Peel Regional Leaders Forum

Developing the Capacity and Drivers for Regional Economic Development

Capacity and DriversCapacity refers to the ability of a region to accommodate economic development

Drivers refers to the reasons for economic development to occur in a region

The Need for Economic Development

South West and Peel population growth:

Employment allocationCharacteristics 2006 2031 2061

Residents 253,206 411,000 682,115

Labour force 114,590 188,000 312,014

Total required jobs 73,626 137,000 227,372

Employment self-sufficiency 64% 73% 73%

Population-driven jobs/resident 0.23 0.25 0.25

Strategic/Non-Regional Employment Job gap

40,964 51,000 84,642

Peel cannot be simply be a net exporter of labour to the CBD or the regions!

Localisation Economies The result of a number of firms and

enterprises in complementary industries and supply chains locating in the same area.

Localisation economies are the result one or more of three factors. These are: Availability of specific skilled and

specialised labour Availability of specialised/essential inputs at

a more competitive value due to economies of scale

Increased efficiency in knowledge transfer/technology spillovers/collaborations and partnerships due to proximity of partners

Urbanisation Economies The general benefits that a firm will gain

from locating in a particular urban environment.

This includes access to: General labour pools Access to financial and commercial services Proximity to transport and communications

networks High amenity workplaces

Incremental Economic Development

Planning for the Future

Strategy Structure

It’s All About Leverage

Investment Attraction A collective effort to build localisation

and urbanisation economies A productive Perth needs a productive

Peel Population growth, jobs, and congestion

are arguments that inform silos Productivity is universal – arguments

need to be framed in terms of productivity benefits for the City

This requires an overarching regional strategy

In Summary Peel is has well developed localisation

and urbanisation economies Future population growth requires that

these to continue to expand The geographic dislocation between

economies presents a strong case for regional strategies

Successful economic development will be dependent on strong strategy and structures

The case for public and private sector investment attraction in Peel must be developed