New economic opportunities could add billions to WA economy and sustain 70,000 plus jobs of the future
Shaping Future Cities
23 November 2018: Western Australia is better positioned than any other state, and potentially any jurisdiction in the world, to leverage the enormous economic opportunities presented by global challenges, including rapid decarbonisation of economies, digital disruption and demographic change.
Detailed economic modelling underpins the Shaping Future Cities A New WAy initiative, launched in Perth on November 22.
An advisory panel of WA’s business, government and community leaders, including Richard Goyder, Senator Linda Reynolds and Professor Dawn Freshwater have worked with Deloitte to identify future economic opportunities in a suite of nine clusters to drive future economic value for the state.
Deloitte WA Office Managing Partner Michael McNulty said it is time for WA to seize on a variety of opportunities available to shape and build a stronger economy.
“WA is rich in resources but there are so many possibilities outside of our mineral wealth for which we are perfectly positioned to become leaders in – defence, indigenous business, biodiversity, industry education – to name a few,” McNulty said.
Deloitte Access Economics Partner Matt Judkins said the opportunities identified could drive more than 75,000 jobs of the future by 2029 and increase the average state GSP growth from 3.2% (Deloitte Access Economics’ business as usual forecast) to 3.6% per annum over the next decade.
“It’s fair to say, never before has the world experienced such change at such a rapid pace,” Judkins said.
“Technology, climate change, demographics and geo-politics are redefining our individual and collective place in the world. WA is not immune to these influences.
“The reality is we are at a crossroads and there are choices for us a state to make. We need to turn the challenges the world is facing into tangible economic opportunities for all Western Australians.”
Digitisation and automation are revolutionising every day activities, while a new energy system is emerging fuelled by technological innovation and the falling cost of renewables and storage.
Demographics in WA and across the globe are changing, with an ageing population living longer but with challenges as to how we maintain quality of life as we age.
The rise of wealth in middle class Asia is driving growth in a diverse range of services and products as aspirational classes seek to better educate themselves, improve their diets and travel abroad.
A new WAy is the framework for the state’s economic narrative. The nine clusters identified are at the intersection of global opportunity and WA’s comparative advantage, and would drive economic growth in Perth and regional WA.
The clusters are grouped into three categories – natural advantage; right place, right time and technology platforms.
• Battery supply chain: WA could capture increased value from the global battery industry, moving well beyond simply exporting raw commodities.
• Powered by hydrogen: WA could become a significant exporter of hydrogen, a renewable energy source - supporting the decarbonisation of the world’s industrial, transport and energy sectors
• Indigenous owned businesses: WA could utilise existing linkages in the resources, biodiversity and tourism sectors, to create increased opportunities for indigenous-owned business to have a greater share of the WA economy.
• Biodiversity products: New medical products could be designed, developed and tested in WA, drawing on its unique biodiversity and highly-skilled workforce.
Right place, right time:
• Our place in space: WA could play a critically important role in the burgeoning global space industry, including mission management and space situational awareness.
• Indian Ocean Defence: WA could develop a world-class naval development and maintenance hub, an advanced centre for Australian and allied operations, and be a leader in ensuring stability of the region.
• Industry education: WA could offer a new brand of education that combines technical training with practical experience from industry leading firms.
• Digital Operations: WA could leverage its capability in digital and remote operations in the resources sector to develop and commercialise the core IP for other industries including transport, manufacturing and agriculture.
• Integrated Energy Solutions: WA could be a global leader in the delivery of microgrid solutions to meet the needs of a rapidly changing energy environment.
“These clusters are about supercharging the economy for the future. We need to position for the jobs of the future or we will be left behind. However this will require a more collaborative approach to the past,” Judkins said.
“Each cluster needs multiple parts of the economy to come together and collaborate.
“It requires cross-economy cooperation between at least two segments of the corporate sector, government, higher education, the not-for-profit or the community sector to achieve serious economic outcomes.”
Judkins said Deloitte has identified important timing considerations as to when each cluster could gain critical traction in the next ten years.
“While this is just the start of the conversation it’s important to realise all of these opportunities are real and need immediate action, through strong cross-sector collaboration,” he said.
“It’s important for industry and government leaders to understand the potential of these opportunities and to act quickly to capture the potential to drive WA’s economy into the future.”
To learn more: www.deloitte.com/au/a-new-way
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