Economy | Biocity Studio


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South Australia currently is experiencing strong economic growth in mining, defence, industry sectors, construction, finance and insurance. This strong performance over the past eight years is due to employment being up by 14%, business investment up by 126% and retail sales up by 39%. Between 2001 and 2006, Adelaide lost 2900 professionals, which is double compared to 1996 – 2001. To keep Adelaide’s economy growing the government needs to create ways to attract the working age people and young people to stay and work in the city.

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Economy | Biocity Studio

  1. 1. Tsai hui chu Economy
  2. 2. Industries that play a big part in Adelaide's economy include automotive manufacturing, bio-science, engineering, ICT, medical research, tourism and the wine industry . Industries Major industries Traditional industries : Agri-food products/services Automotive Insurance/financial services Emerging industries : Business convention services Health/education Information/communications technology Major private-sector employers BAE Systems (Aerospace) BHP Billiton (Mining and related services) General Motors Holden (Automotive) Adelaide's
  3. 3. SA’s economy centres on the agricultural, manufacturing and mining industries. Industry structure of South Australia Australian National Accounts, State Accounts, 2006-07, Cat. No. 5220.0
  4. 4. General  Exports contribute more than 20% of Australia's GDP South Australia is currently experiencing strong economic growth. Our mining and defense industry sectors are booming and there is very strong industry growth in construction, finance and insurance. South Australia's economic performance over the past eight years reveals why business confidence remains at high levels 1. total employment up by 14% 2. business investment was 126% and at a record high in 2006-07 3. retail sales were 39% higher in the December quarter 2007 and annual exports were 66% high in January 2008 Major projects totalling $44.8 billion in value either underway or in the pipeline, many of them related to mining and defence.
  5. 5. Employment South Australian employment growth has also been strong, with a trend unemployment rate is 4.8%. Employment TOTAL EMPLOYED PERSONS (a), Trend, South Australia Source: Labour Force, Australia (cat. no. 6202.0) UNEMPLOYMENT RATE (a), Trend Source: Labour Force, Australia (cat. no. 6202.0)
  6. 6. Employment  ABS-2001census occupational & skills analysis section,DEVR
  7. 7. Potential issues and crisis  The 30 year Plan for Greater Adelaide envisages an extra 537,000 people living and working in the city by 2030 who will need 247,000 new homes Adelaide’s population is 1,146,119 What ways government can attract people move in? The city itself has a limited public system Not enough support network for worker Brain drain Between 2001 and 2006, Adelaide lost 2900 professionals. The rate of people leaving Adelaide has nearly doubled, with the city losing 7000 people in the five years since 2001, up from a previously recorded loss of 3800 people between 1996 and 2001. Pia Akerman and Andrew Faulkner, 2008,’’Best and brightest go for bigger cities’,The Australian
  8. 8. AGE AND SEX DISTRIBUTION, SOUTH AUSTRALIA, 2001 and 2006 Source: Australian Bureau of Statistics Especially young people can contribute economy Potential issues and crisis  Birth rate decrease and the number of old people increase It is very important to keep working age people stay here.
  9. 9. Old-boy networks which make find a job or innovate become more difficult for newcomers. South Australia is likely to have the highest jobless rate in the nation , and was expected to have Australia's highest jobless rate of 5% in March 2009 More job opportunities and challenges in other cities. Potential issues and crisis  If there is no one want to stay here? Melbourne Institute, cited in Stephen Johnson’s report Stephen Johnson’s report,” SA to have highest jobless rate in 2009”, the Advertiser.
  10. 10. 1345.4 - SA Stats, Apr 2008  JOB VACANCIES, Original, South Australia Source: Job Vacancies, Australia (cat. no. 6354.0) Potential issues and crisis  Job vacancies decreased The least job opportunities in the nation.
  11. 11. Solution TAX  Tax is a issue for brain drain High tax force people work oversea, even move to oversea. South Australia 2008-2009 budget overview The payroll tax rate will be cut from 5% to 4.95% from 1July 2009. Will result in $136 million in tax savings over 3years. Tax-free threshold increased from $522,000 to $600,000. South Australia 2008-2009 budget overview payroll tax is to make Adelaide one of the most attractive places when it comes to business cost inputs The threshold will be higher than in other state’s level about 300 employers will no longer pay payroll tax.,22606,23815170-5017210,00.html
  12. 12. Solution EDUCATION  More than $70 million To build better schools To continue successful school retention program To support the Government’s 10 new trade schools Better education system Parents let their children study here Better study environment Trained more talents South Australia 2008-2009 budget overview For local students-Free education/ reduce the number of debt For oversea students-Reduce tuition fee But need to work here for few years. Sign out a contract which ask students work here to contribute economy for few years. Provide more scholarship Contribute economy South Australia 2008-2009 budget overview Elite project Academia and industries cooperation
  13. 13. Solution HOUSING  South Australia 2008-2009 budget overview South Australia 2008-2009 budget overview $4000 first home bonus grant $7000 first home-owner grant 50% first home buyers will receive assistance. Adelaide Affordable Housing Projects People with low and medium-low incomes New migrants Young people Couple Students The rate of settle down will rise. 15 % new affordable housing target will be build. Adelaide City Affordable Housing Projects
  14. 14. According to urban planning spokesman David Ridgway "We're not going to see any increased expenditure on public transport in those area until at least 2013" Residential area combine with business area Living quality will improve More leisure pursuits Better infrastructure Small business even for second business Solution HOUSING  Most of affordable housing is build outside of Adelaide Surrounding of city High density Planning Strategy for Metropolitan Adelaide
  15. 15. Solution INDUSTRY South Australia’s economic performance update According to Planning Strategy for Metropolitan Adelaide Planning Strategy for Metropolitan Adelaide Promote the development of ‘green’ businesses, particularly in relation to sustainable energy, waste recycling and manufacturing , water and wastewater treatments, and alternative transport. Assist businesses to cluster in specialised activity precincts and create links between businesses in those clusters where appropriate.
  16. 16. Solution INDUSTRY Green Economy Renewable Energy Cradle to Cradle design The pollution can reduce the quantity of environment capital and productive service encourage and facilitate the development of renewable energy production in South Australia, including renewable electricity, solar, wind and geothermal power. Planning Strategy for Metropolitan Adelaide December 2007 The Government has set a target for cutting greenhouse gas emissions by 60% of 1990 levels by 2050. drive 25km produce up to 3.1 tons gas/year Carbon effect William McDonough& Michael Braungart,” Cradle to Cradle : Remaking the Way We Making Things” Can build Automotive Research and Testing Centre Industry Park Use Mitsubishi’s plant and facilities to produce and innovate new model Innovate Adelaide’s own Green hybrid car Car industry background Industry Park
  17. 17. Industry Park Engineers Plants& Offices Building& Planning Workers Food Enterprises cooperation Products& services Auto leasing corporation Insurance School association Childcare Travel services Technology Graduate students (Elite project) International enterprises Oversea workers Migration More job opportunities Attract people move in Solution INDUSTRY The core economy can give impetus to whole economy Outflow of people will backflow