WARRNAMBOOL ECONOMIC DEVELOPMENT & INVESTMENT STRATEGY 2015 - 2020 WORKING DRAFT ONLY
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WORKING DRAFT ONLY WARRNAMBOOL ECONOMIC DEVELOPMENT & INVESTMENT STRATEGY 2015 – 2020
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Table of Contents
1. Summary.............................................................................................................. 3
Background .........................................................................................................4
Recent Achievements of our Warrnambool community ...................................4
Economic Context ............................................................................................ 13
Local Insight with Policy context ..................................................................... 14
Economic Development and the role of Warrnambool City Council .............. 14
Our Vision for 2020 ......................................................................................... 15
Warrnambool Strategy – Priorities (DRAFT).................................................... 16
2. Warrnambool Economic Overview .......................................................................22
3. Planning for a Warrnambool Economy of the Future ............................................32
4. Consulting with our Local Business Leaders ..........................................................36
5. The Warrnambool Advantage ..............................................................................37
6. Threats and Challenges ........................................................................................38
7. Warrnambool Strategy – Priorities (DRAFT) ..........................................................39
Economic Leadership and Collaboration ......................................................... 39
Infrastructure and Transport ........................................................................... 41
Investment Attraction and Business Support.................................................. 46
Skills and Employment .................................................................................... 51
Visitor Economy and Regional City Liveability................................................. 53
8. Implementation ..................................................................................................57
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1. Summary
Warrnambool is the largest City in the Based on population growth forecasts As the regional capital of the Great
Great South Coast region. there will be a need for our City to South Coast, Warrnambool also plays
create an additional 4,000+ new jobs a key role in providing employment
Our City is the major service centre in over the next 20 years. opportunities for residents of
the region and provides an extensive neighbouring municipalities.
range of services which extend well This Warrnambool Economic
beyond the borders of the Development and Investment Some of the initiatives outlined in the
Warrnambool Municipal boundary. Strategy (“the Strategy”) was document will have positive impacts
developed in-house by Warrnambool that will extend well beyond the City
Employment strengths are in the City Council with input from many of of Warrnambool and benefit the
service sectors of health and our business and community leaders. Great South Coast region.
community, education, food
processing, government, retail trade The purpose of the Strategy is to This Strategy will remain broad in
and tourism. Industrial and business provide direction and promotion of focus and pointed towards 2020, but
activities also occur in the City that the many initiatives considered most will have associated with it an annual
support the broader agricultural and necessary to ensure continued growth Implementation Action Plan which
other industry value adding activities. and prosperity of our local economy. further details actions, priorities,
resources and responsibilities.
Warrnambool is a highly liveable This Strategy recognises that some
coastal regional city with a strong initiatives may be beyond the direct The list of priorities are extensive,
track record of steady and sustained control of Warrnambool City Council however intentionally not exhaustive
population and economic growth. (‘Council’) but require a partnership to provide adjustment to future
Warrnambool’s ongoing economic with a combination of other levels of changing market dynamics as well as
challenge is to create employment government, public sector entity or new opportunities that may emerge
opportunities in the City to keep pace private enterprise. during the implementation of the
with population growth. Strategy.
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Background Recent Achievements of our Land Supply
Warrnambool community Over the past decade, our City has
Council’s previous Economic
Development and Investment seen unprecedented levels of land
Warrnambool is one of Victoria’s
Strategy was developed and endorsed rezoned for residential and
progressive, growing regional cities. industrial purposes.
by Council in 2010. It was undertaken Over the past decade, the In 2004, Warrnambool had as
in conjunction with Moyne Shire Warrnambool community has little as three years residential and
Council and outlined strategic achieved many milestones that have industrial land supply. Today
objectives and a number of contributed to our City’s vibrancy, there is adequate zoned
recommended projects to progress. economic growth and diversification. residential and industrial land to
Examples of growth and development accommodate our City’s growth
The vast majority of these projects well beyond 2030.
in our City over the past decade
have either been completed or There is an estimated 25+ years
include:
require a review to determine zoned residential land supply
whether they remain relevant into the Population Growth across five greenfield residential
medium term. growth areas – North Dennington,
An additional 3,200 persons have South Dennington, North of the
The Strategy developed in 2010 chosen to call Warrnambool Merri, North East, and Hopkins.
requires a 5 year review be home, representing an average Our City’s second general industry
undertaken to ensure that work annual growth rate of 1.1%. hub is now open for business.
streams respond to the current Over the past decade the vast Gateway Business Park fronting
structural changes and challenges in majority of population growth in Horne Rd, is a 65 hectare
our local economy. This Strategy is the Great South Coast region has industrial zoned business park.
the culmination of the 2015 review. been concentrated in
Warrnambool.
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North Dennington
Residential
North of the Merri
Residential
North East
Residential
Long Term
South Dennington
Growth Area
Residential
West Warrnambool
Industrial Precinct
Gateway
Business Park
Hopkins
Residential
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Building Approvals Healthcare and Emergency Services
Infrastructure
The progress made towards Major expansion of St John of God
increasing land supply in our City The completion of the $100 Hospital
has translated to relatively million redevelopment of the Mercy Place Aged Care Stage 1
consistent levels of building Warrnambool Hospital – one of and Stage 2 development
activity. the largest projects in the history Completion of new Warrnambool
Over the past decade the value of of our City Ambulance Station
building works (residential and Commencement of the $30 Commencement of new CFA Fire
commercial) approved for million Warrnambool Integrated Station under way
construction in Warrnambool has Cancer Care Centre (including the Completion of independent living
exceeded $1 billion. community fundraising of $5 units for young people at Foyer
An average of 230 new residential million) Warrnambool
dwellings have been constructed Completion of Stage 1 Waterfront New HEMS rescue helicopter and
each year since 2005. Apartments, Lyndoch Living facility established at
Warrnambool Regional Airport
Stage 1 Warrnambool Hospital Development
Concept design – Warrnambool Integrated Cancer Care Centre
Concept Development
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Lyndoch Living Waterfront Apartments
[insert additional image]
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Education and Early Years
Infrastructure
Development of Deakin University Major expansion of Emmanuel Commencement of three new
Warrnambool Campus student Secondary College private sector early years facilities
accommodation. Expansion to many of Funding secured for major
Development of Deakin University Warrnambool’s Primary and upgrade to the Special Education
Warrnambool Medical School Secondary Schools via the Federal School
Construction of new St John’s Government Building Education New $12.5 million building at
Primary School, Dennington Revolution Program South West TAFE
Deakin University Warrnambool
Campus Student Accommodation
[insert image – North Edge Childcare]
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Infrastructure and Major Projects
Construction of new roads $1.6 million upgrade to the Completion of Warrnambool –
connecting residential and Warrnambool Intermodal Port Fairy Rail Trail
industrial growth areas of Terminal Funding secured for the
Warrnambool: Horne Rd, Major works on Flood mitigation Winchelsea to Colac duplication of
Coghlans Rd, Aberline Rd at an in North Warrnambool the Princes Highway
aggregate cost of $12 million. Completion of the new regional $15 million for the construction
Commencement of the new $5 State Government Primary of 6 new passing lanes
million Regional Aviation Park and Industries headquarters in our constructed on the Princes
runway upgrade at the region Highway between Colac and the
Warrnambool Regional Airport Commencement of the South Australian border
$18 million upgrade to duplication of the Princes Highway Completion of the $10 million rail
Warrnambool Telstra Exchange Waurn Ponds to Winchelsea siding at Weerite to enhance rail
Commencement of NBN passenger and freight movements
construction brought forward Completion of $3.6 million Brine
from 2020 to 2015. Receival facility in Warrnambool
to treat industrial brine waste.
Warrnambool Regional Airport – Aviation Park Development
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Warrnambool Intermodal Terminal Development
Horne Rd construction
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Business Development and Support
Midfield Group’s recent planning
Concept design – 1A Liebig Street residential development
approval for a $70 million
investment to build a new cold
store and dairy plant in
Warrnambool – the largest single
private sector investment in the
history of our City
Proposed 1A Liebig St
development, a $20 million high
density (apartments) residential
complex in our City Centre
Major new development or
expansion of retail and
commercial office complexes
including [4] new supermarkets
Major development or expansion
of a variety of private and
community sector entities in
Warrnambool including Western
District Employment Access,
Westvic, 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 the successful Great
South Coast Skilled Migration
Program
New Warrnambool Bus Lines
route and depot development
Strengthening of economic
relationship with our Sister City in
China, the City of Changchun.
A secondee from Changchun [insert Airport image]
Municipal Government now living
and working in Warrnambool for 8
months during 2015 to facilitate
trade, investment, education and
tourism opportunities between
our two cities.
Delivery of the Building Better
Regional Cities Housing
Affordability Program in North
Dennington – Winner of 2014
National Economic Development
Australia (EDA) Award for
Community Economic
Development.
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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
[insert May Races image]
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Economic Context
Warrnambool is the eighth-largest The key industry sectors by Findings from the Annual
economy outside metropolitan employment are: Warrnambool Business Confidence
Melbourne with a Headline Gross Health and Social Services Survey show a discernible softening in
Regional Product (GRP) of $1.4 billion Retail perceptions of business confidence in
in 2013. Education our City over the past five years.
Manufacturing
The rate of GRP growth over the ten Tourism The wider region’s level of youth
year period 2003-2013 was 1.9% per unemployment is high relative to
annum, the fourth-highest GRP Warrnambool’s economy is influenced metropolitan Melbourne and other
growth rate of all regional cities in by the Great South Coast region, regions across the State.
Victoria (behind Bendigo, Ballarat and which provides a market catchment of
Geelong). 120,000 residents around our City. The population is growing, but ageing
– requiring new jobs to be generated,
Warrnambool continues to attract In recent years, Warrnambool’s new residential dwellings and new
new residents to our City, averaging a unemployment rate has been in the types of infrastructure services and
rise of around 330 persons each year range of 5.1% - 6.5%. facilities to accommodate
to our population. As at June 2014, The City of Warrnambool’s demographic changes in our
Warrnambool’s population was unemployment rate has generally community.
estimated to be 33,500 persons. been at the lower range compared to
This Strategy identifies a range of new
other regional cities in Victoria and
Warrnambool has a diverse industry broadly comparable with the State and on-going initiatives considered
base with employment access to a Average. most necessary to not only build on
range of services sector and the significant economic momentum
manufacturing sector industries. of the past, but also endeavour to
address some areas of our economy
that have underperformed in recent
years.
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Local Insight with Policy Economic Development and Council must work with government
context the role of Warrnambool City and industry stakeholders to
maximise resources to assist in
Council delivering better economic outcomes
This Strategy has been informed by
listening to a range of our local This section presents an overview of for our City.
business leaders’, tapping into their Warrnambool City Council’s role in Council will support, facilitate,
local insight, knowledge and economic development. This advocate, and undertake a range of
understanding of our region’s information should be used to better economic development initiatives, but
strengths and weaknesses. understand Council’s capacity to will not necessarily always be the
influence economic objectives, party responsible for delivering a
Data has been obtained from the
acknowledging that it has particular outcome; this will be
Australian Bureau of Statistics,
jurisdictional and funding limitations. delivered in partnership with a range
Regional Development Victoria and
These limitations must be understood of other stakeholders.
various other sources referenced
when moving from the strategy vision
throughout this document.
and priority areas to the This Strategy is designed to represent
Local insights have been an important implementation plan. a commitment by business, industry,
part of the development of this and all tiers of government who are
Promoting the economic viability and united in their desire to see the City of
Strategy to validate the data collected
sustainability of the local community Warrnambool realise its full economic
concerning the economic
is a primary objective of local potential.
performance of Warrnambool.
government under the Local
This Strategy draws upon policy and Government Act. Council has a valid Where Council can continue to play an
strategic guidance from a wide range and important part to play in effective role in economic
of documents at levels of Federal and promoting and facilitating local development are the in key areas of:
State Government, Regional Cities economic development. Council is, in
many cases, the first point of contact Facilitating Investment;
Victoria, Barwon South West, Great
South Coast region and Warrnambool for local businesses and the Through the Planning Scheme,
City Council. community in relation to day-to-day support appropriate development
concerns of our local businesses. that is attractive to new investors
Key Council Strategies and Plans and supports local businesses.
considered in formulating the As well as stimulating the economy Efficient and effective
development of the priorities in this through being one of the City’s largest infrastructure;
Strategy include: employers, Council delivers a major Business Support;
capital expenditure program where Supportive governance structures
Council Plan through procurement strategies, a Providing strategic leadership in
City Centre Structure Plan high proportion of local spend economic development areas to
Warrnambool Planning Scheme supports local businesses. underspin business confidence ;
Destination Warrnambool Plan
Fostering links between research
Events Strategy Local Government does not ‘drive’
and learning institutions and
Health and Wellbeing Plan economic development. This is the
business to encourage industry
Land Use Strategy role of business and industry. Local
innovation.
Recreation and Culture Plan Economic Development is one that is
business and industry led and Connecting local businesses to the
government supported. region, state, nation and globe.
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Our Vision for 2020 Warrnambool City Council will have Our largest private sector employer
continued to play a strong and Midfield Group will continue to be
Our vision is that by 2020, the City of proactive facilitation role in suitable headquartered in Warrnambool and
Warrnambool will be acknowledged investment proposals within our key will employ many thousands of
across our nation as a progressive and economic precincts, including but not residents (directly and indirectly) in
vibrant regional city. limited to, our City’s second general our City.
industry hub Gateway Business Park,
The coastal regional city of Warrnambool’s labour force will have
and the new Aviation Park at
Warrnambool will continue to serve continued to grow and addressed
Warrnambool Regional Airport.
as the dominant settlement and areas of skills shortages becoming a
service centre for the Great South At long last, additional rail services to drawcard for attracting new and
Coast region. and from Melbourne will be existing industry growth to the area.
operating. The Princes Highway
By 2020, Warrnambool businesses will Significant investment in Tourism
duplication from Waurn Ponds to
feel engaged, supported, and infrastructure and promotion of our
Colac will be complete, together with
encouraged to grow. New businesses City as a destination will trigger
additional passing lanes west of Colac
and industries are attracted to material growth in our visitation
through to Warrnambool.
Warrnambool because of its strategic numbers. Existing and new major
location, skilled and growing We envisage that both Deakin events will keep our City vibrant
workforce and high quality University Warrnambool Campus and throughout the year.
infrastructure. South West TAFE will have increased
its student numbers off the back of Warrnambool will have a long awaited
Public and private investment has new library deserving of our
industry relevant course offerings –
continued around the City, with clear progressive regional city and the large
further consolidating the presence
and consistent Council strategies, regional catchment it serves.
and profile of higher education in our
policies and plans in place to give a
City, region and State. Our City’s Education attainment rates
level of certainty for investors and
developers. A growing concentration of will be on the rise, and youth
international students will reside in unemployment rates on the decline,
Warrnambool will continue growing courtesy of intensive engagement and
Warrnambool whilst studying at our
its population and attracting new and integration across all levels of our
City’s University or South West TAFE.
improved services to the Great South Education sector, business
Coast region. Warrnambool’s growth Deakin University’s Medical School community, and other stakeholders.
will offer economic and social spill-
will continue to go from strength to
over benefits for the wider region, Warrnambool will continue to offer
strength, some of whom choose to
including the attraction of new or residents the strength of a dynamic
higher order services and facilities. call Warrnambool their home.
regional city while still maintaining
New Residential Growth Areas will relative affordability in housing and a
The $30 million Integrated Cancer
continue to expand and form active high standard, safe living environment
Care Centre development will be
new communities, driven by steady compared to Australia’s metropolitan
completed and servicing a large
catchment across South West population growth and the availability cities.
Victoria. Funding for the $100 million of jobs.
By 2020 Warrnambool’s economy will
Stage 2 Warrnambool Hospital
High speed broadband will be readily be further diversified and thriving,
development will be secured with
construction under way. available across our City driving evidenced by continued growth in
innovation and challenging traditional Gross Regional Product, labour force
Our City Centre will have benefitted models of doing business. numbers, relative low unemployment
from significant private and public rates, and higher than present
Warrnambool will increasingly be workforce participation levels
investment, generating renewed
known as a Centre of Excellence in compared to other Victorian regional
interest and increased activity as the
Food Processing benefitting from our cities.
premier regional centre of the Great
surrounding agricultural sector that
South Coast.
plays such a vital economic role in our Our vision is ambitious but achievable.
broader region.
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Warrnambool Strategy – 1. Economic Leadership and
Priorities (DRAFT) Collaboration
Our vision for Warrnambool will be Convene an Economic Support and participate in
achieved by advocating, supporting Development Advisory Group which economic development initiatives
and working with a wide range of draws together representatives driven by Regional Cities Victoria
partners to implement or influence from Council, business and and the Great South Coast
priorities categorized under five key industry, government and other Economic Growth Pillar Group.
areas stakeholders.
Support active collaborative
1. Economic Leadership and alliances between Council and
Identify and mentor potential
Collaboration business membership organisations
business and community leaders to
2. Infrastructure and Transport that have the expressed objective
promote our City's competitive
3. Investment Attraction and of supporting economic
strengths, values and attributes.
Business Support development and training programs
4. Skills and Employment in our City and wider region.
Strengthen the profile and
5. Visitor Economy and Regional
awareness of Council's investment
City Liveability Create a regional network of
facilitation and business services
offering, the celebration of existing international expertise and
These priorities will be expanded
achievements made by local relationships to help forge stronger
upon later in the Strategy.
businesses and general showcasing business and industry linkages
of the City’s competitive strengths. outside the region.
Foster strong relationships with Ensure the priorities contained in
relevant State and Federal this Strategy are aligned with the
Government Departments and principles of the Warrnambool
ensure local economic Planning Scheme to encourage
development initiatives are appropriate development.
strategically aligned with State and
Federal policy.
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2. Infrastructure and Transport
Advocate to the Victorian Support the return of the Flight
Advocate for the development of
Government seeking increased Passenger service between
the $100 million Stage 2
passenger rail services and Warrnambool – Melbourne
Warrnambool Hospital
modernised rolling stock to and
Advocacy for further upgrades to
Form a working group of business from Melbourne and Warrnambool
the Princes Highway west of Colac
and industry ‘champions’ of digital
Continue to support and advocate to Warrnambool
technology to promote the
capabilities and benefits of high for the priorities of the
Warrnambool – Melbourne Rail Support the Wannon Water
speed broadband
Authority’s ongoing investment in
Freight service and the associated
water-security infrastructure.
Work with telecommunication Warrnambool Intermodal Terminal
providers to ensure the delivery of Target investment attraction to
high speed broadband In partnership with stakeholders business and industry requiring
infrastructure and services across and the Victorian Government, high quality water resources
the City, with a specific focus on complete a Warrnambool Freight
project locations where Study Support and advocate for the use of
productivity and innovation will be water-efficient infrastructure across
maximized. Development of car parking on the the City
Vic Track owned land at the
Investigate capacity and needs of Warrnambool Railway Station Investigate the feasibility of new
Information Communication and emerging waste to energy
Technology (ICT) providers to act as Advocate to the Victorian treatment plants and processes.
enablers of growth for high value Government seeking the upgrade of
industries. the Warrnambool Railway Station Support research and development
in clean energy sources, particularly
Support the renewal activities of Support the development of solar, wind and gas.
the Warrnambool City Centre. Warrnambool Regional Airport
including the construction of a Partner in the development of a
lengthened and strengthened main new library
runway
[insert road/rail transport
image]
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3. Investment Attraction and
Business Support
Identify the needs of our City's key Prepare an industry sector Continue to strengthen economic
economic precincts and facilitate development prospectus for high relationships with our Sister City of
appropriate investment within value industries that offer the Changchun in China (and other
greatest potential to succeed. global markets) to create new
these precincts
markets for our region's products,
Development and promotion of and leverage potential tourism,
Work with property agencies to
Warrnambool as a regional centre education and other opportunities.
identify investment ready sites
of excellence for food production
Develop an investment prospectus Advocate for and support
Collaborate with the Victorian businesses seeking international
promoting the City's attributes and
Government towards supporting export licenses to grow the volume
opportunities to attract new
the Food and Fibre Agenda. and range of our local products to
businesses and industries to
Warrnambool the world, and in particular Asia.
Support the implementation plans
of the Great South Coast Food and Develop case studies to
Work with partners to research
Fibre Plan and the Western demonstrate and promote the
industry sector business cases to
Victorian Dairy Strategy opportunities for our region from
grow high value industries in our
City such as: the activation of the Free Trade
o Food and Agriculture Agreements with China, Japan and
o Tourism Korea.
o International Education
o Health and wellbeing
o Water and waste services
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Investigate the development of a Host both formal and informal Working with partners, prepare a
Micro Business hub model in networking events targeting a Residential Aged Care Sector Plan
Warrnambool focused on providing range of business sizes and diverse designed to better understand the
offices for start-up businesses and sector backgrounds dynamics and fundamentals of this
other business support services. growth industry and to explore
Deliver the annual Warrnambool approaches to accelerate its growth
Continue the successful Business Festival in Warrnambool.
Warrnambool Business Visitation
Program Develop and analyse up-to-date Develop and advocate for
economic and demographic data alternative funding models to
Facilitate mentoring and high for investors and businesses in our finance economic development
quality training workshops that city, including the annual initiatives in our City
meet the needs of small business Warrnambool Business Survey
owners, home businesses, and
start-ups.
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4. Skills and Employment
In partnership with Deakin Facilitate and support education Advocate support from the
University's Warrnambool Campus, providers with school-to-work and Victorian and Australian
support the implementation of the higher education to work links with Governments for the reintroduction
Deakin Warrnambool 2020 industry and businesses. of support for Warrnambool and
Strategic Plan. region to reinstate its successful
Leverage and support opportunities Skilled Migration Program.
Advocate and support for the for Warrnambool’s Deakin
promotion of Warrnambool as a University, South West TAFE and Work with partners to get our local
"University City" through shared secondary schools to increase the providers NDIS ready and maximize
initiatives with Deakin University intake of international students the local economic and skills
Warrnambool Campus benefits from this significant
Support and contribute towards change to the service model.
Continue to support the actions of the Great South Coast
development of Deakin University's Beyond the Bell Project to improve Investigate the development of
Warrnambool Medical School Education attainment levels social procurement initiatives that
encourage new or retained
Advocate to the Victorian Partner in a “Warrnambool Careers employment opportunities for
Government seeking the Expo” designed to bring together people unemployed and/or living
appropriate resourcing of educators, employers, students and with disabilities, mental illness or
Warrnambool based South West unemployed persons in a indigenous people.
TAFE to ensure the provision of a collaborative environment
responsive vocational training Advocate to the State and Federal
sector and apprentice support Work with industry partners to Governments for the relocation of
programs designed to serve the identify major skills shortages in our further public sector jobs to the
needs of local employers. City’s workforce and provide timely regions, including Warrnambool.
updates to industry and
government
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5. Visitor Economy and
Regional City Liveability
Support the promotion and
Investigate the need for and On-going support for the
implementation of priorities of the
feasibility of a regional scale development and maintenance of
Great Ocean Road Tourism Board
conference facility in Warrnambool recreational, arts and cultural
Master Plan and Destination Action
facilities, essential for supporting
Plan for the Warrnambool Tourism
Support implementation of the and promoting the liveability and
area to include:
Warrnambool Events Strategy. attractiveness of our City.
o Develop and consistently
promote a unique market
Work with partners to investigate Support the growth of creative
positioning and brand for
the attraction of new major events industries and awareness of their
Warrnambool.
worthy of further development – economic value across our business
o Develop product and
including sporting, cultural, food community.
experiences to match visitor
and agricultural events and
demand and improve seasonal
conferences Support the development and
dispersal.
assessment of new tourism
o Implement the Flagstaff Hill
Support the development of inner- proposals, including Crown Land
Master Plan to revitalise the
city living to add vibrancy and proposals.
visitor experience.
activity to our Warrnambool City
o Develop a visitor service
Centre.
excellence culture and capacity
program
o Determine and promote the
value of the visitor economy to
the community.
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2. Warrnambool Economic
Overview
A high amenity coastal location A diverse economy with major
One of the 50 largest Australian employers including Midfield
cities by population with access to higher order
educational, health and business Group, Southwest Healthcare,
Fonterra, Deakin University, South
Our City is located 260 kilometres services.
West TAFE, Warrnambool City
south-west of Melbourne and
linked direct by the Princes The key industry sectors in terms Council, Sinclair Wilson, Wheelie
Highway of present employment are: Waste, Chitticks Bakery, Owen
Healthcare and Social Services; Truss, Westvic Container Export,
Freight and Passenger services for Food Processing. Ryans Transport, WDEA
both rail and air operate direct to Retail trade; Enterprises, Westvic, CriTech
and from Melbourne Education and Training; Plumbing, Matthew's Petroleum
Tourism; and Services, PFD, , major retailers and
Warrnambool is the largest city in supermarket chains, car
Construction.
the Great South Coast region with dealerships, banking institutions,
a current resident population of Wannon Water Authority, and
33,500 persons but serves a wider An 18,000+ labour force
various State Government
regional catchment of 120,000. departments, agencies and
Around a third of our City’s
employment base is public sector schools.
A track record of sustained and
steady population growth, – schools, hospitals government
increasing by over 3,200 persons
over the past decade, and growing Estimated 25+ years of zoned
by about 1.1% per annum. residential and industrial land
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This section provides a summary of the key economic fundamentals of the Warrnambool economy. It is not intended to be exhaustive
but provide a snapshot of how our local economy is performing, the drivers of our economy, and where areas of future economic
growth might occur.
Warrnambool : Population 2004-2014
Source: ABS Cat.3218.0
Growth or decline in a population has a direct impact on levels of total private and public expenditure in our local economy.
Population growth provides the underlying basis for growth in labour resources, improvements in skills levels and development of
investment and jobs within our area.
The estimated resident population of the City of Warrnambool was 33,500 people in 2014. The population grew on average by 1.1%
per annum in the period 2004-14, which made it the fifth-fastest growing regional city in Victoria. In terms of absolute numbers, this
represented an approximate net increase of over 3,200 residents.
Warrnambool : Net Migration 2006-2011
Warrnambool’s net migration gain during the period 2006-11 was mainly driven by gains from nearby municipalities, particularly
Corangamite, Southern Grampians and Glenelg. Over one-quarter of the city’s new residents were from Melbourne (net migration
was +13), possibly attracted by the city’s coastal amenity and range of services. About 280 overseas immigrants have settled in
Warrnambool over this period. The city’s largest net losses were to Greater Geelong, Queensland and Western Australia.
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Great South Coast : Population 2004-2014
Note: Size of Bubble denotes total population in 2014
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
Note: Size of Bubble denotes total population in 2014
Source: ABS Cat 3218.0
There are ten 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.
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Warrnambool : Growth in Headline Gross Regional Product (GRP) 2003-2013
Note: Size of Bubble 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
Source: ABS Census 2011
The following six sectors account for over two thirds of employees whose place of work is located within Warrnambool:
Healthcare and Social Assistance;
Retail trade;
Education and Training;
Accommodation and Food Services;
Construction; and
Manufacturing (vast majority of which is food processing).
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Warrnambool : Change in industry sector of employment, 2006-2011
Source: ABS Census 2006 and 2011
Over the period 2006-2011 the largest change in the jobs held by the resident population has been the growth of the health care and
social assistance industry, adding almost 400 jobs to our local economy. This scale of growth is commensurate with the regional
services role that our City plays for the wider region and also significant investment in healthcare infrastructure sector over this period.
Material employment growth over this period also occurred in Accommodation and Food services, Education, Construction, Arts and
Recreation Services, Professional Services and Public Administration. The only sector that contracted over this period was the retail
sector which reported a small decline in employment.
Warrnambool : Economic Output (Gross Sales) by Industry
Warrnambool's economy generates output of over $3 billion each year accounting for over 20% of the region’s economic output from
less than 1% of the land area.
Source: Remplan
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Warrnambool : Business Counts, June 2014
Source: ABS Cat. 8165.0
Note: This count only includes businesses which actively traded in goods 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. 89 businesses (or 3%) employ between 20-199 staff. 3 businesses in
our City employ greater than 200 employees. This structure means economic development policies incorporate strategies that
support existing SME’s to grow. It has been demonstrated that a high percentage of growth in an economy often comes from existing
businesses.
Warrnambool : Unemployment rate 1998-2014
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 5.1% - 6.5%.
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Regional cities: Unemployment rate 2010-2014
Source: Small Area Labour Markets, DEEWR
Over the four year period 2010 – 2014, the City of Warrnambool’s unemployment rate has generally been at the lower range
compared to other regional cities in Victoria.
Change*
Region 2010 2011 2012 2013 2014
(2010-2014)
Warrnambool 5.3% 6.0% 5.1% 5.6% 6.5% 1.2
Great South Coast 4.2% 5.7% 5.1% 5.6% 6.5% 2.3
Victoria 5.3% 5.0% 5.5% 5.9% 6.6% 1.3
Australia 5.2% 5.1% 5.2% 5.7% 6.1% 0.9
* percentage point change.
Source: Small Area Labour Markets, DEEWR
As at December Quarter 2014, Warrnambool’s unemployment rate (6.5%) was broadly on par with the State rate and above the
National rate (6.1%)
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Warrnambool: Value of Building Approvals 2003/04 – 2013/14
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.
Warrnambool: Value of Building Approvals – Residential versus Non-Residential 2003/04 – 2013/14
Source: ABS Cat. 8731.0
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.
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Warrnambool: Education Attainment
Source: Regional Development Victoria, NIER 2013
A relatively lower proportion of Warrnambool residents hold degree or diploma qualifications compared to the State average.
A relatively lower proportion of people in Warrnambool hold degree or diploma qualifications compared to the State average.
This is reflected in the proportion of workforce in high skilled jobs (54.7%) which is below the state average (57.3%). However, a
greater than average proportion hold vocational qualifications reflecting the area’s strong service and food manufacturing base.
During the period 2006-2011 the number of Warrnambool residents with qualifications increased, with above state average growth in
Certificate qualifications (19.1% increase compared to 17.2% in Victoria) . However, growth in university qualifications was below state
averages. For the region to improve its value add potential, its vocational strengths need to be matched with further encouragement
of higher education.
The importance of Education and the growth of the Services Industry
The evidence is clear. Since the early 1990s, some 3.5 million of the 4 million jobs created in Australia have been service industry jobs
such as health, education, personal services, retailing, finance, engineering, information technology, software design,
telecommunications. Over 3½ million jobs were obtained with a qualification of Certificate II to IV, Diploma or higher. Less than
500,000 jobs were created with employment qualifications of Certificate I or compulsory secondary school education
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Warrnambool: Economic measures by Top 4 Industry Sectors
Source: Remplan, ABS
The above tables list Warrnambool’s top four industry sectors by a number of measures:
Employment;
Output;
Wages and Salaries;
Exports;
Value Added;
No. of Businesses.
It is evident that Warrnambool’s economy, for a resident population of 34,000 persons, is driven by a diverse range of activity and that
different sectors contribute in different ways.
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3. Planning for a Warrnambool Economy of the Future
Warrnambool : Population forecast 2011-2036
State Government Population Forecasts project our City’s population to increase by 25% over the period 2011-2031, an increase of
approximately 8,200 persons and circa 4,200 additional households.
Warrnambool 2011 2016 2021 2026 2031 Change %
Total Population 32,667 34,060 35,847 38,264 40,895 8,228 25%
Households 13,332 14,091 15,076 16,286 17,541 4,209 31%
Source: VIF 2014
An estimated 4,000+ additional jobs What will be the key drivers of our Whilst this Strategy is designed for a
will need to be created in our City City’s future economic growth and time horizon of five years (2015-
over the next 20 years to sustain the where will the jobs come from? 2020), a number of priorities will be
projected rates of population growth. included in this Strategy to progress
If the State Government forecasts for An economy of the future must play medium to longer term planning of
Warrnambool (which have been to our strengths, and be guided by how our City’s economy will look in
historically conservative) are emerging global trends. Naturally, the future i.e. planning of how our
exceeded, perhaps significantly trends can change over time as new City moves from protecting the jobs of
greater than 4,000 jobs must be opportunities emerge, lines blur
generated over the next twenty years. today, to creating the jobs of the
between sectors and the economic future.
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.
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Australia’s estimated current, next and future areas of growth by sector 2013 - 2033
Source: Deloitte Access Economics (2014)
Note: GGDP = Global Gross Domestic Product; Size of bubble denotes size (GDP) of Australian industry sector
Recent research by Deloitte identified The aforementioned research is based This list of strategic sectors is not
a number of long term high growth on Australian industry sector exhaustive. Market conditions can
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 form
gross domestic product (GGDP) A future economy is likely to be less
an integral part of our City’s economy
over the next 10 to 20 years; and reliant on local consumption and
and/or comprise sectors where our
Where Australia has a source of generate wealth through export, high
City and regional attributes are well value industries and new investment.
comparative advantage that is aligned to leverage further growth.
difficult for other nations to
While challenges lie ahead, we should
match. Targeting the attraction and
be encouraged our City and wider
expansion of long term high growth
Long term high growth sectors region has the potential ‘growth
sectors has potential to contribute
identified include areas such as engines’ that will determine our
high value adding, knowledge driven
prosperity for generations to come.
Agribusiness, Health, Tourism, jobs to the City.
International Education, Water and
We will see growth if business and
Waste services, and Gas. Additionally, growth in these high
government taken an aligned view of
value sectors will stimulate other
parts of the economy and encourage where the Warrnambool advantage
further jobs growth. can be best used to exploit the
opportunities of the future.
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Given the competitive advantages of Warrnambool, the challenge is how we position our City to harness the opportunity and
successfully grow high value industries. This Strategy will include initiatives designed to advance our planning for an economy of the
future.
Long Term High Growth Sector Where is the opportunity for Warrnambool?
Agribusiness – Global demand Opportunity lies in offering high value, high-margin products - “not the supermarket to Asia
for fresh, clean produce. Switch but the delicatessen”.
to protein is on, particularly in o Established business and supply chain in beef and dairy across the region
fast growing Asian economies. o Expertise in emerging areas like aquaculture/fish farming
o Availability of water resources compared to other regions in Victoria.
o Opportunities in livestock breeding and genetics, livestock export, smaller niche valued
added products (wine, cheese etc)
o Potential leverage off growing economic ties with the Warrnambool’s Sister City of
Changchun in China.
o Specialisation potential in Exports logistics, trade/finance solutions
o Need to make agribusiness attractive again to graduates and enhance skills
o Attracting the capital
Health – An ageing population As the health services hub for the Great South Coast region, our City is well positioned to
will generate a wide range of service high growth health sub-sectors.
recession-proof domestic needs, o Aged care, Retirement Living and Leisure - More residents are expected to require aged
in the health sector. care and/or demand higher order retirement facilities and they will increasingly have the
retirement funds to pay for it.
o Preventative Health and wellness services – We expect to live longer but we also to want
to live better - physical activity and weight loss industries, vitamins and supplements,
naturopathy, acupuncture, remedial massage etc
o Traditional health providers – biotechnology, pharmaceutical, medical device companies,
diagnostic services. Allied health professionals such as nursing, optometry, dentistry,
pharmacy, psychology, occupational therapy will continue to be in demand.
o Community and Personal Care – timing saving services – dog walkers, personal shoppers,
gardening services etc.
o Financing the future – wealthy retirees looking for choice and increasing levels of advice
for self managed super funds. Often much of the wealth is tied up in family home or
assets creating opportunities for new equity products; estate planning etc.
o Digital delivery of health - Innovative e-health/tele-health offerings translates to cost
effective and convenient delivery for regional and rural areas.
o Health sub-markets – fertility treatment, dermatology, cosmetic surgery.
Tourism – As visitors seek space, Opportunity lies in enhancing our City’s competitiveness as a primary visitor destination.
nature holidays, high end o A well-established visitor economy by the coast with natural assets and a rich indigenous
experiences and entertainment. and maritime history.
o Renewing and expanding our tourism infrastructure – the new generation tourists seek
high end experiences and entertainment.
o Investment in Brand Warrnambool marketing campaign, hotel capacity (high end) and
people skills.
o International Tourism –our proximity to Asia capitalises on the burgeoning Asian middle
class and their demand for international travel. China already has the largest spend per
visitor.
o Potential leverage off growing economic ties with the Warrnambool’s Sister City of
Changchun in China.
o Our Education institutions can act as a ‘drawcard’ for foreign students who become
‘education tourists’ by encouraging family and friends to visit.
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Long Term High Growth Sector Where is the opportunity for Warrnambool?
International Education – as Opportunity lies in attracting international students to our Educational institutions.
students seek to study in an o Teaching foreign students is Australia’s fourth biggest export earner.
English-speaking country o Highly competitive global sector but global demand continues to soar. The rise of China
and India in particular will be central to the growth in globally mobile students.
o Strategic objective of both Deakin University Warrnambool campus and South West TAFE
to pursue international education opportunities.
o Target markets to initially include Philippines, Sri Lanka and China.
o Potential leverage off growing economic ties with the Warrnambool’s Sister City of
Changchun in China.
o Courses must be tailored to meet needs of foreign students and play on the strengths of
our region (eg. agriculture and tourism).
Gas – clean energy source as Opportunity lies in servicing, transport and logistics.
countries seek to improve air o Tapping and exporting gas is likely to continue to be one of our nation’s brightest growth
quality and reduce greenhouse engines over the next 20 years.
emissions o Already a large scale presence of an energy company off the back of long term gas
reserves in our region.
o Potential to grow a significant number of small service companies players – engineering
skills, project management services, logistics for gas transport, offshore manufacturing
capacities.
o Associated gas transport and logistics opportunities. Securing helicopter (and associated
maintenance) operations at Warrnambool Regional Airport to commute to gas fields is a
high priority.
Water and Wastewater services There is an opportunity to attract new industry investment requiring high quality and
quantity of water in their production.
o The region will continue to benefit from a stable and reliable water source compared to
other areas of Victoria
o Opportunities in Recycling
o Waste sought after for the production of biofuels
o Remediating waste water for domestic use
[further consultation to occur with Wannon Water to develop this opportunity]
IDEAS BOX ONLY – FURTHER CONSULTATON AND DEVELOPMENT REQUIRED
Private schooling – underlying trend towards private schooling in Australia. 30 years ago : 1 in 4 private educated; Today
more than 1:3. Number of Australian students going through secondary school in the 2020’s expected to rise around a
quarter (then spilling into tertiary education).
Parcel delivery – internet purchasing over bricks and mortar retailers – Amazon is trialling delivery by drone.
Expansion of the Equine industry – racecourse training facilities – economic generator
Veterinary Pharmaceutical Manufacture
Disaster management / Emergency services
ICT – nearly all growth industries will require an active ICT role. Local capacity and capability needs developing and
promoting to attract HQ’s of ICT support providers into Warrnambool.
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4. Consulting with our
Local Business Leaders
o Achieving leadership in o Recognise the significance
The material in this Strategy draws on of our Health sector to drive
Economic Development and
industry research and consultation building capacity for future economic development
with our business leaders. outcomes
business leaders
A stakeholder consultation process o Building a diversified o Targeting high value
involved one-on-one interviews with economy industries
over 30 business leaders across a o Promoting Warrnambool’s o Developing the Airport
broad range of industry sectors. competitive advantages o Improving the number and
These interviews will continue to o Raising education strengths of business
occur over the coming months to attainment levels and networks to bind
ensure a range of industry sectors are opportunities communities of interest
captured as part of the consultation o Addressing labour force o Capitalising on the arrival of
process. skills shortages the National Broadband
o Achieving improvements Network
Councillors have also inputted into the across transport links – o Improving power
development of this Strategy through road, rail and air infrastructure
a Councillor Workshop. o Keeping young people in the o Idea of business incubators
region to foster micro and small
This Strategy (draft) will also be
influenced by a period of wider o Supporting the role of our business
City Centre o Supporting our educational
business and community feedback
o Establishing our City as a institutions, particularly
where public submissions will be
Centre of Food Processing local university
invited through August 2015.
Excellence o Better tourism
A review of viewpoints gleaned from o Promoting liveability and infrastructure
the consultation process undertaken amenity of our City to o Importance of a united
to date shows many topics of visitors Council to drive business
relevance to the ongoing economic o Getting our business confidence
development of the City of community ready for high o Agriculture underpins our
Warrnambool. Some key themes and speed broadband service economy
initiatives raised whilst listening to our o Attracting a great share of o Investing in business
business leaders included: public sector employment attraction
opportunities
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