Mount Alexander Shire Council ECONOMIC DEVELOPMENT STRATEGY AND PROFILE AUGUST 2013 Research for this document was undertaken by Street Ryan and Associates Pty Ltd (Certified AS/NZS ISO 9001) Economic Development Strategy and Profile CONTENTS 1. INTRODUCTION 2 1.1 Background 2 1.2 Project Objectives and Activities 4 1.3 Key Project Activities 4 1.3 Geographic Boundaries 5 2. FACTORS SHAPING THE MOUNT ALEXANDER COMMUNITY 6 2.1 Economic Development History 6 2.2 National Industry and Employment Trends 14 2.3 Broad Local Trends and the Regional Environment 17 3. COMMUNITY AND ECONOMIC PROFILE 20 3.1 Characteristics of the Residential Community 20 3.2 The Shire’s Smaller Townships 25 3.3 Jobs 27 3.4 Visitors to the Shire 33 3.5 Businesses and Business Turnover 35 4. SECTORAL CHARACTERISTICS AND PERFORMANCE 37 4.1 Techniques for Assessing Performance 38 4.2 Primary Sector of the Mount Alexander Economy 40 4.3 Secondary Sector of the Mount Alexander Economy 44 4.4 Tertiary Sector of the Mount Alexander Economy 49 4.5 Quaternary Sector of the Mount Alexander Economy 57 4.6 Quinary Sector of the Mount Alexander Economy 61 5. BUILDING ON THE PAST AND GUIDING THE FUTURE 71 5.1 Where We Are Now – Key Conclusions 71 5.2 Where We Could Be – Scenarios for the Future 75 5.3 The Policy and Planning Context and New Approaches 77 6. STRATEGY FRAMEWORK 80 6.1 An Economic Development Vision for Mount Alexander 80 6.2 Economic Development Strategies 81 6.3 Council Implementation of the Economic Development Strategy 81 6.4 Mount Alexander Shire’s Economic Development Strategies 82 APPENDIX A: Industries by Sector 88 APPENDIX B: Location Quotients by Industry and Sector, 2011 89 APPENDIX C: Shift and Share Analysis by Industry and Sector, 2006 to 2011 90 APPENDIX D: Target Market Segment Characteristics 91 APPENDIX E: Sectoral Issues 92 1. INTRODUCTION 1.1 BACKGROUND Mount Alexander had a 2011 population of Mount Alexander also supports: 17,803 and is currently ranked 66th for municipal population growth in Victoria. The Shire’s » A well known hot rod/street rod sector, which average annual growth rate over the past decade is manifested in body works, magazines/ has been 0.4%. Castlemaine is the Shire’s main publishing houses, restoration works, urban centre (with a very large manufacturing automotive electricians, and component base and an emerging reputation for both manufacturers throughout the Castlemaine arts and sustainability issues). There are two district. Castlemaine is the self-proclaimed other significant towns in the Shire; Maldon (a Street Rod Capital of Australia. well preserved historic gold mining town) and » Important elements of Victoria’s gold mining Harcourt (a service centre for Victoria’s largest history, including “the diggings” heritage area, pome fruit producing district). which form an integral part of the Goldfields/ Central Victoria’s push to be classified as The major employing industries in Mount Australia’s first national heritage region. Alexander Shire are, in order: » Manufacturing (food processing is by far the largest sector) » Health care and social assistance (hospitals is the biggest sector in this industry) » Retail trade (supermarkets is the largest sector) » Education and training (led by primary and secondary education) » Construction (house construction being the dominant sector). Mount Alexander Shire Council 4 Economic Development Strategy and Profile August 2013 1. INTRODUCTION 1.1 Background (continued) Mount Alexander Shire has a current Economic Implementation of the Economic Development Development Framework (prepared by Street Framework led to creation of the Economic Ryan in 2006). This is a strategic and policy and Social Development Directorate and the document which identified the role of Council development of Stage Two of the Wesley Hill in the economic development function. Mount Business Park. An Economic Development Officer Alexander’s economic development framework position was jointly funded through Regional was built around three major objectives Development Victoria and Council from 2007 for Council’s involvement in the economic until 2010, whereby the role then became a development (including tourism) area. permanent full time position within Council. In These were: late 2010, the position of Manager Economic Development and Tourism was also created. The Social Objective: Economic Development Unit has used the policies and objectives contained in the Framework to “To facilitate economic development supporting guide their actions over these years. a balanced socio-demographic structure, by The Shire is currently going through • creating adequate job opportunities considerable transformation as a result of factors • maintaining a level of services and commercial such as the ‘tree change’ phenomenon, growth activity commensurate with the Shire’s lifestyle of Bendigo and the Calder corridor, increasing and cultural attributes”. focus on regional tourism, the vastly improved transport links by rail and road and improved Environmental Objective: telecommunications. It was therefore timely for “To create a regional development competitive an economic development strategy for the Shire edge by explicitly targeting environmentally to be formulated in order review the current friendly enterprises and nurturing an environment and guide the role of Council in environmentally conscious workforce and effectively supporting appropriate development community”. over the next five years. Industry and Business Objectives: Consequently, Council commissioned an Economic Development Strategy project “To support continuing improvement and with the aim; efficiency among existing manufacturing businesses and the emergence of a sustainable niche manufacturing industry sector” “To produce an economic “To facilitate collaboration and diversity in the development strategy for Council Shire’s tourism sector”. to work in partnership with relevant “To ensure the long term retention of a prominent proportion of land dedicated to stakeholders to develop the Shire agriculture and the rural environment as a critical asset and a feature of the Shire’s lifestyle as a desirable location for people and amenity attributes”. to work, live and invest”. “To promote a regional service role, improved service outcomes and greater efficiencies for the Shire’s community, business, personal and recreation services”. Mount Alexander Shire Council Economic Development Strategy and Profile August 2013 5 1. INTRODUCTION (continued) 1.2 PROJECT OBJECTIVES AND » canvassing attitudes and opinions of business ACTIVITIES operators, other members of the community and representatives of government The specified objectives in developing the departments. Structured discussions/ Economic Development Strategy are to: interviews were held with: » Outline the current state of the Shire economy • around 40 individual businesses within the and demographic profile. following sectors ~ Horticultural and agricultural production » Provide an agreed and clear vision for the ~ Food and beverage manufacturing economic development of the Shire that; ~ Machinery and equipment manufacturing • articulates desired economic characteristics ~ Construction and outcomes for the Shire; and ~ Warehousing, transport and distribution • identifies trends and activity that will ~ Professional, technical and scientific influence the Shire’s economy for the services next five years. ~ Retailing and wholesaling ~ Property and financial services » Provide a guide and marketing tool for ~ Art and recreation services prospective businesses and residents of ~ Personal services the Shire. ~ Health services » Ensure consistency with social and ~ Education services environmental objectives of Council. ~ Accommodation and food services, • Taste of Gold Food and Wine Group, » Integrate the strategy with existing Council • Harcourt Valley Fruit Growers, strategies and the functioning of Council. • Mount Alexander Wineries, • Low Food Miles/Growing Abundance Group, » Provide appropriate policies for Council and • Maldon Inc., stakeholders to deliver over the next five years. • Castlemaine Health, » Provide an implementation plan. • Mount Alexander Sustainability Group (MASG), • Castlemaine Art and Historical Trust Committee, 1.3 KEY PROJECT ACTIVITIES • Castlemaine Hot Rod Centre Ltd (CHRC), • Castlemaine and Maldon VICs, This Strategy has been developed within the • Young Entrepreneurs Group, context of Council policies and plans and • Castlemaine Traders Group, broader regional strategic directions, as well • Workspace Castlemaine and Maldon, as national and global economic trends. It has • Goldfields Tourism, involved: • Department of Business and Innovation, » a review of circumstances and events • Department of Planning and Community that have forged the nature and pace of Development, development, changing approaches by • Heritage Victoria. government and other agencies in fostering an extensive process of providing feedback to, economic development, and their impacts on » and seeking input from, the community was the Mount Alexander community, also undertaken. This included workshops and » an assessment of the current structure other forums with: of the Mount Alexander economy and its • the Project Control Group, comparative performance, • The Business and Wider Community (this workshop was attended by 35 an assessment of differing global futures and » representatives of the community), their likely implications for Mount Alexander, • Mount Alexander Shire Councillors, •