction and Rental, shops to be open on Sundays. This has Hiring and Real Estate Services. already created a notable economic Manufacturing contributes 36% of the boost to businesses in Midland and has City of Swan’s annual output, almost the potential to link visitors to the Swan three times that of Construction. Valley and surrounds. The unemployment rate in the City of Over the next 20 years it is estimated Swan in September 2010 was 5.2%, that the number of jobs in the Perth higher than the Perth metropolitan Eastern Region (which includes the unemployment rate of 4.7%. The local areas of Swan, Bassendean, largest areas in employment are Bayswater, Belmont, Mundaring and in manufacturing, which provides Kalamunda) will need to increase by almost 20% of employment, followed 45% to accommodate the growing by the retail trade at 12.4% and the population. This population growth will construction industry at 9.2%. primarily be within the City of Swan. Compared to the Perth Metropolitan area, residents of the City of Swan are more likely to work in construction, retail trade, transport, postal and 5 3. Key Considerations There are a range of topics that add to the complexity of economic development within the City of Swan. Below are some of the key considerations. 3.1 Jobs and Skills Of all new jobs forecast to be created between 2010 and 2017, mining and construction jobs will account for 16.7%, with over 44% created in the retail, manufacturing, health care, education and training, and professional, scientific and technical services industries. Within these industries, it is predicted that over half these jobs will be in the higher skilled categories including professionals, managers, technicians and trade workers. These are more knowledge intensive jobs and require higher level qualifications of Certificate III and above. The Western Australian Department of Training and Workforce Development states that the vocational education and training participation rate for people aged 15 to 64 in Western Australia in 2008 was 7.1%, the second lowest of all states and territories and below the national average of 8.0%. This, in part, is explained by the high workforce participation rates that Western Australia traditionally enjoys as job opportunities compete with training. A key issue is how to encourage more students and employers to undertake and invest in training despite these strong economic conditions and employment opportunities. This includes changing employer and student perceptions about vocational education and training, ensuring that training delivery is flexible and leads to positive employment outcomes. Literacy and numeracy competency is also an issue that needs to be addressed so that young and mature people can increase their skills. The Council of Australian Governments (COAG) states that more than 4 in 10 people have literacy and numeracy skills below level three, considered by COAG to be the minimum level required by individuals to meet the complex demands of working and living in a modern economy. 3.2 Land Use and Infrastructure To accommodate the growing population and economy, land needs to be made available for housing, industry and infrastructure (road, rail, public facilities). Currently there is a shortfall of industrial land supply in the Perth and Peel region. With Western Australia entering a time of economic growth, there will be another increase in demand for industrial areas. Retail and commercial centres will also need to be renewed, expanded and developed to meet the needs of the growing population. See the Built Environment Discussion Paper for further information. 3.3 Business Growth and Investment Attraction With advances in new technologies, the economy is becoming increasingly globalised with many companies relocating their jobs offshore and many local businesses competing with a wider market as consumers increasingly use the internet to source goods and services. Local government areas need to demonstrate and increase their competiveness and capacity to attract, retain and sustain business investment and growth. 6 our Swan 2030 – our vibrant economy 4. What this means for Swan The City of Swan has a great opportunity to take shopping centre and the Midland Health Campus (305 advantage of the expected growth in the Western bed hospital). It is estimated that these projects alone Australian economy and ensure it has a prosperous will inject $1.2 billion into the local economy, creating economic future. The City is committed to facilitate more than 7,500 jobs over the next twenty years. The economic growth and investment to promote a MRA also plans to convert the old railway workshops prosperous economic future. The City can continue into contemporary uses and create an active urban to support local businesses by offering information village, focusing on creative industries, education and and referral services, business support, investment heritage activities with apartments and townhouses.
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