Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL

 
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
WARRNAMBOOL
Economic
Development
& Investment
Strategy
2015 - 2020
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
02

                                                           Table
                                                           of contents
Economic Development & Investment Strategy | 2016 - 2020

                                                           Summary                                      4
                                                              Background                                 6
                                                              Recent achievements of our
                                                              Warrnambool community                      7
                                                              Economic aontext                          14
                                                              Local insight with policy context         15
                                                              Economic Development and the role of
                                                              Warrnambool City Council                  15
                                                              Our Vision for 2020                       16
                                                              Warrnambool Strategy – Priorities         18
                                                           Warrnambool Economic Overview                25
                                                           Planning for a Warrnambool Economy
                                                           of the Future                                37
                                                           Consulting with our Local Business Leaders   41
                                                           The Warrnambool Advantage                    42
                                                           Threats and Challenges                       44
                                                           Warrnambool Strategy – Priorities            45
                                                              Economic Leadership and Collaboration     45
                                                              Infrastructure and Transport              47
                                                              Investment Attraction and Business
                                                              Support                                   51
                                                              Skills and Employment                     55
                                                              Visitor Economy and Regional City
                                                              Liveability                               57
                                                           Implementation                               59
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
Warrnambool is the largest City in
the Great South Coast region.

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Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
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                                                           Summary

                                                           Warrnambool is the largest City in
                                                           the Great South Coast region.
                                                           Our City is the major service centre
                                                           in the region and provides an
                                                           extensive range of services which
                                                           extend well beyond the borders
Economic Development & Investment Strategy | 2016 - 2020

                                                           of the Warrnambool Municipal
                                                           boundary.

                                                           Employment strengths are in              This Strategy recognises that some
                                                           the service sectors of health and        initiatives may be beyond the direct
                                                           community, education, food               control of Warrnambool City Council
                                                           processing, government, retail trade     (‘Council’) but require a partnership
                                                           and tourism. Industrial and business     with a combination of other levels of
                                                           activities also occur in the City that   government, public sector entity or
                                                           supports the broader agricultural        private enterprise.
                                                           and other industry value adding
                                                           activities.                              As the regional capital of the
                                                                                                    Great South Coast, Warrnambool
                                                           Warrnambool is a highly liveable         also plays a key role in providing
                                                           coastal regional city with a strong      employment opportunities
                                                           track record of steady and sustained     for residents of neighbouring
                                                           population and economic growth.          municipalities.
                                                           Warrnambool’s ongoing economic
                                                           challenge is to create employment        Some of the initiatives outlined in the
                                                           opportunities in the City to keep        document will have positive impacts
                                                           pace with population growth.             that will extend well beyond the City
                                                                                                    of Warrnambool and benefit the
                                                           Based on population growth               Great South Coast region.
                                                           forecasts there will be a need for
                                                           our City to create an additional         This Strategy will remain broad
                                                           4,000+ new jobs over the next            in focus and pointed towards
                                                           20 years.                                2020, but will have associated
                                                                                                    with it an annual Implementation
                                                           This Warrnambool Economic                Action Plan which further details
                                                           Development and Investment               actions, priorities, resources and
                                                           Strategy (“the Strategy”)                responsibilities.
                                                           was developed in-house by
                                                           Warrnambool City Council with input      The list of priorities are extensive,
                                                           from many of our business and            however intentionally not exhaustive
                                                           community leaders.                       to provide adjustment to future
                                                                                                    changing market dynamics as well
                                                           The purpose of the Strategy is to        as new opportunities that may
                                                           provide direction and promotion          emerge during the implementation
                                                           of the many initiatives considered       of the Strategy.
                                                           most necessary to ensure continued
                                                           growth and prosperity of our local
                                                           economy.
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
Warrnambool is a
highly liveable coastal
    regional city.

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                                                           Background

                                                           Council’s previous Economic
                                                           Development and Investment
                                                           Strategy was developed and
                                                           endorsed by Council in 2010. It was
                                                           undertaken in conjunction with
                                                           Moyne Shire Council and outlined
                                                           strategic objectives and a number of
Economic Development & Investment Strategy | 2016 - 2020

                                                           recommended projects to progress.
                                                           The vast majority of these projects
                                                           have either been completed or
                                                           require a review to determine
                                                           whether they remain a high
                                                           priority into the future.
                                                           The Strategy developed in
                                                           2010 required a 5-year review
                                                           be undertaken to ensure that work
                                                           streams respond to the current
                                                           structural changes, challenges and
                                                           opportunities in our local economy.
                                                           This Strategy is the culmination of the
                                                           2015 review.
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
Recent achievements                  Land Supply
                                                                             Over the past
of our Warrnambool                   • Our City has seen unprecedented

community
                                       levels of land rezoned for
                                       residential and industrial
                                                                               decade, the
Warrnambool is one of Victoria’s
                                       purposes.                             Warrnambool
progressive, growing regional
cities. Over the past decade, the
                                     • In 2004, Warrnambool had as
                                       little as three years’ residential   community has
                                                                            achieved many
Warrnambool community has              and industrial land supply.
achieved many milestones that          Today there is adequate zoned
have contributed to our City’s         residential and industrial land to
vibrancy, economic growth and
diversification. Examples of
                                       accommodate our City’s growth
                                       well beyond 2030.
                                                                                milestones.
economic growth and development
in our City over the past decade     • There is an estimated 25+
include:                               years’ zoned residential land
                                       supply across five greenfield
Population Growth                      residential growth areas – North
                                       Dennington, South Dennington,
• An additional 3,200 persons have     North of the Merri, North East,
  chosen to call Warrnambool           and Hopkins.
  home, representing an average
  annual growth rate of 1.1%.        • Our City’s second general
                                       industry hub is now open for
• Over the past decade the vast        business. Gateway Business
  majority of population growth        Park fronting Horne Rd is a
  in the Great South Coast region      65-hectare industrial zoned
  has been concentrated in             business park.
  Warrnambool.

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Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
North Dennington
                                                                Residential

                                                                                              North of the Merri
                                                                                                 Residential

                                                                                                                                             North East
                                                           South Dennington
                                                                                                                                             Residential
                                                              Residential
                                                                                 West Warrnambool                                                            Long Term
                                                                                 Industrial Precinct                                                        Growth Area

                                                                                                                                                         Gateway
                                                                                                                                                       Business Park
Economic Development & Investment Strategy | 2016 - 2020

                                                                                                                                                       Hopkins
                                                                                                                                                      Residential

                                                               An estimated 25+ years zoned residential land supply
                                                               across five growth areas and a second general industry
                                                               (Gateway Business Park) now open for business.

                                                                                                                   North East Warrnambool: One of five residential
                                                                                                                           growth areas rezoned for development
Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
Commencement of the
                       $30 million Warrnambool
                       Integrated Cancer Care Centre.

Building Approvals
                                        Concept design – Warrnambool Integrated
• The progress made towards             Cancer Care CentreConcept Development
  increasing land supply in our
  City has translated to relatively
  consistent levels of building
  activity.

• Over the past decade the value
  of building works (residential
  and commercial) approved for
  construction in Warrnambool has
  exceeded $1 billion.

• An average of 230 new
  residential dwellings have
  been constructed each year
  since 2005.
                                        Stage 1 Warrnambool Hospital Development

Healthcare and Emergency
Services Infrastructure

• The completion of the $100
  million redevelopment of the
  Warrnambool Hospital – one of
  the largest projects in the history
  of our City.

• Commencement of the
  $30 million Warrnambool
  Integrated Cancer Care Centre
  (including the community
  fundraising of $5 million).

• Completion of Stage 1 Waterfront
  Apartments, Lyndoch Living.

• Major expansion of St John of
  God Hospital.

• Mercy Place Aged Care Stage 1
  and Stage 2 development.

• Completion of new Warrnambool
  Ambulance Station.

• Commencement of new CFA Fire
  Station under way.
                                        Lyndoch Living
• Completion of independent living      Waterfront Apartments
  units for young people at Foyer
  Warrnambool.

• New HEMS rescue helicopter
  and facility established at
  Warrnambool Regional Airport.

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Economic Development & Investment Strategy 2015 2020 - WARRNAMBOOL
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Economic Development & Investment Strategy | 2016 - 2020

                                                             Deakin University Campus Student Accommodation

                                                           Education and Early Years           • Expansion to many of
                                                           Infrastructure                        Warrnambool’s Primary and
                                                                                                 Secondary Schools via the
                                                           • Development of Deakin               Federal Government Building
                                                             University Warrnambool Campus       Education Revolution Program.
                                                             student accommodation.
                                                                                               • Commencement of three new
                                                           • Development of Deakin               private sector early years
                                                             University Warrnambool Medical      facilities.
                                                             School.
                                                                                               • Funding secured for major
                                                           • Construction of new St John’s       upgrade to the Special Education
                                                             Primary School, Dennington.         School.
                                                           • Major expansion of Emmanuel       • New $12.5 million building at
                                                             Secondary College.                  South West TAFE.
Infrastructure and Major Projects     • Funding secured for the
                                               Winchelsea to Colac duplication
       • Construction of $12 million of        of the Princes Highway.
         new roads connecting residential
         and industrial growth areas         • $15 million for the construction of
         of Warrnambool: Horne Rd,             6 new passing lanes constructed
         Coghlans Rd, Aberline Rd.             on the Princes Highway between
                                               Colac and the South Australian
       • Completion of the new                 border.
         $5 million Regional Aviation Park
         and runway upgrade at the           • Completion of the $10 million
         Warrnambool Regional Airport.         rail siding at Weerite to enhance
                                               rail passenger and freight
       • $18 million upgrade to                movements.
         Warrnambool Telstra Exchange.
                                             • Completion of $3.6 million Brine
       • Commencement of NBN                   Receival facility in Warrnambool
         construction brought forward          to treat industrial brine waste.
         from 2020 to 2016.

       • $1.6 million upgrade to the
         Warrnambool Intermodal
         Terminal.

       • Major works on flood mitigation
         in North Warrnambool.

       • Completion of the new regional
         State Government Primary
         Industries headquarters in
         our region.

       • Commencement of the
         duplication of the Princes
         Highway Waurn Ponds to
         Winchelsea.

       • Completion of Warrnambool –
         Port Fairy Rail Trail.

                                                  Warrnambool Regional Airport – $5 million
                                                  Aviation Park Development

                                                  Warrnambool Intermodal Terminal

 Commencement                                     Development

    of the new
$5 million Regional
  Aviation Park.

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                                                                                       Business Development and Support      • New Warrnambool Bus Lines
                                                                                                                               route and depot development.
                                                                                       • Midfield Group’s recent planning
                                                                                         approval for a $70 million          • Strengthening of economic
                                                                                         investment to build a new             relationship with our Sister City in
                                                                                         cold store and dairy plant in         China, the City of Changchun.
                                                                                         Warrnambool – the largest single
                                                                                         private sector investment in the    • A secondee from Changchun
                                                                                         history of our City.                  Municipal Government living and
                                                                                                                               working in Warrnambool for 8
                                                                                       • Proposed 1A Liebig St                 months during 2015 to facilitate
                                                                                         development, a $20 million high       trade, investment, education and
                                                                                         density (apartments) residential      tourism opportunities between
                                                                                         complex in our City Centre.           our two cities.
Economic Development & Investment Strategy | 2016 - 2020

                                                                                       • Major new development               • Delivery of the Building Better
                                                                                         or expansion of retail and            Regional Cities Housing
                                                                                         commercial office complexes           Affordability Program in
                                                                                         including 4 new supermarkets.         North Dennington – Winner
                                                                                                                               of 2014 National Economic
                                                                                       • Major development or expansion        Development Australia (EDA)
                                                                                         of a variety of private and           Award for Community Economic
                                                                                         community sector entities in          Development.
                                                                                         Warrnambool including Western
                                                                                         District Employment Access,
                                                                                         Westvic Staffing Solutions,
                                                                                         Maddens Lawyers, Sinclair
                                                                                         Wilson, Brophy Family and Youth
                                                                                         Services, Wannon Water, and
                                                                                         various property, real estate and
                                                                                         construction related businesses.

                                                                                       • Major redevelopment across
                                                                                         most car dealerships.

                                                                                       • Return of Sharp Airlines Regular
                                                                                         Passenger Air services between
                                                                                         Warrnambool and Melbourne.               Delivery of
                                                                                       • Delivery of the successful Great
                                                                                         South Coast Skilled Migration
                                                                                                                                 the Building
                                                                                         Program.
                                                                                                                                Better Regional
                                                                                                                                Cities Housing
                                                                                                                                 Affordability
                                                                                                                               Program in North
                                                                                                                                 Dennington.

                                                           Concept design – 1A
                                                           Liebig Street residential
                                                           development
Visitor Economy and Regional
City Liveability

• $9 million redevelopment of
  Warrnambool Lighthouse
  Theatre.

• $3 million development of
  Warrnambool Foreshore Pavilion.

• Growth in the number and
  quality of restaurants and cafes
  in central Warrnambool.

• Renewal of Flagstaff Hill
  Maritime Village under way.

• Major events such as May
  Racing Carnival, Speedway,
  Fun4Kids, as well as numerous
  state and regional sporting
  carnivals and championships
  and various industry conferences
  and expos.

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                                                           Economic
                                                           Context

                                                           Warrnambool is
                                                           the eighth-largest
                                                           economy outside
                                                           metropolitan
                                                           Melbourne with
Economic Development & Investment Strategy | 2016 - 2020

                                                           a Headline Gross
                                                           Regional Product
                                                           (GRP) of $1.4 billion
                                                           in 2013.
                                                           The rate of GRP growth over the         The City of Warrnambool’s
                                                           10-year period 2003-2013 was 1.9%       unemployment rate has generally
                                                           per annum, the fourth-highest GRP       been at the lower range compared
                                                           growth rate of all regional cities in   to other regional cities in Victoria
                                                           Victoria (behind Bendigo, Ballarat      and broadly comparable with the
                                                           and Geelong).                           State Average.

                                                           Warrnambool continues to attract        The wider region’s level of youth
                                                           new residents to our City, averaging    unemployment is high relative to
                                                           a rise of around 330 persons each       metropolitan Melbourne and other
                                                           year to our population. As at June      regions across the State.
                                                           2014, Warrnambool’s population
                                                           was estimated to be 33,500              Findings from the Annual
                                                           persons.                                Warrnambool Business Confidence
                                                                                                   Survey show a discernible
                                                           Warrnambool has a diverse industry      softening in perceptions of business
                                                           base with employment access to          confidence in our City over the past
                                                           a range of services sector and          five years.
                                                           manufacturing sector industries.
                                                                                                   The population is growing, but
                                                           The key industry sectors by             ageing – requiring new jobs to
                                                           employment are:                         be generated, new residential
                                                           • Health and Social Services            dwellings and new types of
                                                                                                   infrastructure services and facilities
                                                           • Retail
                                                                                                   to accommodate demographic
                                                           • Education                             changes in our community.
                                                           • Manufacturing
                                                                                                   This Strategy identifies a range
                                                           • Tourism.
                                                                                                   of new and ongoing initiatives
                                                           Warrnambool’s economy is                considered most necessary to
                                                           influenced by the Great South Coast     not only build on the significant
                                                           region, which provides a market         economic momentum of the past,
                                                           catchment of 120,000 residents          but also to endeavour to address
                                                           around our City.                        some areas of our economy that
                                                                                                   have underperformed in recent
                                                           In recent years, Warrnambool’s          years.
                                                           unemployment rate has been in the
                                                           range of 5.1% - 6.5%.
Local Insight with                    Economic Development and the role
Policy context                        of Warrnambool City Council
This Strategy has been informed
                                      This section presents an overview         Council will support, facilitate,
by listening to a range of our
                                      of Warrnambool City Council’s             advocate, and undertake a range of
local business leaders, tapping
                                      role in economic development.             economic development initiatives,
into their local insight, knowledge
                                      This information should be used           but will not necessarily always be
and understanding of our region’s
                                      to better understand Council’s            the party responsible for delivering
strengths and weaknesses.
                                      capacity to influence economic            a particular outcome; this will be
Data has been obtained from the       objectives, acknowledging that it has     delivered in partnership with a range
Australian Bureau of Statistics,      jurisdictional and funding limitations.   of other stakeholders.
Regional Development Victoria         These limitations must be understood
                                      when moving from the strategy             This Strategy is designed to represent
and various other sources
                                      vision and priority areas to the          a commitment by business, industry,
referenced throughout this
                                      implementation plan.                      and all tiers of government who
document.
                                                                                are united in their desire to see the
Local insights have been an           Promoting the economic viability          City of Warrnambool realise its full
important part of the development     and sustainability of the local           economic potential.
of this Strategy to validate          community is a primary objective
                                      of local government under the             Where Council can continue to
the data collected concerning
                                      Local Government Act. Council has         play an effective role in economic
the economic performance of
                                      a valid and important part to play        development are in the key areas of:
Warrnambool.
                                      in promoting and facilitating local
                                                                                • Facilitating Investment
This Strategy draws upon policy       economic development. Council
and strategic guidance from a         is, in many cases, the first point of     • Through the Planning Scheme,
wide range of documents at levels     contact for local businesses and the        supporting appropriate
of Federal and State Government,      community in relation to day-to-day         development that is attractive to
Regional Cities Victoria, Barwon      concerns of our local businesses.           new investors and supports local
South West, Great South Coast                                                     businesses
region and Warrnambool City           As well as stimulating the economy
Council.                              through being one of the City’s           • Efficient and effective
                                      largest employers, Council delivers a       infrastructure
Key Council and regional              major capital expenditure program
strategies considered in              where, through procurement                • Business Support
formulating the development           strategies, a high proportion of local
of the priorities in this Strategy    spend supports local businesses.          • Supportive governance structures
include:
                                      Local Government does not ‘drive’         • Providing strategic leadership on
• Council Plan
                                      economic development. This is the           economic development issues to
• City Centre Structure Plan          role of business and industry. Local        promote our City’s reputation and
• Warrnambool Planning Scheme         Economic Development is one that            improve business confidence
• Destination Warrnambool Plan        is business and industry led and
                                      government supported.                     • Fostering links between research
• Events Strategy                                                                 and learning institutions and
• Health and Wellbeing Plan           Council must work with government           business to encourage industry
• Land Use Strategy                   and industry stakeholders to                innovation
                                      maximise resources to assist in
• Recreation and Culture Plan                                                   • Connecting local businesses to the
                                      delivering better economic outcomes
• GSC Regional Strategic Plan         for our City.                               region, state, nation and globe.
• GSC Food and Fibre Action Plan
• GSC Regional Transport Plan.

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                                                           Our Vision
                                                           for 2020
                                                           Our vision is that by 2020, the City of
                                                           Warrnambool will be acknowledged
                                                           across our nation as a progressive
                                                           and vibrant regional city.
                                                           The coastal regional city of             Warrnambool City Council will have
                                                           Warrnambool will continue to serve       continued to play a strong and
Economic Development & Investment Strategy | 2016 - 2020

                                                           as the dominant settlement and           proactive facilitation role in suitable
                                                           service centre for the Great South       investment proposals within our
                                                           Coast region.                            key economic precincts, including
                                                                                                    but not limited to, our City’s second
                                                           By 2020, Warrnambool businesses          general industry hub Gateway
                                                           will feel engaged, supported,            Business Park, and the new Aviation
                                                           and encouraged to grow. New              Park at Warrnambool Regional
                                                           businesses and industries are            Airport.
                                                           attracted to Warrnambool because
                                                           of its strategic location, skilled and   At long last, additional rail services
                                                           growing workforce and high quality       to and from Melbourne will be
                                                           infrastructure.                          operating. The Princes Highway
                                                                                                    duplication from Waurn Ponds to
                                                           Public and private investment has        Colac will be complete, together
                                                           continued around the City, with clear    with additional passing lanes west
                                                           and consistent Council strategies,       of Colac through to Warrnambool.
                                                           policies and plans in place to give
                                                           a level of certainty for investors and   We envisage that both Deakin
                                                           developers.                              University Warrnambool Campus
                                                                                                    and South West TAFE will have
                                                           Warrnambool will continue growing        increased student numbers off the
                                                           its population and attracting new        back of industry relevant course
                                                           and improved services to the Great       offerings – further consolidating the
                                                           South Coast region. Warrnambool’s        presence and profile of higher and
                                                           growth will offer economic and           further education in our City.
                                                           social spill-over benefits for
                                                           the wider region, including the          A growing concentration of
                                                           attraction of new or higher order        international students will reside in
                                                           services and facilities.                 Warrnambool whilst studying at our
                                                                                                    City’s University or South West TAFE.
                                                           The $30 million Integrated
                                                           Cancer Care Centre development           Deakin University’s Medical School
                                                           will be completed and servicing a        will continue to go from strength
                                                           large catchment across South West        to strength, with some graduates
                                                           Victoria. Funding for the $100 million   choosing to call Warrnambool
                                                           Stage 2 Warrnambool Hospital             home.
                                                           development will be secured with
                                                           construction under way.                  New Residential Growth Areas
                                                                                                    will continue to expand and form
                                                           Our City Centre will have benefited      active new communities, driven by
                                                           from significant private and public      steady population growth and the
                                                           investment, generating renewed           availability of jobs.
                                                           interest and increased activity as the
                                                           premier regional centre of the Great     High speed broadband will be
                                                           South Coast.                             readily available across our City
                                                                                                    driving innovation and challenging
                                                                                                    traditional models of doing business.
Warrnambool will increasingly be
known as a Centre of Excellence in
                                         Our City’s education attainment
                                         rates will be on the rise, and youth           By 2020,
                                                                                  Warrnambool
food processing benefiting from our      unemployment rates on the decline,
surrounding agricultural sector that     courtesy of intensive engagement
plays such a vital economic role in      and integration across all levels
our broader region.                      of our Education sector, business
                                         community, and other stakeholders.
                                                                                  businesses will
Our largest private sector employer
Midfield Group will continue to be       Warrnambool will continue to offer       feel engaged,
headquartered in Warrnambool
and will employ many thousands of
                                         residents the strength of a dynamic
                                         regional city while still maintaining   supported, and
                                                                                    encouraged
residents (directly and indirectly) in   relative affordability in housing,
our City.                                accessible childcare, and a high
                                         standard, safe living environment
Warrnambool’s labour force will have
continued to grow and will have
                                         compared to Australia’s
                                         metropolitan cities.
                                                                                        to grow.
addressed areas of skills shortages
becoming a drawcard for attracting       By 2020 Warrnambool’s economy
new and existing industry growth to      will be further diversified and
the area.                                thriving, evidenced by continued
                                         growth in Gross Regional Product,
Significant investment in tourism        labour force numbers, relative low
infrastructure and promotion of          unemployment rates, and higher
our City as a destination will trigger   than present workforce participation
material growth in our visitation        levels compared to other Victorian
numbers. Existing and new major          regional cities.
events will keep our City vibrant
throughout the year.                     Our vision is ambitious but
                                         achievable.
Warrnambool will have a long
awaited new library deserving of
our progressive regional city and the
large regional catchment it serves.                                               17   warrnambool.vic.gov.au
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                                                           Warrnambool Strategy
                                                           - Priorities
                                                           Our vision is that by 2020, the City of
                                                           Warrnambool will be acknowledged
                                                           across our nation as a progressive
                                                           and vibrant regional city.
                                                           Our vision for Warrnambool will be
                                                           achieved by leading, advocating,
Economic Development & Investment Strategy | 2016 - 2020

                                                           supporting and working with a wide
                                                           range of partners to implement
                                                           or influence priorities categorised
                                                           under five key areas:
                                                           1. Economic Leadership
                                                              and Collaboration
                                                           2. Infrastructure and Transport
                                                           3. Investment Attraction
                                                              and Business Support
                                                           4. Skills and Employment
                                                           5. Visitor Economy and
                                                              Regional City Liveability.
                                                           These priorities will be expanded
                                                           upon later in the Strategy.
1. Economic Leadership and Collaboration
• Convene an Economic                 • Foster strong relationships with    • Support and participate in
  Development Advisory                  relevant State and Federal            economic development initiatives
  Group which draws together            Government Departments to             driven by Regional Cities Victoria
  representatives from Council,         ensure co-ordination and support      and the Great South Coast
  business and industry,                for economic development              Economic Growth Pillar Group.
  government and other                  initiatives at the local level in
  stakeholders.                         Warrnambool.                        • Support active collaborative
                                                                              alliances between Council
• Identify and mentor potential                                               and business membership
  business and community leaders
  to promote our City’s competitive
                                      Supporting                              organisations that have the
                                                                              expressed objective of supporting
  strengths, values and attributes.
                                      economic                                economic development and
                                                                              training programs in our City

                                      development
• Strengthen the profile and                                                  and wider region.
  awareness of Council’s
  investment facilitation and                                               • Create a regional network of
  business services offering, the
  celebration of achievements
                                      and training                            existing international expertise
                                                                              and relationships to help forge
  made by local businesses and
  general showcasing of the City’s
                                      programs in our                         stronger business and industry
                                                                              linkages outside the region.
  competitive strengths.
                                      City and wider                        • Ensure the priorities contained in

                                      region.
                                                                              this Strategy are aligned with the
                                                                              principles of the Warrnambool
                                                                              Planning Scheme to encourage
                                                                              appropriate development.

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                                                           2. Infrastructure                     • Advocate to the Victorian
                                                                                                   Government seeking the
                                                           and Transport                           upgrade of the Warrnambool
                                                                                                   Railway Station.

                                                                                                 • Support the development of
                                                           • Advocate for the development          Warrnambool Regional Airport
                                                             of the $100 million Stage 2           including the construction of a
                                                             Warrnambool Hospital.                 lengthened and strengthened
                                                                                                   main runway.
                                                           • Form a working group
                                                             of business and industry            • Promote, and where possible,
                                                             ‘champions’ of digital technology     support the return of the flight
                                                             to promote the capabilities           Passenger service between
Economic Development & Investment Strategy | 2016 - 2020

                                                             and benefits of high speed            Warrnambool – Melbourne.
                                                             broadband.
                                                                                                 • Advocacy for further upgrades
                                                           • Work with telecommunication           to the Princes Highway west of
                                                             providers to ensure the delivery      Colac to Warrnambool.
                                                             of high speed broadband
                                                             infrastructure and services         • Support the Wannon Water
                                                             across the City, with a specific      Authority’s ongoing investment in
                                                             focus on project locations where      water-security infrastructure.
                                                             productivity and innovation will
                                                             be maximised.                       • Target investment attraction to
                                                                                                   business and industry requiring
                                                           • Support the renewal activities of     high quality water resources.
                                                             the Warrnambool City Centre.
                                                                                                 • Investigate the feasibility of new
                                                           • Lead and advocate for                 and emerging waste to energy
                                                             increased passenger rail              treatment plants and processes.
                                                             services and modernised rolling
                                                             stock between Melbourne and         • Support research and
                                                             Warrnambool.                          development in clean energy
                                                                                                   sources, particularly solar, wind
                                                           • Continue to support and               and gas.
                                                             advocate for the priorities of
                                                             the Warrnambool – Melbourne         • Partner in the development of a
                                                             Rail Freight service and the          new library and learning centre.
                                                             associated Warrnambool
                                                             Intermodal Terminal.

                                                           • In partnership with stakeholders    Advocate for the
                                                             and the Victorian Government,
                                                             investigate the need for a
                                                             Warrnambool Freight Study.
                                                                                                 development
                                                           • Investigate the development         of the $100
                                                             of car parking on the Vic
                                                             Track-owned land at the             million Stage 2
                                                             Warrnambool Railway Station.
                                                                                                 Warrnambool
                                                                                                 Hospital.
3. Investment                            • Prepare an industry sector
                                           development prospectus for high      Identify the
Attraction and
                                                                                needs of our
                                           value industries that offer the
                                           greatest potential to succeed.
Business Support
                                         • Development and promotion of
                                           Warrnambool as a regional centre
                                                                                City’s key
• Identify the needs of our City’s key
                                           of excellence for food production.
                                                                                economic
  economic precincts and facilitate
                                                                                precincts.
                                         • Collaborate with the Victorian
  appropriate investment within            Government towards supporting
  these precincts.                         our region’s Food and Fibre
                                           agenda and attract resources to
• Work with property agencies to
                                           increase regional exports.
  identify investment-ready sites.
                                         • Support the implementation plans
• Develop an investment prospectus
                                           of the Great South Coast Food
  promoting the City’s attributes
                                           and Fibre Plan and the Western
  and opportunities to attract new
                                           Victorian Dairy Strategy.
  businesses and industries to
  Warrnambool.                           • Continue to strengthen economic
                                           relationships with our Sister City
• Work with partners to research
                                           of Changchun in China (and other
  industry sector business cases to
                                           global markets) to create new
  grow high value industries in our
                                           markets for our region’s products,
  City such as:
                                           and leverage potential tourism,
   - Food and agriculture                  education and other opportunities
   - Tourism
   - International education
   - Health and wellbeing
   - Water and waste services.

                                                                                   21   warrnambool.vic.gov.au
22
Economic Development & Investment Strategy | 2016 - 2020

                                                           • Advocate for and support            • Host both formal and informal
                                                             businesses seeking international      networking events targeting
                                                             export licenses to grow the           a range of business sizes and
                                                             volume and range of our local         diverse sector backgrounds.
                                                             products to the world, and in
                                                             particular Asia.                    • Deliver the annual Warrnambool
                                                                                                   Business Festival.
                                                           • Develop case studies to
                                                             demonstrate and promote the         • Develop and analyse up-to-date
                                                             opportunities for our region from     economic and demographic
                                                             the activation of the Free Trade      data for investors and businesses
                                                             Agreements with China, Japan          in our City, including the annual
                                                             and Korea.                            Warrnambool Business Survey.

                                                           • Investigate the development         • Working with partners, prepare
                                                             of a Micro Business hub model         a Residential Aged Care
                                                             in Warrnambool focused on             Sector Plan designed to better
                                                             providing offices for start-up        understand the dynamics
                                                             businesses and other business         and fundamentals of this
                                                             support services.                     growth industry and to explore
                                                                                                   approaches to accelerate its
                                                           • Continue the successful               growth in Warrnambool.
                                                             Warrnambool Business Visitation
                                                             Program.                            • Develop and advocate for
                                                                                                   alternative funding models
                                                           • Facilitate mentoring and high         to finance more economic
                                                             quality training workshops that       development initiatives in
                                                             meet the needs of small business      our City.
                                                             owners, home businesses, and
                                                             start-ups.
4. Skills and                          • Partner in a “Warrnambool
                                         Careers Expo” designed to bring
                                                                               Work with
Employment                               together educators, employers,
                                                                               industry
                                         students and unemployed

• In partnership with Deakin
                                         persons in a collaborative
                                         environment.                          partners
  University’s Warrnambool
  Campus, support the
                                       • Work with industry partners to
                                         identify major skills shortages in
                                                                               to identify
  implementation of the Deakin
  Warrnambool 2020 Strategic
                                         our City’s workforce and provide
                                         timely updates to industry and
                                                                               major skills
  Plan.                                  government.
                                                                               shortages
• Advocate and support for the
                                                                               in our City’s
                                       • Advocate support from the
  promotion of Warrnambool as a          Victorian and Australian
  “University City” through shared       Governments for the
  initiatives with Deakin University
  Warrnambool Campus.
                                         reintroduction of support for
                                         Warrnambool and region to
                                                                               workforce.
                                         reinstate its successful Skilled
• Continue to support the                Migration Program.
  development of Deakin
  University’s Warrnambool             • Work with partners to get our
  Medical School.                        local providers NDIS ready and
                                         maximise the local economic
• Advocate to the Victorian              and skills benefits from this
  Government seeking the                 significant change to the service
  appropriate resourcing of              model.
  Warrnambool-based South West
  TAFE to ensure the provision of      • Advocate to the State and
  a responsive vocational training       Federal Governments for the
  sector and apprentice support          relocation of further public sector
  programs designed to serve the         jobs to the regions, including
  needs of local employers.              Warrnambool.
• Facilitate and support education
  providers with school-to-
  work and higher education to
  work links with industry and
  businesses.

• Leverage and support
  opportunities for Warrnambool’s
  Deakin University, South West
  TAFE and secondary schools
  to increase the intake of
  international students.

• Support and contribute towards
  actions of the Great South
  Coast Beyond the Bell Project to
  improve Education attainment
  levels.

                                                                                 23   warrnambool.vic.gov.au
24

                                                            5. Visitor Economy and Regional
                                                            City Liveability

                                                           • Support the promotion and             • Support the development of inner-
                                                             implementation of priorities of the     city living to add vibrancy and
                                                             Great Ocean Road Tourism Board          activity to our Warrnambool City
                                                             Master Plan and Destination             Centre.
                                                             Action Plan for the Warrnambool
                                                             Tourism area to include:              • Ongoing support for the
                                                                                                     development and maintenance
                                                              - Develop and consistently             of recreational, arts and cultural
                                                                promote a unique market              facilities, essential for supporting
Economic Development & Investment Strategy | 2016 - 2020

                                                                positioning and brand for            and promoting the liveability and
                                                                Warrnambool                          attractiveness of our City.

                                                              - Develop product and                • Support the growth of creative
                                                                experiences to match visitor         industries and awareness of
                                                                demand and improve seasonal          their economic value across our
                                                                dispersal                            business community.

                                                              - Implement the Flagstaff Hill       • Support the assessment of new
                                                                Master Plan to revitalise the        tourism proposals, including
                                                                visitor experience                   appropriate and sustainable
                                                                                                     development on Crown Land
                                                              - Develop a visitor service            proposals.
                                                                excellence culture and capacity
                                                                program

                                                              - Determine and promote the
                                                                value of the visitor economy to
                                                                the community.

                                                           • Investigate the need for
                                                             and feasibility of a regional
                                                             scale conference facility in
                                                             Warrnambool.

                                                           • Work with partners to investigate
                                                             the attraction of new major events
                                                             worthy of further development
                                                             –including sporting, cultural,
                                                             food and agricultural events and
                                                             conferences.
Warrnambool
Economic Overview
• One of the 50 largest Australian
  cities by population.
                                        • A high amenity coastal location
                                          with access to higher order          A track
                                                                               record of
                                          educational, health and business
• Our City is located 260 kilometres      services.
  south-west of Melbourne and
  linked direct by the Princes
  Highway.
                                        • The key industry sectors in terms
                                          of present employment are:
                                                                               sustained
• Freight and passenger services for
                                           - Healthcare and social services    and steady
                                           - Food processing
                                                                               population
  both rail and air operate direct to
  and from Melbourne.                      - Retail trade

                                                                               growth.
                                           - Education and training
• Warrnambool is the largest city in
  the Great South Coast region with        - Tourism
  a current resident population of         - Construction.
  33,500 persons but serves a wider
  regional catchment of 120,000.        • An 18,000+ labour force.

• A track record of sustained           • Around a third of our City’s
  and steady population growth,           employment base is public
  increasing by over 3,200 persons        sector – schools, hospitals and
  over the past decade, and               government.
  growing by about 1.1% per annum.
                                        • Estimated 25+ years of zoned
                                          residential and industrial land.

                                        • A diverse economy with major
                                          employers including Midfield
                                          Group, Southwest Healthcare,
                                          Fonterra, Deakin University,
                                          South West TAFE, Warrnambool
                                          City Council, Sinclair Wilson,
                                          Wheelie Waste, Chitticks Bakery,
                                          Owen Truss, Westvic Container
                                          Export, Ryans Transport, WDEA
                                          Enterprises, Westvic, CriTech
                                          Plumbing, Matthew’s Petroleum
                                          Services, PFD, major retailers
                                          and supermarket chains, car
                                          dealerships, banking institutions,
                                          Wannon Water Authority, and
                                          various State Government
                                          departments, agencies and
                                          schools.

                                                                                 25   warrnambool.vic.gov.au
26

                                                                This section provides
                                                                a summary of the key
                                                                economic fundamentals
                                                                of the Warrnambool
                                                                economy. It is not intended
                                                                to be exhaustive but to
                                                                provide a snapshot of
                                                                how our local economy is
                                                                performing, the drivers of
Economic Development & Investment Strategy | 2016 - 2020

                                                                our economy, and where
                                                                areas of future economic
                                                                growth might occur.

                                                                 Warrnambool: Population 2004-2014

                                                                             34,000                                                             In many instances, population
                                                                             33,000                                                             growth follows jobs growth. Growth
                                                                                                                                                or decline in a population has a
                                                                             32,000
                                                                                                                                                direct impact on levels of total
                                                               Persons

                                                                             31,000
                                                                                                                                                private and public expenditure
                                                                             30,000                                                             in our local economy. Population
                                                                             29,000                                                             growth provides the underlying
                                                                             28,000
                                                                                                                                                basis for growth in labour resources,
                                                                                                                                                improvements in skills levels and
                                                                             27,000
                                                                                       2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014   development of investment and jobs
                                                                                                                                                within our area.

                                                                                                                                                The estimated resident population of
                                                                             1.6%                                                               the City of Warrnambool was 33,500
                                                                             1.4%                                                               people in 2014. The population grew
                                                           Growth Rate (%)

                                                                                                                                                on average by 1.1% per annum in
                                                           Average Annual

                                                                              1.2%

                                                                             1.0%                                                               the period 2004-14, which made it
                                                                             0.8%
                                                                                                                                                the fifth-fastest growing regional
                                                                                                                                                city in Victoria. In terms of absolute
                                                                             0.6%
                                                                                                                                                numbers, this represented an
                                                                             0.4%
                                                                                                                                                approximate net increase of over
                                                                             0.2%
                                                                                                                                                3,200 residents.
                                                                             0.0%
                                                                                      2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

                                                                 Source: ABS Cat.3218.0
Warrnambool: Net Migration 2006-2011

                                                              Warrnambool’s net migration
                                                              gain during the period 2006-11
                                       Queensland             was mainly driven by gains from
                    Southern
                                          -145                nearby municipalities, particularly
                   Grampians
                                                              Corangamite, Southern
                      +96
     Western                                                  Grampians and Glenelg.
                                                Ballarat
     Australia                                    -69         Over one-quarter of the city’s new
       -111
                                                              residents were from Melbourne
                                                              (net migration was +13), possibly
      South                                                   attracted by the city’s coastal
     Australia                                      Greater
                                                    Geelong   amenity and range of services.
       +58                                                    About 280 overseas immigrants
                                                     -160
                          Warrnambool(C)                      have settled in Warrnambool over
        Glenelg
                                                              this period.
          +85                                  Corangamite
                                                   +237       The city’s largest net losses were to
                                                              Greater Geelong, Queensland and
     Net migration 2006-2011                                  Western Australia.

     50 to 99
     100 to 200
     200+
     Dotted line denotes outflow
     Overseas migration not shown

                                                                                        27            warrnambool.vic.gov.au
28

                                                             Great South Coast: Population 2004-2014
                                                                                                                1.5%

                                                                                                                1.0%
                                                           Growth Rate (%)

                                                                                                               0.5%
                                                           Average Annual

                                                                              -2,000              -1,000                         1,000           2,000               3,000        4,000

                                                                                                              -0.5%                                      Warrnambool

                                                                                                                                                         Moyne
Economic Development & Investment Strategy | 2016 - 2020

                                                                                                               -1.0%                                     Glenelg

                                                                                              Absolute growth in Population (Persons)                    Southern Grampians

                                                             Note: Size of circle denotes total population in 2014                                       Corangamite
                                                             Source: ABS Cat 3218.0

                                                             The concentration of population growth across the Great South Coast region has occurred in Warrnambool
                                                             with some moderate growth in neighbouring Moyne Shire. The historical growth of Warrnambool has
                                                             balanced out population decline across the other municipalities in the Great South Coast region.

                                                             Regional Cities Victoria: Population 2004-2014
                                                                                 2.1%
                                                                                                                                           Ballarat

                                                                                 1.8%                                                                                         Geelong

                                                                                 1.5%                      Wodonga

                                                                                 1.2% Warrnambool
                                                           Growth Rate (%)
                                                           Average Annual

                                                                                                                                 Bendigo
                                                                                 0.9%
                                                                                                              Shepparton
                                                                                        Mildura
                                                                                 0.6%

                                                                                                           Latrobe
                                                                                 0.3%

                                                                                           Wangaratta

                                                                                -0.3%   Swan Hill

                                                                                -0.6%
                                                                             -2,000            3,000             8,000         13,000          18,000              23,000       28,000

                                                                                                            Absolute growth in Population (Persons)

                                                             Note: Size of circle denotes total population in 2014
                                                             Source: ABS Cat 3218.0

                                                             There are 10 regional cities in Victoria. Warrnambool is the eighth largest regional city by population and the
                                                             fifth fastest growing over the past decade, behind Ballarat, Bendigo, Geelong and Wodonga.
Warrnambool: Growth in Headline Gross Regional Product (GRP) 2003-2013
                                              3.9%

                                              3.6%                                                                           Bendigo
                                              3.3%
                                                                                                                                                Geelong
                                             3.0%
                                              2.7%
Average Annual GRP

                                             2.4%      Warrnambool
  Growth Rate (%)

                                              2.1%                                                        Ballarat
                                              1.8%
                                                       Horsham              Wodonga
                                              1.5%
                                              1.2%

                                             0.9%

                                             0.6%                           Shepparton

                                             0.3%
                                                                  Mildura

                                            -0.3%

                                            -0.6%       Latrobe
                                            -0.9%
                       -500                                                    500                1,000                        1,500              2,000

                                                                            Absolute Growth in GRP ($ millions)

  Note: Size of circle denotes total Gross Regional Product in 2013
  Source: Regional Development Victoria

 Warrnambool is the eighth-largest economy outside metropolitan Melbourne with a Headline Gross Regional
 Product (GRP) of $1.4 billion in 2013. GRP grew by $241 million in the period 2003-13. The rate of growth was
 1.9% per annum, the fourth-highest growth rate of all regional cities in Victoria.

 Warrnambool Employment by Industry

                                                     Mining

                           Agriculture, Forestry & Fishing
                                                                                                               The following six sectors account for over two
          Information Media & Telecommunications
                                                                                                               thirds of employees whose place of work is
                               Arts & Recreation Services                                                      located within Warrnambool:
                     Rental, Hiring & Real Estate Services
                                                                                                               • Healthcare and social assistance
                 Electricity, Gas, Water & Waste Services
                                                                                                               • Retail trade
                       Administrative & Support Services
                                                                                                               • Education and training
                          Financial & Insurance Services
                                                                                                               • Accommodation and food services
                        Transport, Postal & Warehousing
                                                                                                               • Construction
                                           Other Services
                                                                                                               • Manufacturing (vast majority of which
                                        Wholesale Trade                                                          is food processing).
          Professional, Scientific & Technical Service

                           Public Administration & Safety

                                          Manufacturing

                                             Construction

                                        Accommodation

                                    Education & Training

                                             Retail Trade

                         Health Care & Social Assistance

                                                              0              500         1,000     1,500             2,000             2,500   3,000

  Source: ABS Census 2011
                                                                                                 No. Jobs

                                                                                                                                               29         warrnambool.vic.gov.au
30

                                                           Warrnambool: Change in industry sector of employment, 2006-2011

                                                                                                                                                   Over the period 2006-2011 the largest change in
                                                                                           Retail Trade                                            the jobs held by the resident population has been
                                                            Information Media & Telecommunications                                                 the growth of the health care and social assistance
                                                                  Rental, Hiring & Real Estate Services                                            industry, adding almost 400 jobs to our local
                                                                                                                                                   economy.
                                                                 Inadequately described or not stated

                                                                                                Mining                                             This scale of growth is commensurate with the
                                                                                        Other Services
                                                                                                                                                   regional services role that our City plays for the
                                                                                                                                                   wider region and also significant investment in
                                                                                        Manufacturing
                                                                                                                                                   healthcare infrastructure sector over this period.
                                                                        Financial & Insurance Services                                             Material employment growth over this period also
                                                                         Agriculture, Forestry & Fishing                                           occurred in Accommodation and Food services,
                                                                      Transport, Postal & Warehousing
                                                                                                                                                   Education, Construction, Arts and Recreation
                                                                                                                                                   Services, Professional Services and Public
                                                                    Administrative & Support Services                                              Administration.
Economic Development & Investment Strategy | 2016 - 2020

                                                               Electricity, Gas, Water & Waste Services
                                                                                                                                                   The only sector that contracted over this period was
                                                                                      Wholesale Trade
                                                                                                                                                   the retail sector which reported a small decline in
                                                                        Public Administration & Safety                                             employment.
                                                            Professional, Scientific & Technical Service

                                                                          Arts and Recreation Services

                                                                                          Construction

                                                                                  Education & Training

                                                                     Accommodation & Food Services

                                                                       Health Care & Social Assistance

                                                                                                           -50   0         +50     +100    +150     +200    +250   +300   +350    +400

                                                                                                            Source: ABS Census 2006 and 2011

                                                           Warrnambool Employment by Industry

                                                                                                Mining

                                                                            Arts & Recreation Services

                                                                         Agriculture, Forestry & Fishing
                                                                                                                                                   Warrnambool’s economy generates output of
                                                                                        Other Services
                                                                                                                                                   over $3 billion each year accounting for over 20%
                                                                    Administrative & Support Services                                              of the region’s economic output from less than 1%
                                                            Information Media & Telecommunications                                                 of the land area.
                                                                      Transport, Postal & Warehousing

                                                                        Public Administration & Safety

                                                                  Accommodation and Food Services

                                                               Electricity, Gas, Water & Waste Services

                                                            Professional, Scientific & Technical Service

                                                                                  Education & Training

                                                                                      Wholesale Trade

                                                                                           Retail Trade

                                                                        Financial & Insurance Services

                                                                      Health Care & Social Assistance

                                                                                          Construction

                                                                                        Manufacturing

                                                                  Rental, Hiring & Real Estate Services

                                                                                                            $0       $50    $100    $150    $200     $250   $300   $350   $400   $450

                                                                                                            Source: Remplan                 $ millions
Warrnambool: Business Counts, June 2014

                        2,000            1,862

                        1,800

                        1,600

                        1,400
No. Businesses

                        1,200

                        1,000
                                                             718
                         800

                         600
                                                                                  373
                         400

                         200                                                                        89
                                                                                                                            3
                            0
                                         Non                 1-4                  5-19             20-199                  200+
                                       employing
                                                                         No. employees

           Source: ABS Cat. 8165.0 Note: This count only includes businesses which actively
           traded ingoods or services during the reference period

     There are over 3,000 businesses in the City and 1,862 (or 61%) of these are non-employing/self employing
     operators. A further 1,091 (or 36%) are small businesses which employ up to 19 employees. Eighty-nine
     businesses (or 3%) employ between 20-199 staff. Three businesses in our City employ greater than 200
     employees. This structure means economic development policies incorporate strategies that support
     existing SMEs to grow. It has been demonstrated that a high percentage of growth in an economy often
     comes from existing businesses.

     Warrnambool: Unemployment 1998-2015
                        12.00%

                        10.00%        9.80%
Unemployment rate (%)

                        8.00%

                        6.00%

                                                                                                                                      5.00%
                        4.00%

                        2.00%

                        0.00%
                                 98

                                        99

                                              00

                                                   01

                                                        02

                                                             03

                                                                   04

                                                                        05

                                                                             06

                                                                                    07

                                                                                         08

                                                                                              09

                                                                                                    10

                                                                                                            11

                                                                                                                 12

                                                                                                                      13

                                                                                                                                14

                                                                                                                                     15
                                                                                                         20

                                                                                                                 20

                                                                                                                      20

                                                                                                                                     20
                                                                                                                            20
                                                   20

                                                                                                   20
                                       19
                                 19

                                                                                   20
                                                        20

                                                             20

                                                                             20

                                                                                              20
                                                                        20

                                                                                         20
                                                                   20
                                              20

     Source: Small Area Labour Markets, DEEWR

     Since 1998, Warrnambool’s unemployment has reached a high of 9.8% in 1998 and as low as 4.1%
     in 2008. In recent years, Warrnambool’s unemployment rate has been in the range of 5.0% - 6.5%.

                                                                                                                                              31   warrnambool.vic.gov.au
32

                                                                Regional cities: Unemployment rate 2010-2015

                                                                                       9.00%

                                                                                                                                                        8.20%
                                                                                       8.00%

                                                                                                                                                                Geelong

                                                                                                                                                                Shepparton
                                                           Unemployment rate (%)

                                                                                       7.00%
                                                                                                                                                                Wodonga

                                                                                                                                                                Bendigo
                                                                                       6.00%                                                                    LaTrobe

                                                                                                                                                                Mildura
Economic Development & Investment Strategy | 2016 - 2020

                                                                                       5.00%                                                                    Ballarat

                                                                                                                                                    5.00%       Warrnambool

                                                                                       4.00%

                                                                                       3.00%

                                                                                               2010          2011     2012   2013     2014      2015

                                                                Source: Small Area Labour Markets, DEEWR

                                                                Over the five-year period 2010 – 2015, the City of Warrnambool’s unemployment
                                                                rate has been at the lower range compared to other regional cities in Victoria.
                                                                As at June 2015, Warrnambool reported the lowest unemployment rate of all
                                                                regional cities in Victoria.

                                                                                   Region             2010     2011   2012   2013   2014     2015

                                                                         Warrnambool                  5.3%     6.0%   5.1%   5.6%   6.5%     5.0%

                                                                         Victoria                     5.3%     5.0%   5.5%   5.9%   6.6%     5.9%

                                                                         Australia                    5.2%     5.1%   5.2%   5.7%   6.1%     5.9%

                                                                Source: Small Area Labour Markets, DEEWR

                                                                As at June quarter 2015, Warrnambool’s unemployment rate (5.0%) was below
                                                                both the State rate (5.0%) and above the National rate (6.1%).
Warrnambool: Value of Building Approvals 2003/04 - 2014/15

             $250

                                                                                 $205

             $200

             $150
$ Millions

                                                                                           $115                                      $116
                               $107                $109      $106      $105                          $106
                                                                                                               $99
             $100                         $83                                                                            $85
                      $76

             $50

              $0
                    2003-04   2004-05   2005-06   2006-07   2007-08   2008-09   2009-10   2010-11   2011-12   2012-13   2013-14     2014-15

  Source: ABS Cat. 8731.0

  The value of total building approvals for new residential and non-residential buildings is a leading indicator for
  building activity. Over the past decade, Warrnambool has averaged over $100 million in new building activity
  each year. Since the record value of building approvals reported in 2009/10 (attributed to the $100 million+
  Warrnambool Hospital Stage 1 development), Warrnambool’s building activity has been softening in recent
  years but strengthened in 2014/15 ($116 million).

  Warrnambool: Value of Building Approvals -
  Residential versus Non-Residential 2003/04 - 2015/15

             $200

             $150
                                                                                 $129
$ Millions

             $100                                                                                    $16
                                                                                           $41                                       $52
                                $47                $49        $47       $46                                    $35
                                          $21                                                                            $27
                      $18
             $50                                                                                     $90
                                                                                 $76       $73                 $64
                      $58       $59       $62      $60       $59        $59                                              $58         $64

              $0
                    2003-04   2004-05   2005-06   2006-07   2007-08   2008-09   2009-10   2010-11   2011-12   2012-13   2013-14     2014-15

                                                            Residential          Non-Residential

  Source: ABS Cat. 8731.0

                                                                                                                   33             warrnambool.vic.gov.au
34

                                                                   Regional labour hub

                                                                   Warrnambool is an important
                                                                   regional employment hub.
                                                                   Around 2,500 of its workers
                                                                   reside in other regional
                                                                   Victorian LGAs, mainly in
                                                                   neighbouring Moyne and
                                                                   nearby Corangamite.
Economic Development & Investment Strategy | 2016 - 2020

                                                                  Warrnambool: Education attainment

                                                                  A relatively lower proportion of Warrnambool residents hold degree                                         Highest Qualification Level 2011
                                                                  or diploma qualifications compared to the State average.
                                                                                                                                                                                                    100%
                                                                  A relatively lower proportion of people in Warrnambool hold degree
                                                                  or diploma qualifications compared to the State average.                                                                          90%

                                                                  This is reflected in the proportion of workforce in high skilled jobs                                                             80%
                                                                                                                                                                       % Population aged 15+Years

                                                                  (54.7%) which is below the state average (57.3%). However, a greater
                                                                  than average proportion hold vocational qualifications reflecting the                                                             70%

                                                                  area’s strong service and food manufacturing base.                                                                                60%

                                                                  During the period 2006-2011 the number of Warrnambool residents                                                                   50%
                                                                  with qualifications increased, with above state average growth
                                                                                                                                                                                                    40%
                                                                  in Certificate qualifications (19.1% increase compared to 17.2%
                                                                  in Victoria). However, growth in university qualifications was                                                                    30%
                                                                  below state averages. For the region to improve its value add
                                                                                                                                                                                                    20%
                                                                  potential, its vocational strengths need to be matched with further
                                                                  encouragement of higher education.                                                                                                 10%

                                                                                                                                                                                                     0%
                                                                                                                                                                                                            VICTORIA     Warrnambool
                                                                  Change in Share of Residents with Qualification 2006-2011
                                                                                                                                                                                                           Not stated or
                                                                                          4%
                                                                                                                                                                                                           inadequately described
                                                           Change in Proportional share

                                                                                          3%

                                                                                          2%                                                                                                               No Qualification

                                                                                           1%
                                                                                                                                                                                                           Certificate
                                                                                          0%

                                                                                          -1%                                                                                                              Advanced Diploma/
                                                                                                                                                                                                           Diploma
                                                                                          -2%

                                                                                          -3%                                                                                                              Bachelor or Higher
                                                                                                                                                                                                           Degree
                                                                                          -4%
                                                                                                Bachelor or Higher     Advanced       Certificate   No Qualification
                                                                                                     degree        Diploma/Diploma

                                                                                                   Warrnambool             Victoria

                                                                                    Source: Regional Deveopment
                                                                                    Victoria, NIER 2013
The importance of Education and the growth
of the Services Industry

Employment by Industry*
Cumulative growth since August 1991

m
                                                                                The evidence is clear. Since the early
                                                                                1990s, some 3.5 million of the 4 million
 3
                                                                                jobs created in Australia have been
                                                                                service industry jobs such as health,
                                          Services**                            education, personal services, retailing,
                                                                                finance, engineering, information
 2
                                                                                technology, software design,
                                                                                telecommunications.
 1                                                                              Over 3½ million jobs were obtained
                                                                                with a qualification of Certificate
                                                                                II to IV, Diploma or higher. Less
 0                                                                              than 500,000 jobs were created
                             Goods production                                   with employment qualifications of
                                                                                Certificate I or compulsory secondary
-1                                                                              school education.
                 1994          1999         2004         2009         2014

     *        Excludes agriculture, forestry & fishing

     ** Also includes public administration & safety and
        goods distribution

     Source: ABS, RBA

     Employment by Qualification Requirement*
     Cumulative growth since August 1991

     m

                                                            High
     2

      1
                                                                Medium

                                                                Low
     0

     -1
                    1994          1999         2004        2009          2014

          *     Categories are based on occupations (as defined in
                ANZSCO) that require skill levels commensurate with certain
                levels of education, training or experience; ‘high’ indicated
                Diploma or higher or equivalent experience; ‘medium’
                indicated Certificates II to IV (as defined by the Australian
                Qualifications Framework) or equivalent experience; ‘low’
                indicates Certificate I or compulsory secondary school
                education.

          Source: ABS, RBA

                                                                                                     35        warrnambool.vic.gov.au
36

                                                           Warrnambool: Economic measures by top 4 industry sectors

                                                                EMPLOYMENT                     OUTPUT ($)                          WAGES AND SALARIES ($)
                                                                18,000+ workers                $3 billion                          $840 million

                                                           1. Health Care                     1. Manufacturing                    1. Health Care

                                                           2. Retail                          2. Rental, Property                 2. Education

                                                           3. Education                       3. Construction                     3. Retail
Economic Development & Investment Strategy | 2016 - 2020

                                                           4. Accommodation & Food            4. Health Care                      4. Financial Services

                                                                EXPORTS ($)                    VALUE ADDED ($)                     NUMBER OF BUSINESSES
                                                                $720 million                   $1.5 billion                        3,000+ businesses

                                                               1. Manufacturing               1. Rental, Property                 1. Construction

                                                               2. Health Care                 2. Health Care                      2. Agriculture

                                                               3. Utilities                   3. Financial Services               3. Rental, Property

                                                               4. Accommodation & Food        4. Education                        4. Retail

                                                           Source: Remplan, ABS

                                                           The above tables list Warrnambool’s top four      It is evident that Warrnambool’s economy, for a
                                                           industry sectors by a number of measures:         resident population of 34,000 persons, is driven
                                                           •       Employment                                by a diverse range of activity and that different
                                                                                                             sectors contribute in different ways.
                                                           •       Output
                                                           •       Wages and salaries
                                                           •       Exports
                                                           •       Value added
                                                           •       Number of businesses.
Planning for a Warrnambool
Economy of the Future

Warrnambool: Population forecast                                                  An estimated
2011-2036
                                                                                  4,000+
State Government Population Forecasts project our City’s population to
increase by 25% over the period 2011-2031, an increase of approximately
                                                                                  additional
8,200 persons and circa 4,200 additional households.
                                                                                  jobs will need
Warrnambool         2011    2016     2021    2026     2031    Change     %
                                                                                  to be created
Total Population   32,667 34,060 35,847 38,264 40,895         ▲ 8,228   ▲ 25%
                                                                                  in our City
Households         13,332   14,091   15,076 16,286   17,541   ▲ 4,209   ▲ 31%
                                                                                  over the next
Source: VIF 2014
                                                                                  20 years.

An estimated 4,000+ additional jobs will need to be created in our City over
the next 20 years to sustain the projected rates of population growth. If the
State Government forecasts for Warrnambool (which have been historically
conservative) are exceeded, perhaps significantly greater than 4,000 jobs
must be generated over the next twenty years.

What will be the key drivers of our City’s future
economic growth and where will the jobs
come from?

An economy of the future must play to our strengths, and be guided by
emerging global trends. Naturally, trends can change over time as new
opportunities emerge, lines blur between sectors and the economic landscape
transforms. The aim is to take a mid to long term view based on underlying
trends and informed by the present, to ensure our City is as well positioned as
possible for the future.

Whilst this Strategy is designed for a time horizon of five years (2015-2020),
a number of priorities will be included in this Strategy to progress medium
to longer term planning of how our City’s economy will look in the future i.e.
planning of how our City moves from protecting the jobs of today, to creating
the jobs of the future.

                                                                                     37   warrnambool.vic.gov.au
38

                                                                      Australia’s estimated current, next and future areas of
                                                                      growth by sector 2013 - 2033

                                                                                                                             FUTURE WAVES                                         NEXT WAVES
                                                           Global opportunity (GGDP growth, higher is stronger)

                                                                                                                                                                                                                  Gas
                                                                                                                                                                                          Tourism                       Agribusiness
                                                                                                                  > GGDP
                                                                                                                                                             Health
                                                                                                                                                                                        International Education

                                                                                                                                                                                       Wealth Management
                                                                                                                                          Water and waste services                                                                     +10%
                                                                                                                                                                                                                                       GGDP
                                                                                                                                Retail and wholesale
                                                                                                                           Business and                         Other education and training
                                                                                                                             property                         Public administration
                                                                                                                             services                         Transport and logistics
                                                                                                                                                       Telecommunications                                         CURRENT WAVE
                                                                                                                  ~ GGDP                                                                Oil
                                                                                                                                 Banking
Economic Development & Investment Strategy | 2016 - 2020

                                                                                                                                                           Construction                                                    Mining

                                                                                                                                                                                                                                       -10%
                                                                                                                                             ICT                                                                                       GGDP

                                                                                                                  < GGDP

                                                                                                                                                   Manufacturing

                                                                                                                                    Media

                                                                                                                                            Australian advantage (right is stronger)

                                                                      Note: GGDP = Global Gross Domestic Product. Size of bubble denotes size (GDP) of Australian
                                                                      industry sector. Source: Deloitte Access Economics (2014)

                                                                        Recent research by Deloitte                                                                       The aforementioned research is                         This list of strategic sectors is not
                                                                        identified a number of long term                                                                  based on Australian industry sector                    exhaustive. Market conditions can
                                                                        high growth industry sectors:                                                                     projections. However, the findings                     change quickly and this Strategy will
                                                                                                                                                                          are not lost on Warrnambool                            reconsider focusing efforts towards
                                                                         That are projected to grow                                                                      particularly as many of these high                     other identified opportunities.
                                                                          significantly faster than global                                                                growth industry sectors already
                                                                          gross domestic product (GGDP)                                                                   form an integral part of our City’s                    A future economy is likely to be less
                                                                          over the next 10 to 20 years; and                                                               economy and/or comprise sectors                        reliant on local consumption and
                                                                                                                                                                          where our City and regional                            generate wealth through export,
                                                                         Where Australia has a source                                                                                                                           high value industries and new
                                                                                                                                                                          attributes are well aligned to
                                                                          of comparative advantage that                                                                                                                          investment.
                                                                                                                                                                          leverage further growth.
                                                                          is difficult for other nations to
                                                                          match.                                                                                          Targeting the attraction and                           While challenges lie ahead, we
                                                                                                                                                                          expansion of long term, high growth                    should be encouraged our City
                                                                        Long term, high growth sectors                                                                                                                           and wider region has the potential
                                                                                                                                                                          sectors has potential to contribute
                                                                        identified include areas such as                                                                                                                         ‘growth engines’ that will determine
                                                                                                                                                                          high value adding, knowledge-
                                                                        agribusiness, health, tourism,                                                                                                                           our prosperity for generations to
                                                                                                                                                                          driven jobs to the City.
                                                                        international education, water and                                                                                                                       come.
                                                                        waste services, and gas.                                                                          Additionally, growth in these
                                                                                                                                                                          high value sectors will stimulate                      We will see growth if business and
                                                                                                                                                                          other parts of the economy and                         government take an aligned view of
                                                                                                                                                                          encourage further jobs growth.                         where the Warrnambool advantage
                                                                                                                                                                                                                                 can be best used to exploit the
                                                                                                                                                                                                                                 opportunities of the future.
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