Business Establishments in Victoria. Chapter 2

Transcription

1 Business Establishments in Victoria Chapter 2

2 Overview Businesses choose specific locations that best meet their various operational functions and commercial requirements. Key drivers for selecting business locations include being near global supply chains, having a base in proximity to key transport nodes and being close to customers and essential inputs. Proximity to home was also a factor for many small business owners. As of December 2012, 73 per cent of Victoria s 275,336 business establishments were based in metropolitan. The rest were spread across the state. To provide a snapshot and spatial data analysis of business establishments across Victoria over the ten-year period to 2011 (at both industry and geographical levels), these have been classified by remuneration size: > Small business establishments: those with annual remunerations under $600,000 > Medium business establishments: those with annual remunerations between $600,000 and $12 million > Large business establishments: those with annual remunerations over $12 million All business establishment data and maps in this publication, including this chapter, are based on WorkSafe Victoria data and use postcode as their base geography. LGA boundaries are overlaid to provide location guidance. This data differs from ABS business counts data, which counts the number of businesses not establishments. For a more complete explanation of WorkSafe Victoria s data, please refer to Chapter 1: What data is used? 16 Businesses in Victoria

3 Business establishments by industry Over the decade to , the Victorian economy has grown both in business activity and population, shifting towards a services orientated economy. In , the Victorian industries with the largest number of business establishments were Construction, Retail trade, and Professional, scientific and technical services. Combined, these three industries accounted for nearly 40 per cent of all business establishments registered in the state with WorkSafe Victoria. In the ten years to , the Construction industry recorded the largest increase in the number of business establishments in Victoria, followed by Retail trade and Accommodation and food services. The growth in these industries has been driven by population growth occurring throughout metropolitan. Agriculture, forestry and fishing, Information media and telecommunications and Manufacturing recorded the largest decline in business establishment numbers. Figure 2.1: Number of business establishments by industry (000s), and regional Victoria, Regional Victoria Figure 2.2: Change in the number of business establishments by industry (000s), and regional Victoria, to Regional Victoria Businesses in Victoria 17

4 Business establishments by location Metropolitan In metropolitan, there are high concentrations of business establishments in central (the City of ), in the north (Hume) and south east (Monash and Dandenong). Figure 2.4 shows the change in the number of business establishments in metropolitan. The map illustrates the relocation of business establishments away from the inner east, south, south east and outer east into the City of and other outer regions of metropolitan. These changes reflect the consolidation of knowledge intensive services industries (such as Professional, scientific and technical services, Financial and insurance services, and Information media and telecommunications) from the inner east and south east into the city centre and surrounding suburbs, as well as the relocation of distribution services industries, which require large parcels of land, to the outer areas of metropolitan where land costs are cheaper. The growth of the Construction industry, in response to population growth, is also a factor in the increase of business establishments in the outer municipalities. Figure 2.3: Business establishments in metropolitan, Figure 2.4: Change in business establishments in metropolitan, to Craigieburn Deer Park Bayswater Glen Waverley Truganina Werribee Parkdale Frankston Dandenong 1 to to 1,000 1,000 to 2,000 2,000 to 5,000 5,000 or more Werribee Narre Warren Cranbourne Pakenham 2,100 1, Businesses in Victoria

5 Business establishments by location Regional Victoria In regional Victoria, business establishments are concentrated in and around the major regional centres of,,, Shepparton,, Traralgon, Warrnambool and. A decline in business establishment numbers over the period to was recorded in most rural areas of the state, while growth mainly occurred in the major regional city centres and along the peri-urban areas adjacent to metropolitan. This reflects the transition occurring in regional Victoria, with the regional economy diversifying towards service industries such as Construction, Health care and social assistance, and Retail trade. Figure 2.6: Change in business establishments in regional Victoria, to Figure 2.5: Business establishments in regional Victoria, Kerang Swan Hill Shepparton Wangaratta 1 to to to to 1,000 1,000 or more Warrnambool Shepparton Wangaratta Upper Plenty Bacchus Marsh Warragul Traralgon Bairnsdale Warrnambool Traralgon Bairnsdale Businesses in Victoria 19

6 Small business establishments The WorkSafe data indicates that most business establishments in Victoria are small establishments 3. In 2012, there were around 235,000 small business establishments, comprising 86 per cent of all business establishments. In , the industries with the highest numbers of small business establishments were Construction, Retail trade and Professional, scientific and technical services. In the decade to , Construction, Accommodation and food services, and Transport, postal and warehousing recorded the largest growth of small business establishments, while Agriculture, forestry and fishing, Information media and telecommunications, and Manufacturing recorded the largest declines. Figure 2.7: Number of small business establishments by industry (000s), and regional Victoria, Figure 2.8: Change in the number of small business establishments by industry (000s), and regional Victoria, to Regional Victoria Regional Victoria 20 Businesses in Victoria 3 Small business establishments are those with annual remunerations of less than $600,000.

7 In metropolitan, the inner municipalities of Boroondara and Port Phillip hold the greatest numbers of small establishments, while outer municipalities in the north (City of Hume), east (Yarra Ranges Shire) and south east (City of Casey and Mornington Peninsula Shire) also have large numbers of small business establishments. This reflects the industry composition of small businesses, as these localities generally have large numbers of Construction, Professional, scientific and technical services, and Retail trade businesses. Figure 2.10 shows that the number of small business establishments has declined in s east (cities of Boroondara and Whitehorse) and south east (cities of Stonnington, Glen Eira and Monash), while numbers have increased in the City of and in outer suburbs in the west (Deer Park and Truganina), north (Craigieburn and Morang) and south east (Cranbourne and Pakenham). Figure 2.10: Change in small business establishments in metropolitan, to Figure 2.9: Small business establishments in metropolitan, Craigieburn Sydenham Deer Park Truganina Werribee Werribee Dandenong Frankston 1 to to 1,000 1,000 to 2,000 2,000 to 3,500 3,500 or more Narre Warren Pakenham Cranbourne 1, Businesses in Victoria 21

8 In regional Victoria, small business establishments are concentrated in and around the major centres of,,, Shepparton,, Traralgon, Warrnambool and. Over the decade to , the number of small business establishments declined in the western and northern regions of the state, as well as the eastern Gippsland region, while growth mainly occurred in the major regional city centres and along the peri-urban areas of metropolitan. These patterns are a reflection of the reduction in the number of small Agriculture, forestry and fishing business establishments and the growth of population-related industries such as Construction, Health care and social assistance, and Retail trade. Figure 2.11: Small business establishments in regional Victoria, Figure 2.12: Change in small business establishments in regional Victoria, to Swan Hill 1 to to to to 1,000 1,000 or more Shepparton Kerang Shepparton Upper Plenty Warrnambool Traralgon Warrnambool Warragul 22 Businesses in Victoria

9 Medium business establishments In 2012, there were over 36,000 medium sized business establishments 4 in Victoria, comprising 13.5 per cent of total business establishments. In the decade to , the number of medium business establishments has grown by over 7,000 to just under 35,000. In , Wholesale trade, Manufacturing, and Professional, scientific and technical services were the top three industries, accounting for nearly 35 per cent of all medium sized business establishments in Victoria. In the decade to , medium sized business establishments grew across all industries, except Financial and insurance services. Retail trade, Health care and social assistance, Construction, and Professional, scientific and technical services recorded the largest growth of medium business establishments, while Information media and telecommunications, Utilities and Mining recorded the lowest growth. Figure 2.13: Number of medium business establishments by industry, and regional Victoria, Figure 2.14: Change in the number of medium business establishments by industry, and regional Victoria, to Regional Victoria Regional Victoria 4 Medium business establishments are those with annual remunerations between $600,000 and $12 million. Businesses in Victoria 23

10 In metropolitan, medium sized businesses are concentrated around the central city and in the south east around Dandenong. This reflects the industry composition of the two regions, with the City of containing the central business district (CBD); while, the City of Dandenong has a high concentration of medium sized Manufacturing and Wholesale trade business establishments. Figure 2.16: Change in medium business establishments in metropolitan, to The growth in the number of medium sized business establishments was recorded mainly in the City of and surrounding municipalities, particularly in the Professional, scientific and technical services, Administrative and support services, and Accommodation and food services industries. The City of Dandenong also recorded strong business establishment growth, especially in the Manufacturing and Wholesale trade industries. Figure 2.15: Medium business establishments in metropolitan, Werribee Dandenong Dandenong 1 to to to to 1,000 1,000 or more 24 Businesses in Victoria

11 In regional Victoria, medium sized businesses are clustered around major regional centres. Warrnambool,,,,, Shepparton and have the largest number of medium sized businesses, as well as the strongest growth. Figure 2.18: Change in medium business establishments in regional Victoria, to Figure 2.17: Medium business establishments in regional Victoria, Swan Hill to to to to or more Horsham Shepparton Wangaratta Bairnsdale Shepparton Warrnambool Traralgon Warrnambool Businesses in Victoria 25

12 Large business establishments There were over 1,500 large business establishments 5 in Victoria in 2012, comprising 0.5 per cent of total business establishments. In , the Professional, scientific and technical services industry had the highest concentration of these large establishments, followed by the Manufacturing and Health care and social assistance industries. In the decade to , Construction, Professional, scientific and technical services and Transport, postal and warehousing recorded the highest growth in large business establishments, while Agriculture, forestry and fishing, Information, media and telecommunications, and Financial and insurance services recorded the largest declines. Figure 2.19: Number of large business establishments by industry, and regional Victoria, Figure 2.20: Change in the number of large business establishments by industry, and regional Victoria, to Regional Victoria Regional Victoria 26 Businesses in Victoria 5 Large business establishments are those with annual remunerations of more than $12 million.

13 In metropolitan, large business establishments are concentrated around the city centre and in the cities of Dandenong and Monash. Smaller concentrations are also located in the west (Footscray and Sunshine), north west (Tullamarine) and east (Bayswater). Figure 2.22: Change in large business establishments in metropolitan, to Generally, most of the growth in large business establishments was located in the city centre and surrounding suburbs. The cities of Monash and Greater Dandenong also recorded strong growth. Figure 2.21: Large business establishments in metropolitan, Clayton Dandenong Clayton Dandenong 1 to 5 5 to to to or more Businesses in Victoria 27

14 Large business establishments are sparse in regional Victoria and are generally located in regional centres. Most large business establishments are found in the Manufacturing, Health care and social assistance, Education and training, or Public administration and safety industries. Growth in the number of large business establishments has also been concentrated in major regional centres. and had the largest growth, while moderate growth was recorded in, Traralgon and Sale. Figure 2.24: Change in large business establishments in regional Victoria, to Figure 2.23: Large business establishments in regional Victoria, to 2 2 to 3 3 to 5 5 to or more Shepparton Shepparton Traralgon Sale Warrnambool Traralgon 28 Businesses in Victoria