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Home grown heroes to drive Tassie growth
New growth opportunities to play to Tasmania’s strengths
24 March 2014: Export-oriented industries such as agribusiness, tourism and education will help drive Tasmania’s growth in the future, as new research identifies additional pockets of growth over the next two decades in Tasmania’s ocean resources, its food processing skills, as well as in industries associated with caring for older people, driven by the coming surge in the number and wealth of older Australians settling in the state. More importantly, these growth pockets are mainly in high job creating areas of the economy.
New research from professional services firm Deloitte has identified 25 sectoral hotspots – the ‘Deloitte Growth 25’ (DG25) – with the biggest potential to lift Australia’s prosperity over the next 20 years.
Tasmania Managing Partner of Deloitte, Carl Harris, said: “Our research highlights some strong potential growth opportunities for Tasmania. We have an opportunity to position ourselves as leaders in sectors that play to our strengths, such as tourism, agribusiness and ocean resources, as well as finding big business opportunities in industries associated with caring for older people.”
ICT is also a key enabler of the coming export surge, and will play a crucial role in transforming the Australian economy over the next 20 years. ICT will remain the gateway to the economy of the future, and Tasmania could play an important role in this critical sector.
Deloitte’s new report identifies a growth cluster at the heart of the collision of megatrends such as rising life expectancies, rising relative health care costs and tightening public sector health budgets. This group presents big commercial opportunities – both nationally and for Tasmania.
Tasmania has a history of attracting retirees from across the country. While an ageing population is a growth challenge for the state – it means fewer workers – the coming surge in both the number and the wealth of older Australians is a key opportunity for the state.
This will see a number of hotspots leading the pack in terms of state sectoral growth, such as residential aged care, retirement living and leisure, community and personal care, and preventativehealth and wellness.
Yet while some of Tasmania’s biggest growth opportunities will be linked to caring for older people, its most exciting opportunities will lie elsewhere. Deloitte has identified a group of smaller hotspots where the ability to sell into world markets has the potential to turbocharge growth. These are the areas with the most to gain from new approaches and new technologies.
They include new ways of making the most of Tasmania’s ocean resources.
Carl Harris added: “With more coastline than New South Wales and Victoria combined, our state is already a leading producer of rock lobster, abalone, oysters, and of course our dynamic salmon industry has been growing at close to a million dollars a week over the past two years".
“If managed well and sustainably, our fishery industries will stand the state in good stead as world markets demand more of the high value food products in which this state specialises.”
“An extension to this may also be in the downstream processing of Tasmania’s high value aquaculture products. Asia values Australia’s food safety standards, and some markets are willing to pay a premium for quality products that are processed on Australian shores.”
“Provided we succeed in addressing some key regulatory barriers, there will be opportunities in offering emerging Asian markets high value, high margin products for the state’s food processing sector.”
Yet all this just scratches the surface. There will also be other new opportunities emerging in the world’s oceans, from harnessing the power of wind and waves to generate electricity, to farming the sea floor itself.
Tasmania is well placed to take advantage of this new economic potential, as well as additional growth options in education (such as re-skilling an ageing workforce) and in banking (which will be called upon to finance the future, providing the new products that an ageing customer base will want).
The full release of Positioning for Prosperity? Catching the next wave, the third in Deloitte’s Building the Lucky Country series, analyses growth prospects across all major parts of Australia’s economy and highlights several growth hotspots for Tasmania.
A companion media release considers the national impacts of the DG25. However, Deloitte has also extended the analysis to each state. The initial findings from Deloitte’s report, which focuses on the growth potential in export-oriented sectors, identified five super growth sectors. Tasmania is not particularly well represented in the gas sector, one of those ‘Fantastic Five’. However, it has superb strengths across agribusiness, tourism and education, as well as opportunities in the wealth management sector.
NB: See our media releases and research at www.deloitte.com.au
Last Updated: Sunday, 23 March 2014
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