Central Goldfields Shire Council - Economic Development Strategy 2020 - 2025 CENTRAL GOLDFIELDS - Central Goldfields ...
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Central Goldfields
Shire Council
Economic Development
Strategy 2020 - 2025
CENTRAL
GOLDFIELDS
SHIRE COUNCIL
Contents 6 8 10
Executive Background Vision &
Summary Strategic
Themes
12 20 25 29 60 72 Location & Economic Demographic Strategic Action & Appendices Strategic Profile Profile Framework Implementation Context Plan
ACKNOWLEDGEMENTS ACKNOWLEDGEMENT OF COUNTRY Central Goldfields Shire Council acknowledges the ancestors and descendants of the Dja Dja Wurrung. We acknowledge that their forebears are the Traditional Owners of the area we are on and have been for many thousands of years. The Djaara have performed age old ceremonies of celebration, initiation and renewal. We acknowledge their living culture and their unique role in the life of this region. ACKNOWLEDGEMENTS Council gratefully acknowledges the contribution made by stakeholders who contributed to the consultation phase by attending workshops and meetings, and completing surveys, including: • Community members; • Local businesses; • Government agencies; and • Central Goldfields Shire Council.
CENTRAL GOLDFIELDS SHIRE COUNCIL
Acronyms Glossary of Terms
AAGR Average Annual Growth Rate Gross Regional The total value of final goods and services
Product produced in the region over the period of
AEMO Australian Energy Market Operator
one year.
AI Artificial Intelligence
Output Represents the gross revenue generated
CRM Customer Relationship Management by businesses/organisations in each of
DELWP Department of Environment, Land, Water the industry sectors in a defined region.
and Planning Gross revenue is also referred to as total
sales or total income.
DMP Destination Management Plan
Propulsive
Industry Key drivers of the Central Goldfields
EDS Economic Development Strategy
economy in terms of regional exports,
FAO Food and Agriculture Organisation employment, value-added and local
expenditure on goods and services
FTE Full Time Equivalent
(backward linkages)
GDP Gross Domestic Product
Regional Represents the value ($) of goods and
ICT Information and Communications Technology Exports services exported outside of the defined
LGA Local Government Area region that have been generated by
businesses / organisations in each of the
LQ Location Quotient industry sectors within the region.
MEC Maryborough Education Centre
Value-Added Represents the marginal economic
NBN National Broadband Network value that is added by each industry
sector in a defined region. Value-Added
RDV Regional Development Victoria can be calculated by subtracting local
SEIFA Socio Economic Index For Areas expenditure and expenditure on regional
imports from the output generated by
SME Small to Medium Enterprise an industry sector, or alternatively, by
adding the Wages & Salaries paid to local
SRV Sport and Recreation Victoria
employees, the gross operating surplus
VGTE Victorian Goldfields Tourism Executive and taxes on products and production.
VPA Victorian Planning Authority
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Overview Economic Context Themes
Central Goldfields Shire Council is Central Goldfields Shire’s economy is Based on research, analysis and
planning for the Shire’s economic small relative to the broader Loddon consultation, four key themes form
future by preparing an Economic Campaspe region, and is attributed the framework for the Economic
Development Strategy, providing to the lower population base. The Development Strategy.
a clear vision and action plan for Shire accounts for 6% of the region’s
1. A Productive, Sustainable and
growing Central Goldfields economy. population, 4% of employed persons
Creative Shire
and 4% of businesses. Resident,
The Strategy aims to encourage Leverage economic outcomes
business and jobs attraction is needed
economic growth in the Shire and from industries of competitive
to improve the long term economic
outline a clear economic focus for the advantage and growth sectors
conditions of the Shire.
key townships of Maryborough, Talbot, in the Shire such as health,
Carisbrook and Dunolly. Based on employment data, the education, agriculture and
industry strengths of the Shire food manufacturing, as well as
The Strategy considers the economic
are closely aligned to the Loddon emerging industries including
and demographic trends and
Campaspe region, with the highest tourism, renewable energy and
macroeconomic influences that are
employing sectors identified as other green industries.
impacting the local and regional
health care and social assistance,
economy. The research and analysis 2. Invest in People and Place
manufacturing and retail trade.
presented in this Strategy highlights Address skills gaps by partnering
the issues that should be addressed The profile of the Shire’s economy with industry and the community
and the opportunities that could highlights that there are a number of to encourage a ‘job ready’ labour
be unlocked to achieve positive industries that are driving the local force. Prioritise investment
outcomes for the Shire’s economy and economy. These include: initiatives that enhance liveability
community. characteristics and build
• Primary and trade industries
economic resilience.
The information in this Strategy is (agriculture, construction,
informed by independent research manufacturing and transport); 3. A Thriving Business Community
and analysis, as well as consultation • Population-driven industries Provide business support
with representatives of community (retail, hospitality, personal and through regular and meaningful
groups, organisations, businesses and household services); engagement. Help businesses
Government stakeholders. • Knowledge and public sector overcome specific challenges
industries (health, education and that they face and identify
government agencies); and opportunities that could be
• Tourism (accommodation, further leveraged to achieve
hospitality, arts and recreation positive business outcomes.
services).
4. Tailored Economic Development
Practice
Implement a tailored approach for
economic development in Central
Goldfields to ensure that industry
growth is supported and aligned
to the unique local conditions
and resources available.
6 Economic Development Strategy 2020 - 2025
CENTRAL GOLDFIELDS SHIRE COUNCIL
Transformative Projects Maryborough Railway Station Age Care and Disability Co-
A number of transformative projects Masterplan, Arts and Cultural operative
in this Strategy are discussed below. Hub Investigate the potential to establish
Other ideas and opportunities are Assess the feasibility of transforming an aged care and disability co-
presented later in this Strategy. the Maryborough Railway Station operative in Central Goldfields that
Precinct into an iconic, game delivers aged care services and home
Satellite Tertiary Education changing local and visitor hub that care packages for elderly persons and
Campus accommodates a mix of tourism, people with disabilities that need
Engage with tertiary providers in the commercial, transport and community assistance.
region to investigate the potential to uses.
establish a higher education campus Better Approvals
Talbot Waste Water Treatment
in Maryborough. This could be Project Investigate providing and
delivered as a satellite campus to implementing a more formal process
established providers in Ballarat or Advocate for funding to support
to respond to planning enquiries.
Bendigo. Collaborate and partner investment in reticulated sewerage
This could include an online resource
with institutions such as Federation infrastructure to allow for further
administered through Council’s
University and Latrobe University investment, development and growth
website, or face-to-face sessions by
to improve pathways for secondary within Talbot.
appointment.
students and increase the proportion Resident Attraction Strategy
of students enrolling and attaining A Co-working Facility
Prepare a Resident Attraction Strategy
tertiary level qualifications. Assess the feasibility of establishing
to attract and retain residents to the
Community Renewable Energy Shire, focussing on attracting a diverse a co-working facility in the Shire
Project mix of age profiles to replenish the to support micro and home-based
local labour force and address skills businesses.
Support the delivery of a community-
gaps that exist in the Shire. Economic Development Officer
led renewable energy project in the
Shire (e.g. small scale solar farm, waste Appoint a full-time economic
Maryborough Food Cluster
to energy) and other green initiatives. development officer to undertake
The project should consider capacity Prepare an investment strategy for the
the core roles and functions of the
building and social inclusion across food manufacturing industry, targeting
unit, including regular business
the community and aim to reduce food manufacturers to establish in
engagement, proactive investment
power costs. Maryborough to create a regional scale
attraction, responding to investment
food cluster.
Retail Development Strategy enquiries, undertaking industry
New Social Enterprise research and strengthening regional
Complete a Retail Development partnerships.
Strategy with core objectives focusing Engage with the Social Enterprise
on nurturing resilience into the retail arm of Business Victoria to identify Grow the Intensive Agricultural
sector; identifying gaps in retail avenues to support the establishment & Horticulture Industry
provision across the Shire’s key of social enterprises in the Shire that
Undertake an assessment for the
townships; better equiping traders align with the Shire’s competitive
expansion of intensive agricultural and
to respond to structural changes in industry strengths (e.g. food
horticultural uses in the Shire, such
the industry; and improving tourist manufacturing, agriculture, green
as hydroponics. This should consider
retailing to service visitors. industries, health care, retail and
availability of water, power, gas and
hospitality).
other services.
Economic Development Strategy 2020 - 2025 7
PROJECT BACKGROUND
BACKGROUND
Central Goldfields Shire Council is planning for the Shire’s economic future by
preparing an Economic Development Strategy, providing a clear vision and
action plan for growing Central Goldfields economy.
The Strategy aims to encourage economic growth in the Shire and outlines a
clear economic focus for the key townships of Maryborough, Talbot, Carisbrook
and Dunolly.
The Process
This Strategy considers the economic
and demographic trends and
macroeconomic influences that are
impacting the local and regional
economy. The research and analysis
presented in this Strategy highlights
the issues that should be addressed
and the opportunities that could
be unlocked to achieve positive
outcomes for the Shire’s economy and
community.
The information in this Strategy is
informed by independent research
and analysis, as well as consultation
with representatives of community
groups, organisations, businesses and
Government stakeholders.
8 Economic Development Strategy 2020 - 2025
CENTRAL GOLDFIELDS SHIRE COUNCIL
?
What is Council’s role in
economic development?
Local Government plays an important
role in facilitating economic
growth within their municipalities.
Typically, Council’s role in economic
development includes business
engagement and support, investment
attraction, promoting liveability
initiatives and undertaking advocacy
efforts.
Common objectives adopted for
economic development across Local
Government include:
• Supporting the existing business
base (promoting growth within the
existing business base);
• Attracting new businesses and jobs
What is economic development? (promoting growth by attracting
new investment and businesses);
At a high-level, economic development at a local • Promoting liveability and
government level is: sustainable communities; and
• Undertaking advocacy efforts.
“To build up the economic capacity of a local
area to improve its economic future and
the quality of life for all. It is a process by
which public, business and non-government
sector partners work collectively to create
better conditions for economic growth and
employment generation.”
Economic Development Strategy 2020 - 2025 9
STRATEGIC FRAMEWORK
VISION AND STRATEGIC FRAMEWORK
Council’s vision for this strategy sits Economic Objectives
within its overall vision for the Central
Goldfields community and specific • Facilitate an environment which
objectives for the local economy, as is conducive to industry/business
expressed in the Council Plan. Economic Development Outcome: growth and employment growth
and retention.
Our Vision: ‘A vibrant local economy which • Develop a skilled workforce to
‘To be a vibrant, thriving and inclusive contributes to the municipality’s support economic growth
community.’ economic prosperity.’ • Promote Central Goldfields as a
Our Purpose: place of choice to live, work and
play
‘To achieve the best outcomes for the
• Provide a supportive environment
local community and having regard to
for existing business to prosper
the long term and cumalative effects
• Strengthen and facilitate
of decisions.’
diversification for the Agri-business
and food processing sectors
• Grow the digital capability of the
Shire
• Capitalise on tourism and the
visitor economy through growth of
events and promotion of unique
local experiences.
10 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
Themes
Based on research, analysis and consultation, four key themes form the framework for the
Economic Development Strategy.
1 2 3 4
A Productive, Invest in People and A Thriving Business Tailored Economic
Sustainable and Place Community Development Practice
Creative Shire
Leverage economic Address skills gaps by Provide business support Implement a tailored
outcomes from industries partnering with industry and through regular and approach for economic
of competitive advantage the community to encourage meaningful engagement. development in Central
and growth sectors in a ‘job ready’ labour force. Help businesses overcome Goldfields to ensure that
the Shire such as health, specific challenges that industry growth is supported
Prioritise investment
education, agriculture they face and identify and aligned to the unique
initiatives that enhance
and food manufacturing, opportunities that could be local conditions and
liveability characteristics
as well as emerging further leveraged to achieve resources available.
and build economic
industries including tourism, positive business outcomes.
resilience.
renewable energy and other
green industries.
Economic Development Strategy 2020 - 2025 11CONTEXT
LOCATION & STRATEGIC CONTEXT
Location Located at the geographic heart of Regional Context
Victoria, Central Goldfields Shire is
Central Goldfields Shire is located home to just over 13,000 people. The following documents have been
approximately 150 km north west Maryborough is the Shire’s major reviewed to inform this Strategy:
of Melbourne. the Shire is uniquely business centre and is a health and • Central Goldfields Shire Council
located between two regional retail centre for surrounding towns Plan 2017-2021
cities, approximately 40 km north including Castlemaine, St Arnaud, • Loddon Mallee Regional Strategic
of Ballarat and 55 km south west Avoca, Talbot and Dunolly. The Plan 2015-2018
of Bendigo. Shire also hosts a number of food • Loddon Campaspe Regional
manufacturing businesses. The Shire Freight Study (2018)
is part of the Goldfields Tourist Region, • Loddon Mallee South Regional
with many visitors coming to see Growth Plan (2014)
the historic buildings and townships • Central Goldfields Workforce
that date back to the 1850s when the Development Strategy 2013-2021
region supported a prosperous gold • Draft Loddon Campaspe Regional
mining industry, as well as visitors to Economic Growth Strategy (2019)
the annual Energy Breakthrough event • Bendigo Region Destination
and the Highlands Games
Loddon Campaspe
Region
Bendigo
Central
Shire VICT ORIA
Ballarat
Melbourne
12 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
Management Plan (2015) More recently, Strategies and Plans
• Central Goldfields 5-Year Events have been prepared at a regional level
Strategy (2014) such as the Loddon Mallee Regional
• Destination Central Goldfields Strategic Plan and the Loddon Mallee
Strategic Tourism Plan 2010-2020 South Regional Growth Plan. The
• Goldfields Villages Destination priorities for economic development
Management Plan (2018) in these Plans are focussed around
• Maryborough Brand Disciplines capitalising on emerging strengths
Blueprint (2016) in tourism, renewable energy,
• Developing Victoria’s Goldfields resource recovery and green energy,
Into Australia’s Cultural Heritage and leveraging greater business,
Region (2012) employment and investment outcomes
• Goldfields Visitor Services Review from growth sectors such as health,
(2017) education and professional services.
• Victorian Goldfields Tourism
Another opportunity that is identified
Executive Annual Plan (2018)
is the potential to grow the agriculture
Whilst Central Goldfields Shire Council industry by improving supply-chains,
and regional tourism organisations providing greater water security and
have undertaken key strategic projects stability of supply and harnessing
for tourism and events development value-add opportunities such
such as the Goldfields Villages as downstream processing, food
Destination Management Plan, there manufacturing and diversified farming
are limited examples of strategic work activities.
that has been undertaken in respect of
Demonstrating an alignment of
economic development in the Shire.
priorities of the EDS with regional
Central Goldfields’ proximity to strategies may present partnership
Bendigo and Ballarat is of strategic and collaboration opportunities with
importance, given the growth of these regional stakeholders in order to
regional cities. There are long term deliver key projects, initiatives and
opportunities for Central Goldfields programs over time.
to leverage from this growth in terms
of population, business and visitor
attraction.
Economic Development Strategy 2020 - 2025 13CONTEXT
TRENDS INFLUENCING THE ECONOMY
Overview The Victorian Economy is
diversifying Industries Forecast for
A number of trends are influencing
the economy in Australia, The Victorian economy is becoming Highest Employment
including a transition that is more diversified and service driven. Growth by 2046
occurring across a number of Manufacturing in Victoria accounts
industry sectors due to a range of for 28% of Australia’s manufacturing
technological, environmental and production and contributes a larger
social factors such as: share to the economy relative to
other states and territories. However,
• Technological advancements Victoria is progressively transitioning
and digital disruption; from an industrial economy that
• A growing and aging population, has traditionally been reliant on
both domestically and globally; Manufacturing to a more innovative,
• Changing work preferences knowledge and services based Professional,
(i.e. flexibility, collaboration, economy.1
innovation); and Technical Services
• Environmental challenges Recent analysis identifies that the
(e.g. climate change and sectors that are forecast to drive
extreme weather events, urban future economic growth in Victoria are
encroachment). health care, international education,
wealth management, agribusiness and
An overview of some of the key tourism. These sectors are well placed
macroeconomic trends that are to capitalise on growth in Asia. Victoria
impacting the national and state can also capitalise on strengths in
economy are discussed. medical research, ICT, food processing
and financial and insurance services.2 Healthcare
and Education.
The rise of the knowledge economy
is based on a highly educated labour
force, sophisticated technologies and
innovative products and services. The
industry composition of Victoria’s
economy will continue to shift toward
services in the future. By 2046, it is
projected that the most significant
employment growth will occur in
professional, scientific and technical
services, financial and insurance Financial and
services, healthcare and education.3 Insurance Services
¹ The Current and Future State of Victoria, Deloitte, 2016
² The Current and Future State of Victoria, Deloitte, 2016
³ The Current and Future State of Victoria, Deloitte, 2016
14 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
Digital Disruption is machinery operators, technicians and significant number of competitors
revolutionising the way we work trades, administration and labourers.6 in the industry is stymieing growth.
However, many SME’s believe the
Automation, globalisation and For Central Goldfields digital
competitive advantage of the industry
collaboration are revolutionising disruption will mostly affect the
is the ability and capacity to be
the way we work. Technological agricultural sector, manufacturing
adaptable and flexible to change.10
advancements and the digitalisation and wholesale industries in terms
of data analytics are creating a step of labour force requirements. This Home based business is prominent in
change in technological capabilities, may have a positive effect in terms Central Goldfields and with the growth
particularly given the advances of making these industries more in lifestyle residents drawn to the
in robotics, analytics, Artificial financially viable and less reliant on region, SME’s may increase over time.
Intelligence (AI) and machine learning.4 labour.
There is an evident disparity in the
The Importance of Small to
way in which business and industry
Medium Enterprise (SME)
are harnessing these technologies
as they disrupt global economies. Small to medium enterprise
The industries that are most likely are crucial to the health of the
to be most significantly impacted by Australian economy as they support Small to medium enterprise
approximately 7 million ongoing jobs
digitalisation include information are crucial to the health of
and communication technology, and contribute 57% to the nation’s
Gross Domestic Product (GDP).7 the Australian economy as
media, professional services, financial
they support approximately
and insurance services, wholesale Since 2005, the barriers to start a
trade and advanced manufacturing. 7 million ongoing jobs and
business are lower. In particular,
Industries less likely to be impacted costs have fallen 65%, encouraging contribute 57% to the Gross
include agriculture, construction, younger people to start a business. Domestic Product (GDP).7
hospitality, healthcare and government Approximately 50% of SME’s have been
agencies.5 in business 10 years or less with 56%
Approximately 70% of young people being either millennials or generation
are entering the workforce in jobs X, indicating strong growth in younger
that will be radically affected by business owners.8
automation and 60% of students There is a notable difference between
are being trained in jobs that will millennial SME’s compared with others.
impacted by automation. The types Research shows that Millennials are
of occupations that have been more focussed on business investment
impacted by automation are generally having regard to business growth and
cognitive and manual routine jobs, are heavily reliant on digital channels
whilst non-routine jobs which require as a means to generate revenue.9
interpersonal skills, problem-solving,
critical thinking and creativity are 50% of SME’s identify competition
less exposed to automation. The jobs as one of the key challenges facing
that will be most affected include business growth, citing that a
⁴ What’s Now and Next in Analytics, AI and Automation, McKinsey and Company, 2017
⁵ What’s Now and Next in Analytics, AI and Automation, McKinsey and Company, 2017
⁶ The New Work Order, Foundation of Young Australians, 2017
⁷ Understanding Australia’s Small to Medium Enterprises, NAB, 2017
⁸ Understanding Australia’s Small to Medium Enterprises, NAB, 2017
⁹ Understanding Australia’s Small to Medium Enterprises, NAB, 2017
10
Understanding Australia’s Small to Medium Enterprises, NAB, 2017
Economic Development Strategy 2020 - 2025 15CONTEXT
TRENDS INFLUENCING THE ECONOMY
A Rise in the GIG Economy The growing popularity of
Co-working Spaces
‘The gig economy’ refers to contract,
temporary and free-lance work. The Australia is home to over 170 co-
popularity and regularity of people working spaces; 49% of which are
located in Victoria. Of the co-working
working within the gig economy is on Australia is home to over 170 facilities in Victoria, only 7% are found
the rise in Australia and New Zealand.
co-working spaces; 49% of in Regional Victoria.13
Whilst there are clear examples of the
gig economy across platforms such as
which are located in Victoria.
Co-working spaces provide the critical
Uber and Airbnb, it is also extending Of the co-working facilities in support infrastructure and services
into roles such as administration, Victoria, only 7% are found in often required for businesses in their
hospitality, marketing and graphic Regional Victoria. infancy to grow and mature. The
design.11 benefits of the co-working model are
The gig economy is predominantly associated with creating a space which
underpinned by advancements in supports collaboration, openness,
technology, but is also largely driven knowledge sharing, innovation, and
by the younger cohorts entering the the user experience.14
labour force who are seeking flexibility, • Faster network speeds;
Demand for co-working spaces is
as well as the growing demand for • Lower latency – the time it takes
predominantly being driven by growth
niche skills across various sectors.12 information to get from your
in tech and creative industries, but is
phone to the wider internet and
Whilst it is recognised that the gig also becoming increasingly popular
back again; and
economy will never replace permanent amongst professional and financial
• More simultaneous connections
working arrangements, there is a need service industries.15
- 5G will allow more devices to
to recognise its growing popularity connect to the network at the The popularity of these types of
and understand the work implications, same time. facilities in regional areas are on
which may extend to a rise in home- the rise, with a growing number of
based businesses and a lesser The 5G network will contribute to a
facilities establishing in key regional
requirement for permanent business rise in Internet of Things technology,
areas including Ballarat, Bendigo,
accommodation due to the ability to providing the infrastructure needed
Geelong, Warragul and Mildura.
work remotely. to carry significant amounts of data,
allowing for a smarter and more Some examples of established co-
5G networks are the next generation of connected world. This will provide working facilities in close proximity to
mobile internet connectivity, offering major advantages for businesses Central Goldfields Shire are Runway in
faster speeds and more reliable utilising technologies such as Ballarat, Synergize Hub in Bendigo and
connections on smartphones and Enterprise Resource Planning (ERP), Cohoots Coworking in Castlemaine.
other devices. As with 4G before it, 5G robotics, drones and 3D printing.
is focused on mobile data. Given that 55% of business in Central
A limited number of Telcos have
Goldfields Shire are non-employing,
5G will provide: released the 5G network, but is 16
a co-working facility could be
expected to be rolled out throughout
beneficial to micro-businesses in and
2020.
around the Shire, providing benefits
of temporary work spaces that
11
Understanding the Gig Economy, SEEK, 2018
12
Understanding the Gig Economy, SEEK, 2018
13
Victorian Start-Up Ecosystem Report, LaunchVic, 2018
14
The Australian Co-Working Market Report, Office Hub, 2018
15
The Australian Co-Working Market Report, Office Hub, 2018
16
Business entries/exit, Central Goldfields Shire, Australian Bureau of Statistics, 2018
16 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
provide support to businesses in their 2017 compared with 56.7m tonnes in Restructuring of Manufacturing
infancy by creating a professional and 2013, representing a 23% increase. In Activities
collaborative environment. 2017, Victoria contributed one quarter
Employment in Manufacturing across
(25%) of Australia’s total food and fibre
The Shire’s business base is much Victoria is in decline. The loss in jobs
production (11.2m tonnes, valued at
smaller when compared with Ballarat is partly a result of the withdrawal
$12.8bn).19
and Bendigo, therefore a co-working from the automotive industry, but
facility with a smaller floorplate may Strong population growth domestically also a broader transition away from
be more appropriate for Central and internationally particularly in traditional manufacturing practices
Goldfields Shire. Further work would Asia and India, in conjunction with to more technical and advanced
be required to assess the demand Australia’s strong reputation for manufacturing. This is in response
for a co-working facility, the types of high quality agricultural produce is to strong international competition,
existing businesses that would use expected to generate further demand particularly from Asia.21
such a facility and the delivery and for food and fibre production.20
Manufacturing remains an important
operating model.
Central Goldfields has a growing industry in Victoria in terms of
The Global Demand for Food opportunity in intensive agriculture export value and value-added to the
which will potentially link to the economy. Whilst the Manufacturing
Population growth and an increase growing demand for food domestically industry faces notable challenges, it is
in average incomes are driving an and internationally. This is an area also in the midst of a transformational
increase in global demand for food. that is discussed further in the change through revolutionary
According to the Food and Agriculture Economic Development Strategy technological advancements such as
Organisation (FAO), the global framework. robotics, drones and 3D printing.22
population is projected to reach 9.7
billion by 2050; an additional 2 billion Employment in manufacturing
persons compared with 2017 (7.6 declined by 2% between 2011 and 2016
billion).17 in the Shire. However, the jobs decline
in manufacturing is significantly lower
Asia and the sub-continent are the compared with the broader jobs loss
fastest growing regions and will drive a
large proportion of demand for food in In 2017 experienced across Victoria. The lower
decline in manufacturing jobs in the
the long term. The FAO estimates that Victoria contributed one Shire is likely due to the growing
the current level of global agricultural
quarter (25%) of Australia’s sub-sector specialisation in food
production will need to increase by
50% to meet the global demand for
total food and fibre production manufacturing, which has buoyed the
sector through larger-scale business
food by 2050.18 (11.2m tonnes, valued at
and investment attraction.
$12.8bn).
Food and fibre production across
Australia has increased significantly
in recent years, as a result of a
growing international demand for
Australian agricultural produce.
Australia produced approximately
69.5m tonnes of food and fibre in
17
Agricultural Outlook, OECD-FAO 2018 to 2027, 2018
18
Agricultural Outlook, OECD-FAO 2018 to 2027, 2018
19
Victorian Food and Fibre Export Performance Report 2016/17, Agriculture Victoria, 2018
20
Victorian Food and Fibre Export Performance Report 2016/17, Agriculture Victoria, 2018
21
The Current and Future State of Victoria, Deloitte, 2016
22
Digital Disruption: What do Governments Need to Do? The Productivity Commission, 2016
Economic Development Strategy 2020 - 2025 17CONTEXT
TRENDS INFLUENCING THE ECONOMY
A Low Carbon Economy The AEMO estimates that investment and wood waste production sites in
in the order of $370 million is required Regional Victoria. Examples include
In 2016, the Victorian Government
to upgrade the network, including Barnawartha, Leongatha, Learmonth,
committed to legislating a long-
double circuit transmission lines Laverton and Kaniva.
term target for Victoria of net zero
between Ballarat, Bulgana and
greenhouse gas emissions by 2050. There are a growing number of
Sydenham, augmentations to existing
Victoria’s Climate Change Act (2017) solar and wind projects completed,
lines between Moorabool and Terang
aims to achieve a net zero greenhouse underway or proposed across
and Red Cliffs and Bendigo, as well
gas emissions, climate-resilient the State, with a number of solar
as a possible new terminal station at
community and economy.23 projects emerging in the Shire.
Ballarat.
Central Goldfields has an opportunity
In 2017, the State Government
Biomass is another renewable energy to attract further investment into
legislated renewable energy
opportunity that is developing in renewable projects over time.
generation targets of 25% by 2020
some regional areas. Biomass refers
and 40% by 2025. This is estimated to Investment in renewable energy may
to the fuel that is developed from
reduce average annual power costs for present flow-on opportunities for
organic materials, a renewable and
medium-sized businesses by $2,500 new projects, particularly for rural
sustainable source of energy used to
and for large companies by $140,000 properties and agricultural businesses
create electricity or other forms of
and reduce Victoria’s electricity sector seeking to diversify their income with
power. Some examples of materials
emissions by approximately 16% off-farm income streams. Given the
that make up biomass fuels are scrap
between 2019/20 and 2034/35.24 current size and scale of approved
lumber, forest debris, certain crops,
solar projects in the Shire, Central
There is a trend towards decentralised and manure.
Goldfields may be more suited to
electricity generation from renewable
Bioenergy production and its accommodate small to medium sized
energy resources and an increase in
associated value chain could solar, wind and biomass projects,
energy storage, with generation plants
benefit regional development in as well as smaller community-led
ranging from small-scale behind the
a number of ways, some of which projects and initiatives.
meter installations through to front of
satisfy numerous objectives such as
meter large-scale solar and wind.
reducing greenhouse gas emissions,
There is growing investment in re-using waste, generating power in
solar and wind energy production a sustainable way and generating
projects in regional and rural areas flow-on economic benefits such as
across Victoria. Western Victoria is employment and output. In 2016, the Victorian
experiencing an influx of investment
into renewables, with the Australian
Industries that rely on biomass Government committed
Energy Market Operator (AEMO)
produced from broadacre farming to legislating a long-term
systems provide the most suitable target for Victoria of net zero
predicating that 5,000 megawatts
candidates due to the long value
of new renewable energy will be greenhouse gas emissions by
chains and the size of their potential
generated in the state’s west by 2025. 2050.
production of energy.
The key constraint for renewable
energy generation in the west are the Biomass is an emerging source of
capacity limitations of the existing energy production. There are a number
system to store and distribute power. of well-established bio-diesel, bio-gas
23
Climate Change Act, DELWP, 2017
24
Australia’s 2030 Climate Change Target, Department of Energy and Environment, 2015
18 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
Growing Demand for The impending redevelopment of the Digital retailing is becoming more
Health Care Maryborough District Health Service prevalent. In 2018, the number of
(MDHS) hospital will strengthen the online purchases in Australia grew
The number of people aged 65 role of health care industry in the by over 20%. While Australia’s major
years and over in Victoria is likely to Shire. capital cities still drive much of
almost triple from 2016 to 2051 as the the online purchasing, there is also
significant population currently aged notable growth in online shopping
between 45 to 65 years moves into in regional areas. It is expected
the ‘senior’ and ‘elderly’ category. that growth will continue to disrupt
The forecast ageing of the population traditional forms of retailing.28
is partly attributed to the increase
in life expectancies borne from Global healthcare is growing Despite the growth in online sales,
advancements in health care and 90% of retail transactions remain in-
rapidly and is attributed
social assistance.25 store, indicating that in-store retailing
to a significant increase in remains the preferred option. With the
Global healthcare is growing rapidly global healthcare spending, growing prevalence of online retail
and is attributed to a significant increasing from $7 trillion USD activity, retailers are increasing their
increase in global healthcare spending,
in 2015 to a projected $8.7 omnichannel retail strategy, enabling
increasing from $7 trillion USD in 2015
to a projected $8.7 trillion USD in trillion USD in 2020. people to interact either in-store or
online, on a multitude of devices.29
2020. Consistent increases in global
healthcare spending is attributed to:26 Some retailers and retail centres are
responding to online competition
• Revenue pressure and rising by seeking to improve the shopping
industry costs are demanding “experience”, something that cannot
more innovative and cost effective The Changing Nature of the be replicated online. This includes
solutions to patient care; Retail Industry a greater focus on hospitality,
• An ageing population is resulting entertainment and meeting places co-
in higher health related issues in Retail and consumer spending
are important components of the located with retailers.30
developed economies;
• Higher-income households; economy, as they provide economic Maryborough is the retail hub for the
• Increase in chronic diseases (e.g. stimulus through direct expenditure. Shire and has a strong and loyal local
diabetes, heart disease); and Despite steady employment growth, catchment. Consideration of expanding
• Unprecedented population growth household finances have come under the retail mix with a focus on
in developing and developed pressure from stagnant wages growth experience and entertainment should
economies. and declining wealth, and this has be considered in order to strengthen
reduced consumer sentiment and the appeal of Maryborough as a retail
Health Care and Social Assistance is household’s inclination to spend. and tourist destination.
the highest employing sector in the
Shire, accounting for 17% of employed Whilst retail turnover growth slowed
persons. The sector experienced a throughout the second half of 2018
7% (+47 jobs) increase between 2011 and into 2019, there is a more positive
and 2016, indicating that the sector is outlook for the sector, expecting to
growing. improve in the second half of 2019.27
25
Population Forecasts, Victoria in Future, Department of Environment, Land, Water and Planning (DELWP), 2016
26
Global Healthcare Outlook, Deloitte, 2016
27
Australia Economic Outlook, Deloitte, 2019
28
Inside Australian Online Shopping, e-commerce industry report, Australia Post, 2019
29
Retail Trends: What is Digital’s Impact on the Retail Sector, PWC, 2017
30
Retail Trends: What is Digital’s Impact on the Retail Sector, PWC, 2017
Economic Development Strategy 2020 - 2025 19CONTEXT
ECONOMIC PROFILE
Central Goldfields Shire’s economy
is small relative to the broader Loddon
region, and is attributed to the lower Campaspe
population base. The Shire accounts
for 6% of the region’s population, Population (2016) 12,993 232,903
4% of employed persons and 4% of
Employed Residents (2016) 4,112 101,109
businesses.
Based on employment data, the 1 Health Care 1 Health Care
Highest Employing Sectors (2016) & Social Assistance & Social Assistance
industry strengths of the Shire 2 Manufacturing 2 Retail Trade
are closely aligned to the Loddon 3 Retail Trade 3 Manufacturing
Campaspe region, with the highest Local Businesses (2018) 831 20,283
employing sectors identified as
health care and social assistance, Median House Price (2017) $190,000 $322,000
manufacturing and retail trade.
The Shire has a small population base.
Economic Snapshot - Central Goldfields
Resident, business and jobs attraction
is needed to improve the long term
economic conditions of the Shire.
Industry Composition
The profile of the Central Goldfields
Shire economy is based on a range
of economic indicators, including
employment and business by industry
and sub-sector.
The economic profile provides a
snapshot of the Shire’s areas of
competitive advantage and identifies
emerging and growth sectors, as well
as those that may be in decline.
The profile of the Shire’s economy
highlights that there are a number of
industries that are driving the local
economy. These include:
• Primary and trade industries
(agriculture, construction,
manufacturing and transport);
• Population-driven industries
(retail, hospitality, personal and
household services);
• Knowledge and public sector
industries (health, education and
government agencies); and
• Tourism (accommodation,
hospitality, arts and recreation Source: Urban Enterprise 2019, derived from economic indicators (employment, business),
services). Australian Bureau of Statistics (ABS), 2011, 2016
20 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
Maryborough is the Primary and Trade Industries residents create, coupled with
economic centre of the Shire, investment into improving/upgrading
Whilst employment in manufacturing
accommodating the majority existing infrastructure including the
declined by 2% between 2011 and 2016,
of residents, businesses and Maryborough and District Hospital.
the decline is significantly lower than
employment. Maryborough Further, the age profile of residents
those that have been experienced
services the Shire and other rural is ageing, and this trend is forecast
across much of the state, since
areas outside of the Shire for to continue, with a growing number
the withdrawal of the automotive
essential services such as health of senior and elderly aged cohorts
manufacturing industry and the
care, education and retail. Notable generating greater demand for health
restructure of manufacturing activities.
health and retail anchors such and related services.
The lower decline in manufacturing
as the Maryborough and District
jobs in the Shire is partly due to the In terms of knowledge sectors, there is
Hospital and higher order retailers
growing sub-sector specialisation a smaller representation and potential
(e.g. supermarkets, discount
in food manufacturing, which has under provision of white collar jobs
department stores) attract
buoyed the sector through larger-scale in the Shire. Specifically, professional
residents from smaller, nearby
business and investment attraction. and financial services, which have
townships and rural areas. a much lower proportion of jobs
Given the land availability in the
There are quite a diverse range compared with Regional Victoria. This
Shire, there is an opportunity to grow
of industries contributing to the could be a result of skills gaps in the
this sector further through targeted
Shire’s economic ecosystem. labour force, or these jobs escaping
investment attraction.
However, the propulsive nature of to nearby regional cities (Bendigo,
each industry and their capacity Agriculture is an important industry in Ballarat). This presents opportunities
for growth differs. Employment supporting business and employment for the economy to address the gap
analysis suggests that the and contributing to supply-chain in these types of jobs and grow the
Shire’s competitive advantages networks for downstream processing professional services sector.
relevant to Regional Victoria are (food manufacturing), transport and
in manufacturing, transport and distribution. Population-Driven Industries
distribution, health care and social Population-driven industries are
Agricultural uses in the Shire are
assistance, retail and arts and reliant on demand generated for
primarily sheep and cattle grazing,
recreation services. personal and household goods and
and some grain and cereal production.
Employment analysis indicates services such as retail and hospitality.
emerging specialisations in less Given that Maryborough is the higher
traditional agricultural activities such order retail centre in the Shire, the
as fruit and vegetable growing, poultry retail sector is expected to continue
farming and nursery and floriculture. to account for a large proportion
of employment, particularly as the
Knowledge and Public Sector
resident and visitor population
Industries
increases.
Knowledge and public sector
Retail, hospitality, personal services
industries in Central Goldfields Shire
and tourism related industries are
are primarily focussed around health,
critical to the economic role of
education and government agencies.
the Shire’s smaller towns of Talbot
Health and education are high
and Dunolly, as they support local
employing sectors that are growing as
employment and account for the
a result of low to moderate population
majority of the businesses in the town
growth and the organic demand
centre’s of these areas.
for these services that additional
Economic Development Strategy 2020 - 2025 21ECONOMIC PROFILE
The Shire’s Employment Profile Top Industries of Employment
A high level of employment in
an industry can often indicate a
competitive advantage for a given
area, particularly if that sector is
experiencing jobs growth over time.
The highest employing industries
in the Shire are health care and
social assistance, retail trade, Health Care and Retail Manufacturing
manufacturing, education and training, Social Assistance Trade
accommodation and food services
and agriculture, forestry and fishing.
Combined, these industries account
for 72% of jobs. The most significant
2011 2016 Change
being health care and social No. (%) No. (%) 2011-16
assistance and retail trade, which No. (%)
account for 17% respectively. 646 (17%) 693 (17%) +47 (7%)
Retail trade experienced a 7% 635 (17%) 590 (14%) -45 (-7%)
decline (-45 jobs) between 2011 547 (14%) 537 (13%) -10 (-2%)
and 2016, but still remains a critical
385 (10%) 390 (9%) +5 (1%)
sector to the health of the Shire’s
economy, particularly given that 224 (6%) 292 (7%) +68 (30%)
Maryborough is the highest order 234 (6%) 261 (6%) +27 (12%)
retail centre in the Shire and services 213 (6%) 217 (5%) +4 (2%)
residents in the smaller townships
202 (5%) 174 (4%) -28 (-14%)
within and surrounding the Shire
for convenience-based retail (i.e.) 144 (4%) 173 (4%) +29 (20%)
supermarkets, speciality retail, retail 125 (3%) 149 (4%) +24 (19%)
services and hospitality. 19 (0%) 143 (3%) +124 (653%)
Employment in health care and social 88 (2%) 94 (2%) +6 (7%)
assistance experienced a 7% increase 48 (1%) 73 (2%) +25 (52%)
(+47 jobs) between 2011 and 2016,
60 (2%) 72 (2%) +12 (20%)
affirming the sector’s importance as a
major employer in the Shire. 3 (0%) 57 (1%) +54 (1800%)
This trend is forecast to continue with 53 (1%) 46 (1%) -7 (-13%)
the $100 million redevelopment of 53 (1%) 40 (1%) -13 (-25%)
the Maryborough and District Hospital
67 (2%) 39 (1%) -28 (-42%)
and increased demand for health care
and medical services that is generated 16 (0%) 31 (1%) +15 (94%)
organically through population growth 22 (1%) 21 (1%) -1 (-5%)
and an ageing population. 23 (1%) 20 (0%) -3 (-13%)
Other industries that experienced
notable jobs growth include 3,807 (100%) 4,112 (100%) +305 (8%)
accommodation and food services
(+68 jobs), agriculture, forestry and
fishing (+27 jobs), transport, postal and Industry of Employment - Employed Residents
warehousing (+29 jobs) and arts and - Central Goldfields Shire - 2011 to 2016
recreation services (+25 jobs). Source: Census of Population and Housng, Australian Bureau of Statistics (ABS), 2011 & 2016
22 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
2011 2016
Occupations of Working
Residents
13%
The most common occupations held in Labourers
15%
Central Goldfields Shire are Labourers
16%
(15%) and technicians and trade Technicians and Trade Workers
15%
workers (15%) and professionals (15%).
16%
Professionals
Between 2011 and 2016, there was 15%
a reduction in the proportion of 12%
Community and Personal Service Workers
professionals (-1%) and managers 14%
(-2%), but an increase in labourers
15%
(+2%) and community and personal Managers
13%
service workers (+2%)
12%
Sales Workers
12%
Out-Commuting
10%
Clerical and Administrative Workers
The figure to the right shows the 10%
location of work (Council area) 6%
Machinery Operators and Drivers
for employed persons in Central 6%
Goldfields. The figure shows the
percentage of employees who live and
work in the Shire and those who travel Occupations of Employed Residents - Central Goldfields Shire - 2011 to 2016
outside of the Shire for employment. Source: Census of Population and Housng, Australian Bureau of Statistics (ABS), 2016
Typically, a higher rate of job
containment is preferred, as it can
indicate that there are sufficient
and suitable jobs available locally
to support the local skills and
qualifications of the labour force.
In 2016, Central Goldfields Shire
had a job containment rate of 81%, Loddon
representing the percentage of 1%
employees who live and work in
the Shire. The job containment rate
Greater
decreased by 3% between 2011 and Bendigo
2016. 2%
The highest proportion of employment Mount
escapes to Ballarat (5%), Mount Alexander
4%
Alexander (4%) and Greater Bendigo
(2%) Local Government Areas. Hepburn
1%
Pyrenees
2%
Ballarat
5%
Out-Commuting - Employed Persons - Central Goldfields Shire - 2011 to 2016
Source: Journey to Work, Census of Population and Housng, Australian Bureau of Statistics
(ABS), 2016, derived by Urban Enterprise 2019
Economic Development Strategy 2020 - 2025 23ECONOMIC PROFILE
The Shire’s Business Profile The table shows the number of can often be the case with farmers,
businesses by industry sector in the technicians and trade workers.
The business base in Central Shire in 2018. The industry sectors with
Goldfields Shire is primarily small The highest employing businesses are
the highest number of businesses
businesses (i.e. employ less than in manufacturing, transport, postal
are agriculture, forestry and fishing
20 staff). 98% of businesses in the and warehousing, accommodation and
(191 businesses), construction
Shire are considered small business food services and administrative and
(118 businesses) and retail trade
and 55% of those are non-employing support services. Each of these sectors
(67 businesses). Combined, these
businesses. includes three businesses that employ
industries account for almost half of
between 20 and 199 staff
Only 2% of business in the Shire the business base in the Shire. The
employ between 20 and 199 staff and higher number of businesses across
there are currently no businesses in these sectors may be a result of a
the Shire that employ more than 200 larger number of sole operators and
staff. non-employing businesses, which
Non- 1-19 20-199 200+
Total
employing Employees Employees Employees
110
69
81
49
0
0
0
0
191
118 55%
19 45 3 0 67
31 24 3 0 58
Non-employing
49 10 0 0 59 Businesses
17 31 3 0 51
27 21 3 0 51
26 15 0 0 41
34
18
6
22
0
0
0
0
40
40
98%
10 25 0 0 35
12 11 0 0 23
Small
12 3 0 0 15 Businesses
8 4 3 0 15
8 5 0 0 13
0 5 0 0 5
3
3
0
0
0
0
0
0
3
3
2%
0 3 0 0 3
0 0 0 0 0 Employ
20 to 199 Staff
456 360 15 0 831
Business Counts - Central Goldfields Shire - 2011 to 2016
Source: Business Counts (by employment range), Australian Bureau of Statistics (ABS), 2016, 2018
24 Economic Development Strategy 2020 - 2025CENTRAL GOLDFIELDS SHIRE COUNCIL
DEMOGRAPHIC PROFILE
Demographic Snapshot
Central Goldfields Shire has a The Shire accounts for 6% of the
population of approximately 13,000
people, increasing by 0.8% (+85
Loddon Campaspe region’s population.
However, the region includes Greater
12,993
Current
persons) per annum between 2011 and Bendigo, which comprises close to Residents
2016. The majority of the population 50% of the regional population. Central
is concentrated to Maryborough Goldfields Shire’s population growth
and Carisbrook (including Flagstaff), rate is notably lower than the Loddon
accommodating approximately 70% of Campaspe region, which is growing at
the Shire’s population. 1.5% per annum. 50
Median
14,134
The Shire’s rural areas account for less Central Goldfields Shire is forecast Age
than 20% of the Shire’s population, but to experience low to moderate
are responsible for approximately 85% population growth to 2036, adding a Forecast
of the population growth between 2011 further 1,600 residents at an average Residents
to 2036
and 2016, growing by 3.8% per annum. annual growth rate of 0.6%.
Across the major townships, The Loddon Campaspe region is
Maryborough’s population increased projected to grow at a higher rate,
by 0.8% per annum, adding 291 increasing from approximately
persons between 2011 and 2016, but 233,000 persons to 300,000 persons
Talbot and Dunolly experienced a by 2036, which equates to an average
decline in population, decreasing by annual growth rate of 1.3%. Much of 6,639 2.2
276 persons (-38%) and 13 persons the forecast population growth is Average
Dwellings Household
(-1%) respectively. projected to occur in Greater Bendigo, (2016) Size
accounting for two-thirds of the
region’s growth.
Population by Labourers
Townships
Technicians
Source: Population
Growth, Census of
Trade
Population and Housing, 7,922
Workers
Australian Bureau of
Statistics (ABS), 2016 1,209
Most Common
894
Occupations
441 (2016)
10,462
2,531 Demographic Snapshot
Source: Census of Population and Housing,
12,993
Australian Bureau of Statistics (ABS), 2016
232,903 / Victoria in Future (VIF) 2016, derived by
Urban Enterprise 2019
Economic Development Strategy 2020 - 2025 25DEMOGRAPHIC PROFILE
The Shire’s Age Profile
Loddon Campaspe
The median age of the Shire’s 14,800 310,000
residents is 50 years, which is notably 300,780
older when compared with the median 14,300 300,000
age across Victoria (37 years) and 14,134 290,000
13,800
Regional Victoria (43 years). In Central
280,000
Goldfields Shire, there has been a 13,300
decline in the number and proportion 270,000
12,800 13,087
of younger aged cohorts including 260,000
‘babies and pre-schoolers’ (aged 0 to 4 12,300
250,000
years) and ‘secondary schoolers’ (aged
11,800
15 to 19 years). 240,000
The proportion of ‘parents and 11,300 237,084 230,000
homebuilders’ aged between 35 and 10,800 220,000
49 years has also declined between 2016 2021 2026 2031 2036
2011 and 2016. Comparatively, there
was an increase in senior and elderly
Forecast Population Growth - Central Goldfileds & Loddon Campaspe Region -
aged cohorts, with a notable increase
2016 to 2036
in the proportion residents aged over
Source: Population Forecasts, Victoria in Future, 2019, derived by Urban Enterprise
65 years.
Historical trends are forecast to
continue to 2036, with a projected 2016 2036
increase in seniors and elderly (aged
70+ years), as well as a reduction in 1200
younger cohorts: primary, secondary
schoolers and young workers. 1000
The forecast change in age structure 800
may have implications for the local
economy and labour force, which 600
may extend to potential challenges
for businesses in employing young 400
workers, as well as ensuring that older
residents are well serviced for health 200
and medical services, accessible retail
and townships are suitably designed 0
to incorporate accessible and aged
0-4 years
5-9 years
10-14 years
15-19 years
20-24 years
25-29 years
30-34 years
35-39 years
40-44 years
45-49 years
50-54 years
55-59 years
60-64 years
65-69 years
70-74 years
75-79 years
80-84 years
85+ years
friendly infrastructure.
Current & Forecasted Age Profile - Central Goldfields Shire - 2016 to 2036
Source: Population forecasts, Victoria in Future, 2019, derived by Urban Enterprise, 2019
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