News & Discussion: South Australian Economy

[omada]

almost forgot the text from the next page

crow2.jpg (129.06 KiB) Viewed 15385 times

[skyliner]

just to add some impact to this article. I read the Fin. Review frequently and have found this to be the best article on SA I have seen. Trends also noticed - we are turning up more frequently in this paper. BRW also is showing things are moving in SA. (A useful read as their bias is not to SA but to business activity - more likely to have little vested interest colouring state reports.

Overall, it's a good statistical summary.

[UrbanSG]

Continuing good news for SA. I would say low office rental rates compared to other cities was also a big incentive for this expansion. Great to see more city office space being filled. Keep this up and our office vacancies will continue to fall.

From AdelaideNow website:

Insurer Brings New Jobs
GREG KELTON
February 15, 2008 09:30pm

A NEW call centre for Adelaide will see 250 new jobs created over the next 15 months.

In what Treasurer Kevin Foley describes as "an investment coup", insurance giant Allianz will establish its new national call centre in Adelaide.
The company, which already has about 250 employees here, will take on another 250.

"The timing could not be better," Mr Foley said. "It will help soften the blow of the Mitsubishi closure and could potentially offer jobs to a number of those displaced workers."

Mr Foley and senior officials from the Trade and Economic Development Department were involved in negotiations with Allianz.

He said the Government had provided no incentives to bring about the decision.

Many of Allianz's current staff handle claims on behalf of the Motor Accident Commission.

Allianz managing director Terry Towell said the new call centre and expanded claims processing facilities would double the size of its SA workforce to around 500 by the middle of next year.

He said the company expected the number of jobs it could create in SA to grow quickly from around 200 by the end of 2008, to 250 by mid-2009 and then by between 30 and 40 jobs a year for the foreseeable future.

The initial establishment and rental costs for the Allianz move is estimated to be between $15 million and $20 million.

It has an initial lease on 2500 sq m of office space at 55 Currie St in the city for up to 10 years and believes the company will inject around $10 million a year into the SA economy through wage payments growing to $20 million a year over the next decade.

Mr Towell said the decision to choose Adelaide for the new centre was based on the state's competitiveness in terms of business costs and the availability of a high-quality workforce.

Mr Foley said Adelaide had a salary and operating cost advantage over other Australian capitals.

"It shows yet again that Adelaide is the most competitive city in which to do business in Australia," he said.

"It provides a high-quality lifestyle in the country's most affordable capital city housing market."

[Wayno]

just to add some impact to this article. I read the Fin. Review frequently and have found this to be the best article on SA I have seen. Trends also noticed - we are turning up more frequently in this paper. BRW also is showing things are moving in SA. (A useful read as their bias is not to SA but to business activity - more likely to have little vested interest colouring state reports.

Overall, it's a good statistical summary.

Yep agree with skyliner. I read several newspapers each day (need to for my job) including the fin review, the age, the australian and i've noticed the quantity of positive articles focused on Adelaide & SA is steady growing. most impressive!

[skyliner]

next installment - Financial Review 20/2/08 P15

'Thanks A Milliob Brumby, SA is Ready To Boom"

Backwater or boom town? Still smarting from victorian premier John Brumby's disparaging comments last month, SA has launched an aggressive bid to establish itself as one of the nation's boom states.

A 5 month advertising campaign will begin this week trumpeting SA's economic credentiala and encouraging further investment from the easter seaboard.

The $1.1m campaign features the slogan 'Where would you invest - the last boom town or the next?, referring to the upcoming increase in activity in the mining and defence sectors.A second campaign will be launched to encourage more interstate migration.

The advertisements seek to counter an image of SA as a slow growth, rust belt state - a perception that was highlighted bythe closure of Mitisubishi's car making plant in Adelaide's southern suburbs earlier this month.

Mr. Brumby, in defence of a controversial plan to dredge Melbourne's Port Phillip Bay, last month sais Melbourne would end up a backwater like Adelaide if it did not proceed with the ca\hannel deepening.

The alternative view being pushed by premier Mike Rann is that SA is on the cusp of an economic boom, fueled by multibillon dollar investment in mining and defence..

At the same time a 2 day onference in Adelaide beginning today will hear from 60 speakers from business, government and academia about how to take advantage of the mining and defence booms to transform the state into an economic powerhouse. It will also look at impediments to the state's growth, including skills shortage and lack of infrastructure.

There's an estimated $45b of major projects on the horizon in the state

It's flagship projects are the $7b expansion of BHP's Olympic Dam Mine and the $8b air warfare destroyer construction program.

Although the state economy grew by only 0.8@ last year because of the drought, it is forecast to to expand to 3.5%
this year..

SA recently recorded record highs in the number of people in jobs and full time employment, and in private business investment.

While we know the message is beginning to infiltrate the eastern seaboard that SA is ion the cusp of a very long term economic bonanza, it's important that business investors are aware of the huge opportunities now opening up Mr. Rann said.

The former chief executive of the SA chamber of mines and energy, Phil Sutherland - who rganised the 2 day conerence on the economy - said that the state had to ensure it took advantage of the mining boom in regional SA to transform the entire economy'

We don't want to look back in 20 years and say, wow, that was an opportunity lost. He said the state faced a skills crisis as it sought to recruit workers for the pipeline of projects ahead.

It also suffered from a chronic lack of infrastructure, including ports, telecomminications, electricity, water and road and rail transport.

High priorityy needed to be given to expanding and upgrading the government owned Port Bonython near Whyalla on Spencer Gulf.

For all of the projects to reach their full potential, they've got to be supported by the appropriate infrastructure, not only to get it out of the ground, but to get it to market, Mt Sutherland said.

GET ON BOARD TODAY - SA IS ON THE WAY

[AtD]

Beat you to it.

http://www.sensational-adelaide.com/for ... 130#p29130

[The Carabinieri]

With interest rates set to rise again in march, and then possibly again mid year, what do people think this will do to Adelaide, in terms of development.

In addition, it has been started that a recession in 2009 is on the cards. This would be catastrophic for Australia.

Do you think this will put a dent into the developments in Adelaide?

[monotonehell]

If it's anything like the 1990's recession we'll see a few buildings completed and then everything will slow for a few years.

But I doubt that it will play out like that this time. There's a lot of interesting forces manifesting in the World at the moment unlike anything we've seen in decades. The US is in a downward spiral, China and India are looking for resources, Europe is generally ticking along, oil is past peak production so that's going up, climate change is affecting the viability of regions' ability to support their current applications and the way business conducts itself...

To paraphrase the old Chinese proverb "We live in interesting times"

[The Carabinieri]

If it's anything like the 1990's recession we'll see a few buildings completed and then everything will slow for a few years.

But I doubt that it will play out like that this time. There's a lot of interesting forces manifesting in the World at the moment unlike anything we've seen in decades. The US is in a downward spiral, China and India are looking for resources, Europe is generally ticking along, oil is past peak production so that's going up, climate change is affecting the viability of regions' ability to support their current applications and the way business conducts itself...

To paraphrase the old Chinese proverb "We live in interesting times"

well it be interesting to see where we are at in around 6 months time

[monotonehell]

If it's anything like the 1990's recession we'll see a few buildings completed and then everything will slow for a few years.

But I doubt that it will play out like that this time. There's a lot of interesting forces manifesting in the World at the moment unlike anything we've seen in decades. The US is in a downward spiral, China and India are looking for resources, Europe is generally ticking along, oil is past peak production so that's going up, climate change is affecting the viability of regions' ability to support their current applications and the way business conducts itself...

To paraphrase the old Chinese proverb "We live in interesting times"

well it be interesting to see where we are at in around 6 months time

I hoping to be in Disneyland around then

[AtD]

As someone who likes to think they're 'in the know' on such topics, most analysts aren't pointing at an Australian recession, the fundamentals are far too strong. We're a lot more disconnected from the US than we used to be, economically. We have a lot further to maneuver in terms of fiscal and monetary policy. The only Australian indicator predicting trouble is the markets. The ASX has predicted 15 economic downturns out of the last 8, though, so it's somewhat disconnected from the real economy.

Rising interest rates are a sign of a growing economy, by the way, not a recession. The inflation isn't being imported as our dollar is rising, it's simply because we're spending too much. The point of interest rates rises are to shock consumers into realising the economy isn't able to infinity grow with demand, and by looking at this thread, they're working.

In interesting news, the ABS released its quarterly summery of SA today:
http://abs.gov.au/AUSSTATS/[email protected]/mf/ ... enDocument

QUARTERLY POPULATION CHANGE, COMPONENTS, June quarter 2007, South Australia


MINERAL AND PETROLEUM EXPLORATION EXPENDITURE,
Original, South Australia


RETAIL TURNOVER(a), Current prices, Trend,
Percentage change from previous month


HOUSEHOLD FINAL CONSUMPTION EXPENDITURE(a), Trend,
Chain volume measures, Percentage change from previous quarter


AVERAGE WEEKLY EARNINGS, FULL-TIME ADULT ORDINARY,
Trend, South Australia


JOB VACANCIES, Original, South Australia


TOTAL EMPLOYED PERSONS(a), Trend, South Australia


UNEMPLOYMENT RATE(a), Trend, South Australia and Australia


Basically, we're doing well in keeping up with the nation.

The one graph that I find most interesting is:
PARTICIPATION RATE(a), Trend, South Australia and Australia

We're close to last in this graph, more South Australians of working age aren't employed or looking for work.

[crawf]

Interesting, thanks for posting.

[The Carabinieri]

As someone who likes to think they're 'in the know' on such topics, most analysts aren't pointing at an Australian recession, the fundamentals are far too strong. We're a lot more disconnected from the US than we used to be, economically. We have a lot further to maneuver in terms of fiscal and monetary policy. The only Australian indicator predicting trouble is the markets. The ASX has predicted 15 economic downturns out of the last 8, though, so it's somewhat disconnected from the real economy.

Rising interest rates are a sign of a growing economy, by the way, not a recession.

This is some what true ... In tearms of a recession, i heard some economist on TV stating that in 2009, the possibility of having one, is very much alive.

As much as Rising interest rates are a sign of a growing economy, the thing to take note, is that we need to stop our spending, simply for the fact that if something were to happen, most people would be very much in trouble.

The other thing to take note, is that what goes up (especially what goes up very fast) normally comes crashing down.

I think the RBA f*&%$% up by not increasing rates by .50 or maybe even .75 around a year ago ... this would have sent the msg loud and clear.

Hopefully this makes sence, as i am very tired today.

[The Carabinieri]

The other thing i want to know, is where everyone is getting the money from??? It seems that when real estate was cheap (around 10 yrs ago), no one was buying, and now that its been sky rocketing (with many people possibly paying even too much) it seems that people have plenty of money to spend.

[monotonehell]

The other thing i want to know, is where everyone is getting the money from??? It seems that when real estate was cheap (around 10 yrs ago), no one was buying, and now that its been sky rocketing (with many people possibly paying even too much) it seems that people have plenty of money to spend.

I don't know about everyone, but a lot of current investment and spending has been coming out of debt. Howard / Costello encouraged part of this with things like the home buyers bonus and so on, they effectively shifted a small recession we probably should have had (as did the rest of Asia) into household debt. The next few years, as interest rates rise we will probably see that delayed recession bite as debts become burdensome.

EDIT: Sorry forgot my second point which was that when interest rates were low money was cheap, so a lot of investors borrowed to invest. Which is all good and fine in the short term (silly if you ask my mum ) but some let their debts carry too long and got caught in the market falls AND interest rises.