Sale and Region Business Opportunities Study Final Report March 2003 Contents Contents..................................................................................................................1 Executive Summary...............................................................................................6 1 Introduction...................................................................................................9 1.1 The Study ................................................................................................9 1.2 The Analysis ............................................................................................9 2 The Regional Economy ..............................................................................10 2.1 Wellington Shire ..................................................................................... 10 2.2 Population ............................................................................................. 10 2.3 Labour Force ......................................................................................... 11 2.3.1 Employment ............................................................................... 11 2.3.2 Occupations ............................................................................... 11 2.3.3 Unemployment ........................................................................... 12 2.4 Sale – A Service Economy...................................................................... 13 2.4.1 Key Characteristics..................................................................... 13 2.4.2 Vulnerability to Change ............................................................... 14 3 Major Industries and Employers...............................................................15 3.1 Key Sectors ........................................................................................... 15 3.2 Major Employers .................................................................................... 16 3.2.1 A Service Focus ......................................................................... 16 3.3 Key Sectors ........................................................................................... 17 3.3.1 Oil and Gas ................................................................................ 17 3.3.2 Agribusiness............................................................................... 18 3.3.3 Timber and Timber Processing .................................................... 20 3.3.4 Aerospace.................................................................................. 20 4 Trends – Population and Employment.....................................................22 4.1 Population ............................................................................................. 22 4.2 Employment ........................................................................................... 24 4.3 Comparing Sale and Regional Victoria..................................................... 28 5 Assessing the Region................................................................................30 5.1 Industry Survey ...................................................................................... 30 5.2 Regional Strengths ................................................................................. 31 5.3 Regional Weaknesses ............................................................................ 33 5.4 Threats.................................................................................................. 34 5.5 Sale Assessment – Advantages and Disadvantages................................. 35 6 Future Directions........................................................................................37 6.1 Facing the Future................................................................................... 37 6.2 A Partnership Approach.......................................................................... 38 6.3 Strategic Directions ................................................................................ 38 6.4 Future Business Opportunities ................................................................ 38 6.4.1 Key Sectors................................................................................ 38 6.4.2 Identified Opportunities ............................................................... 39 6.5 Major Business Opportunities.................................................................. 40 7 Business Opportunities – Manufacturing................................................45 7.1 Overview ............................................................................................... 45 7.2 Manufacturing in Australia....................................................................... 45 7.3 Growth Industries ................................................................................... 46 7.4 Manufacturing in Victoria ........................................................................ 47 1 7.5 Metals and Engineering Sector - Victoria ................................................. 48 7.6 Gippsland Region................................................................................... 48 7.7 The Oil and Gas Sector .......................................................................... 49 7.7.1 Overview of the Sector ................................................................ 49 7.7.2 Oil and Gas Sector – Impacts on Sale .......................................... 50 7.7.3 Industry Supporting the Oil and Gas Sector .................................. 50 7.8 Major Manufacturing Employers .............................................................. 51 7.9 Industry Strengths .................................................................................. 52 7.9.1 Regional Strengths ..................................................................... 52 7.9.2 Engineering Strengths ................................................................. 52 7.10 Constraints ............................................................................................ 53 7.10.1 Regional Constraints................................................................... 53 7.10.2 Engineering Constraints .............................................................. 54 7.11 Identified Business Opportunities ............................................................ 54 7.12 Threats to Business Activity .................................................................... 55 7.13 The Way Forward................................................................................... 55 7.13.1 Developing the Industry............................................................... 55 7.13.2 The Next Steps........................................................................... 56 8 Business Opportunities - Aerospace .......................................................57 8.1 Overview ............................................................................................... 57 8.2 Aerospace in Australia ............................................................................ 57 8.3 Aerospace in Victoria.............................................................................. 58 8.4 Regional Victoria .................................................................................... 59 8.5 Gippsland Region................................................................................... 59 8.6 Sale Region........................................................................................... 60 8.6.1 RAAF Base East Sale ................................................................. 60 8.6.2 West Sale Aerodrome ................................................................. 60 8.6.3 Activities at West Sale Aerodrome ............................................... 61 8.6.4 Aircraft Usage ............................................................................ 61 8.7 Regional Competition ............................................................................. 62 8.8 Business Opportunities ........................................................................... 62 8.8.1 Aerospace Cluster ...................................................................... 62 8.8.2 Capabilities ................................................................................ 63 8.9 Strengths Sale ....................................................................................... 64 8.10 Constraints Sale..................................................................................... 64 8.11 The Way Forward................................................................................... 65 8.11.1 Opportunities .............................................................................. 65 8.11.2 The Next Steps........................................................................... 67 9 Business Opportunities – Primary Industry............................................69 9.1 Overview ............................................................................................... 69 9.2 Primary Industry – Australia .................................................................... 69 9.3 Primary Industry – Victoria ...................................................................... 70 9.4 Wellington Shire ..................................................................................... 71 9.5 Overview of Opportunities ....................................................................... 71 9.5.1 Government Strategy Context.....................................................