PERTH as a resilient economy a FACTBase Special Report ABOUT FACTBase
The FACTBase project is as words, and examine how a collaborative research Perth compares with, and venture between the connects to, other cities Committee for Perth and around the world. The University of Western Australia that commenced Research findings are in 2008. Its objective is to released regularly, providing explore Perth’s liveability an important resource for and global connectedness academics, planners and through an examination decision-makers on the of its economic, social, following major aims: demographic and • Examining the dynamics political character. of Perth’s regional economy; The FACTBase team of • Exploring Perth’s social researchers condense and cultural landscape; a range of existing • Considering issues related information and databases to ‘urban liveability’ in on important issues, map Perth; and what is happening in • Examining governance Perth, in pictures as well and policy arrangements.
Committee for Perth and The University of Western Australia November 2017
Cover Image: Photo by Charlyne De Souza, Passion for Perth Photographic Competition. Source: Committee for Perth, 2016. PERTH as a resilient economy a FACTBase Special Report Photo by Lukas Nickolson, Passion for Perth Photographic Competition. Source: Committee for Perth, 2017. PERTH as a resilient economy a FACTBase Special Report
CONTENTS
About the Report | 4
About the Project | 4
From the CEO | 5
Executive Summary | 8
Looking Back to Look Forward to Beyond the Boom | 11
The 2000s Resource Boom | 31
Post-2000s Boom | 45
The Greater Perth Economy | 53
Conclusion | 103
References | 105
Acknowledgements | 109
About the Authors | 110
Bigger & Better Beyond the Boom Steering Committee | 111
Committee for Perth Membership | 118 PERTH AS A RESILIENT ECONOMY
ABOUT THE REPORT
After significant economic development since World growth and development War II. It provides a detailed off the back of Western look at Perth’s industries, Australia’s recent mining in order to identify those boom, Perth is now in a with the potential for position to reflect on what steering our future. This it means to be mostly a report will inform a series Professor Matthew Tonts resource and minerals of recommendations to be Pro Vice-Chancellor based economy, and how released at the end of 2018, Executive Dean, Faculty this can be leveraged and by providing a roadmap of Arts, Business, Law and diversified to benefit future for Perth and Peel’s Education growth opportunities. economic future.
This report is a key input into the Bigger & Better Beyond the Boom project and has examined Perth’s history of economic
ABOUT THE PROJECT
In 2017, the Committee for The primary aim of Bigger This work will be undertaken Perth commenced a major & Better Beyond the Boom through the lens of research project focused is to identify industry economic geographers on the current and future sectors that are growing; – which will provide a economy of the Perth and industries in decline; and fresh and approachable Peel region. The project, emerging economic threats perspective on the entitled ‘Bigger & Better and opportunities for the economy of the Perth and Beyond the Boom: Perth’s future. Over the life of the Peel region. The outcome economic future as a region project, researchers will of Bigger & Better Beyond of 3.5 million people’, aims examine and illustrate the Boom will be a major to examine the size, industry the importance of local, report to be released at composition and spatial regional, national and the end of 2018, which will structure of the Perth and international connections identify targeted strategies Peel and wider Western to and between associated with the specific Australian economy at industries in Perth and strengths and weaknesses of a fine grain level. It will Peel and the role of new key locations and industries challenge conventional technology, innovation within the region. wisdoms and identify and entrepreneurship. strategies for a more economically diverse and robust future for the region.
4 FROM THE CEO
Boom times have Perth as a resilient economy characterised Western ‘sizes’ the industries that Australia since the first gold have shaped Perth’s rush and its economic economic development strength has come from since the 1940s. Produced an abundance of natural using quantitative data resources. With every upturn by the FACTBase team at Marion Fulker in commodity prices has The University of Western CEO, Committee for Perth come a period of economic Australia, the report Project Director, Bigger & expansion which has driven analyses industries and Better Beyond the Boom growth in the regions as well sectors that have been and Adjunct Senior Research as the capital city. are emerging as critical to Fellow, The University of the region’s economy. Western Australia As each period of growth comes to an end, the call Perth as a resilient economy from the community gets is a key input into our Bigger louder and stronger about & Better Beyond the Boom the need to have a more project which will result diverse economy. in a blueprint for Perth’s economic future as a region In this FACTBase Special of 3.5 million people being Report the researchers released at the end of 2018. have gone back over one In the meantime, this report of Perth’s most significant challenges conventional periods of economic wisdoms by demonstrating diversification and that in fact, the economy expansion to create a much is very resilient, recovers needed evidence base from shocks quickly and is to inform future planning. increasingly diverse.
5 PERTH AS A RESILIENT ECONOMY
POST WW2 ECONOMY
Birthplace of the West Australian Population, Proportion of population born outside of Australia: 1947 to 1981 1,400,000
1,200,000
1,000,000
800,000
600,000
Number ofNumber People Greater Perth’s Population: 400,000 Between 1947 and 1971, the population of the region 200,000 increased from over 272,000
0 to more than 750,000; a rise 1947 1954 1966 1971 1981 Year of over 175.7%.
Australia United Kingdom Elsewhere
WESTERN AUSTRALIA’S RESILIENT ECONOMY Gross State Product Per Capita, 1990 to 2016
120,000 Between 1991 and 2016, 100,000 Western Australia increased its GSP every year. 80,000
60,000 In 20 of the 26 years, Western Australia outperformed GSP ($) Per Capita 40,000 Australia as a whole. 20,000
0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Western Australia Australia
RESOURCES BOOM Value of Selected Major Commodities in WA, 2004-05 to 2014-15
80,000 The 2000s resources boom was caused by: 70,000
60,000
50,000
40,000 Value($m) 30,000
• Rapid • Associated 20,000 industrialisation demand for 10,000 in China iron ore 0
Gold LNG Iron Ore
ECONOMIC IMPACTS House prices doubled • Strong resources and investment activity between 2001 and 2005, • Increased population and employment and doubled again • Housing supply could not keep up with between 2005 and 2015. growing demand 6 POST 2000s BOOM
9.3%
Greater Perth: industry profile $150.4 billion Accounts for 9.3% of the 1,049,847 people 1,943,861 people economy in 2015 Australian economy employed in 2017 livingKey in industries Perth in 2017
Industry composition of Greater Perth, Financial Year 2015: • Construction • Healthcare and Social Assistance • Professional, Scientific and Technical Services
Locational drivers • The largest industry in Greater Perth is Construction • There has been strong growth in the Professional Scientific and Technical Services industry, however the industry has experienced decline post FY 13. • The Healthcare and Social Assistance industry has experienced sustained growth since FY01. INDUSTRY GROWTH
Tourism, health, education and the creative industries are all emerging not only as important Economic output of greater Perth (index) employment industries in the future but also as industries which will propel future growth. 250
Number of Health Care & Social Assistance Creative Employment in Western200 Australia: Firms in Western Australia: Publishing 150 5,276, 13% Advertising and Marketing 5,738, 14% 10,000 100
Music, Visual and Performing Arts 50 7,500 5,144, 12% 0
5,000 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 Architecture and Film, TV and Radio Design 1,936, 5% 9,718, 23% Perth (index) Australia (index) 2,500 July 2017 0 2009 2016 5 Software and Digital Content 13,505, 33%
Education in Western Australia: Tourism in Western Australia: In Western Australia, the The WA tourism industry contributed international education and training sector is estimated to 4.6% have contributed between of total direct and indirect GVA to the $1.39 billion and $1.41 billion in economy, which totalled $10.6 billion total export revenue in 2015. and 109,000 jobs in 2016. $1.39 – $1.41 billion
7 PERTH AS A RESILIENT ECONOMY
EXECUTIVE SUMMARY
Rather than limiting the outperformed others and Immediately after World focus to the transformative which are likely to be at the War II, Perth was a small impact of the most recent forefront of the economic city, which largely imported boom period, this FACTBase future of Greater Perth in all of its value-add goods. Special Report takes a this post-boom phase. It was trade dependent longitudinal perspective of for its principal exports, the Greater Perth economy. A deeper understanding of which were then mostly An extended time span the Greater Perth economy agricultural in nature, provides an understanding enables more nuanced although mining was also of the spatial structure and planning and policy settings important. The national dynamics of the Greater to assist the region to be focus then was social and Perth economy and how bigger and better beyond economic reconstruction it has changed. With a the boom. and few imagined geographic framework, the Australia’s ‘western third’ report examines how the Three key questions outline: would ever amount to economy has evolved since • How and why the Greater much. It was a long way World War II. It focuses on Perth economy has from anywhere, with large the interactions between changed over time; spaces and few people. people, place and space, • How it has experienced In 2017, Greater Perth and how time and policies and recovered from had grown significantly have shaped the region. It different shocks; and but, by international helps to explain why some • The level of resilience in standards, it still had industries have consistently particular industries. a modest population. 8 However, over the past 70 years, Perth, and Western Australia, has transformed from a mendicant economy to an economic powerhouse, contributing more per capita than the other Australian cities. Furthermore, there is evidence in this report, which challenges the presumption; the Perth economy is one that swings from boom to bust conditions. While there Photo by Greg Seaton, Passion for Perth Photographic Competition. have been periods of Source: Committee for Perth, 2016. slow growth, in broad terms, the Greater Perth The second section the concentration of firms economy has performed examines the impacts of in locations across Greater well over a long period and the 2000s boom, 2001- Perth and by employment. has remained resilient in 2014, which was just as It is evident that despite the face of considerable influential as the 1960s Greater Perth’s growing external pressures. boom in terms of shaping sophistication, the industries Greater Perth’s population, which underpin the current This FACTBase Special housing, urban landscape post-boom economy are Report has four sections. and global engagement. still the mineral and energy The first looks back to the The long-run performance resources and agriculture 1940s and describes who and resilience of the Perth businesses, which are the we were immediately after economy is assessed foundation of the Greater World War II, and how the against the national Perth economy. However, Greater Perth economy economy and within the industries are changing. performed in relation to the context of globally the nation to understand challenging conditions. Retail is still an important the foundations of Greater employer, but it is no longer Perth’s contemporary The third section uses PwC’s the biggest employer in economy and society. Geospatial Economic Greater Perth. The industry This section also reviews Model as a basis for the is increasingly dominated the first of several boom analysis of the Greater by retail businesses that periods with the short-lived Perth economy and the can take advantage of influence of the Korean industries that are driving economies of scale in War in the 1950s followed it in the first decades product, distribution and by the much bigger, and of the 21st century. The marketing. Online shopping longer lasting boom of geographical distribution practices, the cost of rents the 1960s. The impact of of firms and employment and globalised fashion rapid population growth provides a useful insight into trends all challenge smaller influenced the urban the important activity areas. operators. The industry has planning of Perth and the encountered similar seismic emerging global outlook of In the fourth section, each scale challenges before Perth businesses is identified of the highest performing and survived. For example, as Perth’s ‘coming of age’. industries are assessed by the shift to the shopping 9 PERTH AS A RESILIENT ECONOMY
workforce is also ageing, capitalising on the recent with predictions that within population growth and the a decade, more than 50% almost frenetic expansion of the current workforce will of the resources industries need to be renewed. in the 2001-2007 period. Together, these industries Similarly, manufacturing continue to be important has never been a major and there are signs they are contributor to the Greater innovative and engaging Perth economy until now. with growth opportunities, While that industry is not a both within Australia big employer or significant and internationally. Then in terms of the number there are the Industries in centre retail experience of firms, it is important for Transition. These industries and the supermarket its emerging contribution are important, but they phenomenon in the 1970s, to high-tech innovation, are facing economic or neither of which have harnessing the knowledge social headwinds, which restricted retail business economy and global are likely to continue to in Greater Perth, but they export potential. exert challenges in the certainly changed it and post-boom period. These the social fabric of the city. The industries are grouped include the health care and by their likely economic social assistance, retail and The rise of the service development trajectories in manufacturing industries. industry, a global the post-boom period. The phenomenon, is evident Bright Lights Industries are It is important to note there in Greater Perth. Industries those which are emerging. are inevitable overlaps such as retail, education, They are not always the in the industry analysis. tourism, leisure and aged biggest employers or have For example, the mining care are all important the most number of firms. industry has strong links to employers. However, the However, their contribution the emerging high‑tech, health care and social to the vibrancy and diversity high value mining assistance industry has of the Greater Perth equipment, technology and taken the lead as the economy suggests new services (METS) industry, biggest employer in employment opportunities which in turn has links to the Greater Perth. This industry and enhanced global manufacturing industry and is growing in response to engagement are prevalent. the professional scientific the expanding population These industries include the and technical services from the recent boom but recreation and creative industry. Similarly, the health also because of the ageing industries, the professional, care and social assistance population. At one end of technical and scientific industry overlaps with the the health industry, high services industries, tourism professional scientific and value medical facilities and higher education. technical services industry and globally recognised in research and digital research dominate. At the The Primary Industries, technologies. Regardless, other end is the rapidly agriculture, forestry, what is important is that expanding, poorly skilled fishing and mining are the Greater Perth is able to and modestly paid care economic perennials in the continually innovate, renew industry. Not only is the Greater Perth economy. and expand its economic industry responding to an The construction industry is horizons, to engage actively ageing population, but its another strong performer, in the global marketplace. 10 LOOKING BACK TO LOOK FORWARD TO BEYOND THE BOOM WHO WE WERE POST WORLD WAR II
Following World War II, by the Commonwealth expansion, housing and the Western Australian Government estimated infrastructure. This first wave population had reached that without migration, of post-war immigration a little over half a million Australia’s population would occurred between 1947 people. The proportion peak at just 8.2 million in and 1957, peaking in 1952 of the population living in 1980 (Markus et al., 2009). (Australian Bureau of the Perth capital city and From both a strategic and Statistics, 1962; Australian adjoining urban municipal economic development Bureau of Statistics, 1972; areas had risen from pre- perspective, ‘populate or Australian Bureau of war times when about perish’ became the catch- Statistics, 2001b; Black, 1981). a third of the Western cry of the day (Caunt, 2013). Australian population lived At the beginning of the in Perth. In 1947, just over half A range of migration and first post-war immigration of the Western Australian development schemes period, nearly 81.8%, population lived in Perth, were implemented with 411,035, of Western 272,528 (Commonwealth the goal of promoting Australians were born in Bureau of Census and population growth and Australia (see Table 1). In Statistics, 1947). The economic expansion. the 1947 Census, immigrants remaining population were Central to this was largely came from the scattered across towns and attracting migrants from the United Kingdom, 13.8%. rural areas outside of the United Kingdom, as well as The impact of post-war metropolitan area. ‘displaced persons’ from immigration is evident in the Europe, predominantly the rise of immigrants coming After the war, successive Netherlands, Germany, from outside of the United Western Australian Poland, Estonia, Latvia and Kingdom between 1947 Governments adopted Lithuania (Ghosh, 1981). and 1954. Immigrants from growth strategies that were New arrivals worked on a elsewhere in the world rose consistent with those being range of government-led from 4.4% in 1947, 22,044, to encouraged at the national projects focused on rural 10.4% in 1954, 66,258. level. Projections made development, industrial
TABLE 1: THE COMPOSITION OF WESTERN AUSTRALIA’S POPULATION ACCORDING TO BIRTHPLACE, 1947 TO 1981
Birthplace 1947 1954 1966 1971 1981 Australia (%) 81.8 76.5 76.6 72.5 71.5 United Kingdom (%) 13.8 13.1 12.2 15.2 14.6 Elsewhere (%) 4.4 10.4 11.1 12.3 13.9 Total 502,480 639,771 8 5 5,112 1,030,469 1,273,624
Source: Commonwealth Bureau of Census and Statistics, 1947-1966; Australian Bureau of Statistics, 1971-1981. 11 PERTH AS A RESILIENT ECONOMY
The next major wave of FIGURE 1: BIRTHPLACE OF THE WESTERN AUSTRALIAN post-war immigration POPULATION, 1947 TO 1981 occurred between 1962 1,400,000 and 1971. In 1966, there were 198,791 foreign 1,200,000 born residents in Western Australia, who made up 1,000,000
23.3% of the population. 800,000 Immigrants were predominantly of United 600,000
Kingdom origin, but the ofNumber People 400,000 increasing number of those coming from elsewhere in 200,000 the world continued into the early 1970s (see Table 1). 0 1947 1954 1966 1971 1981 During this period, the origin Year of immigrants from outside Australia United Kingdom Elsewhere of the United Kingdom Source: Commonwealth Bureau of Census and Statistics 1947-1966; shifted from Northern Australian Bureau of Statistics 1971-1982. Europe to Mediterranean countries including Italy, FIGURE 2: GREATER PERTH POPULATION, 1941 TO 2016 Greece and Malta. The
Australian born population 2,500 continued to fall from 76.7% in 1966, 656,321, and reached just less than 72.5% 2,000 in 1971, 747,196.
1,500 By 1981, the non-Australian population reached 1,000 362,658, which was 28.5% Population (000s) of the State. The number of immigrants from outside of 500 the United Kingdom, 176,515, was closing in on the 0 number of those who came 1941 1951 1961 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 from the United Kingdom, Year 186,143. The proportion of Source: Commonwealth Bureau of Census and Statistics 1947-1966; Australian born people Australian Bureau of Statistics 1971-2017. in Western Australia was lower than previous years The trends occurring the result of international and reached 71.5% or at the State level were migration, with more than 910,966 people (Australian largely replicated in Perth. 240,000 overseas migrants Bureau of Statistics, 1982). Between 1947 and 1971, settling in the city (Australian Between 1947 and 1981, the population of the city Bureau of Statistics, 2001b). the composition of Western increased from a little Australia’s population over 272,000 to more than The population of Perth became increasingly 750,000; a rise of over also became increasingly diverse (Figure 1). 175.7%, Figure 2. More than diverse during the post- half of this growth was World War II period. 12 In 1954, 24.3% or 84,653 of TABLE 2: COMPOSITION OF METROPOLITAN PERTH’S people were born outside POPULATION ACCORDING TO BIRTHPLACE, 1954 TO 1971 of Australia. By the 1966 Census, this proportion had Birthplace 1954 1966 1971 reached 26.2%, and by 1971, Australia (%) 75.7 73.6 68.3 31.7% of the population was United Kingdom (%) 14.1 13.9 16.9 from overseas, see Table 2. Elsewhere (%) 10.2 12.3 14.8 At these three Census dates, Total 348,647 499,969 703,196 the United Kingdom was the most common place Source: Commonwealth Bureau of Census and Statistics, 1954-1966; of origin for immigrants Australian Bureau of Statistics, 1971. living in Perth. However, the proportion of immigrants coming from other countries FIGURE 3: BIRTHPLACE OF THE METROPOLITAN PERTH increased over time. The POPULATION, 1954 TO 1971 growth of overseas-born people caused a fall in the 800,000 number of Australian born 700,000 residents, from 263,994 or 75.7% in 1954 to 480,173, 600,000
68.3%, in 1971, Figure 3. 500,000
400,000
300,000 Number ofNumber People
200,000
100,000
0 1954 1966 1971 Year Australia United Kingdom Elsewhere
Source: Commonwealth Bureau of Census and Statistics 1954-1966; Australian Bureau of Statistics 1971.
13 PERTH AS A RESILIENT ECONOMY
WHERE WE LIVED POST-WORLD WAR II
In the two decades Perth’s development between the city and underpinned following WWII, there was 1829 and the 1950s was the development of early a rapid expansion in the largely oriented on an east- metropolitan municipalities geographical footprint west axis between Fremantle and road districts including of the Perth metropolitan and Midland. The Swan River Fremantle, Subiaco, region. The underlying played a critical role in early Nedlands and Perth. This causes included post-war transport, and was followed ‘east-west’ axis is evident in economic reconstruction, by the development of a the 1947 population data mass immigration and network of roads, tramways for Perth, Table 3. Key nodes the economic boom of and railways that reinforced of economic activity at the 1960s. this orientation (Davis, 2011). the time included Midland The Fremantle-Guildford Junction, Fremantle, North Railway was critical in shaping Fremantle and Subiaco.
TABLE 3: POPULATION OF PERTH’S ‘METROPOLITAN DIVISION’ AREAS, 1947 TO 1971
Statistical Area 1947 1954 1966 1971 1947-71 % Change Armadale - Kelmscott - - - 10,933 - Bassendean 5,243 7,152 9,747 11,36 0 116.7 Bayswater 6,453 14,555 25,118 34,080 428.1 Belmont 5,712 15,820 25,919 32,564 470.1 Canning 5,203 13,419 22,762 34,667 566.3 Claremont 7,769 8,643 8,938 9,179 18.1 Cockburn - - 9,894 20,982 - Cottesloe 8,257 8,092 8,122 7,997 -3.1 East Fremantle 6,197 6,372 6,908 7, 325 18.2 Fremantle 18,791 22,795 25,284 26,036 38.6 Gosnells - - 7,13 5 19,216 - Guildford 2,217 2,134 - - - Kalamunda - - - 14,267 - Melville 7, 5 47 19,810 47,76 0 51,847 5 87. 0 Midland Junction 6,182 8,496 9,335 - - Mosman Park 5,442 6,199 5,793 7,199 32.3 Mundaring - - 1,820 6,673 - Nedlands 18,226 22,814 23,320 22,878 25.5 North Fremantle 2,946 2,890 - - - Peppermint Grove 1,474 1,468 1,601 1,511 2.5 Perth (C) 30,989 50,090 96,223 97, 5 4 6 214.8 Perth (S) 98,890 97, 3 5 0 112,4 59 - - Stirling - - - 154,450 - South Perth 15,266 21,214 32,042 31,702 107.7 Subiaco 18,789 17,6 42 16,621 17,119 -8.9 Swan 5,047 1,692 2,556 18,651 269.6 Wanneroo - - 612 3,618 -
Source: Commonwealth Bureau of Census and Statistics, 1947-1966; Australian Bureau of Statistics, 1971. * Note that changes to area boundaries over time make direct comparability difficult.
14 FIGURE 4: PLAN FOR THE METROPOLITAN REGION PERTH AND FREMANTLE, WESTERN AUSTRALIA, 1955
Source: Stephenson & Hepburn, 1955. 15 PERTH AS A RESILIENT ECONOMY
In 1955, the Stephenson- the Corridor Plan in 1970, Hepburn Plan for the Figure 5, which outlined a Metropolitan Region – low-density, car dependent, Perth and Fremantle was urban expansion of the implemented and provided Perth metropolitan region. the framework for the spatial organisation of Central to the plan was residential development the development of linear and economic activities, urban corridors extending Figure 4 (Atkins, 2017). from the city centre in The Narrows Bridge in its final The plan was key in the north-west, east, south- stages of construction, 1959. development of dedicated west and south-east Source: Wylie 1959. economic hubs, especially directions. Each corridor in the industrial and retail was to develop sub- industries. These hubs regional centres to attract were supported by an and establish employment arterial road system and and economic activity. an extensive north to south Consequently, locations freeway, reflecting the such as Stirling, Armadale, growing importance of the Kelmscott and Cockburn car to most households. grew in economic importance, Table 3. The development of the freeway system The extent of outward The official opening of the fundamentally shifted the expansion is evident in Narrows Bridge in November, 1959. Source: Wylie 1959. orientation of the city – from the growth of some of east-west to north-south. Perth’s emerging post- Indeed, one of the first war suburbs. For example, tangible expressions of the between 1947 and 1971, plan was the construction Melville’s population grew of the Narrows Bridge, by 587.0%, see Table 3; which when completed in the greatest increase in 1959, linked the previously population out of all the underdeveloped regions existing metropolitan areas. south of the Swan River with Canning followed with the CBD. The outcome was an increase of 566.3%. In the rapid development contrast, inner city areas of several centres south experienced slow growth or of Perth including even decline. For example, Melville, Canning and Cottesloe and Subiaco Cockburn, Table 3. declined by 3.1% and 8.9%, respectively, between The Narrows Bridge, Such was the extent of 1947 and 1971. connecting the north Perth’s population growth and south metropolitan areas. Source: Stevenson, and spatial expansion Kinder & Scott Corporate during the 1950s and 1960s Photography, 1974. that an updated plan was required. The State Government adopted
16 FIGURE 5: THE CORRIDOR PLAN FOR PERTH, 1970
Source: Metropolitan Region Planning Authority, 1970.
17 PERTH AS A RESILIENT ECONOMY
THE POST-WAR ECONOMY
The post-World War II Indeed, the need for period was an economic economic diversification watershed moment for had been a critical policy Western Australia marked issue throughout the 1940s by considerable optimism, and early 1950s. Much of rapid growth and new the focus had been on the economic opportunities. need to develop ‘heavy Importantly, there was industry’, in particular a high degree of direct manufacturing. However, government involvement the small population, in the State’s economic constrained local economy and social development in and relative remoteness this period. had all been longstanding barriers to the development In the years immediately of a substantial following the War, the manufacturing industry. Western Australian and Perth economies were From the late 1940s, the inextricably tied to the State Government became export of agricultural increasingly proactive products. In the 1950s, in promoting industrial agriculture contributed over development, providing 80% of the State’s export development incentives earnings (Statistical Register to the private sector. An Elders Woolstore in Fremantle, of Western Australia, 1955). important part of this 1957. Source: Western Australia The relative contribution strategy was to build on Government Photographer, 1957. of agriculture peaked in a number of industries, 1951-52 at the height of which had emerged prior the Korean War, largely to World War II, including because of increased food processing, metal demand for Australian wool. fabrication and vehicle The end of the war in 1953 manufacturing. saw the wool price collapse and a rapid decline in farm incomes from 1954-55. Declines quickly rippled through the Perth economy, and while wheat production softened the collapse, CSR Sugar Refinery in Mosman it became increasingly Park, 1930. Source: Illustrations evident the State’s narrow Ltd Photographer, 1930. base posed significant risks.
18 Chamberlain Industries The development of Chamberlain Industries is an example of the economic development aspirations of the post-War period, and the State Government’s role in promoting manufacturing. It built directly on the State’s comparative advantage in agriculture, and addressed a rapidly emerging market opportunity.
General Motors’ Assembly Plant at Mosman Park. Source: Gore, 1939. In the late 1940s, improving economic conditions in agriculture, together with an expansion in the area of land under farming, contributed to increased demand for new technologies. In the pursuit of labour-saving efficiency, farmers invested heavily in equipment – tractors, trucks and so forth.
While Australian farmers had traditionally relied on imported technologies, the Australian Government aimed to substitute imports for domestically manufactured agricultural machinery. Australian machinery manufacturers were protected by tariffs and provided with direct subsidies to expand their operations. Indeed, at the same time in 1947, the Western Australian Government had been promised support by the Federal Government to set up heavy engineering Advertisement for an Early Model Chamberlain Tractor industry near Perth to provide Source: Morawa District Historical Society, n.d. employment to Western Australians returning from the war (Quick, 2006).
19 PERTH AS A RESILIENT ECONOMY
The Western Australian period between the Government persuaded a early 1950s and 1970s, it family-owned engineering contributed to indirect company – Chamberlain employment through Industries – to relocate its use of an extensive their emerging tractor local supply chain. This engineering enterprise to included components Perth from Victoria. The suppliers, services firms, company was provided transport companies, and with promises of financial utilities providers. support and given access to an ex-munitions factory Yet, despite the company’s in Welshpool. Chamberlain technological and sales Industries also benefited success, Chamberlain from the tariff protection Industries endured ongoing provided to manufacturing financial pressure. The industries. The first tractors small size of the Australian were produced in 1949, market, isolation from and the company rapidly international markets, established itself as a leading increasing competition, farm equipment supplier. and diminishing levels of government support all Establishing a major contributed to difficulties Chamberlain Tractors for Export. manufacturing facility in at various points in the Source: Illustrations Ltd, 1950. Perth in the 1940s proved to company’s development. be difficult. Power supply was In 1970, a partnership with initially not up to demands US based John Deere from the Chamberlain Company provided access foundry, iron was expensive, to capital and technology and coastal shipping that provided stability routes were inadequate. during the 1970s. Despite these demands, the company continued to However, the gradual expand and by the 1950s reduction in tariff protection was exporting tractors both and production support interstate and overseas. eroded the viability At its peak in the late 1960s, of the industry in the Chamberlain was producing 1980s. Alongside this, the more than 3,200 tractors per company faced pressure year – nearly 25% of all new from rising labour and other tractors sold in Australia. input costs, and eventually the manufacturing of Chamberlain Industries tractors ceased in 1986. was also important in While production of smaller terms of its broader agricultural implements economic development continued for a few years, impacts. Not only did it eventually the Welshpool create direct employment operations became solely of between 1,700 and an import facility for 2,200 people during the John Deere. 20 Kwinana opportunities between development that has Industrial Area smaller service industries, continued for decades The largest, and most such as fabrication and (MacLachlan, 2013). ambitious project for the construction facilities, and post-war period was the very large, heavy process While Kwinana provided the construction of Western industries, such as industrial basis for a major economic Australia’s first major gases, fertiliser production, expansion, its development industrial hub at Kwinana. and the processing has been limited by the The development of of natural resources. same constraints that have Kwinana was underpinned Interplant flows of material affected manufacturing by an agreement between commodities, water, energy, and related industries the State Government by-products and even elsewhere in Perth. The of Western Australia specialised local labour combination of isolation, a and the Anglo-Iranian and suppliers, contributed small domestic market, and Oil Company, now BP to both efficiencies and growing global competition Development Australia, innovation. In essence, have meant the industry to establish an oil refinery these local linkages within has lagged behind its south of Perth. The State the Kwinana industrial counterparts elsewhere Government recognised ecosystem encouraged a in Australia. that the establishment of process of self-reinforcing an oil refinery provided the potential to support a TABLE 4: MAJOR PROCESSING PLANTS IN THE KWINANA range of other industries, INDUSTRIAL AREA contributing to a complex and self-sustaining Corporate owner Processing Operation industrial ecosystem. plant duration BP Development Australia Pty Ltd Oil refinery 1955 - ongoing In order to persuade Anglo- BHP Steel rolling mill 1956-1995 Iranian Oil to establish the Cockburn Cement (Rugby Group) Portland 1955 - ongoing refinery, the Government cement agreed to provide land, ALCOA (Aluminum Company of Alumina 1963 - ongoing electricity, water, roads, America) refinery railways and a major port. BHP Blast furnace 1968-1982 It also developed new CSBP Fertiliser 1968 - ongoing towns at Parmelia, Medina Commonwealth Industrial Gases, Industrial gases 1969 - ongoing and Kwinana, providing renamed BOC Gases generous public housing BHP Billiton Nickel West Nickel refinery 1970 - ongoing and community facilities. Coogee Chemicals Chemicals 1971 - ongoing More than a thousand CBH Group Grain terminal 1976 - ongoing homes were provided (Cooperative Bulk Handling) for the future workforce (Black, 1981). Source: MacLachlan, 2013.
The BP oil refinery provided the catalyst for a cluster of interdependent processing industries at Kwinana, Table 4. Co-location provided synergistic
21 PERTH AS A RESILIENT ECONOMY
BP Refinery, Kwinana. Aerial photo of the Kwinana Source: Courtesy of BP Development Australia Pty Ltd. Nickel Refinery, 1970. Source: Aerial Surveys Australia, 1970.
BP Refinery, Kwinana. Source: Courtesy of BP Development Australia Pty Ltd.
22 THE 1960s RESOURCE BOOM
While the 1940s and 1950s The result was increased the southern suburbs of focused on consolidating opportunity for State Perth; and Western Australia’s investment in services and • The redevelopment and agricultural industries infrastructure that, in turn, expansion of Perth Airport. and developing a contributed to further manufacturing industry, economic growth. Major The collective impacts of the 1960s saw a dramatic projects included the: industrial development and shift in focus towards iron • Rapid expansion of the the 1960s iron ore boom are ore. The combination of the metropolitan freeway evident in the continuing discovery of significant iron system linking the south growth of employment ore deposits in the north- of the city with the rapidly in Western Australia, and west of Western Australia, expanding northern particularly Perth. Between the lifting of the iron ore suburbs; 1954 and 1971, the number export embargo in 1960, • Development and of Western Australian and the rapid expansion of expansion of the Western workers increased by 66.6%, Japan’s industrial sectors Australian Institute of Figure 6. Before the boom, underpinned one of the Technology at Bentley; in 1954, the State’s largest State’s most significant • Establishment of a second employers were agriculture, periods of economic government funded manufacturing, and prosperity (Battellino, 2010; university, Murdoch wholesale and retail trade. Measham et al., 2013; University, in 1975; By 1971, wholesale and retail Haslam McKenzie, 2016). • Development of a naval trade climbed to the top, base on Garden Island followed by manufacturing, Led by major multinational by the Commonwealth, communities services and mining interests, Western stimulating extensive entertainment industries. Australia’s iron ore industry urban development in developed rapidly in the mid-1960s with the first exports to Japan in 1966. The outcome was a major increase in economic returns to the State. Royalty receipts climbed from $721,954 in 1966 to over $5 million in 1967; a rise of almost 600% in a single year (Spillman, 1993).
Murdoch University in the year that it opened, 1975. Source: Hotchkin, 1975.
23 PERTH AS A RESILIENT ECONOMY
FIGURE 6: WESTERN AUSTRALIAN TOTAL EMPLOYMENT, 1947 TO 1971
500,000
450,000 430,400
400,000
350,000 339,600
300,000 279,800 258,400 250,000 206,400 200,000 Number ofNumber People
150,000
100,000
50,000
0 1947 1954 1961 1966 1971 Year
Source: Commonwealth Bureau of Census and Statistics, 1947-1966; Australian Bureau of Statistics, 1971.
Between 1954 and 1971, 1.0% of all employment of all employment. The total employment in Perth by 1971. Manufacturing ‘other’ industry category increased by 116.4% and was the major employer is also noteworthy in that all industries experienced in Perth in 1954 and 1966. it experienced rapid rises of between 50.8% By 1971, the rise of the growth. Industries in this (manufacturing) and service industries and category include electricity, over 777.3% (mining), see growing prosperity became communications, finance Table 5 and Figure 7. While increasingly evident with and entertainment, and mining experienced rapid commerce, effectively when combined, captured growth, it contributed retailing, contributing 21.2% 20.9% of workers in 1971.
TABLE 5: METROPOLITAN PERTH INDUSTRY EMPLOYMENT SHARE (%), 1954 TO 1971
1954 1966 1971 % change 1954-1971 Number % Number % Number % Agriculture, Forestry and Fishing 3,022 2.2 2,941 1.4 5,409 1.8 79.0 Manufacturing 35,769 25.5 45,735 22.2 53,933 17. 8 50.8 Mining 357 0.2 910 0.4 3,132 1.0 777.3 Building and Construction 16,640 11. 8 29,476 14.3 42,363 14.0 155.0 Transport and Storage 11,0 06 7. 8 14,075 6.8 17,617 5.8 60.1 Commerce 30,184 21.5 43,508 21.1 64,347 21.2 113.2 Public Authority and 22,451 16.0 41,414 20.1 53,144 17. 5 136.7 Professional Activities Other 20,703 14.8 27,942 13.6 63,287 20.9 205.7 Total 140,132 206,001 303,232 116.4
Source: Commonwealth Bureau of Census and Statistics, 1954-1966; Australian Bureau of Statistics, 1971. 24 Rio Tinto’s Silvergrass Iron Ore Mine. Source: Courtesy of Rio Tinto.
FIGURE 7: METROPOLITAN PERTH EMPLOYMENT NUMBERS BY INDUSTRY, 1954 TO 1971
70,000
60,000
50,000
40,000
30,000
20,000
Employment Number Employment 10,000
0 1954 1966 1971
Agriculture, Forestry and Fishing Manufacturing Mining Building and Construction Transport and Storage Commerce
Source: Commonwealth Bureau of Census and Statistics, 1954-1966; Australian Bureau of Statistics, 1971.
The areas experiencing and Peppermint Grove saw the most rapid growth of their number of workers workers were in the local decline by 1.9% and 9.6% government areas of respectively. Meanwhile, Swan, 1,501.0%, followed the number of workers living by Bayswater, 427.7%, in other inner areas such as and Melville, 210.9%, see Cottesloe, Nedlands and Table 6. In contrast, inner Subiaco grew relatively little. areas like the City of Perth 25 PERTH AS A RESILIENT ECONOMY
TABLE 6: EMPLOYMENT IN PERTH’S LOCAL GOVERNMENT AREAS, 1954 TO 1971
1954 1966 1971 % change 1954-1971 Number % Number % Number % Armadale - Kelmscott - - 1,274 0.6 5,528 1.8 - Bassendean 2,743 2.0 3,917 1.9 4,656 1.5 69.7 Bayswater 5,420 3.9 10,067 4.9 28,599 9.4 427.7 Belmont 5,906 4.2 20,799 10.1 13,465 4.4 128.0 Canning 4,732 3.4 8,325 4.0 14,021 4.6 196.3 Claremont 3,213 2.3 3,612 1.7 3,643 1.2 13.4 Cockburn - - 3,540 1.7 9,383 3.0 - Cottesloe 3,366 2.4 3,640 1.8 3,620 1.2 7. 5 East Fremantle 2,579 1.8 3,076 1.5 3,281 1.1 27. 2 Fremantle 9,473 6.8 10,386 5.0 11,52 0 3.8 21.6 Gosnells - - 2,756 1.3 8,645 2.8 - Guildford 766 0.5 - - - - - Kalamunda - - - - 6,606 2.2 - Kwinana - - - - 4,193 1.4 - Melville 6,881 4.9 18,336 8.9 21,390 7. 0 210.9 Midland Junction 3,349 2.4 3,628 1.8 - - - Mosman Park 2,179 1.5 2,454 1.2 3,048 1.0 39.9 Mundaring - - 663 0.3 4,402 1.4 Nedlands 8,263 5.9 8,686 4.2 8,557 2.8 3.6 North Fremantle 1,244 0.9 - - - - - Peppermint Grove 531 0.4 513 0.2 480 0.2 -9.6 Perth (C) 44,085 31.5 38,571 18.7 43,215 14.2 -2.0 Perth (S) 19,295 13.8 39,250 19.0 - - - Rockingham - - - - 3,962 1.3 - Stirling - - - - 64,978 21.4 - Serpentine - Jarrahdale - - - - 695 0.2 - South Perth 8,078 5.8 13,968 6.8 14,272 4.7 76.7 Subiaco 7,415 5.3 7,424 3.6 7, 8 41 2.6 5.7 Swan 614 0.4 867 0.4 9,830 3.2 1,501.0 Wanneroo - - 249 0.1 3,402 1.1 - Total 140,132 206,001 303,232 116.4
Source: Commonwealth Bureau of Census and Statistics, 1954-1966; Australian Bureau of Statistics, 1971.
26 By the mid-1970s, Western Australian coal, alumina and mineral sands were mined at unprecedented levels for sale in global markets (Spillman, 1993). Exploration expenditure climbed from $2.6 million in 1966 to $46.5 million in 1970 (Spillman, 1993), which in turn led to further discoveries and expansion of the resources industry.
This phase of the boom was the beginning of Western Australia’s dominance in the METS industries. Naturally, Perth became the administrative hub for the mining industry. The high presence of company branch offices at the time suggested the real economic power came from multinationals located elsewhere. Consequently, corporate Perth was heavily influenced by Western Australia became global capital, which increasingly one of the shaped the economic wealthier states (Western and social structure. Australian Technology and Industry Advisory The resource boom of Council, 2000). Indeed, in the 1960s transformed 1971 the Australian Grants the structure of the Commission removed economy for the decades Western Australia’s that followed. While the designation as a ‘claimant’ State held aspirations of State, dependent on developing manufacturing Commonwealth grants. to complement the existing The State had gone from agricultural industry, being a drain on the nation the opening of the iron to contributing 22% of total ore industry shifted the Australian export income in trajectory markedly. 1976 (Appleyard, 1979). The State’s Gross State Product (GSP) per capita was no longer lower than the rest of Australia and
27 PERTH AS A RESILIENT ECONOMY
ECONOMIC ADJUSTMENT AND CONSOLIDATION
assembly by General Motors at Mosman Park, the demise of Chamberlain Industries, and the widespread closure of smaller manufacturing operators across the city.
Yet, against the background of upheaval, Perth continued to perform well in overall terms. The continued expansion of the mining industry proved to be critical, with further expansion in iron ore production in the Pilbara and bauxite in the south-west. Production in other commodities also increased, notably in nickel and gold.
The resources industry diversified in the 1970s and 1980s, with the discovery and development of oil and gas reserves off the north-west of the State. The North West Shelf joint venture brought together a consortium of multinational energy firms Last Vehicle Assembled at General Motors Mosman Park Assembly to complete one of the Plant, 1972. Source: Courtesy of Peppermint Grove Library. largest engineering projects undertaken at the time. The period between the intervention in economic The industry continued to early 1970s and the 1990s affairs had profound effects expand during the 1990s, were characterised by on the Perth economy. and became one of the economic expansion and State’s main sources of adjustment to emerging The State’s manufacturing export earnings. It also global conditions. The industry contracted under established a presence in combination of the 1970s these conditions, with the the city of a diversified set oil shocks, geopolitical gradual winding down of companies, skills and instability and major or closure of a number of global connections. national policy shifts toward major employers. Examples a reduction in government included the end of car 28 A highlight of the 1980s and establishing Perth but after that, labour force was the defence of the as an attractive and participation consistently America’s Cup in 1987. The comfortable place to increased (Australian run-up to the event was a visit. This event was also Bureau of Statistics, frantic building program to one of the first occasions 1972; 2002). ensure international tourists that Australian food was and sailing syndicates served and celebrated, By 2001, changes in were impressed by Perth giving local producers new the percentage of and Fremantle. Significant outlets and markets. employment in various government and private industries is evidence of investment went into In the years 1971 to 2001, the shifting structure of upgrading the port city, the workforce changed the economy. The impact marine services, hotels and significantly. It grew by 59%, of technical applications other accommodation. largely due to overseas and the restructuring Town planning bylaws migration, but it also of the agricultural and and liquor licensing laws became considerably manufacturing industries were relaxed to enable more ‘feminised’, with more are marked, while there restaurants to serve food women participating in the was significant growth in outdoors. The defence workforce and for longer. the services industries such of the America’s Cup The number of women as property, education transformed Perth and employed more than and health. Fremantle, reorienting doubled between 1981 tourism services to an and 2001. Unemployment international market peaked in 1991-2 at 10.7%
FIGURE 8: EMPLOYMENT AS A PERCENTAGE OF GREATER PERTH’S POPULATION, 1971 AND 2001
Health & education
Property, finance & business services
Government public administration
Accommodation & restaurants
Wholesale & retail trade
Construction
Manufacturing
Mining
Agriculture, fishing & forestry
0 5 10 15 20 25 Percentage
2001 1971
Source: Australian Bureau of Statistics, 1972; 2002. 29 PERTH AS A RESILIENT ECONOMY
Shell House and Shell Prelude. Source: Courtesy of Shell.
30 THE 2000s RESOURCE BOOM
The most recent resources The level of economic 2012; Office of the Chief boom began to gather activity this boom Economist, 2015). momentum in the early generated was • Western Australia’s GSP 2000s. Rapid industrialisation unprecedented, both in the grew exponentially, in China and the associated level of resource investment reaching $265 billion demand for iron ore led as a share of Gross 2013-14, contributing the boom. However, other Domestic Product (GDP) 17% of Australia’s commodities were also and the terms of trade. GDP (Department of in demand, including Some economic impacts State Development, bauxite, nickel and energy caused by the boom: 2015; Department of resources. This placed • In 2011, national export Treasury, 2014). Western Australia in a earnings from resources • The Western Australian per unique economic position peaked at a record capita gross income in in that it was able to provide $190bn, a 15% increase on 2013 was 50% higher than these commodities in 2010 (Bureau of Resources it was 10 years before and large quantities. and Energy Economics, household net wealth
TABLE 7: QUANTITY AND VALUE ($M) OF SELECTED MAJOR COMMODITIES IN WESTERN AUSTRALIA, 2004-05 TO 2014-15
2004-05 2005-06 2006-07 Product Unit Quantity Value $m Quantity Value $m Quantity Value $m Gold t 167. 5 3,016.4 166.2 3,715.1 161.8 4,222.9 LNG Mt 11.0 3,953.1 11.7 4,625.2 12.2 4,481.8 Iron Ore Mt 233.2 8,302.3 242.6 12,699.1 257.6 15,732.6
2007-08 2008-09 2009-10 Product Unit Quantity Value $m Quantity Value $m Quantity Value $m Gold t 141.5 4,136.3 136.6 5,226.8 163.8 6,548.8 LNG Mt 12.2 5,106.0 12.4 8,157. 5 15.7 6,922.6 Iron Ore Mt 291.0 21,949.8 316.5 33,633.4 385.0 35,325.9
2010-11 2011-12 2012-13 Product Unit Quantity Value $m Quantity Value $m Quantity Value $m Gold t 183.8 8,186.2 180.4 9,402.6 179.8 9,012.1 LNG Mt 17. 0 8,658.1 15.4 9,958.1 19.8 12,468.2 Iron Ore Mt 397.6 57,579.9 454.4 60,799.1 511.7 56,098.5
2013-14 2014-15 Product Unit Quantity Value $m Quantity Value $m Gold t 195.9 8,841.3 191.4 9,020.9 LNG Mt 20.1 14,409.5 20.5 13,816.9 Iron Ore Mt 624.3 74,099.1 718.9 53,764.6
Source: Department of Mines and Petroleum, 2011; 2015.
31 PERTH AS A RESILIENT ECONOMY
increased by 70% in real FIGURE 9: VALUE ($M) OF SELECTED MAJOR terms in the decade 2003 COMMODITIES IN WESTERN AUSTRALIA, – 2013, adding $268 billion 2004-05 TO 2014-15 to Western Australia’s total 80,000 wealth stock (Cassells et al., 2014a; Department of 70,000 Treasury, 2014). 60,000 • The quantity and value of selected major 50,000
commodities such as 40,000 gold, LNG and iron ore Value($m) greatly increased from 30,000
2004 to the end of 2014, 20,000 Table 7 and Figure 9. 10,000
Commentary regarding 0 the Western Australian mining industry throughout Gold LNG Iron Ore the boom was extremely positive, with year after Source: Department of Mines and Petroleum, 2011; 2015. year of record-breaking values and volumes FIGURE 10: WESTERN AUSTRALIA’S SHARE OF AUSTRALIAN further promoting high NEW CAPITAL EXPENDITURE, 2001 TO 2014 expectations of growth. Western Australia led all 50,000 other states in terms of new 45,000 capital expenditure, with 40,000 much of this linked directly 35,000 to mining (Department of 30,000 Mines and Petroleum, 2010). 25,000
20,000 Expenditure ($m) 15,000
10,000
5,000
0
Western Australia Rest of Australia
Source: Department of Mines, Industry Regulation and Safety, 2017.
32 EMPLOYMENT
For almost 10 years, Perth FIGURE 11: NUMBER OF PERSONS EMPLOYED IN SELECTED was under enormous INDUSTRIES IN WESTERN AUSTRALIA, 2001 TO 2011 growth pressure, not only as the hub for capital 90,000 investment, corporate 80,000 management and control, 70,000 but also for flows of labour. 60,000 Perth became an important national and regional 50,000
labour hub, at a scale of Persons 40,000 which was unprecedented. 30,000 This was assisted by growing 20,000 synergies between minerals and energy companies, 10,000 engaged in producing 0 2001 2006 2011 and promoting technical, Year economic, logistical and Mining Construction intellectual products Transport and storage Professional, scientific & technical services and services. Source: Australian Bureau of Statistics, 2002; 2007; 2012a. Industries that performed well over the duration of the 2000s boom include resided in Greater Perth to Greater Perth imposed resources, which accounted (KPMG, 2013), commuting considerable pressure on for an increased share of every few weeks via fly- the availability and cost of total employment from 1.7% in/fly-out (FIFO) work housing, causing the cost of in 2001 to 4.8% in 2011, or arrangements. This living to also rise. a total of 40,919 people, form of long distance Figure 11. The industries of commuting was, and construction; transport, remains, contentious with postal and warehousing; opponents suggesting it and professional, scientific drains employment and and technical services economic activity from are closely linked to the remote economies. Yet, resources industry. All of the practice contributed these industries recorded significantly to economic increases in their overall activity in Perth, not only share of total employment creating direct employment during the boom period. but indirectly, FIFO increased expenditure on Even though the mine housing, services and retail sites were as far as 1,500 goods. This contributed to kilometres away in regional further economic activity Western Australia, up within the city and drove to half of the remote development. However, resources workforce the influx of population
33 PERTH AS A RESILIENT ECONOMY
IMPACT OF THE 2000s BOOM ON PERTH’S ECONOMY
As the State’s capital, Perth minerals and energy The proximity to Asia, and strengthened its intimate ties operations such as Rio Tinto, in particular its geographic into the resources economy. BHP, Chevron Australia location in the same Perth emerged from the and Shell Australia are all time zone as some of decade long boom as a located in Perth, making Australia’s most important strong corporate centre for it an important locale trading partners, has been the resources industry. of decision-making and particularly advantageous. power, injecting talent The global footprint of Perth’s economic role as a and diversity to the city. Perth’s economy through global minerals and energy As identified by Tonts et al. trade linkages increased resource hub attracted (2012) large corporations exponentially. This has global companies to set of this size play a critical enhanced Greater Perth’s up offices and operations role in articulating the flows influence and connectivity in the Greater Perth area. of finance, knowledge with other cities around Materials and energy and influence within the the world (Martinus and companies make up global economy and in Sigler, 2016). 43% of the companies turn, attract international headquartered in Perth financial, legal and (Tonts et al., 2012). The consulting firms to regional headquarters of service their business. some of the world’s largest 34 PUBLIC SECTOR EMPLOYMENT
While the private sector FIGURE 12: WESTERN AUSTRALIAN PUBLIC SECTOR HEAD drove growth during the COUNT, 2008 TO 2016 2000s boom, the Western 142,000 Australian public sector 140,000 also grew, the head count peaking in 2013 at 138,000
139,642 employees, after 136,000 which it began to decline. 134,000 Between 2008 and 2015, the government sector 132,000 grew by almost 8%. 130,000
128,000 The government 126,000 departments that increased the most were the 124,000
Department of Corrective 122,000 Services, the Department 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dec-16 of Child Protection, the Source: Public Sector Commission, 2017. Department of Education, (excluding TAFEs), and the TABLE 8: GOVERNMENT DEPARTMENTS GROWTH AND Department of Health. In REDUCTION, 2008 TO 2016 addition, the Metropolitan Redevelopment Government 2008 2012 2016 Change Authority, which was an Department 2008 to 2016 amalgamation of several Department of 1,856 2,501 34% Redevelopment Authorities, Child Protection grew from 84 employees Department of 4,001 4,522 13% in 2012 to 148 in 2016. It is Corrective Services Peaked Sept evident the government 2014, 4,749 employees sector played an important Department of Education 48,012 52,049 8.4% part of the structure of the (previously Department of labour market in Greater Education and Training) Perth. Their role as a key Department of Health 37,9 01 44,544 17. 5 % employer cannot be Department of Housing 1,416 1,760 24% underestimated during (previously Department of Housing and Works) this period. Metropolitan 84 148 76% An Redevelopment Authority amalgamation of several different Redevelopment Authorities Department of 2,016 1,650 -18% Attorney General Department of Culture 853 809 -6% and the Arts Department of 682 559 -19% Premier and Cabinet
Source: Public Sector Commission, 2017.
35 PERTH AS A RESILIENT ECONOMY
The Departments of Premier and Cabinet, HOW THE 2000s BOOM Attorney General and SHAPED PERTH’S POPULATION Culture and the Arts showed a decrease The 2000s boom Population growth was in employees. strengthened the considerably higher than importance of Perth as the national average rate Early in 2017, the newly a place to live and do of 15% (Australian Bureau elected Premier Mark business. In 1991, twice as of Statistics, 2015a) and McGowan indicated he many Western Australians Western Australia had the would reduce Western lived in Perth compared fastest growing population Australian Public Sector to regional parts of the over the decade 2006-2016. employment by 20%, State. Within the boom decrease the number decade, this proportion The development of of State Government had increased to a ratio of Greater Perth continued in departments from 2.7:1 and by 2016, 82% of all a linear fashion with the city 41 to 25 and deliver Western Australians lived stretching 150 kilometres $750 million savings in in Perth. north to south, although infill order to pursue greater and greater densification government efficiencies. The 2000s boom and the was a planning policy associated high demand priority. By 2011, a higher for both skilled and unskilled proportion of Greater labour increased the Perth’s population were Greater Perth population by living within five and ten 39% in 15 years to just over kilometres of the CBD than two million, from 2001. in Melbourne or Sydney (Davis, 2016).
FIGURE 13: PERTH’S SHARE OF THE WESTERN AUSTRALIAN POPULATION, 1951 TO 2016
3,000,000
2,500,000
2,000,000
1,500,000 Population
1,000,000
500,000
0 1951 1961 1971 1981 1991 2001 2011 2016 Greater Perth Non-metropolitan
Source: Commonwealth Bureau of Census and Statistics, 1954; 1966; Australian Bureau of Statistics, 1972; 1982; 1992; 2017a.
36 Expansion to outer limits FIGURE 14: THE RESIDENTIAL AREAS OF of the metropolitan GREATER PERTH, 2011 area also occurred, with residential building activity concentrated in outer locations. Key residential building hotspots are primarily outer and middle locations including the Cities of Wanneroo, Swan, Stirling, Rockingham, Cockburn, Armadale, Mandurah, Gosnells, Belmont and Kwinana. This development trend has increased car dependence and put pressure on transport networks and services in these areas.
Many of the newcomers to Greater Perth came from overseas, rather than from interstate during the boom period. The United Kingdom continued to account for the highest proportion of the overseas- born population in Greater Perth, although at declining levels followed by New Zealand-born residents. Perth is also a popular destination for South Source: Atkins, 2017. African migrants. European migrants have traditionally made up a significant during the boom period, Western Australia. Holders proportion of migrants, but attracted many temporary of 457 visas made up in 2016 as many migrants migrants on 457 visas. When 0.4% of the total Western from Malaysia as from Italy compared to other states, Australian population and settled in Greater Perth. Western Australia had the the top citizenship countries Asian migration, particularly third highest proportion that temporary migrants from China and India is of 457 visa holders from originated from included likely to increase in the 2006-07 to June 2012, the United Kingdom, future (Australian Bureau behind New South Wales Philippines and Ireland of Statistics, 2017g). and Victoria (Tonts et al., (Tonts et al., 2012). It is likely 2012). Further, nearly 20% that these migrants added The intense demand for of Australia’s total intake of to the diversity of the workers, especially in 457 visa recipients during Greater Perth population. the resources industry this same timeframe went to 37 PERTH AS A RESILIENT ECONOMY
SOCIAL CHANGE AND THE 2000s BOOM
Perth attained the highest Housing supply could not average gross household react quickly enough income in the nation in and Perth experienced 2013-14. The strong growth rapid rises in house prices in markets was a fillip for and rents. Between 2001 consumer confidence, with and 2005, the median increased spending fuelled house price in Perth by rising incomes and doubled and as the wealth. This was reflected in population of Perth grew in the rising price of land and response to the resources housing from 2001. boom, it doubled again between 2005 and 2015 Impacts of the Boom: (Real Estate Institute of Housing Western Australia, 2015). The rapid increase This caused considerable in population and political, economic and employment generated social concerns. through resources and investment activity flowing from outside the State drove commercial and residential property prices to unprecedented levels (Cassells et al., 2014b; Costello and Rowley, 2010).
FIGURE 15: PERTH’S MEDIAN HOUSE PRICES, 2001 TO 2016
$600,000
$550,000
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year
Source: REIWA and Landgate Monthly House Sales Price, 2001-2016.
38 TRANSFORMATION OF PERTH
The liveability of Perth Liveability is recognised for public facilities and a re- and its status as a place its potential to attract and orientation of the centre to visit has been the nurture knowledge intensive of the city towards the focus of a number of capitalism and competitive river was an important different investigations business investment. development antidote (Wetzstein, 2010). Liveability to the much-maligned is particularly important The promotion of the ‘Dullsville’ tag attributed in an era where people city’s profile for retaining to Perth in 2000 by with high-end skills tend a globally qualified Lonely Planet. to be extremely mobile, workforce was a catalyst often making decisions for the transformation A hallmark of a about where to live based of, in particular, the city sophisticated, liveable and on lifestyle. Danish urban centre. Urban waterfronts global city, is engagement architect, Jan Gehl, urged throughout the world have with the arts and cultural city planners in 2009 to become key drawcards for industries. The Perth capitalise on the natural local residents and visitors International Arts Festival is attributes of the city, saying and the Elizabeth Quay Australia’s longest cultural that “the fabulous setting waterfront redevelopment festival and runs every year of Perth is under-utilised was part of an overall plan in February and March. and that the city’s greatest to stimulate the vibrancy of The program includes a asset, the Swan River should the city. The reconnection wide variety of events, be used more creatively” with the iconic Swan which has grown with (Gehl Architects, 2009). River, development of strong patronage from 39 PERTH AS A RESILIENT ECONOMY
all ages. After more than of the city. This growth is Sea, which commenced a decade of population not restricted to theatre or at Cottesloe Beach in 2005 and income growth, the other paid patronage. and attracts local, national art and cultural activities and international artists and in Perth are on a growth One of the most popular more than 100,000 visitors trajectory, contributing to public artwork exhibitions each year. the liveliness and vitality is the Sculptures by the Perth’s FRINGE WORLD Festival is another important cultural festival for the Greater Perth economy. In 2016, FRINGE WORLD recorded selling more than 350,000 tickets, valued at $9.3 million. In addition, FRINGE WORLD projected that an excess of one million people attended free events held throughout Perth as part of the festival (FRINGE WORLD, 2017). The arts contribute to a sense of place and connectedness, making the city more attractive and a destination for new residents, tourists and business.
Circus Freak Show, FRINGE WORLD Festival 2017. Photo by Jason Matz. The new Perth Stadium is Source: Courtesy of FRINGE WORLD Festival. expected to attract more sporting and entertainment events with its expanded capacity and a range of restaurant and café menus to encourage patrons to extend their time and experiences at the venue.
The Perth Arena, since opening in 2012, has generated in excess of $200m per annum, as reported in the Committee for Perth’s What We Thought Would Kill Us report (Committee for Perth, 2014).
Big Giant in the City by Julias Shaka, Passion for Perth Photographic Competition. Source: Committee for Perth, 2015. 40 ECONOMIC RESILIENCE AND VOLATILITY
As the Greater Perth State finances. On a range boom‑bust economy, and economy transitioned from of indicators, including indeed most indicators the boom to more steady employment growth, suggest over the longer run state conditions, there was unemployment, company it has been highly resilient. widespread concern the profits and welfare economic outlook was recipients, the State has Figure 16 shows that gloomy for Western Australia experienced considerable between 1991 and and therefore Greater adjustment pressures. 2016, Western Australia Perth. To date, the data increased its GSP every does not support this. Over One of the central issues year. Moreover, in 20 of the an extended period, there that policymakers are 26 years, Western Australia is virtually no evidence of concerned with is the extent outperformed Australia severe boom-bust cycles to which the economy is as a whole. While these and the Perth economy both resilient and adaptive data are for the State as has performed well. to changes in economic a whole, given the size of circumstances. In Western the Perth economy relative The decrease in global Australia, this also tends to to Western Australia they commodity prices over be coupled with a concern provide an insight into the the past five years or so about the State being a overall performance of has had a significant boom-bust economy. Yet, the capital city. impact on the Western there is little evidence Australian economy and to suggest the State is a
FIGURE 16: ANNUAL PERCENTAGE CHANGE IN GROSS STATE/DOMESTIC PRODUCT, 1991 TO 2016
10.0
8.0
6.0
4.0 Annual % Change Annual 2.0
0.0
-2.0 Western Australia Australia
Source: Australian Bureau of Statistics, 2017b.
41 PERTH AS A RESILIENT ECONOMY
FIGURE 17: GROSS STATE PRODUCT PER CAPITA, Figures 17 and 18 further 1990 TO 2016 emphasise the long run performance of Western 120,000 Australia by evaluating the State’s performance in per 100,000 capita terms. Collectively, they demonstrate consistent 80,000 increases in GSP per capita over the period 1992 – 2008. 60,000 While the global financial
GSP ($) Per Capita 40,000 crisis eroded performance in 2009, the economy
20,000 recovered strongly to record consistent increases
0 until 2016. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Western Australia Australia Importantly, even in the context of the present Source: Australian Bureau of Statistics, 2017b. downturn, GSP per capita has been increasing, albeit FIGURE 18: ANNUAL PERCENTAGE CHANGE IN GROSS slowly. Not only does this STATE PRODUCT PER CAPITA, 1990 TO 2016 challenge the ‘boom- bust’ narrative, but points 7.0 to an economy that has 6.0 remained resilient in the
5.0 face of considerable external pressures. 4.0
3.0 When compared to
2.0 Australia, the State’s
1.0 consistent, long run economic performance 0.0 becomes even more % Change in GSP/GDP Per Capita -1.0 evident, Figure 18. Australia
-2.0 has experienced three years of negative GDP growth -3.0 Western Australia Australia per capita – 1991, 1992 and 2009. In contrast, Western Source: Australian Bureau of Statistics, 2017b. Australia has had two years of negative growth – 1991 and 2009 – and in 18 of the 26 years outperforms Australia as a whole.
One of the other major indicators of long run economic resilience is unemployment data. In essence, unemployment data provide a crude 42 measure of the extent to FIGURE 19: WESTERN AUSTRALIAN AND AUSTRALIAN which labour is being fully UNEMPLOYMENT RATES, 1978 TO 2017 utilised. Figure 19 shows 14.0 the unemployment rate for Western Australia for 12.0 the period 1978-2017. While these data cover 10.0 the State as a whole, the 8.0 Perth labour market tends to move in quite similar 6.0 directions to Western Rate Unemployment 4.0 Australia (Plummer and
Tonts, 2013) and therefore 2.0 provides a reasonable analogy with the Perth 0.0 Jun-03 Jun-79 Jun-83 Jun-87 Jun-91 Jun-95 Jun-99 Jun-07 Jun-11 Jun-15 Oct-04 Oct-80 Oct-84 Oct-88 Oct-92 Oct-96 Oct-00 Oct-08 Oct-12 Oct-16 Feb-78 Feb-82 Feb-86 Feb-90 Feb-94 Feb-98 Feb-02 Feb-06 metropolitan region. Feb-10 Feb-14 Western Australia Australia Between 1978 and 2017, Source: Australian Bureau of Statistics, 2017f. the Western Australian unemployment rate has tended to move more or less FIGURE 20: WESTERN AUSTRALIAN AND AUSTRALIAN in line with the Australian UNEMPLOYMENT RATES, 2013 TO 2017 rate. Yet, the overwhelming 8.0 trend is that the Western Australian rate tends to 7.0 be lower than that for 6.0 Australia, Figure 19. Only 5.0 for the period 1978 to 1982 and 1989 to 1992 was the 4.0 State’s unemployment rate 3.0 consistently higher than Unemployment Rate the Australian rate. It was 2.0 also above the Australian 1.0 average for most of the 0.0 period between October Jun-14 Jun-16 Jun-17 Jun-13 Jun-15 Apr-14 Apr-16 Apr-17 Apr-13 Apr-15 Oct-13 Feb-14 Oct-14 Feb-15 Oct-15 Feb-16 Oct-16 Feb-17 Dec-13 Dec-14 Dec-15 Dec-16 2015 and March 2017. Of the Aug-13 Aug-14 Aug-15 Aug-16 474 monthly unemployment Western Australia Australia reports between February Source: Australian Bureau of Statistics, 2017f. 1978 and July 2017, in only 115 of these, 24%,did Western Australia record a rate higher than that of Australia.
The most recent downturn is instructive in terms of how Western Australia’s economy responds to and recovers from shocks, Figure 20. 43 PERTH AS A RESILIENT ECONOMY
In April 2013, Western economy, out of 52 monthly perhaps surprisingly, Australia’s unemployment reporting periods between median house price is less rate stood at 5.3% April 2013 and July 2017, in volatile in Perth than in compared to the national only 14 of these was the rate Sydney and Melbourne. figure of 5.8%. While the above the Australian rate. While it is the case that Australian rate climbed Perth experienced a steadily to peak at 6.5% in Table 9 provides a simple significant increase in July 2014, Western Australia’s measure of economic property prices associated fell sharply to a low of 4.2% volatility on a number with the resources boom, in November 2013. While it of standard economic and has experienced a rose steadily in the face of indicators. Again, this tends sharp fall, the reality is that the decline in the resources to challenge simplistic these price movements are industry, it only surpassed notions of boom-bust less extreme than those that the Australian average economies, and suggests were recorded in Sydney consistently from October a higher degree of stability and Melbourne over the 2015. The unemployment in Western Australia than period March 2002 to June rate peaked in November conventional wisdom might 2017. Only on the inflation 2016 at 6.8%, but by April suggest. It shows that in indicator did Western 2017 was at or below terms of change in GSP/ Australia record a higher the Australian average. GDP and unemployment, degree of volatility than Even across this period Western Australia is more Australia as a whole, or of significant volatility in stable than Australia as Melbourne and Sydney. the Western Australian a whole. Similarly, and
TABLE 9: COMPARATIVE VOLATILITY ON KEY ECONOMIC INDICATORS
Change in Unemployment, Inflation, Median GSP/GDP, 1978-2017 2000-2017 House Price, 1991-2016 2002-2017 Perth - - 5.9 3.6 Melbourne - - 5.7 5.1 Sydney - - 5.8 6.1 Western Australia 0.8 1.9 - - Australia 1.9 2.0 5.7 -
Sources: Australian Bureau of Statistics, 2017b; 2017d; 2017f; 2017h.
44 POST-2000s BOOM GREATER PERTH ECONOMIC SCAN
This section examines in FIGURE 21: KEY ECONOMIC INDICATORS FOR THE detail why the Greater Perth GREATER PERTH REGION economy has performed well, particularly over the past two decades and shows no evidence of collapsing in the wake of slowed economic conditions. PwC $150.4 billion economy (2017a) conducted an $150.4bn in 2015. economic scan of Greater Perth in 2015 using the Geospatial Economic Model (GEM), combining big data Accounts for 9.3% of the analytics with economic 9.3% Australian economy. theory to determine economic performance. This provides a comprehensive, evidence-based insight to 1.05 1,049,847 people Greater Perth’s economic m output, employment and employed in 2017. industry characteristics from 2001 to 2015.
PwC (2017a) identified 1.9m 1,943,861 people living that the key industries in Perth 2017. for Greater Perth are construction, healthcare Source: PwC, 2017a. and social assistance and professional, scientific and technical services, based FIGURE 22: ECONOMIC OUTPUT OF GREATER PERTH on Gross Value Add (GVA) (INDEX) in 2015. Construction was the largest industry in Greater Perth in 2015 and its industry performance has grown significantly since 2001. Similarly, professional, scientific and technical services has experienced strong growth but this has declined since 2013. Healthcare and social assistance has experienced sustained growth since 2001. Source: PwC, 2017a. 45 PERTH AS A RESILIENT ECONOMY
Greater Perth: industry profile The consistent performance FIGURE 23: INDUSTRY COMPOSITION OF GREATER PERTH, Key industries of the construction industry FINANCIAL YEAR 2015 • Construction from 2001 to 2015 shows it • Healthcare and Social Assistance is a strong contributor and Greater Perth: industry• Professional, profile Scientific and Technical Services an important employer. As a result, this industry is Key industries • Construction considered a ‘strength’ to • Healthcare and Social Assistance the Greater Perth economy. • Professional,Locational Scientific drivers and Technical Services The industries that also • The largest industry in Greater Perth is Construction experienced above • There has been strong growth in the Professional Scientific and Technical Services industry, however the industry has average growth but had experienced decline post FY 13. low industry strength score Locational• The Healthcare driversand Social Assistance industry has were mining, financial and • The largestexperienced industry sustained in Greater growth Perth issince Construction FY01. Source: PwC, 2017a. • There has been strong growth in the Professional Scientific insurance services, arts, and Technical Services industry, however the industry has Economic output of greater Perth (index) other services, wholesale experienced decline post FY 13. • The Healthcare and Social Assistance industry has trade and professional, FIGURE 24: INDUSTRY PERFORMANCE OF GREATER PERTH 250 experienced sustained growth since FY01. scientific andt echnical GVA $M, FINANCIAL YEAR 2001 TO 2015 200 services. These industries are 150 Economic output of greater Perth (index) classified as ‘opportunities’ 250 100 for the future. The remaining 200 50 industries were classed 150 0 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 as either ‘weaknesses’ 100 or ‘threats’, with only 50 Perth (index) Australia (index) moderate growth and 0 July 2017 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 employment compared to 5 the other industries. Perth (index) Australia (index)
July 2017 Source: PwC, 2017a. 5
FIGURE 25: GREATER PERTH INDUSTRY STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS ANALYSIS
15% Above average growth & low industry strength scores Above average growth & high industry strength scores (Opportunities) (Strengths)
Construction
-2015) -2015) Mining 10%
Professional, Scientific Other & Technical Services Financial & Arts Services Insurance Services Wholesale Trade Electricity, Gas, Water & Waste Services Info Media & 5% Telecommunications Retail Trade Rental, Hiring & Real Estate Transport, Postal &
Economic Growth (GVA, (GVA, 2001 Growth Economic Public Admin & Safety Warehousing Admin & Support Services Accommodation & Education & Health Care & Food Services Training Manufacturing Social Assistance Below average growth & low industry strength scores Below average growth & high industry strength scores (Weaknesses) (Threats) 0% 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 Industry Strength Score (LQ)
Source: PwC, 2017a.
46 The four most important Dalkeith-Crawley had the locations in Greater Perth strongest growth in 2012-13, with the largest gross 28.5%. Perth City, Subiaco- economic output in 2012-13, Shenton Park and Osborne were Perth City, followed by Park Industrial were the the Osborne Park Industrial top three local areas out precinct, Subiaco-Shenton of an identified 15, based Park and finally Nedlands- on Gross Regional Product Dalkeith-Crawley. Of these (GRP) in 2015. locations, Nedlands-
FIGURE 26: GREATER PERTH’S LARGEST ECONOMIES BY GROSS OUTPUT $M, 2012-13
Source: PwC, 2017a.
47 PERTH AS A RESILIENT ECONOMY
THE GEOGRAPHY OF FIRMS AND EMPLOYMENT
Looking at the of firms. This indicates number of firms declining geographical distribution that some locations from 14,227 in 2009 to of firms and employment are more attractive 13,659 in 2016. at the Statistical Area for the establishment Level 2 (SA2) spatial scale of firms, regardless of • Subiaco-Shenton Park can provide insight into industry. Additionally, the was ranked second in where economic activity locations with the highest both years, with 3,899 and is occurring and where concentrations of firms have 4,624 firms respectively. employment is likely to be tended to be relatively based. The number of firms central with a slight skew to • Another notable mention in each SA2 in Greater the north of the Swan River. is Madeley-Darch- Perth for 2009 and 2016 Landsdale, which climbed was calculated. Examining • From 2009 to 2016, Perth from sixth position in 2009 the top 20 locations in City retained its position with 2,362 firms to third each year revealed that as having the greatest position in 2016, with many 2009 locations number of firms of all 3,371 firms. reappeared in 2016 with, industries at the SA2 level. generally, a higher number This is despite the actual
FIGURE 27: THE TOP LOCATIONS BASED ON THE NUMBER OF FIRMS OF GREATER PERTH, 2009 AND 2016
Source: Australian Bureau of Statistics, 2012b; 2017e. 48 TABLE 10: CONCENTRATION OF FIRMS BY GREATER PERTH LOCATION, 2009 AND 2016
Rank SA2 Number Rank SA2 Number (2009) of Firms (2016) of Firms 1 Perth City 14,227 1 Perth City 13,659 2 Subiaco - Shenton Park 3,899 2 Subiaco - Shenton Park 4,624 3 Nedlands - Dalkeith - Crawley 3,066 3 Madeley - Darch - Landsdale 3,371 4 Fremantle 2,418 4 Nedlands - Dalkeith - Crawley 3,303 5 South Perth - Kensington 2,404 5 Fremantle 2,730 6 Madeley - Darch - Landsdale 2,362 6 South Perth - Kensington 2,698 7 Osborne Park Industrial 1,964 7 Osborne Park Industrial 2,459 8 Balcatta - Hamersley 1,947 8 Balcatta - Hamersley 2,183 9 Bayswater - Embleton - 1,872 9 Bayswater - Embleton - 2,160 Bedford Bedford 10 Dianella 1,853 10 Wembley - West Leederville - 2,152 Glendalough 10 Wembley - West Leederville - 1,853 11 Stirling - Osborne Park 2,131 Glendalough 12 Malaga 1,725 12 Dianella 2,074 13 Applecross - Ardross 1,702 13 Malaga 1,932 14 Melville 1,680 14 Booragoon 1,927 15 Karrinyup - Gwelup - Carine 1,676 15 Applecross - Ardross 1,921 15 Mount Lawley - Inglewood 1,676 16 Mount Lawley - Inglewood 1,866 17 Stirling - Osborne Park 1,672 17 Wanneroo 1,865 18 Booragoon 1,651 18 Victoria Park - Lathlain - 1,849 Burswood 19 Belmont - Ascot - Redcliffe 1,574 19 Melville 1,833 20 Wanneroo 1,554 20 Morley 1,745
Source: Australian Bureau of Statistics, 2012b; 2017e.
The geographical and Subiaco-Shenton distribution of 2011 Place Park is ranked second of Work Census data for both. Outer locations demonstrates employee such as Joondalup- hotspots in Greater Perth Edgewater, Rockingham at the SA2 level and this and Maddington-Orange generally aligns with the Grove-Martin have relatively distribution of firms. For greater concentrations of example, Perth City has employees than they do the highest concentration of firms. of firms and employees
49 PERTH AS A RESILIENT ECONOMY
FIGURE 28: THE NUMBER OF EMPLOYEES IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2011
Source: Australian Bureau of Statistics, 2012b.
50 TABLE 11: CONCENTRATION OF EMPLOYEES BY GREATER PERTH LOCATION, 2011
Rank SA2 Number of The largest industry (2011) Employees employer in Greater Perth in 2011 was health care 1 Perth City 134,275 and social assistance, 2 Subiaco - Shenton Park 22,061 followed by retail trade 3 Osborne Park Industrial 20,977 and construction. Prior to 4 Welshpool 17,94 6 2011, retail was the largest 5 Nedlands - Dalkeith - Crawley 17,712 industry for employment. 6 Fremantle 17, 575 This points to the growing 7 Malaga 15,419 importance of the 8 Joondalup - Edgewater 14,873 service sector. 9 Canning Vale Commercial 14,763 10 Madeley - Darch - Landsdale 13,636 11 Belmont - Ascot - Redcliffe 12,236 12 Rockingham 11,989 13 Midland - Guildford 11,712 14 Bentley - Wilson - St James 11,4 4 5 15 Victoria Park - Lathlain - Burswood 10,829 16 Balcatta - Hamersley 10,825 17 Perth Airport 10,003 18 Maddington - Orange Grove - Martin 8,355 19 Wembley - West Leederville - 8,348 Glendalough 20 Cannington - Queens Park 7, 814
Source: Australian Bureau of Statistics, 2012b.
FIGURE 29: THE NUMBER OF EMPLOYED PEOPLE BY INDUSTRY IN GREATER PERTH, 2011
Health Care and Social Assistance 93,716 Retail Trade 88,881 Construction 85,445 Manufacturing 73,064 Professional, Scientific and Technical Services 71,306 Education and Training 69,839 Public Administration and Safety 54,775 Accommodation and Food Services 49,893 Mining 40,935 Transport, Postal and Warehousing 38,075 Other Services 33,439 Wholesale trade 33,046 Administrative and Support Services 27,842 Financial and Insurance Services 25,082 Inadequately described or not stated 18,707 Rental, Hiring and Real Estate Services 15,512 Arts and Recreation Services 13,033 Information Media and Telecommunications 10,277 Electricity, Gas, Water and Waste Services 9,456 Agriculture, Forestry and Fishing 5,285 0 20,000 40,000 60,000 80,000 100,000 Persons Source: Australian Bureau of Statistics, 2012b. 51 PERTH AS A RESILIENT ECONOMY
52 THE GREATER PERTH ECONOMY
This section of the report The industries have been builds on PwC’s (2017a) grouped by their likely analysis of the Greater economic development Perth economy and the trajectories in the post- industries that are driving it boom period. The Bright in the first decades of the Lights Industries are those twenty-first century. Each that are emerging. They of the highest performing are perhaps not the industries are assessed biggest employers or have by the concentration of the most firms, but their firms in locations across contribution to the vibrancy Greater Perth and by and diversity of the Greater employment. It is evident Perth economy suggest new that, despite Greater Perth’s employment opportunities growing sophistication, the and enhanced industries, which underpin global engagement. the current post-boom economy, are still mineral The Primary Industries are and energy resources and the economic perennials in agriculture businesses, the Greater Perth economy which were the foundation and the last group is the of the Greater Perth Industries in Transition. These economy in the nineteenth are important industries but and twentieth centuries. they are facing economic However, the industries are or social headwinds that changing, responding to are likely to continue to global developments and exert challenges in the technological innovation. post‑boom period.
53 PERTH AS A RESILIENT ECONOMY
THE BRIGHT LIGHTS INDUSTRIES
Arts and Creative industry organisations, employed in the creative Industries ‘embedded’ creatives. industries as ‘specialist’ The creatives industry is a creatives or ‘support small but growing segment Additionally, creative staff’, while the remaining of the Greater Perth employment falls into two were ‘embedded’ economy, turning creative sub-groups of creative creatives workers in ideas into commercial services and cultural other non-creative outcomes. The economic, production, and each have industries, e.g. public social, industrial and cultural three segments. administration, professional contributions from creative services, education and industries are usually a Two-thirds of the State’s manufacturing. hallmark of an advanced 41,317 creative workers are and thriving economy and bring a wide range of benefits to the economy. FIGURE 30: CREATIVE EMPLOYMENT SUB-GROUPS
The creative economy describes all activity within the creative and cultural industries. Creative services, including software and Creative digital content, advertising Employment and marketing, and architecture and design, are an important feature of the knowledge economy that is focused on the production, distribution and use of knowledge Creative Services Cultural Production and information. The outputs of creative services • Architecture and design • Music, visual and • Advertising and marketing performing arts are essential inputs for a • Software and digital • Film, TV and radio wide range of industries. content • Publishing Creative employment can be divided into three categories according to the Creative Trident Methodology (Higgs Source: Department of Culture and the Arts, 2013. et al., 2007): creatives working in creative industry organisations, ‘specialists’; non-creatives working in creative industry organisations, ‘support staff’; and creatives working in non-creative
54 TABLE 12: CREATIVE TRIDENT EMPLOYMENT SUMMARY BY SEGMENT, WESTERN AUSTRALIA, 2011
Creative Services Segments Cultural Production Segments Advertising Architecture Software Total Film, Music, Publishing Total Cultural Total and and Design and creative TV Visual and Production Creative Marketing Digital services and Performing segments Workers Content segments Radio Arts Specialists 749 3,600 2,417 6,766 893 2,108 1,328 4,329 11,095 Support staff 1,012 2,941 8,304 12,257 797 1,721 3,615 5,133 17, 39 0 Embedded 3,977 3,177 2,784 9,938 246 1,315 1,333 2,894 12,832 Total creative 5,738 9,718 13,505 28,961 1,936 5,144 5,276 12,356 41,317 employment
Source: Australian Bureau of Statistics, 2012a; Department of Culture and the Arts, 2013.
FIGURE 31: WESTERN AUSTRALIA’S CREATIVE WORKFORCE
33% employed Largest segment in Software and employer Digital
Of the State’s total 23% employed Second largest creative workforce in Architecture segment employer and Design
5% employed in Smallest creative Film, TV and Radio segment
Source: Department of Culture and the Arts, 2013.
55 PERTH AS A RESILIENT ECONOMY
According to Perth’s Western Australia’s cultural notable is their potential Creative Industries – An production segments have to attract tourists, increase Analysis (City of Perth, 2007), been smaller in size and tourist expenditure and Perth’s location, history economic contribution. increase the vibrancy and industry structure These segments have of the community life have influenced the key indirect and induced (Department of Culture characteristics of Perth’s effects; particularly and the Arts, 2013). creative economy: • Wide dispersion and FIGURE 32: CREATIVE EMPLOYMENT BY NUMBER AND low-density of creative PROPORTION IN EACH SEGMENT, WESTERN AUSTRALIA, activities; 20111 • A very high concentration Publishing 5,276, 13% Advertising and of WA’s total creative Marketing industries activity is in 5,738, 14%
metropolitan Perth; Music, Visual and Performing Arts • Very large number of 5,144, 12% micro-firms employing one to two people; Architecture and • Competition due to low Film, TV and Radio Design entry barriers and WA’s 1,936, 5% 9,718, 23% small market, which drags business development; • There are domestically- Software and Digital focused creatives Content 13,505, 33% catering to the Perth market, usually mass Source: Australian Bureau of Statistics, 2012a; Department of Culture market-oriented, and and the Arts, 2013. other creatives are 1 The creative services segments are on the right and the cultural production pursuing export niches; segments are on the left. and • There is an additional FIGURE 33: AVERAGE ANNUAL GROWTH IN CREATIVE priority to capture and EMPLOYMENT BY SEGMENT, WESTERN AUSTRALIA, build on the opportunities 2006 TO 2011 presented by the staples industries – mining and agriculture.
The ‘creative services’ Software and Digital Content 5.3% segments employed Architecture 70% of creative workers. and Design 4.8% Advertising and Meanwhile, the remaining Marketing 2.6% 30% were employed in Music, Visual and the ‘cultural production’ Performing Arts 1.6% segments, see Figure 32. This Publishing 0.8% 70/30 split between creative services and cultural Film, TV and Radio 0.2% production segments has been a similar trend around Australia. Source: Australian Bureau of Statistics, 2012a; Department of Culture and the Arts, 2013. 56 Employment growth in Greater Perth’s creative industry was four times the rate of any other industry in the first half of the 2000s (City of Perth, 2007). Between 2006 and 2011, WA’s creative workforce grew at an average annual rate of 3.2% or by 5,956 workers. Along with Victoria, WA experienced the nation’s highest rate of growth in creative employment (Department of Culture and the Arts, 2013). The strongest creative employment growth was in the creative services segments, see Figure 33. Software and digital content was the segment demonstrating the highest average annual rate of growth, at 5.3%.
Perth Fringe Festival The Perth FRINGE WORLD festival is part of the growth of the creative industries. La Soiree, FRINGE Central at Perth Cultural Centre and The Gold Digger, FRINGE WORLD Festival 2017. Photos by Sebastian Mrugalski, It has been running since Jarrad Seng and Matthew Parker. Source: Courtesy of FRINGE WORLD. 2011, and in 2017 it was reported that it was the Perth’s FRINGE WORLD attended 3-4 times per year, biggest box office earner captured a wide range of 14% attended 1-2 times a of any arts event in Western audiences, with as many year and 1.5% had never Australia. Perth’s FRINGE attendees in the 54-59 attended a cultural event in WORLD became the third age category as those the prior 12 months (FRINGE largest Fringe festival in the aged 24-29 years old. WORLD, 2017). world, delivering more than Media coverage reached $8.6 million in payments a potential national and The cumulative impact to participating artists. In international audience of FRINGE WORLD is vast 2017, the flow on economic of almost 54 million. In and increasing as the impact of FRINGE WORLD addition, the audience festival grows each year. was $84.3 million, equating captured by FRINGE WORLD Perth gains positive flow to 1,857 full-time equivalent includes consumers and on effects to urban vitality, jobs, with $1 of investment non-consumers of arts, with civic pride, social cohesion, from the government 39% of attendees in 2017 community engagement, returning $77 into the considered high cultural economic stimulus and Western Australian economy consumers, attending the development of local (FRINGE WORLD, 2017). a cultural event at least cultural industries (FRINGE once per month, while 45% WORLD, 2017). 57 Perth Stadium. Source: Courtesy of Perth Stadium.
Recreation on 2009 data, an annual Indirect employment is Sport is just one component commitment of $10.5 generated through sporting of the recreation industry million would equate to events and competitions, and while data regarding more than $24.7 million in with people visiting a sport is not as systematically direct and $68.3 million destination to participate or recorded, it is widely in total economic activity spectate at sporting events, recognised that it has as (Department of Sport and therefore contributing to many indirect as direct Recreation, 2009). tourism, accommodation benefits. The social benefits and food. Sport is powerful include social inclusion The Community Sporting in attracting thousands and building a sense of and Recreation Facilities of local, interstate and community from shared Fund documents the international visitors to sporting experiences and development of sustainable WA every year. The Perth achievements. Sport also sport and recreation Stadium is expected to be contributes to the economy infrastructure and the a prime sporting hub when through business investment State Government’s it is completed, and it will and employment annual investments in the be a great asset to the (Department of Sport development of high- recreation industry. and Recreation, 2009). quality environments for people to enjoy sport The Perth Stadium According to the and recreation. There is The new 60,000-seat Perth Department of Sport and $12 million available for Stadium is a critical piece of Recreation (2009), every allocation in the 2017-18 infrastructure, with leading dollar invested by the fund (Department of Local edge facilities having the State Government in the Government, Sport and capacity to accommodate Community Sporting and Cultural Industries, 2017). both sporting and large- Recreation Facilities Fund scale entertainment events. generates $2.4 in direct Major sporting events and It is anticipated it will attract economic activity and competitions generate large-scale, international $6.5 in total economic direct employment and sporting and entertainment activity. Further, based infrastructure investment. events to Greater Perth and 58 they, in turn, will increase FIGURE 34: THE NUMBER OF FIRMS IN THE ARTS AND the potential of Perth as RECREATION SERVICES INDUSTRY IN GREATER PERTH, a holiday destination, 2009 TO 2016 attracting higher value 2,050 international and domestic travellers with an extended 1,997 2,000 stay potential. 1,980
1,950 1,935 1,936 An assessment of the 1,921 economic impact of 1,912 1,911 1,900 the Stadium by the AEC 1,853
Group estimated that the Number of Firms venue would attract at 1,850 least 66,760 new visitors per year to Greater Peth, 1,800 and this increase in visitor 1,750 numbers will translate into 2009 2010 2011 2012 2013 2014 2015 2016 increased visitor spending Year in WA (Tourism Council, Source: Australian Bureau of Statistics, 2017e.2 2015). An assessment by the 2 Throughout this report, data regarding the number of firms and their AEC Group estimated the employees have been derived from the Australian Bureau of Statistics Stadium has the tourism (ABS) and the Australian Business Register (ABR). In the 2012-13 financial year, there were programs conducted by the ABR that reduced the overall capacity to create $291 number of Australian Business Numbers (ABNs). There were increases in the number of ABNs excluded from ABS counts based on having no active/ million in total economic valid tax roles (thus not considered to be actively participating in taxation) output, $19 million in State and ABNs that were cancelled (mostly sole proprietors and deregistered companies) between June 2012 and June 2013. This is reflected in the larger taxes and 139 full time number of ‘Exits’ in the publication between 2012-13. The decrease was equivalent jobs per annum not restricted to Greater Perth, as there was a general decrease of 2.9% in the number of businesses in Australia from June 2012 to June 2013 (with a (Tourism Council, 2015). decrease of 2.7% in Western Australia).
TABLE 13: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 667 321 353 326 197 48 2010 749 353 303 312 167 51 2 011 723 345 351 344 198 36 2012 718 312 375 298 203 30 2013 646 260 339 327 190 56 2014 590 309 345 347 223 62 2015 561 311 395 384 234 60 2016 573 276 380 397 244 61
Source: Australian Bureau of Statistics, 2012b; 2017e.
59 PERTH AS A RESILIENT ECONOMY
TABLE 14: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 1,219 359 215 119 0 2010 1,339 294 202 100 0 2 011 1,312 397 191 97 0 2012 1,307 330 203 96 0 2013 1,206 419 152 73 3 2014 1,205 387 180 66 0 2015 1,232 440 172 69 0 2016 1,236 469 176 65 0
Source: Australian Bureau of Statistics, 2012b; 2017e.
Professional, resource‑tech, education- Scientific and tech, GIS, gaming and Technical Services human resources. Technology is increasingly restructuring the global As shown in Tables 15 and economy and while 16, this industry is dominated the digital and internet by small to medium technology industry in WA sized firms. is still young and fragile, there is promise for its growth given the new FIGURE 35: THE NUMBER OF FIRMS IN THE PROFESSIONAL, technologies coming to the SCIENTIFIC AND TECHNICAL SERVICES INDUSTRY IN market. Digital and internet GREATER PERTH, 2009 TO 2016 technologies refer to those 24,000 companies developing their 23,705 23,500 own intellectual property 23,453 23,180 in technologies such as 23,000 22,676 computing, software, 22,500 22,371 mobile applications, 22,000 22,031 internet focused 21,780 21,500 companies, electronics 21,000 Number Number of Firms and hardware/software 20,709 such as wearables, sensors, 20,500 drones, robotics and 20,000 autonomous vehicles. 19,500 The market focus of 19,000 all these companies is 2009 2010 2011 2012 2013 2014 2015 2016 Year diverse, although there are clusters of companies Source: Australian Bureau of Statistics, 2017e. in eCommerce, fin- tech, health-tech,
60 TABLE 15: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 569 511 776 1,414 1,293 403 2010 524 544 821 1,419 1,329 451 2 011 567 521 859 1,530 1,393 475 2012 595 516 872 1,588 1,468 527 2013 468 494 857 1,478 1,564 619 2014 497 472 942 1,683 1,654 617 2015 537 500 1,010 1,795 1,730 627 2016 536 522 1,025 1,924 1,796 630
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 16: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 1,290 1,155 1,383 1,088 50 2010 1,377 1,136 1,374 1,149 52 2 011 1,448 1,186 1,502 1,168 41 2012 1,431 1,300 1,566 1,217 52 2013 1,396 1,647 1,745 639 23 2014 1,511 1,807 1,925 701 13 2015 1,512 1,955 1,925 746 16 2016 1,609 2,071 1,992 767 15
Source: Australian Bureau of Statistics, 2012b; 2017e.
61 PERTH AS A RESILIENT ECONOMY
FIGURE 36: THE NUMBER OF PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e.
62 TABLE 17: CONCENTRATION OF PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES FIRMS IN GREATER PERTH BY LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Perth City 2,582 2 Subiaco - Shenton Park 959 3 Nedlands - Dalkeith - Crawley 581 4 South Perth - Kensington 485 5 Fremantle 481 6 Wembley - West Leederville - Glendalough 431 7 Mount Lawley - Inglewood 367 8 Mount Hawthorn - Leederville 345 9 Booragoon 343 10 Applecross - Ardross 336 11 Karrinyup - Gwelup - Carine 335 12 Victoria Park - Lathlain - Burswood 312 13 Osborne Park Industrial 310 14 Madeley - Darch - Landsdale 308 15 Bayswater - Embleton - Bedford 278 16 Melville 273 17 Wembley Downs - Churchlands - Woodlands 267 18 Duncraig 261 19 Stirling - Osborne Park 256 20 Como 255
Source: Australian Bureau of Statistics, 2017e.
The City of Perth technology industry and Clustering at the early commissioned the Startup evidence for its ongoing stages of company Ecosystem Report in 2013. growth. The report quantifies startups creates clusters The report was designed the Perth startup ecosystem: of creative people, to quantify and report on • Most startups are located innovation, capitalism and Perth’s startup ecosystem. in Perth-CBD, followed by competitiveness. Table 18 A core of 100 digital and West Perth and Subiaco. lists the top suburbs in internet-based startup A core of 100 digital and Greater Perth according businesses in Perth were internet-based startup to the number of startups recorded. The City of Perth businesses in Perth were in 2015-16. and WA Department of recorded in 2013 and the Commerce then funded number of active startup the WA Startup Ecosystem businesses had grown to Report 2015-2016. This 335 by 2015-16, a 235% latter report outlined increase in two years opportunities for the (Markham et al., 2016).
63 PERTH AS A RESILIENT ECONOMY
TABLE 18: SUBURBS WITH THE HIGHEST NUMBER OF education associated with STARTUPS IN GREATER PERTH, 2015 TO 2016 ship design, building, repair and marine engineering. Suburb Number of Start-ups The Federal Government’s Perth CBD 29 investment into navy and defence-related industrial West Perth 9 infrastructure is likely to be Subiaco 7 directed towards HMAS South Perth 5 Stirling, Garden Island, Northbridge 5 and the Australian Marine Leederville 5 Complex, Henderson. A Unknown 4 future defence-related Como 4 technopole is earmarked Victoria Park 3 for the City of Rockingham, Perth 3 which will further Osborne Park 3 consolidate professional, Malaga 3 scientific and technical Fremantle 2 services in the south-western Scarborough 2 suburbs of Greater Perth. East Victoria Park 2 Belmont 2 Examples of innovative, Bayswater 2 knowledge-based Balcatta 2 companies are: Applecross 2 • West Perth-based Optika Solutions and Ascot 1 their decision to support Source: Markham et al., 2016. environment and data analytics platform, Akumen, which won the It is also important to note renewable energy, clean 2016 National Innovation that company activity can technologies and life of the Year Award at the occur outside of the primary sciences. Many leading Australian Information office address. Particularly local, national and Industry Association co-working spaces, international technology iAWARDS (Big Data incubators and cafes offer companies are based winner). Akumen is an locations for networking at this Technology Park, innovative, cloud-based and group meetings, and such as suppliers of simulation and data provide offices based in the technology to global modelling tool that suburbs with central and markets in pharmaceuticals, operates on a whole of easily accessible places digital and information industry scale. to meet other companies. technology, resources • Joondalup-based Spacecubed, in the Perth processing and clean business SEQTA is a CBD, is one of the most technologies. software company that visited co-working locations created an all-in-one (Markham et al., 2016). Technology Park collaborative teaching in Henderson is and learning ecosystem. Technology Park in dedicated to fostering • Perth CBD-based Bentley is dedicated to enterprises involved in Track’em is an asset information technology, specific technological tracking and managing telecommunications, development, training and system for businesses using 64 Barcode, RFID and GPS technologies. It won the WA 2015 Innovator of the Year award. • Subiaco-based iCetana is part of a paradigm shift in urban surveillance. The iCetana system turns vast surveillance infrastructures into effective dynamic live monitoring systems. It does this by utilising computer vision and a patented machine- learning algorithm to automatically learn the difference between normal movement patterns and abnormal exception events in real‑time.
TOURISM
Lyle Bicknell, an architect from Seattle, urged Perth to “build it for the people and the tourists will come”. A dynamic, highly liveable, accessible, affordable and welcoming Perth not only retains residents, but has the additional advantage of Perth Airport Terminal 1. Source: Courtesy of Perth Airport Pty Ltd. attracting visitors. In Greater Perth, tourism was largely capacity to drive new jobs tourism as a single industry. overshadowed by the 2000s and economic expansion. Despite this, Gross Value resource boom. Since the While international visitors Added (GVA) is considered boom, conditions have have the potential to the most accurate measure subsided, tourism and the drive the tourism industry of tourism’s contribution flow-on businesses such as growth (Deloitte, 2013), to the economy (Deloitte, restaurants, entertainment it is domestic tourism 2013; Davis, 2017b). and creative industries that makes the biggest have been recognised as contribution to the In Western Australia, the potential growth areas. Australian economy (Davis, tourism industry contributed 2017b). It is difficult to 4.6% of total direct and In a report by Deloitte, measure the value of the indirect GVA to the tourism has been identified tourism industry because economy, which totalled as one of five ‘super-growth’ the systems of National $10.6 billion and 109,000 industries in Australia, with Accounts do not recognise jobs in 2016. Figures from 65 PERTH AS A RESILIENT ECONOMY
Eye of the Storm by Howard Elton, Passion for Perth Photographic Competition. Source: Committee for Perth, 2014. the past six years show that stays meant the average is a dominance of visitors interstate domestic tourism spend per visitor for WA was choosing to stay in the Perth is underperforming. Reasons $2,611 for the year ending CBD, accommodating include the reduction in March 2017 — the second 59% of commercial business travel to Perth highest nationally, behind accommodation nights post-boom and the isolation Victoria, $2,684. for the region. Other and distance from the other locations of note include Australian capital cities ‘Purpose of visit’ has a Scarborough, Trigg-North (Davis, 2017b). significant impact on the Beach-Watermans and economic contribution Belmont-Ascot-Redcliffe, International tourist numbers of tourism to the State. which each accommodate to Western Australia have International visitors who approximately 5% of grown over the past five came to study or work commercial visitor years, increasing by 32% spend the most, averaging accommodation nights in from 2011 to 2016; however, $19,983 and $8,634 the region. These statistics this growth has been much respectively. Domestically, highlight the preference slower than national figures those who are travelling of visitors for city centre that saw tourists increase by for holiday and business accommodation locations; 43% over the same period. purposes spend more, coastal locations; The origin of international averaging $841 and $805 and accommodation visitors to Western Australia per visitor respectively. in proximity to the also differs to national Those visiting friends and region’s international trends, with more visitors relatives spend closer to and domestic airport from the UK, Malaysia $394. It appears that the terminals (Davis, 2017b). and Singapore. State’s beaches, wildlife, unspoilt natural wilderness Destination choice is The types of visitors to and island experience influenced through a Western Australia also show offerings are significant number of circumstances, significant differences in attractors for visitors to the which include both push terms of length of stay and Perth region and into WA and pull factors such expenditure per visitor and (Davis, 2017b). as accessibility, needs per visitor night. Western satisfaction, peer reviews, Australia typically attracts There are key locations destination marketing, longer-stay visitors who that attract higher social media, climate, spend an average of 30 visitor numbers within risk and familiarity (Davis, nights in the State, topping the Experience Perth 2017b). Accessibility is national figures for any tourism region, which essential to enable visitation other state or territory. While includes Greater Perth and there is potential to these visitors spent less and surrounds. This is increase access to Western money on a nightly basis in one of a number of Australia by increasing the Western Australia compared designated tourism regions number and frequency of with other states, longer in Western Australia. There direct flights to the State, 66 as well as developing decline in domestic higher universities in the world new regional airports education enrolments due and is the only Group of with the capacity to to high incomes and strong Eight and highest ranked accommodate flights from demand in non-university university in the State. interstate capitals. educated employment Importantly, UWA, Curtin positions. The ageing and Murdoch Universities Higher Education population trend in Greater all attract considerable A responsive and globally Perth is another potential competitive research engaged higher education inhibitor to domestic income, but even on a per industry is critically higher education take-up capita basis, the Western important if the capacity (Davis, 2017a). Australian universities lag of human capital and the Queensland, New economic development in Greater Perth dominates South Wales and Victorian Greater Perth is to expand. higher education in Western universities. Not only do The exponential value that Australia, and within Greater universities in Queensland, well-educated members of Perth there are three large New South Wales and a community can bring to a education and training Victoria attract more local economy assists in its nodes: Nedlands-Dalkeith, research funds per capita growth, development and Bentley-Wilson-St James and but they also have a higher overall sustainability. Perth city with Joondalup, proportion of Fulltime Murdoch, Mt Lawley and Equivalent Student Load Accessibility to quality Fremantle as smaller nodes (FTESL) than do the Western education helps increase of employment and higher Australian universities. the retention of people in education activity. Curtin the community. Additionally, University has the highest Universities which are education is particularly number of enrolments, highly engaged in research vital if Greater Perth is 50,648 in 2015, and will activities have a greater to grow the emerging soon open a medical reputation and therefore industries of the niche training facility in Midland. are likely to attract external advanced engineering The University of Western funding and higher value and manufacturing, Australia is in the top 100 postgraduate students. professional, scientific and technical services, the creative industries and the knowledge economy. It will enable Greater Perth to remain competitive in the global marketplace. Technical and skills gaps have already been identified as potentially compromising the progress of advanced engineering and manufacturing in Greater Perth.
The higher education industry is under pressure in Western Australia. The 2000s The University of Western Australia. Source: Courtesy of The University boom period witnessed a of Western Australia. 67 PERTH AS A RESILIENT ECONOMY
were the most popular fields of study in VET, although they had declined since the boom period. University enrolments have also been dominated by engineering and related technologies and architecture and building. Davis (2017a) highlights that enrolments in information technology and environmental related studies are disproportionately low in Western Australia compared to Queensland, New South Wales and Victoria.
International student Curtin University. Source: Courtesy of Curtin University. enrolments are therefore very important for the sustainability of a broad range of higher education programs in Greater Perth. However, as noted by Davis (2017a), the proportion of international students studying onshore at Western Australian institutions has declined since 2004. The region’s largest international student destination, Curtin University, experienced particularly high decline in the years 2009 to 2015. Further, international enrolments at The University of Western Australia have Murdoch University. Source: Courtesy of Murdoch University. been static. In 2015, Western Australian higher education The resources industries approximately 10.7% of institutions accommodated have influenced higher national VET students (Davis, 5% of total international education and skills 2017a). National Centre students studying onshore development over the for Vocational Education in Australia, including non- past two decades. Research (2016) data university higher education Western Australia attracts shows that engineering institutions (Davis, 2017a). a greater share of and related technologies, Vocational Education and education, management The primary and growing Training (VET) enrolments and commerce, and source of international than higher education, architecture and building students in Australia is 68 China, but in Western or local. It is therefore is to discover causes, cures Australia, the international important that university and treatments for the student market is more life, including where and illnesses, diseases and diverse than in other states. how students live and conditions that target India, Malaysia, Brazil, plan for their future, assists children and young Vietnam, Taiwan, Korea, their selection to study in people. It attracts world Hong Kong, Singapore and Greater Perth and their leaders in children’s health Pakistan are all important ability to achieve lifelong research and local scientists markets for international learning opportunities. collaborate on a variety students at higher of international research education institutions in It is also essential that programs. The Telethon Greater Perth (JCIPP, 2016). all Western Australians Kids Institute has trained understand the value local scientists through a There are several potential that international student wide variety of research threats to the international education offers the local programs, who have student market. The value economy but also the subsequently gone on to of the Australian dollar, like contribution to the social make international medical all exports, has an influence and cultural capital of the breakthroughs. The Telethon on international enrolments community in which they Kids Institute has also as seen in 2009 to 2012. live and learn. contributed to changes There is global competition in community practices. for international students, The Telethon Kids For example, the dangers especially high value Institute of alcohol consumption students who contribute to The Telethon Kids Institute, during pregnancy and the research programs and the located in the Subiaco- recognition of different knowledge economy, and Nedlands health precinct, forms of bullying and Australia is not always their is a world-class children’s developing approaches first-choice destination. health research institute with to prevent it in schools. a global impact. Its purpose There are some challenges facing universities globally in terms of what and how they offer courses and what is wanted by industry. At the same time, Asian nations are keen to reduce the number of students travelling overseas to study. It is therefore important that attracting international students to higher education institutions in Greater Perth is viewed as a lifestyle and learning package. Liveability, affordability, quality of student experience, and employability are priorities Professor Prue Hart (right) and her Research Team at Telethon Kids for all students, regardless Institute Focus on the Effects of Ultraviolet Radiation and Vitamin D3 of them being international on the Immune System. Source: Courtesy of the Telethon Kids Institute. 69 PERTH AS A RESILIENT ECONOMY
The Square Kilometre Array The Square Kilometre Array (SKA) project is a global science and engineering project led by the international SKA Organisation. The SKA project is currently constructing a next- generation radio telescope in Murchison, employing sophisticated technologies to enable scientific investigation into the universe and deep space. It is expected this project will advance communication, supercomputing, electricity generation and numerous other technologies and contribute to science through its discoveries. The project is an international collaboration and acts as a global attractor for scientific experts. In addition, One Tile of 16 Murchison Widefield Array Antennas. an industry body of Australasian companies are participating in the SKA project, with the expectation that the findings of this project will have wide commercial application.
CSIRO’s new ASKAP antennas at the Murchison Radio-astronomy Observatory (MRO) in Western Australia, 2010. Source: WA Department of Commerce. 70 PRIMARY INDUSTRIES
Mining Greater Perth, despite the mining corporate hub, Hundreds of international majority of mine sites being followed by Subiaco – mining and related supply- hundreds of kilometres Shenton Park. chain firms are active in away. Perth City is the
FIGURE 37: THE NUMBER OF MINING FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e. 71 PERTH AS A RESILIENT ECONOMY
TABLE 19: CONCENTRATION OF MINING FIRMS BY GREATER PERTH LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Perth City 878 2 Subiaco - Shenton Park 233 3 Nedlands - Dalkeith - Crawley 80 4 South Perth - Kensington 59 5 Booragoon 36 5 Wembley - West Leederville - Glendalough 36 7 Victoria Park - Lathlain - Burswood 33 8 Mosman Park - Peppermint Grove 29 8 Malaga 29 11 Applecross - Ardross 23 11 Fremantle 23 12 City Beach 21 12 Como 21 12 Mount Hawthorn - Leederville 21 12 Osborne Park Industrial 21 16 Belmont - Ascot - Redcliffe 20 17 Swanbourne - Mount Claremont 19 17 Madeley - Darch - Landsdale 19 19 Karrinyup - Gwelup - Carine 18 19 Balcatta - Hamersley 18
Source: Australian Bureau of Statistics, 2017e.
FIGURE 38: THE NUMBER OF FIRMS IN THE MINING Following the peak in INDUSTRY IN GREATER PERTH, 2009 TO 2016 2012, when the number of mining companies 2,600 increased by 308 firms since 2,550 2,541 2010, the numbers began 2,500 2,475 to decline. Decline does 2,450 2,458 not necessarily equate to 2,413 2,400 2,409 falling industry value or 2,350 economic importance. 2,322 2,300 Instead, it could mean 2,247 Number Number of Firms 2,250 the mining industry may 2,233 2,200 be experiencing higher value, jobless growth. This is 2,150 supported by the increase 2,100 in the number of highly 2,050 2009 2010 2011 2012 2013 2014 2015 2016 technical METS firms. Year
Source: Australian Bureau of Statistics, 2017e. The Australian METS industry is growing in importance and highlights the strong interdependence of the manufacturing and
72 professional, scientific and technical services industries. The Australian Bureau of Statistics classified METS businesses as those that provide specialised support and solutions to the mining and minerals processing industry. Naturally, this makes METS diverse and includes service providers for both metal ore and non- metallic mineral mining. Examples are equipment manufacturers, engineering services and mine software products. The METS industry is high-value, harnessing the knowledge economy and Rio Tinto’s Operations Centre, Perth. Source: Courtesy of Rio Tinto. has strong export potential.
Given the historical importance of mining in the Greater Perth economy, which is supported by the co-location of some of the world’s largest mining companies with pre-eminent mining and resources research institutions, the METS industry has great potential to flourish in Greater Perth.
Firms under the METS umbrella are already operating in the region and have specialised in products Pilbara Landscape. Source: Courtesy of Rio Tinto. and solutions for mineral exploration, extraction • Gnangara-based Direct • Azimuth Aligner, the and mining supply chains. Mining & Industrial are leading drill rig alignment Examples include: suppliers of sophisticated technology for mining • Nedlands-based Stavely mining equipment, which and construction Minerals, which provides sell worldwide. produces faster, cheaper early to advanced stage • Perth CBD-based startup and more accurate mineral exploration Minnovare developed drilling to drill rigs because projects with mining a device to help better of high‑tech sensors. support services. execute drilling at mine sites.
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North Rankin Complex, North West Shelf Project, Western Australia. Source: Courtesy of Woodside Energy Ltd.
A notable mention is how mining software has been successfully developed in Perth and marketed internationally using locally derived, advanced knowledge-based services. For example, Balcatta- based Sentient Computing uses virtual reality to recreate mine sites in 3D. Companies are opting to use such software to remotely train workers in safety and mine site procedures, reducing the need for workers to learn from manuals. Another feature is the ability to view the mine site in real time from any location.
Pluto LNG Onshore Gas Plant and Loading Jetty. Source: Courtesy of Woodside Energy Ltd. 74 As explained by Martinus directly involved in the gas project, such as BP, and Sigler (2016), the resources industry and Chevron, Royal Dutch importance of materials many are likely to have Shell and BHP. The Perth and energy to Greater strong global connections. based mining companies Perth’s economy is evident Woodside for example, the are high-value but they by the number of firms largest resource company, are not necessarily the whose headquarters are has international corporate biggest employers. Perth-based. Of the top connections through the 30 Perth City firms, 19 are North West Shelf oil and
TABLE 20: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 847 238 327 332 218 285 2010 941 292 297 285 190 228 2 011 1,083 255 297 324 196 254 2012 1,146 245 288 340 218 304 2013 1,140 210 253 307 216 302 2014 1,235 220 240 282 208 295 2015 1,270 206 240 248 168 263 2016 1,282 204 180 197 183 267
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 21: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 1,237 532 268 195 15 2010 1,306 500 264 151 12 2 011 1,424 530 287 162 6 2012 1,463 551 347 174 6 2013 1,360 616 302 153 27 2014 1,457 595 285 146 18 2015 1,431 598 251 142 19 2016 1,397 559 227 131 12
Source: Australian Bureau of Statistics, 2012b; 2017e.
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Construction Perth population. Despite firms are single and self- For almost two decades, the importance of large employed operators. Many the construction industry construction firms, which of the smaller construction has experienced strong tend to be located in the firms are located in the growth, synchronised Perth CBD, the employment northern suburbs of Perth, with the mining boom data shows that the vast as shown in Table 22. and the growing Greater majority of construction
FIGURE 39: THE NUMBER OF CONSTRUCTION FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e. 76 TABLE 22: CONCENTRATION OF CONSTRUCTION FIRMS BY GREATER PERTH LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Perth City 1,301 2 Madeley - Darch - Landsdale 898 3 Wanneroo 646 4 Mindarie - Quinns Rocks - Jindalee 584 5 Balcatta - Hamersley 499 6 Stirling - Osborne Park 471 7 Bayswater - Embleton - Bedford 431 7 Osborne Park Industrial 431 9 Dianella 419 10 Subiaco - Shenton Park 405 11 Butler - Merriwa - Ridgewood 390 12 Morley 382 13 Ellenbrook 375 14 Baldivis 371 15 Rivervale - Kewdale - Cloverdale 365 16 Karrinyup - Gwelup - Carine 362 17 Mullaloo - Kallaroo 360 18 Currambine - Kinross 344 19 Singleton - Golden Bay - Secret Harbour 343 20 Malaga 337
Source: Australian Bureau of Statistics, 2017e.
TABLE 23: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 5,497 8,182 7,161 5,651 3,482 1,952 2010 5,663 8,715 6,966 5,606 3,586 1,939 2 011 5,458 8,165 7, 5 4 3 6,046 3,733 2,072 2012 5,516 7,13 6 7, 597 6,136 3,874 2,134 2013 5,067 6,251 6,946 6,012 3,908 2,272 2014 5,093 6,521 7,710 6,757 4,033 2,316 2015 5,153 5,997 8,557 7,116 4,354 2,416 2016 5,492 5,787 8,957 7,152 4,532 2,470
Source: Australian Bureau of Statistics, 2012b; 2017e.
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TABLE 24: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 22,406 6,655 2,093 729 42 2010 22,772 6,753 2,203 708 39 2 011 23,018 6,979 2,226 773 21 2012 21,999 7,203 2,306 834 51 2013 20,080 7, 8 8 0 1,878 594 37 2014 21,215 8,479 2,068 605 22 2015 21,704 9,043 2,203 591 27 2016 22,269 9,236 2,316 583 30
Source: Australian Bureau of Statistics, 2012b; 2017e.
Australian Bureau of utilise FIFO construction commuting workers, Statistics data (2017b) shows workers, most of whom 7,464, were involved in that building approvals were Perth-based, who mine site building and land peaked in 2010 and then were accommodated preparation jobs. Between fell away sharply, before in transient worker the 2006 and 2011 Census, recovering in 2014-15. accommodation (TWA). KPMG calculated an The construction industry KPMG (2013) calculated increase in construction suffered a sharp decline in that at the height of the workers by 260%, 57% the number of firms in 2013, mining construction boom of whom commuted but by 2014 there was a in 2012, 44% of long distance from Perth. rapid recovery.
The growth of the FIGURE 40: THE NUMBER OF FIRMS IN THE CONSTRUCTION construction industry was INDUSTRY IN GREATER PERTH, 2009 TO 2016 closely aligned to the 35,000 increased investment in 34,488 mining from 2001. The 34,000 development of new 33,513 33,017 mines and the expansion 33,000 of already established 32,475 32,393 32,393 mines throughout the 32,000 31,925 state between 2001 and 31,000
2012 exerted considerable Number of Firms 30,469 pressure on the construction 30,000 industry. It is during the construction phase of a 29,000 mine’s lifecycle that the 28,000 demand for labour and 2009 2010 2011 2012 2013 2014 2015 2016 skills is at its highest. For Year most mining operations Source: Australian Bureau of Statistics, 2012b; 2017e. in remote locations, especially in the Pilbara, it was more strategic to 78 Agriculture, Forestry FIGURE 41: THE NUMBER OF FIRMS IN THE AGRICULTURE, and Fishing FORESTRY AND FISHERY INDUSTRY IN GREATER PERTH, Agriculture has always been 2009 TO 2016 an important industry in 7,000 Western Australia but the 6,217 6,006 impact of mining and its 6,000 5,589 contribution to GDP has 5,086 eclipsed the contribution 5,000 4,774 4,489 4,274 of agriculture, forestry 4,020 and fishing to the Western 4,000 Australian economy. 3,000 Number Number of Firms
Since the 1980s, when 2,000 government policies imposed a restructuring of 1,000 the industry, the number 0 of people involved in the 2009 2010 2011 2012 2013 2014 2015 2016 industry has continually Year contracted, while Source: Australian Bureau of Statistics, 2012b; 2017e. productivity has increased; another example of jobless growth. Agricultural Peel region, was the second business consolidation, most popular location the application of highly for firms. technical mechanisation and the increasing Data also shows that the importance of corporate number of businesses with farming has seen the an annual turnover of less industry continue to than $50K sharply declined transform. The overall from 2009 to 2016, while number of firms in Greater the trend for the number Perth whose business is of firms turning over more agriculture, forestry and than $500K had slightly fishing declined by 35.3% increased. This could between 2009 and 2016. indicate the surviving firms are becoming more Perth City consistently rated productive. as the top location for most firms for the agriculture, In terms of employee forestry and fishing industry. size, the 1-4 employee It is likely that firms at category experienced the this location would be greatest growth over the offices and headquarters last five years, while the for trading and larger 20-199 employee category corporate firms with the declined significantly. main agriculture operations taking place in regional Western Australia and elsewhere. Pinjarra, in the
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FIGURE 42: THE NUMBER OF AGRICULTURE, FORESTRY AND FISHING FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e.
80 TABLE 25: CONCENTRATION OF AGRICULTURE, FORESTRY AND FISHING FIRMS BY GREATER PERTH LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Perth City 227 2 Pinjarra 151 3 Serpentine - Jarrahdale 108 4 Waroona 101 5 Nedlands - Dalkeith - Crawley 95 6 Lesmurdie - Bickley - Carmel 94 6 Wanneroo 94 8 Subiaco - Shenton Park 93 9 Mundijong 92 10 Fremantle 81 11 The Vines 75 12 Roleystone 68 13 Mosman Park - Peppermint Grove 61 14 Bullsbrook 59 15 Fremantle - South 58 16 Claremont (WA) 57 17 Middle Swan - Herne Hill 56 18 Baldivis 55 19 Cottesloe 54 20 Mundaring 50
Source: Australian Bureau of Statistics, 2017e.
TABLE 26: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 3,416 771 633 676 545 176 2010 3,336 700 631 692 484 163 2 011 2,961 702 652 654 453 167 2012 2,598 657 614 585 474 158 2013 2,300 602 596 601 483 189 2014 1,976 645 562 580 523 195 2015 1,757 603 585 586 517 221 2016 1,510 562 535 604 555 234
Source: Australian Bureau of Statistics, 2012b; 2017e.
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TABLE 27: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 4,976 711 374 147 9 2010 4,843 715 314 131 3 2 011 4,451 688 312 135 3 2012 4,001 692 300 90 3 2013 3,633 780 277 78 6 2014 3,346 733 260 92 3 2015 3,189 728 241 81 3 2016 2,956 740 236 77 6
Source: Australian Bureau of Statistics, 2012b; 2017e.
The number of locations Australian agriculture. this industry can position with more than 100 firms Agribusiness is in the top themselves to experience declined over the 2009 to five industries in which growth in the future. 2016 period. In 2009, there Australia has a comparative were eight locations while in advantage relative to Melaleuka Stud – 2016 there were only three. global competitors. Nambeelup An innovative breeding Locations that featured Due to the geography, program at Melaleuka in the top 20 list of firms time zone and logistics Stud in Nambeelup, the include Pinjarra, Wanneroo, supply chain infrastructure, Peel region, is focusing on Serpentine-Jarrahdale, Greater Perth is well the production of beef Yanchep, Mundijong positioned to embrace that is ‘healthier to eat’. and Waroona. these market opportunities. The breeding program It is expected the China- expands a herd of Akuashi The peri-urban fringe of Australia Free Trade cattle through artificial Greater Perth is important Agreement negotiated at insemination, embryo for the production of the end of June 2015 will transfer and recipient fresh produce for the be a significant boost to dams. Akuashi cattle metropolitan region. agricultural, forestry and produce meat with fat For example, the City of fishing businesses. that melts below human Wanneroo accounts for the body temperature, production of almost all of It is essential for agricultural which translates to higher Greater Perth’s demand for firms to utilise technological palatability as well as sweet corn, strawberries, advancements in order to reducing the formation of tomatoes and avocadoes thrive. Below are examples harmful levels of cholesterol. in addition to selling of companies in Greater The cattle are used by a produce overseas. Perth that are blending research team at the CY agricultural expertise with O’Connor Erade Village Asia’s demand for food is new research discoveries Foundation, where DNA forecasted to outstrip supply and highly technical testing facilities and and this presents a huge equipment. These examples equipment are used to opportunity for Western represent how firms in measure fat melting points 82 in beef products. The work by the research team for low melting point beef has achieved international recognition and the focus of the research is centred in the Peel region (Peel Development Commission, 2015).
GD Pork Pty Ltd The pork industry is becoming increasingly high-tech and highly skilled. The latest technology used in pork production is equipment that captures pig produced methane and waste to be used Melt Beef by Melaleuka. Source: CY O’Connor Pub, n.d. for electricity generation and fertiliser respectively. Highly specialised, efficient and modern production techniques are improving the ability to create a closed loop system while maintaining high animal welfare standards. GD Pork Pty Ltd near Pinjarra, has been upgrading its WA piggeries to build WA’s first facilities with the latest technology. GD Pork Pty Ltd already supplies to the Singapore market but exports to the rest of Asia is likely in the GD Pork Facilities. Source: Finrone Systems, 2017. future (Peel Development Commission, 2015).
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ManukaLife ManukaLife is a company participating in the newly established Honey Bee Research Centre led by The University of Western Australia, which brings industry and academic expertise together. Across sites in Peel and the south- west, plant breeding of high-grade plants is being undertaken to produce high-grade medical Manuka honey which has antibacterial properties and enhanced hydrogen Manuka Flower with Bee. Source: Courtesy of ManukaLife. peroxide properties, used in disinfectant for medical purposes (Peel Development Commission, 2015). Manuka honey has other unique properties, which have important healing and medicinal uses. Manuka honey is increasingly sought after by the pharmaceutical, cosmetic and neutraceutical industries.
ManukaLife Workers Planting Seedlings. Source: Courtesy of ManukaLife.
84 INDUSTRIES IN TRANSITION
Health Care and birth for males was 76.4 and access to services in Social Assistance years and 82.1 years for peripheral locations tend Since the 1960s, Perth’s women. By 2015, this had to be less suitable for older population began to extended further, with men Australians (Davis, 2017c). age noticeably with the expected to live to 80.5 influence of improved post- years and women to 85 Davis (2017c) identifies a war living conditions, birth years (Australian Bureau of number of strategies from control and fewer fatalities Statistics, 2016b). the literature that can from wars. address the challenges Ageing in Western Australia of an ageing population In the mid-twentieth is occurring at a similar through positive actions. century, people aged 50 pace to that of the nation. These include developing years and older represented In 2016, the age structure new and innovative 19% of the population but of Western Australia’s businesses associated with by 2001, the 25-34 year age population almost mirrored health care products and group accounted for 15% the structure of the services, encouraging of the population whereas population nationally, with entrepreneurship the proportion of people 50% of West Australians among older Australians aged 50 years and over had being of working age. The and increasing and increased to 26%. By 2016, State’s population included recognising volunteering 31.2% of the Greater Perth 29 children for every 100 and philanthropy among population was 50 years people of working age and older Australians. and over. Between 1979 21 adults aged over 65 for and 1996, the median age every 100 people of working An ageing population has rose from 29.1 to 33.1 years. age (Davis, 2017c). significant implications for By 2016, the median age the future Perth economy. of people in the Greater In Greater Perth, the highest Not surprisingly then, the Perth area had risen to 35.7 rates of numeric ageing health care and social years (Australian Bureau of are evident in peripheral assistance industry is Statistics, 2017a). local authorities in the growing throughout Peel region and in local Australia, and Greater Those born between 1945 authorities in the north- Perth is showing similar and 1971, a bigger cohort west, such as Joondalup. strong increases in terms than preceding and Research has determined of employment and succeeding generations, that most older people firm numbers. are projected to represent in Greater Perth ‘age in more than 25% of the State’s place’ and, when they do population in the next move, they are most likely decade, further driving to remain in their local area. the ageing trend. Therefore, as peripheral suburban locations become Life expectancy has more established, so their increased for both sexes. populations will age. This In 1981, life expectancy for has been identified as a males was 72.1 years and significant issue moving 79.3 years for females. In forward because urban 2000, life expectancy at design, transport systems 85 PERTH AS A RESILIENT ECONOMY
FIGURE 43: THE NUMBER OF FIRMS IN THE HEALTH CARE AND SOCIAL ASSISTANCE INDUSTRY IN GREATER PERTH, 2006 TO 2016
12,000
9,950 10,000 9,396 8,975
8,059 8,220 7,758 8,000 7,452 7,074
6,000 Number of Firms of Number 4,000
2,000
0 2009 2010 2011 2012 2013 2014 2015 2016 Year
Source: Australian Bureau of Statistics, 2012b; 2017e.
The rapid growth in the As shown in the PwC (2017a) industry is also one of data, there are other its greatest challenges. weaknesses in the health An ageing population is care and social assistance putting considerable strain industry. At one end of the on healthcare resources, technical and knowledge most particularly staff levels. spectrum, employees are A Senate Inquiry (2017) into highly educated and well the future of Australia’s remunerated. However, the aged care workforce found much larger and growing, that it is ageing and will care-giving employee need to grow by 2% every cohort are considerably year to accommodate less well paid and often the increased demand lower skilled. for services in addition to current workforce renewal. There is growing evidence that the care workforce of the future needs to engage with smart technologies and innovations in the provision of care, be adaptive to the consumer-centred reforms of government and up to date in appropriate quality care practices.
86 TABLE 28: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 1,381 852 1,195 1,931 1,478 237 2010 1,424 968 1,257 1,994 1,546 263 2 011 1,352 1,006 1,392 2,046 1,666 296 2012 1,395 996 1,460 2,117 1,752 339 2013 1,271 1,007 1,430 2,196 1,932 377 2014 1,361 1,112 1,608 2,477 2,028 402 2015 1,265 1,215 1,751 2,599 2,129 421 2016 1,328 1,232 1,844 2,767 2,215 436
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 29: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 3,611 2,055 1,051 325 32 2010 4,008 2,053 1,029 336 26 2 011 4,265 2,059 1,080 329 25 2012 4,409 2,107 1,169 345 29 2013 4,490 2,360 1,060 283 27 2014 5,048 2,570 1,114 272 18 2015 5,429 2,583 1,095 253 21 2016 5,789 2,710 1,212 235 18
Source: Australian Bureau of Statistics, 2012b; 2017e.
87 PERTH AS A RESILIENT ECONOMY
FIGURE 44: THE NUMBER OF HEALTH CARE AND SOCIAL ASSISTANCE FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e.
88 TABLE 30: CONCENTRATION OF THE HEALTH CARE AND SOCIAL ASSISTANCE INDUSTRY BY GREATER PERTH LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Nedlands - Dalkeith - Crawley 548 2 Perth City 544 3 Subiaco - Shenton Park 426 4 Wembley - West Leederville - Glendalough 367 5 Mount Lawley - Inglewood 205 6 Fremantle 200 7 South Perth - Kensington 192 8 Applecross - Ardross 160 9 Booragoon 153 10 Cottesloe 152 11 Wembley Downs - Churchlands - Woodlands 148 12 Claremont (WA) 143 13 Melville 140 14 Murdoch - Kardinya 138 15 Joondalup - Edgewater 136 16 Swanbourne - Mount Claremont 134 17 Mosman Park - Peppermint Grove 132 18 City Beach 124 19 Dianella 119 20 Floreat 114
Source: Australian Bureau of Statistics, 2017e.
There are several The Queen Elizabeth II (QEII) locations where there Medical Centre in Nedlands is a concentration of is a strong magnet for medical research and health care and social associated commercial assistance firms, which activities, consulting suites, benefit from the co-location clinics, community health of medical expertise and and medical research facilities. The QEII Medical facilities and other Centre is on its way to complementary firms. becoming the largest medical, research and Nedlands-Crawley- education facility in Western Dalkeith Australia. Redevelopment In 2016, Nedlands-Crawley- has been completed, and Dalkeith had the highest includes a comprehensive number of health care and cancer centre, Mental social assistance firms in Health Unit, PathWest and Greater Perth. More than Harry Perkins Institute for half were classified as Medical Research. QEII Medical Centre, ‘non-employing’, indicating Photo by Robert Johnson. independently operated, Sir Charles Gairdner Hospital Source: Courtesy of QEII self-employment businesses. is also located at the QEII Medical Centre Trust. 89 PERTH AS A RESILIENT ECONOMY
Medical Centre and houses strengthens the attraction that of Nedlands-Crawley- WA’s only comprehensive for health care and social Dalkeith. With the health cancer centre and WA’s assistance firms in the area. care and social assistance principal hospital for industry employment neurosurgery and liver Joondalup- strongly trending upwards, transplants. This hospital has Edgewater Joondalup Health Campus close ties with The University Health has been identified is the prominent location of Western Australia, in the City of Joondalup’s for health care and social creating a health and current economic assistance firms in the medical research precinct development strategy northern corridor of Greater in Crawley and Nedlands. as being a high-value, Perth, with public and strategic industry. The City private hospitals at the site, Hollywood Private Hospital of Joondalup has one of the along with an emergency is located adjacent to the highest concentrations of department, operating QEII Medical Centre and health professionals behind theatres and intensive care facilities.
Joondalup has attracted State Government investment to further develop health facilities. For example, the North Metro TAFE Health and Wellness Training Centre underwent refurbishment using an $11 million investment to support the delivery of diverse, high-quality training programs. The redeveloped facilities intend to offer extra courses, particularly at QEII Medical Centre, Photo by Dean Chrisholm. Certificate IV and Diploma Source: Courtesy of QEII Medical Centre Trust. levels, which will be of high demand, given the projected employment growth in health care and social assistance in Greater Perth and WA more broadly in the coming years.
Leading health research and education centred in Joondalup is being developed through collaborations between the health facilities there and Edith Cowan University
QEII Medical Centre, Photo by (ECU). Examples include: Robert Johnson. Source: Courtesy • The ECU Health and of QEII Medical Centre Trust. Wellness Institute has 90 extensive national and international linkages allowing for cross- disciplinary expertise. • The ECU/Genesis Cancer Care and Exercise Clinic is the only onsite exercise therapy clinic in Australia designed to complement radiation and chemo therapies. • The Interprofessional Ambulatory Care Unit is located at ECU Joondalup and is supported by the Commonwealth Government. This facility promotes chronic disease Joondalup Health Campus. Source: Project Directors Australia, 2017. self-management through an interprofessional learning environment. Undergraduates from all health disciplines at Edith Cowan University and The University of Western Australia can take clinical placements at the facility.
Murdoch-Kardinya Fiona Stanley Hospital and St John of God Hospital are located in Murdoch near Murdoch University and South Metropolitan TAFE. Together, this cluster of medical facilities and knowledge brings smaller firms to the area to benefit Fiona Stanley Hospital. Source: Courtesy of South Metropolitan from co-location. Health Service.
As reported in FACTSheet nearby Fiona Stanley and which will be developed No.11, plans are underway St John of God hospitals over 10 to 15 years across for Australia’s first Medihotel by freeing up hospital stages. The planned vision in 2018, with the facility beds so more patients can for this precinct is likely to expected to open adjacent be treated and waitlists continue to attract health to Fiona Stanley Hospital can be shortened. This care firms to the area in the by 2021. The 60-room will be the first stage of coming years. Medihotel is intended to the Murdoch Health and provide support for the Knowledge Precinct, 91 PERTH AS A RESILIENT ECONOMY
bigger, higher turnover firms dominate the retail landscape now. The percentage of firms with an annual turnover of more than $2m increased from 16.4% in 2009 to 18.1% in 2016, while the percentage of firms turning over less than $50K declined from 18.0% in 2009 to 15.5% in 2016 (Australian Bureau of Statistics, 2010-2017c).
The proportions of firms which employ 5-19, 20-199 and 200+ employees each experienced a decline. This Retail Trade 2012, annual consumption suggests that businesses are Since its earliest days, the growth averaged 5.3% hiring fewer people and retail industry has been (St George Bank, 2016). the industry has contracting important to Greater staff levels. The most Perth, but there is strong The number of Greater consistent top five locations, evidence that digital Perth retail trade firms having the greatest number disruption and new peaked in 2011, before of retail firms, are: Perth technologies are impacting sharply declining in 2012 City, Fremantle, Madeley- the traditional retail outlet. to 2013. There was a short- Darch-Lansdale, Osborne Retail trade is struggling lived recovery before the Park Industrial and Subiaco- worldwide, particularly in trend returned to decline Shenton Park. the categories of grocery, in 2014, see Figure 45. The household, clothing and footwear items (PwC, 2017). FIGURE 45: THE NUMBER OF FIRMS IN THE RETAIL TRADE Traditional retailers globally INDUSTRY IN GREATER PERTH, 2009 TO 2016 are situated in highly competitive environments 11,000 10,812 10,818 and face pressure to 10,800 deal with shifting factors, 10,590 10,600 10,503 for example customer 10,400 preferences towards online shopping and 10,200 10,013 demands for technological 10,000 9,911 9,837 advancement. For some 9,800
Number of Firms of Number 9,695 retailers, their long-term 9,600 survival is under threat, especially as household 9,400 consumption growth is 9,200 weaker compared to 9,000 2009 2010 2011 2012 2013 2014 2015 2016 the days of 2003 to 2007, Year annual consumption growth averaged 6.6%, and 2010 to Source: Australian Bureau of Statistics, 2012b; 2017e. 92 TABLE 31: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 1,885 939 1,200 1,967 2,793 1,719 2010 2,024 1,091 1,184 1,932 2,828 1,753 2 011 2,068 1,032 1,249 1,903 2,775 1,791 2012 2,007 1,042 1,212 1,837 2,670 1,822 2013 1,662 931 1,143 1,792 2,567 1,816 2014 1,593 995 1,232 1,796 2,598 1,837 2015 1,574 943 1,230 1,802 2,483 1,756 2016 1,503 998 1,270 1,784 2,444 1,757
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 32: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 4,212 2,800 2,459 1,005 27 2010 4,490 2,790 2,512 984 36 2 011 4,577 2,731 2,496 978 36 2012 4,504 2,688 2,360 1,011 27 2013 4,081 3,170 2,006 625 3 2014 4,146 3,179 2,034 643 0 2015 4,127 3,105 2,024 593 6 2016 4,035 3,092 2,018 580 6
Source: Australian Bureau of Statistics, 2012b; 2017e.
From 2009 to 2016, the Perth in August 2012. Prior to greater appeal of larger and City area had the highest this, suburban shopping improved shopping centres number of retail firms, even centres were restricted with extended trading hours, though the total number of from trading on Sundays, free parking and weather- retail firms in the Perth City while the Perth City could protection, e.g., Lakeside declined over this period. trade. Suburban shopping Joondalup (Tsagalis, 2015). Since 2009, Perth City has centres can now trade seven been under pressure from days a week and there High Perth CBD retail new retail supply outside of has been identifiable retail vacancy rates have also the CBD. Businesses have performance decline in been linked to developments found it attractive to move the Perth City. that temporarily increase from CBD locations to vacancies. Examples of elsewhere in Greater Perth. In 2015, WA had the highest such developments include This shift was noticeable CBD retail vacancy rate in Forrest Chase, Raine Square after the deregulation Australia at 3.5% (Tsagalis, and Plaza Arcade. In these of Sunday trading hours 2015). This was linked to the cases, new retailers are set to 93 PERTH AS A RESILIENT ECONOMY
FIGURE 46: THE NUMBER OF RETAIL TRADE FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e.
94 move in but there is a period to be less appealing to has shown strong growth of high vacancies before international retailers. post‑2013. this happens. There is evidence to The majority of these firms Furthermore, Perth CBD suggest stronger spending appear to be self-employed retailers consider retail rents of housing retail goods, contractors, with most to be generally expensive, which is linked to the firms turning over less than despite prime retail growth activity in building $50k per year. This suggests accommodation in Perth and construction. internet retail is likely to City being more affordable be eroding the role of the than any other CBD in The transport, postal and suburban retail outlet. Australia (City of Perth, 2016). warehousing industry
The City of Fremantle is TABLE 33: CHANGES IN RETAIL SPENDING PATTERNS, the second largest retail FOR YEAR ENDING MARCH QUARTER 2016 location in Greater Perth. It has several distinct retail Declining Increased localities: the West End, consumption spending Victoria Quay, Fremantle Cigarettes and -10.8% Health 5.7% Markets, South Fremantle tobacco and Wray Avenue Precinct. Vehicle purchases -11. 8% Communications 6.3% Despite having large Alcoholic beverages -2.1% Education 5.1% anchor retailers, significant Liquor -7. 4% Furniture, floor coverings 7.9 % businesses have left and textile goods Fremantle, most notably Specialised Foods -4.2% Electrical and electronic 6.2% Myer. Some retail interest has goods been sparked through the Cafes, restaurants -4.0% Building and gardening 6.6% and catering supplies pop-up retail phenomenon services and several retail incubators exist that provide the Source: St George Bank, 2016. resources for small businesses to grow successfully. FIGURE 47: THE NUMBER OF FIRMS IN THE TRANSPORT, POSTAL AND WAREHOUSING INDUSTRY IN GREATER Subiaco-Shenton Park was PERTH, 2009 TO 2016 the third most important 12,500 retail centre in 2016. This 12,263 is despite redevelopment and infrastructure renewal 12,000 along Rokeby Road and 11,502 several operators leaving the 11,500 11,442 11,309 precinct due to high rents. 11,238 11,178 In 2015, the retail vacancy 11,081 11,000 10,823 rate along Rokeby Road was Firms of Number a high 15% (Tsagalis, 2015).
Higher vacancy rates could 10,500 continue, particularly due to football moving to the 10,000 new Stadium in 2018 and 2009 2010 2011 2012 2013 2014 2015 2016 Subiaco’s strip retail nature, Year which traditionally tends Source: Australian Bureau of Statistics, 2012b; 2017e. 95 PERTH AS A RESILIENT ECONOMY
TABLE 34: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 3,973 2,706 1,937 1,408 803 411 2010 4,339 2,758 1,900 1,287 752 406 2 011 4,053 2,771 1,803 1,448 712 391 2012 3,901 2,843 1,831 1,357 733 416 2013 3,498 2,730 1,800 1,463 823 473 2014 3,711 2,882 1,809 1,548 809 452 2015 3,740 2,979 1,818 1,609 883 492 2016 4,750 2,812 1,832 1,549 798 473
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 35: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 8,593 1,865 505 263 12 2010 8,801 1,846 567 213 15 2 011 8,650 1,766 527 223 12 2012 8,582 1,736 551 203 9 2013 8,268 1,905 463 172 15 2014 8,630 1,953 491 200 0 2015 8,762 2,130 466 181 6 2016 9,526 2,072 486 167 6
Source: Australian Bureau of Statistics, 2012b; 2017e.
96 Manufacturing FIGURE 48: TOTAL NUMBER OF MANUFACTURING FIRMS IN Manufacturing has had a GREATER PERTH, 2009 TO 2016 mixed history in Perth. Post- 8,000 World War II, government 7,865 7,858 policies and subsidies 7,800 underwrote manufacturing. 7,547 7,600 By 1970 however, most of 7,542 those low-skilled businesses 7,400 had closed or moved back 7,141 7,202 to the bigger population 7,200 7,109 Number of Firms of Number centres on the eastern 7,034 seaboard, in the case of 7,000 vehicle manufacturing, 6,800 or offshore with more affordable labour and 6,600 efficient logistics networks. 2009 2010 2011 2012 2013 2014 2015 2016 Year Manufacturing has largely only met local demand, Source: Australian Bureau of Statistics, 2012b; 2017e. and industry performance over the past two decades has been variable. 2011-2012, the change in to worker skill and manufacturing firms was knowledge gaps. In Currently, the status of this less than ten. The decline addition, technological industry is more complex in firms might be due to advancements in than it looks. While there the more difficult financial manufacturing are imposing has been a decline in environment in terms new skills requirements and traditional manufacturing of accessing finance. ensuring an appropriately operations, which are Constrained financial educated workforce is generally large scale with conditions make it more potentially a challenge in low-skilled workers, there is difficult for firms to grow the future. an emerging manufacturing and invest. Since many sector, ‘advanced manufacturing firms in It is clear manufacturing manufacturing’, which is WA are small to medium has benefitted from the smaller, sophisticated and in employment and expansion of the resources high-tech. production, it is challenging sector in the early 2000s. for them to survive Over the past decade, the (Chamber of Commerce number of manufacturing and Industry of Western firms in Greater Perth Australia, 2015). declined from 2009 to 2016, Figure 48, with just The Chamber of Commerce one period at the height of and Industry of WA (CCIWA) the boom, 2013-2014, with identified that another a positive increase in the contributing factor for the number of firms. potential vulnerability of manufacturing is the ageing There have been periods population phenomenon, of stability. For example, exacerbating labour between 2009-2010 and shortages or leading
97 PERTH AS A RESILIENT ECONOMY
TABLE 36: THE NUMBER OF FIRMS IN EACH ANNUAL TURNOVER PERFORMANCE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Zero to less $50k to $100k to $200k to $500k to $2m or than $50k less than less than less than less than more $100k $200k $500k $2m 2009 1,499 1,108 1,197 1,385 1,589 1,087 2010 1,531 1,138 1,140 1,402 1,581 1,066 2 011 1,462 1,037 1,133 1,326 1,548 1,041 2012 1,496 923 1,020 1,421 1,563 1,119 2013 1,268 814 1,001 1,329 1,541 1,154 2014 1,324 891 998 1,311 1,571 1,104 2015 1,255 860 1,064 1,316 1,550 1,088 2016 1,222 806 1,088 1,268 1,520 1,047
Source: Australian Bureau of Statistics, 2012b; 2017e.
TABLE 37: THE NUMBER OF FIRMS IN EACH EMPLOYEE SIZE CATEGORY IN EACH YEAR, 2009 TO 2016
Year Non- 1-4 5-19 20-199 200+ employing Employees Employees Employees Employees 2009 3,550 1,860 1,527 911 17 2010 3,548 1,875 1,512 890 33 2 011 3,430 1,849 1,530 723 15 2012 3,314 1,834 1,556 811 27 2013 2,967 2,005 1,593 542 34 2014 3,106 2,016 1,575 544 9 2015 3,105 1,982 1,497 539 9 2016 3,043 1,957 1,467 520 9
Source: Australian Bureau of Statistics, 2012b; 2017e.
98 FIGURE 49: THE NUMBER OF MANUFACTURING FIRMS IN EACH STATISTICAL AREA LEVEL 2 OF GREATER PERTH WITH THE TOP 20 LOCATIONS HIGHLIGHTED, 2016
Source: Australian Bureau of Statistics, 2017e.
99 PERTH AS A RESILIENT ECONOMY
TABLE 38: CONCENTRATION OF MANUFACTURING FIRMS BY GREATER PERTH LOCATION, 2016
Rank (2016) SA2 Number of Firms 1 Madeley - Darch - Landsdale 346 2 Malaga 329 3 Perth City 287 4 Osborne Park Industrial 182 5 Welshpool 181 6 Bayswater - Embleton - Bedford 180 7 Bibra Industrial 167 8 Maddington - Orange Grove - Martin 162 9 Canning Vale Commercial 123 10 Balcatta - Hamersley 109 11 Fremantle 104 12 O’Connor (WA) 92 13 Belmont - Ascot - Redcliffe 81 14 Stirling - Osborne Park 80 15 Bassendean - Eden Hill - Ashfield 78 16 Rockingham 76 16 Willetton 76 16 Morley 76 19 East Victoria Park - Carlisle 72 20 Swan View - Greenmount - Midvale 68
Source: Australian Bureau of Statistics, 2012b; 2017e.
The importance of the The sectors where • Increased digitisation of resources industries is manufacturing is procedures and systems evident with the emergence maintaining market to improve productivity of a highly skilled advanced presence include: and lower production manufacturing service primary metal products, costs; and and support sector, with predominantly alumina • Specialised knowledge specialised knowledge and production; downstream and machinery geared expertise in engineering processing of oil and gas towards the mining and and other areas related to including chemicals and agricultural industries. energy and minerals. fertilisers; niche high‑quality food and beverage There are emerging links An example is Perth products; and machinery between the manufacturing CBD‑based Minnovare and equipment production, and the professional and Pty Ltd which developed primarily directed at the technical services industries, Azimuth Aligner, a agriculture and resources particularly with the leading drill rig alignment industries (CCI WA, 2015). introduction of sophisticated technology for mining The manufacturing areas technologies in automation and construction which that are growing include: and process engineering. produces faster, cheaper • New technologies to do Thus, while the labour force and more accurate with automation and is shrinking, the productivity drilling for drill rigs. remote work; capacity grows. In line 100 with higher skilled and TABLE 39: TOP LOCATIONS FOR MANUFACTURING FIRMS, higher productivity trends, 2009 AND 2016 the number of large manufacturing firms with 2009 2016 more than 200 employees, 1 Malaga 1 Madeley-Darch-Landsdale declined over time, as did 2 Perth City 2 Malaga firms with 20-199 employees. 3 Madeley-Darch-Landsdale 3 Perth City 4 Welshpool 4 Osborne Park Industrial Based on the number of 5 Bayswater-Embleton-Bedford 5 Welshpool manufacturing firms, the top locations for this industry for Source: Australian Bureau of Statistics, 2012b; 2017e. 2009 and 2016 are identified in Table 39.
Food processing The future of WA Food processing is manufacturing needs classified as part of the innovation through research manufacturing industry. and development (R&D) The main metropolitan to compete in a global food production areas, market. Low levels of R&D Wanneroo, Kwinana, Swan, investment in Western Armadale and Kalamunda, Australia have led to an are all under increasing industry structure of small threat of urbanisation. businesses with a weak Many traditional food ability to spend capital on industries that were based R&D and non-production in the Perth metropolitan activities. In 2014, Western area are transitioning to the Australian manufacturers peri-urban Peel Food Zone spent only 2.9% of the or to regional WA. industry’s output in 2011-12 on R&D, or $348 million (CCI Innovation in agriculture WA, 2015). This is lower than and agribusiness is the national benchmark of increasingly prominent 4.3% of industry output, or in the Peel region. The $4.5 billion (CCI WA, 2015). emphasis on high-end, high-value agriculture and food production is driving innovation, investment and research, particularly through the establishment of the Peel Food Zone and the Peel Peri-Urban Strategic Economic and Environmental Initiative (PSEEI).
101 PERTH AS A RESILIENT ECONOMY
Photo by Colin Wimbridge, Passion for Perth Photographic Competition. Source: Committee for Perth, 2016.
Tomatoes, Carabooda Perth Airport T1. Source: Courtesy of Perth Airport Pty Ltd. Market Garden, Carabooda. Source: Courtesy of City of Wanneroo.
102 CONCLUSION
Since World War II, Greater ago, retail was the most some of Australia’s most Perth has transformed important employer in important trading partners from a small city on the Perth but now the services is advantageous. For the nation’s western edge industry dominates. This emerging industries such with a modest economy, report shows that tourism, as tourism, education and largely dependent on health, education and training, Asia is likely to be agriculture and mining for the creative industries are an important business link. export income and wealth all emerging, not only as generation. Without a large important employment This FACTBase Special population base, Perth industries in the future but Report shows that despite struggled to maintain an also as industries which exponential economic industry base and until the will propel future growth. and social growth over a 1970s, Commonwealth Innovators and industries relatively short period, the grants were an important that harness creativity, the economy of Greater Perth source of infrastructure and knowledge economy and has performed well on a development funding. with global connections, range of indicators, and has are likely to be at the demonstrated resilience, Even though the population forefront of Greater Perth’s despite considerable global of Perth has more than economy in the future. economic disruption over quadrupled since World the same period. Taking a War II and it is now a Perth has become a hub long-term view, there are globally connected city, for capital investment, few signs to show that the with a vibrant social life, the corporate management Greater Perth economy is resources and agriculture and control, and flows one that teeters from boom industries continue to play a of labour. An ageing to bust. This report provides significant role in the Perth population however the evidence for why the economy. The 1960s mineral presents a challenge Perth economy has been a boom and the most recent for the Greater Perth success, and with the right boom, which began in economy in the future, but policy settings will continue about 2001 and lasted more a challenge which can be to do so into the future. than a decade, were the met with proactive policy catalyst for extraordinary and strategy. Perth has population growth and historically attracted a urban development in significant proportion of its Greater Perth. Strategic population from elsewhere policies and investment and it is important that it by the public and private continues to draw working sectors have propelled aged people for workforce Greater Perth to be an renewal, and to maintain its attractive place to live, vibrancy and currency. work and visit. In the past 70 years, Perth’s Significantly, the industries business orientation has which have driven shifted to Asia. The proximity economic development in to Asia, and in particular, Perth are not the biggest its geographic location employers. Until 10 years in the same time zone as 103 PERTH AS A RESILIENT ECONOMY
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AUSTRALIAN BUREAU OF CHAMBER OF COMMERCE COMMONWEALTH BUREAU OF STATISTICS 2017h. Residential AND INDUSTRY OF WESTERN CENSUS AND STATISTICS 1954. Property Price Indexes: Eight AUSTRALIA (CCIWA) 2015. Census of The Commonwealth Capital Cities. (Cat. 6416.0). Future of Manufacturing: A of Australia, Commonwealth Canberra. Australian Bureau visions for WA. Perth: Chamber Bureau of Census And of Statistics. of Commerce and Industry of Statistics, Canberra. Western Australia. BATTELLINO, R. 2010. Mining COMMONWEALTH BUREAU booms and the Australian CITY OF PERTH 2016. Perth City OF CENSUS AND STATISTICS economy: Address to the Snapshot 2016. Available from: 1955. Statistical Register of Sydney Institute. Reserve Bank https://www.perth.wa.gov.au/ Western Australia 1955. Perth. Bulletin. Canberra: Reserve sites/default/files/documents/ Commonwealth Bureau of Bank of Australia. Perth%20City%20Snapshot%20 Census and Statistics. 2016_0.pdf. [25 August 2017]. BLACK, D. 1981. Liberals COMMONWEALTH BUREAU OF triumphant – The politics of CITY OF PERTH 2007. Perth’s CENSUS AND STATISTICS 1961. development 1947-1980. In: Creative Industries – An Analysis Census of The Commonwealth STANNAGE, C. T. (ed.) A New 2007, City of Perth, Department of Australia, Commonwealth History of Western Australia. of Culture and the Arts, Bureau of Census And Perth: University of Western Department of Industry and Statistics, Canberra. Australia Press. Resources, and Department of the Premier and Cabinet. COMMONWEALTH BUREAU OF BRAND, D. 1959. State Available from: http://www. CENSUS AND STATISTICS 1966. development policy speech. cci.edu.au/sites/default/ Census of The Commonwealth In: COUNCIL, L. (ed.). Perth: files/alawrence/Perth%27s_ of Australia, Commonwealth Battye Library. creative_industries.pdf. [12 Bureau of Census And September 2017]. Statistics, Canberra. BUREAU OF RESOURCES AND ENERGY ECONOMICS COMMITTEE FOR PERTH 2014. COMMONWEALTH BUREAU OF 2012. Resources and Energy What We Thought Would Kill CENSUS AND STATISTICS 1971. Quarterly—March quarter 2012. Us, Case Study 4: Perth Arena. Census of The Commonwealth Canberra: Bureau of Resources Available from: https://www. of Australia, Commonwealth and Energy Economics. committeeforperth.com.au/ Bureau of Census And assets/documents/What- Statistics, Canberra. CAUNT, H. 2013. Memory and wethought-would-kill-us-Perth- the migrant story: a comparison Arena-FINAL-electronic.pdf. COMMONWEALTH BUREAU OF of two studies of British migrants [8 November 2017]. CENSUS AND STATISTICS 1981. arriving in Western Australia in Census of The Commonwealth the 1960s. PhD, The University of COMMITTEE FOR PERTH 2017. of Australia, Commonwealth Western Australia. Keys Facts About Perth and Bureau of Census And Western Australia FACTSheet Statistics, Canberra. CASSELLS, R., DUNCAN, A. No. 11, The University of Western & GAO, G. 2014a. Sharing Australia and Committee for COSTELLO, G. & ROWLEY, S. the Boom: The distribution of Perth. Available from: https:// 2010. The impact of land supply income and wealth in WA. www.committeeforperth. on housing affordability in the Focus on Western Australia com.au/assets/documents/ Perth metropolitan region. Report Series. Bankwest Curtin FACTSheet-11-Key-Facts-About- Pacific Rim Property Research Economics Centre. Perth-and-WA-September-2017. Journal, 16, 5-22. pdf. [18 September 2017].
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106 DAVIS, G. 2016. The Relationship DEPARTMENT OF MINES AND GEHL ARCHITECTS 2009. Public between Transport, Spatial PETROLEUM 2011. Western Spaces Public Life Perth Form and Economic Growth. Australian Mineral and 2009. City of Perth and the A comparison and analysis of Petroleum Statistics Digest Department for Planning and Sydney, Melbourne and Perth. 2010, Government of Western Infrastructure. Available from: FACTBase Bulletin 51. Perth: The Australia. Available from: https://www.planning.wa.gov. University of Western Australia http://www.dmp.wa.gov.au/ au/publications/1141.aspx. and the Committee for Perth. Documents/About-Us-Careers/ AboutUs-StatisticsDigest_2010. GHOSH, R. 1981. Economic DAVIS, G. 2017a. Sizing and pdf. [5 October 2017]. development and population mapping higher education growth in Western Australia and vocational education DEPARTMENT OF MINES AND since 1945. In: STANNAGE, C. T. and training in Perth and Peel. PETROLEUM 2015. Western (ed.) A New History of Western FACTBase Bulletin 52. Perth: The Australian Mineral and Australia. Nedlands: University University of Western Australia Petroleum Statistics Digest 2014- of Western Australia Press. and the Committee for Perth. 15. Government of Western Australia. Available from: FRINGE WORLD 2017. FRINGE DAVIS, G. 2017b. Sizing Tourism http://www.dmp.wa.gov.au/ WORLD Festival 2017 Impact in Western Australia. FACTBase Documents/About-Us-Careers/ Report. Available from: https:// Bulletin 55. Perth: The University Stats_Digest_2014-15.pdf. www.fringeworld.com.au/. of Western Australia and the Committee for Perth. DEPARTMENT OF MINES, HASLAM MCKENZIE, F. 2016. INDUSTRY REGULATION AND Boom: Boon or doom? In: DAVIS, G. 2017c. Sizing Ageing SAFETY 2017. 2016-17 Economic BIERMANN, S., OLARU, D. in Western Australia. FACTBase indicators resources data. & PAUL, V. (eds.) Planning Bulletin 56. Perth: The University Government of Western Boomtown and Beyond. Perth: of Western Australia and the Australia. Available from: http:// UWA Publishing. Committee for Perth. www.dmp.wa.gov.au/About- Us-Careers/Latest-Statistics- HIGGS, P, CUNNINGHAM, S, DELOITTE 2013. Positioning for Release-4081.aspx#toc_17812. PAGAN, J 2007. Australia’s Prosperity: Catching the next Creative Economy: Definitions wave. Sydney: Deloitte. DEPARTMENT OF SPORT AND of the Segments and Sectors, RECREATION 2009. More ARC Centre of Excellence DELOITTE ACCESS ECONOMICS Than Winning: The real value for Creative Industries & 2016. The value of international of sport and recreation in Innovation (CCI). Available education to Australia. Western Australia, Department from: http://eprints.qut.edu.au/ Canberra: Australian of Sport and Recreation archive/0008242/. Government Department of Western Australia. Available Education and Training. from: https://www.dsr. JOHN CURTIN INSTITUTE wa.gov.au/support-and- OF PUBLIC POLICY (JCIPP) advice/researchand- DEPARTMENT OF CULTURE 2016. Western Australia’s policies/more-thanwinning. AND THE ARTS 2013. Creative International Education Sector. [13 September 2017]. Industries Statistical Analysis for Bentley: Curtin University. Western Australia, Government of Western Australia. DEPARTMENT OF STATE KPMG FOR THE MINERALS DEVELOPMENT 2015. Western COUNCIL OF AUSTRALIA Australian Economic Profile DEPARTMENT OF LOCAL 2013. Analysis of the long 2014. Perth: Department of GOVERNMENT, SPORT AND distancecommuter workforce State Development. CULTURAL INDUSTRIES 2017. across Australia. Canberra: Community Sporting and Minerals Council of Australia. DEPARTMENT OF TREASURY Recreation Facilities Fund (CSRFF), Government of 2014. The structure of the LEE, D. 2013. Reluctant Western Australia. Available Western Australian economy. relaxation: The end of the iron from: https://www.dsr.wa.gov. Perth: Government of ore export embargo and the au/funding/facilities-(csrff). [15 Western Australia. origins of Australia’s mining September 2017]. boom, 1960–1966. History Australia, 10, 149-170.
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LEWIS-GRAY, E 2015. Industry OFFICE OF THE CHIEF SENATE OF THE AUSTRALIAN Growth Centres and the ECONOMIST 2015. Resources PARLIAMENT 2017. Future of METS Sector, Department and Energy Quarterly. Australia’s aged care sector of Industry and Science. Canberra Department of workforce. Canberra, The Available from: https:// Industry and Science. Australian Parliament. www. cmewa.com/policy- andpublications/policy-areas/ PEEL DEVELOPMENT SPILLMAN, K. 1993. A Rich economic-competitiveness/ COMMISSION 2015. Peel Winter/ Endowment: Government and preview?path=Industry- Spring 2015 Magazine, Peel Mining in Western Australia growthcentres-METS-sector.pdf. Development Commission. 1829-1994, University of Western [12 July 2017]. Available from: http:// Australia Press, Perth. www.peel.wa.gov.au/wp- MACLACHLAN, I. 2013. Kwinana content/uploads/2015/09/ STEPHENSON, G & HEPBURN, J Industrial Area: agglomeration Peelmagazine-July_15_LR.pdf. 1955. Plan for the Metropolitan economies and industrial [13 July 2017]. Region, Government of symbiosis on Western Australia’s Western Australia. Available Cockburn Sound. Australian PUBLIC SECTOR COMMISSION from: https://www.planning. Geographer, 44(4), 383-400. 2017. State of the sectors. wa.gov.au/5485.aspx. Perth: Government of MARKHAM, N, BARKER, T, Western Australia. ST GEORGE BANK 2016. WALKER, J, VAN DALEN, J, State Economic Outlook: KRUGER, M & CACIOPPE, J PWC 2017a. Economic profileof WA Economic Outlook, St 2016. Startup Ecosystem Report Greater Perth. Canberra: PwC George Bank. Available Western Australia 2015-2016, Geospatial Economic Model from: https://www.stgeorge. StartupWA. Available from: (GEM), PwC. com.au/content/dam/stg/ http://www.startupwa.org. downloads/report-centre/ PWC 2017b. 10 Retailer WA%20Economic%20 MARTINUS, K. & SIGLER, T. 2016. Investments for an Uncertain Outlook%20June%202016.pdf. Boomtown globalising: Perth as Future, PwC. Available from: [16 August 2017]. an internationally connected https://www.pwc.com/gx/en/ resource hub. In: BIERMANN, industries/assets/totalretail-2017. TONTS, M., HUDDLESTON, V., S., OLARU, D. & PAUL, V. (eds.) pdf. [25 August 2017]. MAGINN, P.J., HUDDLESTON, P. Planning Boomtown and & WETZSTEIN, S. 2012. Perth as Beyond. Perth: UWA Publishing. QUICK, GR 2006. Australian a global minerals and energy Tractors: Indigenous Tractors resources hub, a FACTBase MEASHAM, T., HASLAM and Self-propelled Machines Special Report. The University MCKENZIE, F., MOFFAT, K. & in Rural Australia. Kenthurst: of Western Australia and FRANKS, D. 2013. An expanded Rosenberg Publishing. Committee for Perth, Perth. role for the mining sector in Australian society? Rural QUILLFELDT, A & DONG, J 2014. TOURISM COUNCIL 2015, Society, 22, 184-194. CBD Retail: The transformation Perth Stadium: Economic and outlook, Jones Lang Game Changer, Tourism METROPOLITAN REGION LaSalle. Available from: http:// Council Western Australia. PLANNING AUTHORITY 1970. www.jll.com.au/australia/ Available from: http://www. The corridor plan for Perth. en-au/Research/Pulse%20 tourismcouncilwa.com.au/ Available from: State Library of -%20CBD%20Retail%20The%20 sites/default/files/policy-pdfs/ Western Australia. Transformation%20and%20 TCWA0141-Perth-Stadium- Outlook%20May%202014. Economic-Game-Changer- NATIONAL CENTRE FOR pdf?59b26d94-197a-489d-8441- Document-FINAL.pdf. VOCATIONAL EDUCATION 7d6b73cd78af. [24 August 2017]. [15 September 2017]. RESEARCH 2016. Vocational Education and Training (VET) REAL ESTATE INSTITUTE OF Total VET students and Courses WESTERN AUSTRALIA 2015. goo.gl/v4fsr9. Perth house prices 1974-2013. Perth: Real Estate Institute of Western Australia.
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WESTERN AUSTRALIAN TECHNOLOGY AND INDUSTRY ADVISORY COUNCIL 2000. Drivers and shapers of economic development in Western Australia in the 21st century. Perth: Western Australian Technology and Industry Advisory Council.
ACKNOWLEDGEMENTS
The authors acknowledge the assistance provided by the following individuals in the preparation of this report:
Ms Mariana Atkins, Ms Lisa Kazalac, The University of Committee for Perth Western Australia Ms Cate Pattison, Mr Lucas Carmody, Researcher and PwC, Canberra Office community historian
Mr Justin Carroll, Ms Georgia Harford-Mills, PwC, Perth Office Committee for Perth
Mr Graham Harvey, Staff at the Battye UniPrint, The University State Library of Western Australia
109 PERTH AS A RESILIENT ECONOMY
ABOUT THE AUTHORS
Matthew Tonts Fiona Haslam McKenzie Jessica Legendre
Matthew is Pro Vice- Fiona is Professor of Jessica has a Bachelor Chancellor and Executive Geography and the co- of Science majoring in Dean, Faculty of Arts, director of the Centre for Geography and also Business, Law and Regional Development at Human Geography and Education at The University The University of Western Planning from The University of Western Australia. Australia. Her research of Western Australia. She His research is focused interests are regional was the recipient of the on urban and regional economic development Arthur Conacher Prize for development, with much of and the analysis of remote, Outstanding Geography his recent work concerned regional and urban socio- Student in 2016. She will with the shifting geography economic indicators. She commence a Master of of corporate power, is currently researching the Urban Planning in 2018. spatial labour markets and socio-economic impact of economic development different regional workforce and regional policy. arrangements and uneven economic development in Western Australia.
110 BIGGER & BETTER BEYOND THE BOOM STEERING COMMITTEE
Steering Committee Chair: Steering Committee David MacLennan, Assistant Justin Carroll, Managing Deputy Chair: Nadia van Director General of Policy Partner, PwC Dommelen, Partner, PwC and Priority Initiatives, Department of Planning, Justin is the Managing Nadia van Dommelen Lands and Heritage Partner of PwC’s Perth is a Partner in PwC’s office. During his 26 years Infrastructure and Urban David MacLennan joined with the firm, he has worked Renewal practice with the Department of Planning in their Singapore, London over 20 years of industry in March 2015. and Sydney offices, with experience focused a focus on corporate in project direction of He is an experienced governance, financial building and infrastructure public sector leader and reporting assurance and projects. She has five years’ served in various roles technical accounting experience in structural in the Commonwealth advice in both the public design and a further five Government in Australia and private sectors. Justin years’ experience working and overseas. This includes was previously the leader for a pre-eminent global diplomatic postings with of the Perth Assurance construction contractor. the Department of Foreign practice and continues Affairs and Trade (DFAT) in to lead the audits of Nadia is a member of the London, Lima, Mexico City several major Western Development Committee and Papua New Guinea. Australian organisations of HeartKids Australia and and subsidiaries of large a volunteer mentor for Prior to joining the international groups. STEM programs aimed at Department of Planning, developing problem solving Mr MacLennan held the Justin is also a director of and other 21st century position of Head of the St John of God Health Care skills, and inspiring and Political and Economic and The University of Notre encouraging uptake of Branch at the Australian Dame Australia and chairs STEM subjects. High Commission in London. the University’s Finance, Prior to that, Mr MacLennan Audit and Risk Committee. She holds a Bachelor of was DFAT’s State Director in Engineering (Civil and Western Australia. Construction) from Curtin University and is an Affiliate He holds a Masters in of the Institute of Chartered Management from Accountants, Australia & the Australian National New Zealand. University and a Bachelor 111 PERTH AS A RESILIENT ECONOMY
of Arts from The University of Western Australia.
In his current role, Mr MacLennan provides strategic direction for land use and infrastructure planning, policy and projects in Western Australia. Jay Watson, State General Liz Ritchie, Regional General Manager, Westpac Banking Manager, Westpac Banking Corporation Corporation
Jay is a career banker, Liz Ritchie has national having worked for Westpac responsibility for commercial for more than 37 years. Jay banking in all regional has been fortunate to have areas of Australia, including worked in every State and a lead role in Westpac’s Territory in Australia, and Indigenous partnerships. Fred Chaney, Western has the benefit of honing Prior to joining Westpac, Liz Australian Planning his banking skills through was the State Director for Commission diverse geographies CEDA in Western Australia. and industries. Fred Chaney is an architect Liz is a passionate who has worked in the UK, Jay takes an active interest spokesperson on the Middle East, South East in the future direction of gender issues and their Asia and Australia. Western Australia and is impacts on society, and active with the Committee regularly contributes as a In addition to his work as a for Perth and its present conference speaker. practising architect, Fred project Bigger and Better has held board positions Beyond the Boom, working Liz sat on the Committee for with numerous industry and to build strategies and Perth’s Steering Committee advocacy groups including recommendations in for their ground breaking the Green Building Council regards to broadening the gender study, Filling the of Australia, the Australian economy of WA. Previously Pool. In 2014 and 2015, Liz Institute of Architects he was a member of Filling was also the Co-Chair of and the WA Museum the Pool, a deep dive on Anti-Poverty Week in WA Foundation. His recent gender imbalance and and is heavily engaged appointment to the state’s strategies to improve in raising awareness and peak planning body, the career opportunities for the education of widespread Western Australian Planning female workforce. disadvantage and poverty. Commission, reflects his keen Liz was a 2015 40 Under 40 interest in the relationship Additionally, for the past Winner, recognised for her between planning, three years he has been contribution to business and environmental outcomes, involved with Chamber the community. urban development and of Commerce WA and its economic opportunity. Business Advisory Board.
He is the current Chairman of UWA’s Australian Urban Design Research Centre. 112 David Fisher, Chief Rebecca Tomkinson, Nicholas Ozich, Regional Operating Officer, Juniper Executive Director – Aged Director – Property and Care Services, MercyCare Development, Brookfield David is a highly innovative, results driven and Rebecca has a diverse Nick is responsible for the achievement orientated professional background property and development Executive Business Services that includes government activities of Brookfield / Chief Operating Officer relations, strategic policy Property Partners in (Deputy CEO) ex Group development, social Western Australia, currently Financial Director, who advocacy and stakeholder Perth’s largest commercial holds a Bachelor of management, together landlord. Accounting Science with delivering key business (Honours) and various growth initiatives in the Prior to his current role with other qualifications. government and non- Brookfield, Nick worked for He is recognised by CPA government sectors. Multiplex and Lend Lease Australia as compatible, both in Australia and the supplemented by more Prior to joining MercyCare, UK, gaining an appreciation than 25 years of post- she was the Chief Operating for the impact high-quality graduate experience in Officer for BaptistCare, property developments can business, with the ability developed corporate social have on a city’s culture. to demonstrate a track responsibility initiatives for record of success in small to Bankwest and was Director Since returning to his large organisations across of Government Relations for hometown of Perth, Nick Property Management, UnitingCare Australia. has been able to put Intellectual Property, this passion into action, Information Technology and Ms Tomkinson is a fellow playing a key role in the Aged Care Industries. of Leadership WA and development of the award has more than 15 years’ winning Brookfield Place He is a current member experience working precinct, and is currently of Chartered Secretaries with private companies overseeing a number of Australia (CSA), following and national and local large scale office, retail and the completion of a government organisations mixed use developments Certificate in Governance providing strategic planning in Perth’s CBD at various for Not-for-Profits advice, managing business stages of construction and the Graduate development initiatives and and planning. Diploma of Applied building communication Corporate Governance. and marketing strategies.
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signed by the Governments of Western Australia and Andhra Pradesh.
Daniel Simms, David McCulloch, General Chief Executive Officer, Manager, Industry and City of Wanneroo Investment, Department of Jobs, Tourism, Science Daniel Simms is the Chief and Innovation Shaun Griffin, Managing Executive Officer at Director, Ipsos Australia the City of Wanneroo – David’s career has been Pty Ltd Western Australia’s fastest almost exclusively in growing local government international business, Shaun is an accomplished authority. He has extensive investment attraction, commercial manager experience in local exports, major with 20 years’ experience government in both events and industry working across a range of metropolitan and regional development. Presently local, regional and global Western Australia, working he is General Manager, roles spanning consulting, across many disciplines Industry & Investment, research, strategy, planning including planning and in the Department of and analytics. development, finance and Jobs, Tourism, Science administration, governance and Innovation. In recent years, Shaun has and strategic planning. occupied senior roles in David has responsibility digital, running strategy Daniel holds a Bachelor for several priority and digital marketing of Applied Science and sectors including energy for businesses in the a Graduate Diploma and mining, and their financial services and in Business in Local respective equipment, consulting sectors. Government Management technology and service from Deakin University. sectors. Other sectors As General Manager of He is Chairman of the include infrastructure, Ipsos Perth, Shaun is working Growth Alliance Perth financial services and to help clients understand and Peel Policy Forum, aviation. He is Western how to capitalise on the Executive Member of the Australia’s representative commercial and social National Growth Areas on the National Investment opportunities of a post- Alliance and a member Advisory Board (NIAB) and boom Perth market. of the Infrastructure is Chair of the Resources Coordinating Committee & Energy Working Group With a diversity of skills (Western Australian which reports to NIAB. and experience across Planning Commission). sales, marketing, strategy, He managed Western analytics, operations, Australia’s trade office in e-commerce and IT, he has Mumbai from January – a unique understanding April 2015, and has been of the challenges facing actively involved in the Sister business and government State Agreement recently in the digital age. 114 University. He also holds and innovation networks qualifications in project and is a highly effective and change management communicator with a deep and is an alumni of the commitment to diversity, Leadership WA Signature inclusion and innovation. Leadership Program. Mark is a Board member or advisor to several UWA ventures and actively Andrew Zell, Executive engaged in the innovation Manager Advocacy and ecosystem in Perth. Mark Policy, Real Estate Institute is a thought leader and of Western Australia (Inc) advocate for Perth’s regional role as an energy Andy Zell is Executive city and innovation hub. Manager of Advocacy and Policy at the Real Mark Stickells, Director of Estate Institute of Western Business Development and Australia (REIWA), where Innovation, The University of he is responsible for policy, Western Australia advocacy, economics, and external relations. Mark Stickells is the Director of Business Development Prior to joining REIWA, Andy and Innovation at The spent 11 years in the State University of Western Tony Monaghan, public service undertaking Australia and leads Manager – Corporate a variety of commercial, the development and Communications, regulatory and social policy stewardship of university The Brand Agency roles across portfolios. His partnerships with last appointment was with industry, the not-for profit Tony is the Manager of the Housing Authority (now sector, governments Corporate Communications part of the Department of and communities. at The Brand Agency. Communities) as Manager He has more than 28 years’ of Policy and Evaluation. Mark is an experienced experience as a journalist, executive and company political advisor and Andy is the Chair of the director with more than 20 corporate communications Willetton Primary School years’ experience working consultant. He worked Board and Vice-President of in joint ventures, R&D and for ABC TV, Channel 9, the Willetton Football Club. collaborative industry Channel 7 and was Head of He was previously the Chair research programs. He News for the Mirror Group of West Australian Music has expertise and passion TV in London. While working (WAM) and Councillor the for energy and resource for State Government, he WA Branch of the Institute of sector innovation and was a media advisor, chief Public Administration. former roles include Director of staff and principal policy of UWA’s Energy and advisor for the Department Andy completed a Post Minerals Institute and Chief of Premier and Cabinet. Graduate Diploma in Executive of the WA Energy City Policy from Murdoch Research Alliance. University and a Bachelor of Arts in History and Policy Mark has extensive national from San Francisco State and international industry 115 PERTH AS A RESILIENT ECONOMY
make arts and culture Lisa’s career has spanned part of the everyday lives 10 years in the Victorian of Western Australians public sector, where she • Filling the Pool, a gender developed and oversaw equality report aimed at public policy development growing the number of across a wide range women participating and of industries, including: progressing in corporate transport infrastructure, Marion Fulker, CEO, life in Perth social and public housing, Committee for Perth • Fremantle as a regulation of the heavy reconnected city which vehicle industry and social Marion Fulker is the details the opportunities policy issues, including the inaugural Chief Executive for the future of the ageing population. of the Committee for Fremantle region. Perth Ltd. She took up the • Get a Move On!, Lisa moved to WA five position in January 2007 the Committee’s years ago and has held having previously been current transport and two positions in WA’s the Executive Director of congestion project. corporate environment the Urban Development with CCIWA and REIWA, Institute of Australia (UDIA) leading the advocacy and WA Division. Marion is an research agenda for the Adjunct Senior Research property industry. Fellow at The University of Western Australia She brings a passion for and holds an MBA from public policy, evidence- Curtin Graduate School based research and is keen of Business. Aside from to influence decision makers leading the Committee, Lisa Kazalac, Manager, for a more prosperous WA. Marion is the Chair of Research & Policy, the Conservation & Committee for Perth Parks Commission and a professional representative Lisa Kazalac is the Manager on the state’s Infrastructure of Research and Policy at Coordinating Committee. the Committee for Perth. In her role Lisa oversees As an evidenced based the development and organisation, Marion has publication of research led a number of landmark and public policy positions Georgia Harford‑Mills, Committee for Perth which help to shape the Research Officer, research projects which future of Perth and Peel. Committee for Perth have resulted in reports such as: Trained as an economist Georgia is a Research • Towards a Bright Future at RMIT University, Lisa Officer for the Committee which outlines two graduated with upper for Perth, joining the scenarios for Perth as second class honours, and organisation in 2014. She a region of 3.5 million has recently graduated holds a Bachelor of Science, people from Curtin University Geography and received • A Cultural Compact, the with an MBA. First Class Honours in Urban 10 year challenge which and Regional Planning from articulates a vision to The University of Western 116 Australia. In addition, Georgia received the 2015 Patrick Armstrong Prize in Geography for her research thesis.
To date, she has been involved in researching and coordinating a number of Committee for Perth projects including the landmark Get a Move On! report and the What We Thought Would Kill Us series. She is also responsible for coordinating the annual FACTBase Research program and the Committee’s Working Groups and Project Steering Committees.
117 PERTH AS A RESILIENT ECONOMY
COMMITTEE FOR PERTH MEMBERSHIP GOLD MEMBERS
CONSULT ING GROUP
SILVER MEMBERS
118 BRONZE MEMBERS
Aboriginal Productions John Holland ACIL Allen Consuling Jones Lang LaSalle Amana Living Lendlease APP Corporation Lester Group Arcadis Lux Events Arup Marketforce Advertising Ashurt MercyCare Built Monadelphous Group Cannings Purple Navitas Cedar Woods Properties North West Shelf Australia LNG Churchill Consulting Peet Limited City of Armadale Perron Investments City of Canning Perth Theatre Trust City of Fremantle Programmed Group City of Gosnells Ramsay Health Care City of Rockingham Real Estate Institute of Western Australia City of South Perth RobertsDay City of Stirling SAP Australia City of Subiaco Savills Australia City of Wanneroo Screenwest Clifford Chance Silver Chain Group Cox Howlett & Bailey Woodland Southern Cross Austereo DBNGP St John Ambulance WA DEXUS Property Group St John of God Health Care FJM Property Stockland Frasers Property Town of Victoria Park Gold Corporation TPG + Place Match Hames Sharley Uber HASSELL Urbis HopgoodGanim Western Australian Cricket Association Jackson McDonald Woods Bagot Jacobs WSP JAXON
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This report is copyright of The University of Western Australia and the Committee for Perth. While we encourage its use, it should be referenced as:
Tonts, M., Haslam McKenzie, F. and Legendre, J. (2017) Perth as a resilient economy, a FACTBase Special Report, The University of Western Australia and Committee for Perth, Perth.
Committee for Perth Disclaimer The information contained in this publication is provided for information purposes only and is not intended to address the circumstances of a particular individual or entity. Unless otherwise stated, the information has been drawn from a number of sources current as at the date of this publication. To the extent this publication contains any statement as to a future matter, that statement is provided based on the information available to the Committee as at the date of this publication. The Committee is not under any obligation to update any information contained in this publication. No representation or warranty, express or implied, is made by the Committee as to the completeness, accuracy, reliability, currency or correctness of the information. While the Committee has made all reasonable efforts to ensure the accuracy of the information, to the maximum extent permitted by law, the Committee and any party involved in creating or producing this publication and each of their officers, directors, employees, agents and advisers expressly disclaim any responsibility for the accuracy or completeness of the material in this publication and exclude all liability (however caused, including by negligence) for any loss or damage arising from any use of or reliance on the information, including any error or omission there from, or otherwise arising in connection with it. No one should rely on this information as a substitute for professional advice. For further information on the FACTBase project, contact:
Marion Fulker CEO, Committee for Perth T: (08) 9481 5699 E: [email protected]
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