RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

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2 Authors Todd Denham Reviewed By Mike Ruzzene Document Information Filename RAA Review Last Saved Last Printed File Size 16 September :45 PM 16 September :56 PM 9,880 kb Disclaimer Neither Urban Enterprise Pty. Ltd. nor any member or employee of Urban Enterprise Pty. Ltd. takes responsibility in any way whatsoever to any person or organisation (other than that for which this report has been prepared) in respect of the information set out in this report, including any errors or omissions therein. In the course of our preparation of this report, projections have been prepared on the basis of assumptions and methodology which have been described in the report. It is possible that some of the assumptions underlying the projections may change. Nevertheless, the professional judgement of the members and employees of Urban Enterprise Pty. Ltd. have been applied in making these assumptions, such that they constitute an understandable basis for estimates and projections. Beyond this, to the extent that the assumptions do not materialise, the estimates and projections of achievable results may vary. RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

3 CONTENTS INTRODUCTION 1 OVERVIEW 1 ABOUT THE RINGWOOD ACTIVITIES AREA 1 GEOGRAPHICAL AREAS 3 PART A: ANALYSIS AND OPPORTUNITIES 4 OVERVIEW 5 INTRODUCTION 5 STRENGTHS OF THE RAA 5 OPPORTUNITIES 9 INTRODUCTION 9 INCREASED POPULATION AND DWELLINGS 9 OFFICE DEMAND 10 PUBLIC SECTOR ATTRACTION 10 SERVICE INDUSTRIES 11 SPATIAL ANALYSIS 12 MAP 1: INDUSTRY LOCATION 12 MAP 2: DEVELOPMENT PROPOSALS 13 SWOT ANALYSIS 14 PART B: RESEARCH AND DATA THE RINGWOOD ACTIVITIES AREA INTRODUCTION SUMMARY RAA EMPLOYMENT EMPLOYMENT TENURE SPACE USE DEVELOPMENT PROPOSALS RINGWOOD BUSINESSES INTRODUCTION SUMMARY RINGWOOD BUSINESSES ADDITIONAL BUSINESSES SOLE OPERATOR AND HOME BASED BUSINESSES THE RINGWOOD WORKFORCE INTRODUCTION SUMMARY WHERE THE WORKERS COME FROM INDUSTRY AND OCCUPATION GROWTH SECTOR ANALYSIS EMPLOYMENT STATUS EMPLOYEES AND OWNER/MANAGERS INCOME AGE NON-RETAIL ANALYSIS TRAVEL TO WORK RINGWOOD RESIDENT S PLACE OF WORK RINGWOOD ACTIVITY AREA OVERVIEW SPACE USE 18 MAROONDAH CITY COUNCIL JUNE 2013

4 4. CATCHMENTS AND POPULATION INTRODUCTION SUMMARY POPULATION GROWTH POPULATION PROJECTIONS RETAIL CATCHMENT SEIFA INDEX EDUCATION DWELLINGS ACTIVITIES AREA COMPARISON INTRODUCTION SUMMARY EMPLOYMENT EMPLOYMENT BY INDUSTRY OCCUPATION INCOME BUSINESSES MAROONDAH BUSINESS ANALYSIS INTRODUCTION SUMMARY CONSIDERING RELOCATING RAA ATTRIBUTES BUSINESS PERCEPTIONS 53 APPENDICES 54 APPENDIX A ACTIVITY AREA SA2S 55 2 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

5 INTRODUCTION OVERVIEW This report provides an analysis, findings and opportunities related to available data on business, employment and resident catchments for the Ringwood Activities Area (RAA), within the City of Maroondah. residents, tourists, businesses and commuters for high quality, efficient, accessible facilities will continue in coming decades. It is vital that new facilities are delivered to meet the demands of a growing, changing community so that Ringwood remains a liveable, vibrant, amendable place that attracts people to live, work, to conduct business and pursue leisure activities. The data sets that have been used for this project are: The Census of Land Use and Employment for the Ringwood Activities Area; The Ringwood Activities Area (RAA) has been determined to be one of six metropolitan Activities Areas by the Victorian Government; as such it is seen as a focus for growth and development within metropolitan Melbourne. Results of the 2011 Census, as conducted by the Australian Bureau of Statistics; A comparison of 2011 Census data for other SA2s that include an Activities Area; The Council development and planning permit log for the RAA; and, The outcomes of the Maroondah Business Analysis project, undertaken by the Council in The Victorian State Government s Central Activities Areas (CAA) Program is an important element of the government s intention to revitalise key metropolitan centres across Melbourne and thereby encourage and manage sustainable growth of the city s suburbs. Central Activities Areas or CAAs are designated metropolitan and regional centres where housing and commercial development will take place, allowing Melbourne to move away from one centre (the Central Business District) to a number of centres. The report is divided into two parts: Part A provides an overview of findings from the data analysis, opportunities for further development of the RAA and spatial analysis. CAAs will be the focus of a substantial proportion of future employment growth and public investment in Melbourne and regional centres. The State Government's investment in Central Activities Areas, aims to provide: Part B includes the detailed assessment of the data sources used for this report. ABOUT THE RINGWOOD ACTIVITIES AREA Ringwood is a suburb in transition. As one of the key commercial centres of the Eastern Region and a major transport node it is targeted for government and private sector development, residential expansion and demographic change. The area is expected to undergo significant population growth over the coming 30 years. Existing infrastructure and services such as hospitals, parks and transit stations are under pressure and the demand by Significant CBD-type jobs and commercial services; A strong and diverse retail sector; Specialised goods and services drawing on a large regional catchment; Significant opportunities for housing redevelopment in and around these centres; MAROONDAH CITY COUNCIL JUNE

6 High levels of accessibility for walking, cycling, public transport or car by being located at a junction in the Principal Public It is at the junction of the Lilydale and Belgrave rail lines and ten bus routes; It is a key gateway between Melbourne s CBD and the Yarra Valley; and, Transport Network; and Vibrant centres of community activity with a range of public facilities. CAAs are a Whole of Victorian Government priority and are being delivered in partnership with councils, private sector and the local community. The Ringwood CAA is bounded by the Ringwood Bypass to the north, Ringwood Lake to the east, Station Street and the Belgrave/ Lilydale Rail line to the south, and the EastLink corridor and Heatherdale Road to the west. The factors listed by the State Government as to the reasons for selecting Ringwood as a Central Activities Area are: It is at the junction of Eastlink and the Eastern Freeway with excellent connections to the metropolitan arterial road network; It serves a large catchment area in Melbourne s outer east and supports a range of land uses and activities. Ringwood is set to become the main hub of Melbourne's outer east, boasting a vibrant and contemporary town centre with integrated and sustainable retail, commercial, leisure, civic and residential activities set in a natural landscape connected through an advanced road and rail network. Several large projects for the RAA have already been funded, approved for development or are underway, including the $66m Ringwood Station and Bus Interchange upgrade, a $575m further expansion of the Eastland Shopping Centre including a new Town Square precinct and Ringwood Library, Learning and Cultural Centre, the $80m development of the state s second Costco and the completion of over $2.5m of urban design and streetscape improvements to better link the Ringwood Lake and Mullum-Mullum Creek bike and walking trails. The map on the following page provides the location of the RAA and the statistical areas used for the analysis within this report 2 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

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8 PART A: ANALYSIS AND OPPORTUNITIES 4 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

9 OVERVIEW INTRODUCTION This overview of the research and analysis included in Part B of this report provides the basis for the development opportunities discussed in the following section. The research and analysis used to inform this discussion includes: Analysis of employment and space use within the RAA based on the results of the 2011 Census of Land Use and Employment (CLUE); 2011 Census data, related to employment, residential population and socioeconomic indicators for Ringwood, Maroondah and the Melbourne Outer East region; Comparison of the Ringwood SA2 with other SA2s that include the activities areas identified in the Melbourne 2030 planning strategy. STRENGTHS OF THE RAA $575m further expansion of the Eastland Shopping Centre including a new Town Square precinct and Ringwood Library, Learning and Cultural Centre, the $80m development of the state s second Costco and the completion of over $2.5m of urban design and streetscape improvements to better link the Ringwood Lake and Mullum-Mullum Creek bike and walking trails. DEVELOPMENT DEMAND The register of planning applications and proposals indicates a strong demand for Development within the RAA, particularly for office, retail and residential land uses. This is substantially driven by the proposal for the redevelopment of Eastland, which includes office space, a residential and accommodation tower as well as additional retail space. As of March 2013, there were approved permits for the development of more than 129,000m2 of commercial floor space in the RAA, comprising 65,000m 2 of retail space, 64,000m 2 of office space. The growth in retail and office space represents an additional 30% of commercial floor space in the RAA, based on the 2011 CLUE data. In addition, there were approved planning permits for 650 dwellings within the RAA. CAA STATUS The Ringwood Activities Area (RAA) has been determined to be one of six metropolitan Activities Areas by the Victorian Government; as such it is seen as a focus for growth and development within metropolitan Melbourne. There are planning permits for an additional 129,000m 2 of commercial floor space and 650 dwellings in the Ringwood Activities Area. (Pg.21) Central Activities Areas or CAAs are designated metropolitan and regional centres where housing and commercial development will take place. CAAs will be the focus of a substantial proportion of future employment growth and public investment in Melbourne and regional centres. Several large projects for the RAA have already been funded, approved for development or are underway, including the $66m Ringwood Station and Bus Interchange upgrade, a This is supported by Council s development of Aquanation, located just outside the RAA. Aquanation is a $46.5m regional aquatic centre, which also includes allied health care providers and the Olympic and Commonwealth Games standard diving facilities. This may lead to the development of complementary businesses and will improve residential amenity. MAROONDAH CITY COUNCIL JUNE

10 The City of Maroondah s inclusion of the Ringwood Library, Learning and Cultural Centre in the Eastland redevelopment proposal also provides additional residential amenity within the RAA. It will include a library, art gallery, education spaces, a cafe area, local history and a Council customer service centre. The use of floor space within the RAA is also predominantly private sector, particularly when only floor space that generates employment is considered. The public sector uses approximately 3% of the available employment generating floorspace in the RAA, equating to less than 10,000m 2. STRONG PRIVATE SECTOR The RAA is home to a large private sector, with significant employment in the Retail and a range of service sectors. In comparison to other Central Activities Areas within Metropolitan Melbourne, it has the highest proportion of private sector employment and only the Box Hill Activities Area has greater total private sector employment. Of note, 91% of jobs in the Ringwood SA2 are in the private sector, which is at least 15% higher than comparable Activity Area SA2s. BUSINESS GROWTH 91 more businesses were operating within the Ringwood SA2 in July 2012 than in July 2009: this represents a growth of 5% in businesses within the RAA and its surrounds, or 5% per annum. This business growth indicates a positive sentiment in Maroondah, particular in key sectors. Also of note, there were 3 businesses in the Ringwood SA2 employing more than 200 people in 2011, while none were recorded in % of jobs in the Ringwood SA2 are in the private sector, which is at least 15% higher than comparable Activity Area SA2s. (Pg. 45) The growth of service type businesses is a positive sign for the RAA, indicating that it is transitioning into a provider of higher order services in addition to its strong retail offer. (Pg.23) EMPLOYMENT BY SECTOR 18,000 16,000 14,000 12,000 Private sector Public Sector The sectors that exhibited the greatest growth between 2009 and 2012 were in construction and also a range of service industries such as Finance and Insurance Services, Education and Training and Professional, Scientific and Technical services. The growth of service type businesses is a positive sign for the RAA, indicating that it is transitioning into a provider of higher order services in addition to its strong retail offer. 10,000 8,000 6,000 4,000 2,000 0 Ringwood Box Hill Frankston Broadmeadows Footscray Source: ABS TableBuilder: Ringwood, Box Hill, Frankston, Broadmeadows and Footscray SA2s, Place of Work. 6 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

11 BUSINESSES BY INDUSTRY: 2009 & 2012 Construction Professional, Scientific and Technical Services Retail Trade Rental, Hiring and Real Estate Services Other Services Financial and Insurance Services Wholesale Trade Transport, Postal and Warehousing Manufacturing Administrative and Support Services Health Care and Social Assistance Accommodation and Food Services Not Classified Education and Training Agriculture, Forestry and Fishing Arts and Recreation Services Information Media and Telecommunications Public Administration and Safety Electricity, Gas, Water and Waste Services Mining EMPLOYMENT In 2011, the RAA provided employment for more than 8,000 people, approximately a quarter of all employment within the city of Maroondah. The industry sectors that provide high proportions of employment in the Ringwood SA2, which includes the RAA, area Retail trade (23%), Manufacturing (14%) and Health Care and Social Assistance (10%). Sales workers also represent the highest proportion of occupations within the RAA, with 19% of the total workers. Professionals (17%), Clerical and Administrative workers (14%) and Technicians and trade workers (14%) are also employed in significant numbers within the RAA. The high percentage of retail workers skews the analysis towards part time, lower paid and younger workers. The impact of the high proportion of retail work is particularly evident in comparison to the other SA2s that include Activity Areas. The high percentage of retail workers in the Ringwood SA2 skews the employment data towards lower paid and younger workers. With retail removed, the age and wages of Ringwood workers is in line with the Melbourne Outer East region. (Pg.33) Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA2 The additional construction businesses point to continued property investment in Maroondah and the surrounding region. Many of these construction businesses were of the sole-operator type. 38% of the people who work in the suburb of Ringwood live within the Maroondah LGA, with the remaining 62% predominantly drawn from the Yarra Ranges, Knox, Whitehorse and Manningham. Although the RAA is serviced by a train station and a range of bus routes, 77% of people employed within the Ringwood SA2 used a car to travel to work. A quarter of Ringwood residents work within Maroondah, with a further 11% commuting to inner city Melbourne and 10% to Whitehorse. This indicates that the train service may be more important to Ringwood residents than workers. The Australian Business Register recorded strong growth business growth between 2009 and 2011, in terms of both number of businesses and business size. Key growth sectors include construction and service providers. (Pg.31) MAROONDAH CITY COUNCIL JUNE

12 CATCHMENT GROWTH AND ADVANTAGE The RAA retail and employment catchment is experiencing continuing employment growth, and is a comparatively well off community, supporting further development of retail and commercial businesses. The RAA serviced a catchment population of 414,000 people in 2011, which included sections of the Manningham, Whitehorse, Knox and Yarra Ranges Council areas as well as the City of Maroondah. The RAA retail and employment catchment is experiencing continuing employment growth, and is a comparatively well off community, supporting further development of retail and commercial businesses. (Pg. 39, 42) The trends that provide the basis for forecasting an increasing demand for dwellings in the region serviced by the RAA, are the projected population increases and the ageing of the population, as older people are more likely to live in one or two person households. The relative social and economic advantage of people living within the retail catchment is confirmed by the 2011 SEIFA analysis 1 : all Council areas in the catchment are the highest 30% in Victoria. This social and economic advantage is evident in the analysis of incomes of residents of the RAA s retail catchment. The following table shows the retail catchment population has a greater proportion of incomes of between $1,000 and $2,000 per week than Greater Melbourne, CATCHMENT WEEKLY PERSONAL INCOME This catchment experienced population growth of approximately 8% between 2001 and 2011, and is expected to continue into the forthcoming decades, with Victorian Government projecting a further 3% population growth for the region every 5 years to % 10.0% 8.0% Ringwood Retail Catchment Greater Melbourne RETAIL CATCHMENT POPULATION Year Population Growth Growth% , ,272 11,782 3% ,423 12,151 3% 6.0% 4.0% 2.0% 0.0% ,527 12,104 3% ,423 11,896 3% Source: Victoria in Future 2012 Source: ABS Census Table Builder, 2011 Total Personal Income (weekly): Retail Catchment, Greater Melbourne. Excludes Not Stated and Not Applicable categories. 1 SEIFA: Socio-Economic Index for Areas, ABS. Compiled using data from the 2011 Census. 8 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

13 OPPORTUNITIES INTRODUCTION The Ringwood Activities Area is a prime location for: Providing goods and services for the projected increases in population and dwellings; Increasing the supply of office acommodation to meet the needs of the growing services industries; The concentration of this type of development within the RAA will provide further opportunities for businesses to grow and establish themselves. Initially, the growing number of construction businesses will be provided with opportunities to be included in development projects. As the population of people living within the RAA increases, there will be increased demand for both the retail trade on offer and the provision of services. As the additional population is expected to be largely aged over 60 years, as shown in the following graph, the demand for Health Care and Aged Services can be expected to increase. Attracting public sector organisations and employment, which will also support the development of allied industries; and, CATCHMENT AGE PROJECTIONS The development and support of service industries, particularly the opportunity to create precincts and the co-location of complementary businesses. 35, INCREASED POPULATION AND DWELLINGS The State Government projects an additional 24,000 dwellings will be developed in the Ringwood Retail Catchment over the next two decades, providing housing for an additional 12% of residents. This will result in increased demand for goods, services and construction. 30,000 25,000 20,000 15,000 10,000 The State Government projects an additional 24,000 dwellings will be developed in the Ringwood Retail Catchment over the next two decades, providing housing for an additional 12% of residents. This will result in increased demand for goods, services and construction. (Pg. 43) 5,000 0 Age Group Source: Victoria in Future 2012 MAROONDAH CITY COUNCIL JUNE

14 NON- EMPLOYING OFFICE SECTOR BUSINESSES The population growth through the Melbourne Outer East will provide an increased population catchment for the businesses within the RAA, particularly those that are not serviced in the Major Activity Centres further to the East, Chirnside Park and Lilydale. OFFICE DEMAND The Ringwood SA2 provides office based employment to more than 1,600 workers in a range of businesses. Key industry sectors include labour supply, legal services and accounting. There is also indication that there is unmet demand for office space within the RAA, including: The growth of service industry businesses and employment in the SA2; Arts and Recreation Services 13 Health Care and Social Assistance 36 Administrative and Support Services 40 Education and Training 11 Information Media and Telecom's 10 Public Administration and Safety 6 Rental, Hiring and Real Estate Services 137 The potential for the RAA to provide a range of services for the growing population in the Outer East; The Australian Business Register has 2,400 home businesses in office based industry sectors within Maroondah; and, Financial and Insurance Services 100 Professional, Scientific and Technical Services 122 The significant number of businesses identified in the Maroondah Business Analysis that would be interested in relocating to serviced offices within the RAA if they were available. The Ringwood SA2 provides office based employment to more than 1,600 workers in a range of businesses. Key industry sectors include labour supply, legal services and accounting. (Pg.31) Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA2 The development of offices within the RAA, and the relocation and growth of business within the RAA will create job opportunities for city workers, contributing to 20 minute city goals. Increased office based workers within the RAA will also provide increased customers for other businesses within the RAA.The provision of a suitable office accommodation for Government agencies, either State or Federal, may be an important factor in attracting additional public sector employment in the RAA, PUBLIC SECTOR ATTRACTION Comparison with other Activity Area regions indicates that Public Sector organisations attract complementary private sector businesses and more high income employment. 10 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

15 Government Justice, Treasury, Health and/or Education organisations would provide support for and facilitate growth in existing private enterprises operating within the RAA. growing within Maroondah, and this can be facilitated through development within the RAA. The attraction of a significant public sector employee to the RAA would provide wide ranging benefits. The analysis of the Box Hill, Frankston and Footscray SA2s indicates that not only do the public sector activities provide direct employment; they also attract a range of supporting private sector enterprises. In this way, the attraction of public sector activity to the RAA will provide the impetus for the further development of the higher order services sector: this may include accountants, lawyers, allied health enterprises and a range of consultancies. Comparison with other Activity Area regions indicates that Public Sector organisations attract complementary private sector businesses and more high income employment. Government Justice, Treasury, Health and/or Education organisations would provide support for and facilitate growth in existing private enterprises operating within the RAA. (Pg ) One of the factors that would attract businesses to the RAA identified in the Maroondah Business Analysis is the location near complimentary businesses. By developing a services hub, which would include a range of office type accommodation, these benefits of collocation could be realised, creating a basis for increased professional employment within the RAA. A specific opportunity is for the development of a legal precinct, near the Magistrate s Court in Ringwood St. The Maroondah Business Analysis indicates that there are a number of law firms in and around the RAA that would be attracted to a precinct developed to meet their needs. The Maroondah Business Analysis identified Business and Property Services as an industry sector that would consider relocating to the RAA. (Pg.51) The analysis also highlights that these public sector jobs and the associated private sector businesses provide more high income employment than the SA2s reliant of private sector only. It is also important to note that the increasing population in Maroondah and the surrounding area will drive demand for the provision of government services, providing support for the attraction of additional public sector activity. The ageing of the population indicates that increasing demands for health care will require an increased public health presence in the region. A large public sector employer as an anchor tenant for this type of development would act as a catalyst for a successful services hub within the RAA. The growth in sole operator businesses within Ringwood also suggests the need for serviced office development within the RAA. This may facilitate the development of these businesses into larger enterprises due to the benefits of collocation with complementary operations, which was a factor in the appeal of the RAA highlighted in the Maroondah Business Analysis. SERVICE INDUSTRIES Closely aligned to the other opportunities presented here is the development of a service industry hub within the RAA. Services industry employment and businesses are already Within the Ringwood SA2, 475 Sole operator businesses that are in sectors that are office-based were identified in the 2011 Census. This indicates that there may be demand for serviced offices within the RAA. (Pg.24) MAROONDAH CITY COUNCIL JUNE

16 SPATIAL ANALYSIS MAP 1: INDUSTRY LOCATION The mapping of the 2011 CLUE data by industry type highlights the retail clusters within Eastland and along the Maroondah Highway. There is also evidence of an emerging Health cluster, in the north west sector of the RAA. This map also highlights the dispersed nature of the service industries within the RAA, supporting the need for the development of an office precinct. The Professional, scientific and technical services, Administrative and support services, and Financial and insurance services sectors are the main drivers of demand for office space. This map indicates their dispersal across the RAA. 12 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

17 MAP 2: DEVELOPMENT PROPOSALS Map 2 highlights the approved development proposals within the RAA. The Eastland/Town Centre North proposal, which includes the construction of two towers of office, residential and commercial accommodation space, is a significant proposal in the centre of the RAA. The large navy blue allotment in the centre of the RAA is the Ringwood Market site, another large commercial development proposal: it includes more than 26,000m 2 of floorspace. There is also a brace of proposals for the development of residential apartments in the north west of the RAA, indicating ongoing residential densification. There are also permits for health and medical related development along Bond St, which is an emerging hub for this industry sector. MAROONDAH CITY COUNCIL JUNE

18 SWOT ANALYSIS STRENGTHS WEAKNESSES The RAA s status as a Central Activities Area is a strength, indicating State Government support for continued growth and investment; Low public sector presence, with employment in education and public sector administration lower than in comparable activity areas; Strategic location at the junction of Eastlink and the Eastern Freeway with excellent connections to the metropolitan arterial road network and at the junction of the Lilydale and Belgrave rail lines and ten bus routes; A strong private sector, with low dependence on public sector employment; The Australian Business Register indicates a growth in businesses in the region, particularly in Construction, Education and Training, Financial and insurance services and Professional, Scientific and technical services; There is a lack of diversity in the RAA mix of industries, with a predominance of retail trade The RAA lacks a serviced office precinct, that would provide a hub for complementary service businesses in the region The high percentage of workers in the retail trade sector means that the average age and income paid to RAA workers is lower in comparison to the Melbourne Outer East. The RAA s retail catchment is a region of relative advantage with and relatively high incomes; Strong development demand. The planning approvals granted within the RAA indicate significant development over the forthcoming years, including $575m Eastland Stage 5, $80m Ringwood Market redevelopment including Costco Wholesale, Aquanation and the Ringwood Library, Learning and Cultural Centre Continued State Government Investment in the RAA and surrounding areas, including the $66m upgrade to the Ringwood Train Station Stronger than Outer East Melbourne population growth (rephrase) A healthy mix of industries in comparison to other Activities Areas; 14 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

19 OPPORTUNITIES THREATS Projected population growth and higher dwelling density within the RAA will increase Increasing land prices may drive out industrial uses from the RAA demand for goods and services. In the short term this may be for construction and household goods, but can also be expected to drive demand for retail and personal services in the region. Competition from other activities areas in east and south east, such as Box Hill, Dandenong, Doncaster Shopping Town and Chirnside Park; Attract public sector offices into the RAA to support population growth and increased demand from the Melbourne Outer East. This may support the further development of the Changing consumer spending patterns and cost of living pressures impacting on retail spending; RAA s education, health and legal sectors. Private sector investment proposals do not reach fruition. The data suggests a growing number of service businesses in the region, particularly in the health and legal sectors. Further growth in these sectors may be facilitated by developing MPS clusters or precincts focusing on these industry sectors. CAA investment competition Frankston, Box Hill, Footscray etc (as above but stronger) The Maroondah Business Analysis and the number of home based office businesses in the region indicate an opportunity to provide office space within the RAA. These growing business sectors may benefit from being collocated in serviced offices, with co-working provision. The ageing population of Maroondah indicates that there may be increased demand for smaller dwelling types, as being proposed within the RAA. Housing within the RAA also would be in walking distance to a wide range of shopping, services and public transport MAROONDAH CITY COUNCIL JUNE

20 PART B: RESEARCH AND DATA 16 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

21 1. THE RINGWOOD ACTIVITIES AREA 1.1. INTRODUCTION The Census of Land Use and Employment (CLUE) provides the basis for the analysis of the RAA. CLUE collects data on industrial and business floor space and employment within the Ringwood Activity Area. CLUE has been undertaken for the Ringwood Activities Area in 2009 and 2011, using methodology developed by the City of Melbourne since the introduction of this type of auditing in The Maroondah City Council database of development proposals within the RAA is also used to assess construction activity METHODOLOGY CLUE data records the use of land and the activities being conducted on that land. It is carried out via an on the ground audit of properties and land within the study area. Data captured by CLUE includes industry type, employment and tenure, and floorspace SUMMARY The 2011 CLUE recorded more than 440,000m 2 of floorspace utilised for commercial and government purposes in the RAA. The retail sector was found to be the largest user of floorspace, accounting for 28% of the total recorded. The 8,289 jobs identified by CLUE within the RAA represent almost a quarter of all employment in the City of Maroondah, highlighting its economic importance to the region. The retail sector is also the most significant employer within the RAA. Service provision and a range of industrial business types are also major providers of employment. MAROONDAH CITY COUNCIL JUNE

22 1.3. RINGWOOD ACTIVITY AREA OVERVIEW Retail trade is by far the largest employer and occupier of floor space in the RAA, as shown in Table 1. Eastland, the shopping centre within the RAA represents 78,800m 2 of gross lettable retail floorspace 2 ; and based on the 2011 CLUE data, more than 5,600 jobs across all sectors. Accommodation and Food Services was the only other industry sector to employ more than 10% of the total employment for the RAA. RAA floor space is used most for Retail Trade, Other Services, Manufacturing, Accommodation and Food Services and 9rofessional, Scientific and Technical Services. These uses all account for more than 19,000m 2 of space within the RAA. The Other Services space use is predominantly related to Automotive Repair and Maintenance. When combined, the range of service sectors, including Financial and insurance services, Professional, scientific and technical services, and Rental, hiring and real estate services provide 13% of the employment within the RAA SPACE USE The types of space identified in the CLUE process in 2011 are included in the Table 2, on the next page. Retail shops, offices, and workshops/studios were the main users of floor space. Retail shops and offices also provided the highest number of users in the RAA. Approximately a quarter of this space is used for public sector purposes, mostly within the Equipment Installation classification. If this equipment installation is removed from the analysis, the public sector account for 3% of the space identified. TABLE 1 EMPLOYMENT BY SECTOR Employees FLOORSPACE (m2) Industry Sector No. % No. % Accommodation and Food Services 1,105 13% 19,621 4% Administrative and Support Services 164 2% 3,953 1% Arts and Recreation Services 91 1% 7,399 2% Construction 196 2% 8,892 2% Education and Training 294 4% 9,631 2% Electricity, Gas, Water and Waste Services 79 1% 95,891 22% Financial and Insurance Services 277 3% 7,827 2% Health Care and Social Assistance 601 7% 18,700 4% Information Media and Telecommunications 127 2% 9,455 2% Manufacturing 352 4% 29,846 7% Mining 38 0% 4,189 1% Other Services 517 6% 45,503 10% Professional, Scientific and Technical Services 591 7% 19,812 4% Public Administration and Safety 377 5% 9,434 2% Rental, Hiring and Real Estate Services 237 3% 7,523 2% Retail Trade 2,889 35% 123,542 28% Transport, Postal and Warehousing 193 2% 6,831 2% Wholesale Trade 161 2% 12,520 3% Total 8, ,570 Source: CLUE 2011, Ringwood Activity Area: Full time, part time and casual employees RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

23 TABLE 2 RAA SPACE USE Space Use Discrete Uses FLOORSPACE (m2) Commercial Accommodation 1 1,654 Community Use 4 2,321 Educational/Research 9 4,487 Entertainment/Recreation - Indoor 52 28,367 Entertainment/Recreation - Outdoor 1 1,495 Equipment Installation 2 9,2615 Hospital/Clinic 19 5,341 Manufacturing 49 26,643 Office , RAA EMPLOYMENT The RAA provides 69% of the employment in the Ringwood SA2 and 23% of employment in the Maroondah LGA. The RAA is also home to 5% of employment in the broader Outer Eastern Melbourne region. TABLE 3 RAA EMPLOYMENT REGIONAL CONTRIBUTION RAA Ringwood SA2 Ringwood SLA Maroondah LGA Melbourne - Outer East Workers 8,289 11,939 17,973 36, ,046 %RAA 69% 46% 23% 5% Source: CLUE 2011, Ringwood Activity Area: Full time, part time and casual employees. ABS, 2011 Census, place of work Ringwood SA2, Maroondah LGA, Melbourne Outer East SA4 Open Space - Outdoor 3 1,840 Parking - Private Covered 2 2,767 Parking - Private Uncovered 3 7,876 Performances, Conferences, Ceremonies 4 3,342 Retail - Cars 6 5,688 Retail - Shop ,681 Retail - Showroom 1 3,050 Retail - Stall Storage 33 14,986 Transport 1 1,211 Wholesale 13 5,659 Workshop/Studio 77 30,176 Total ,569 Source: CLUE 2011 MAROONDAH CITY COUNCIL JUNE

24 1.6. EMPLOYMENT TENURE Retail trade also accounts for the largest number of full time employees within the RAA, as shown in Figure 1. Although the Accommodation and Food Services sector employs the second largest number of people, a range of other sectors employ more full time staff SPACE USE The floor space identified in the 2011 CLUE process was predominantly shops and offices, as shown in Table 4. This predominance of these space uses is in terms of both numbers of business and organisations, and also the amount of floorspace taken by these uses. FIGURE 1 INDUSTRY SECTOR EMPLOYMENT TENURE Full Time Part Time Casual Arts and Recreation Services Mining Information Media and Telecommunications Electricity, Gas, Water and Waste Services Wholesale Trade Administrative and Support Services Rental, Hiring and Real Estate Services Transport, Postal and Warehousing Accommodation and Food Services Financial and Insurance Services Construction Education and Training Public Administration and Safety Manufacturing Health Care and Social Assistance Other Services Professional, Scientific and Technical Retail Trade 0 1,000 2,000 3,000 4,000 Source: CLUE 2011, Ringwood Activity Area: Full time, part time and casual employees TABLE 4 SPACE USE Businesses/ Organisations Floorspace Space Use No. % m 2 % Retail - Shop % 134, % Office % 65, % Workshop/Studio % 30, % Entertainment/Recreation - Indoor % 28, % Manufacturing % 26, % Storage % 14, % Retail - Stall % % Hospital/Clinic % 5, % Wholesale % 5, % Educational/Research 9 1.0% 4, % Retail - Cars 6 0.7% 5, % Performances, Conferences, Ceremonies 4 0.5% 3, % Community Use 4 0.5% 2, % Parking - Private Uncovered 3 0.3% 7, % Open Space - Outdoor 3 0.3% 1, % Equipment Installation 2 0.2% 92, % Parking - Private Covered 2 0.2% 2, % Entertainment/Recreation - Outdoor 1 0.1% 1, % Retail - Showroom 1 0.1% 3, % Commercial Accommodation 1 0.1% 1, % Transport 1 0.1% 1, % Total ,570 Source: CLUE 2011, Ringwood Activity Area: Space Use 20 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

25 This data also highlights the size of the industrial sector in the RAA, with Workshop/Studio 3 and Manufacturing accounting for almost 15% of businesses and 13% of floorspace The other significant use of space is Equipment installation, which apart from 600m 2 is the electricity supply facility referred to in DEVELOPMENT PROPOSALS Maroondah City Council has received 114 permit applications for development in the RAA over the past decade. These applications have resulted in the construction of 4,380m 2 of retail space, 9,628 m 2 of commercial or office space, and 306 dwellings. There are also 13 active permits for the construction of dwellings in the RAA, mainly for medium or high density residential. This does not include the residential hotel proposal included in the Eastland redevelopment. This indicates that there will be a significant increase in the population within the RAA itself in the short to medium term, based on the 635 additional dwellings that currently have planning permits. In addition, Council is about to commence development of a $46.5m aquatic Centre approximately 500m from the RAA perimeter. This facility will be the State's new Olympic standard diving training and event facility, and will also house allied health business. Compared to the completed development proposals, the current approved permits indicate that significant construction will occur in the RAA in the near future. The 64,512 m 2 of retail space and 51,779 m 2 of commercial or office space is predominantly related to the proposed expansion of Eastland and the redevelopment of Ringwood Market. TABLE 5 RAA PLANNING PERMIT SUMMARY Status Retail (m 2 ) Commercial/ Office (m 2 ) Residential Dwellings Completed 4,380 9, Permit 64,512 51, Permit Lodged 1, Change of Use Total 68,892 64,111 1,033 Source: Maroondah City Council, Development Application Database: 2003-March Workshop/Studio includes light industrial uses, the majority being mechanics or related to the automotive industry. MAROONDAH CITY COUNCIL JUNE

26 2. RINGWOOD BUSINESSES 2.1. INTRODUCTION This section of the report provides further analysis of the businesses operating in the Ringwood SA2, to identify growth and trends in business operations METHODOLOGY The data presented in the Section is sourced from the Australian Business Register, which is administered by the Australian Bureau of Statistics. The smallest area data published by the Australian Business Register is at the SA2 level, with the Ringwood SA2 being the relevant area for this analysis SUMMARY According to the Australian Business Register there were 115 more businesses operating in the Ringwood SA2 in 2011 than in 2009, a 6% growth in this 2 year period. The main sectors recording growth in this period were construction and a range of service industries, such as Financial and insurance, Professional, scientific and technical, and Other services RINGWOOD BUSINESSES There were 1,850 businesses in the Ringwood SA2 recorded by the Australian Business Register in June 2012, as shown in Table 6. The sectors with the most number of businesses were Construction, Professional, Scientific and Technical Services, and Retail Trade. These three sectors account for almost 40% of all businesses in the SA2. The CLUE data identified 869 businesses operating within the RAA, which is 48% of the total businesses operating in the Ringwood SA2 More than half of these businesses were Sole operator; that is they were owner/operator businesses. 166 of the businesses within the construction sector were Sole operator, and 85% of the 161 businesses in the Rental, Hiring and Real Estate Services sector were also Sole operator. The 6 businesses recording more than 200 staff were within the Education or Accommodation and Food Services sectors. There were 6 businesses that employed more than 200 people in 2011, which is significant as there were none in There were also an additional 62 Sole operator businesses in 2011: when considered with the growth in services sectors, it indicates a growth in consulting and higher order service provision. The Australian Business Register includes more than 7,400 home based businesses within Maroondah, with more than 2,600 operating in office based industry sectors. This suggests that there may be demand for additional office space, particularly to accommodate these businesses as they outgrow home based operations. 22 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

27 TABLE 6 RINGWOOD BUSINESSES: JUNE 2012 Industry Non- Employing Total Construction Professional, Scientific and Technical Services Retail Trade Rental, Hiring and Real Estate Services Arts and Recreation Services Financial and Insurance Services Wholesale Trade Transport, Postal and Warehousing Manufacturing Administrative and Support Services Education and Training Accommodation and Food Services Other Services Public Administration and Safety Agriculture, Forestry and Fishing Health Care and Social Assistance Information Media and Telecommunications Electricity, Gas, Water and Waste Services Not Classified Mining Total ,850 %Total 52% 27% 16% 5% 0% Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA ADDITIONAL BUSINESSES There were 91 additional businesses in the Ringwood SA2 at June 2011 than 2009: an increase of more than 5% to 1,826 in FIGURE 2 BUSINESSES BY INDUSTRY: 2009 & 2012 Construction Professional, Scientific and Technical Services Retail Trade Rental, Hiring and Real Estate Services 2012 Other Services 2009 Financial and Insurance Services Wholesale Trade Transport, Postal and Warehousing Manufacturing Administrative and Support Services Health Care and Social Assistance Accommodation and Food Services Not Classified Education and Training Agriculture, Forestry and Fishing Arts and Recreation Services Information Media and Telecommunications Public Administration and Safety Electricity, Gas, Water and Waste Services Mining Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA2 The construction sector has the largest number of businesses, and also grew by 14% between 2009 and In addition to construction, there was significant growth in a range of service providers, including: MAROONDAH CITY COUNCIL JUNE

28 Education and training, 10 businesses; and 2.5. SOLE OPERATOR AND HOME BASED BUSINESSES Financial and insurance services, 16 businesses. Six industry sectors recorded a decline in the number of businesses in the Ringwood SA2 between 2009 and 2012: Manufacturing; Rental, Hiring and Real Estate Services; Other Services; Agriculture, Forestry and Fishing; Public Administration and Safety; and Arts and Recreation Services. There were 14 less businesses in Manufacturing, which reflects the recent difficulties in the manufacturing sector across Australia. The Counts of Australian Businesses included in Figure 4 also indicates industry sectors with large numbers of sole operator office based businesses. This includes industry sectors such as Rental, hiring and real estate services, Professional, scientific and technical services and Financial and Insurance services: these three sectors account for a total of 359 jobs. FIGURE 4 NON- EMPLOYING OFFICE SECTOR BUSINESSES Between 2009 and 2011: The number of businesses within Ringwood has grown across all employee ranges except those with between 20 and 199 employees; Arts and Recreation Services 13 Education and Training 11 Information Media and Telecom's 10 Public Administration and Safety 6 There were not any businesses with 200 or more employees in 2009, but 3 in 2012; and, There were an additional 51 Sole operator businesses in Ringwood: this represents 56% of the total increase in businesses during this period. Health Care and Social Assistance 36 Administrative and Support Services 40 Rental, Hiring and Real Estate Services 137 FIGURE 3 CHANGE IN BUSINESSES BY EMPLOYEES 1, Financial and Insurance Services 100 Professional, Scientific and Technical Services Non employing Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA2. Note that the Businesses in 2012 is too small to be discerned on this graph Source: Australian Bureau of Statistics, Counts of Australian Businesses, Ringwood SA2 In total, there were 475 Sole operator office based businesses identified in the Ringwood SA2 in the 2011 Census. This indicates that there may be demand for serviced offices within the RAA. 24 RINGWOOD ACTIVITIES AREA BUSINESS ANALYSIS

29 HOME BASED BUSINESSES There were more than 7,400 home based businesses with registered addresses in Maroondah as of March Council estimates that there are approximately 4,000 home based businesses operating within Maroondah, indicating that there are a number of inactive businesses or businesses are using Maroondah addresses for businesses that operate elsewhere. Of these home based businesses, 133 or less than 2% of these were operating within the RAA. Based on the ANZSIC classifications of industry, more than 2,600 of these businesses are in office based industries, particularly businesses related to IT and computer systems and those involved in accounting, finance and insurance. This indicates that as there is a significant group of businesses in the region that may consider relocating to the RAA if office space was made available. TABLE 7 HOME BASED BUSINESSES Industry Out of RAA RAA Total Total Home Based Businesses Carpentry Services Computer System Design and Related Services Building and Other Industrial Cleaning Services Other Auxiliary Finance and Investment Services Accounting Services Management Advice and Related Consulting Services n.e.c House Construction Plumbing Services Electrical Services Gardening Services Painting and Decorating Services Road Freight Transport Other Construction Services n.e.c Landscape Construction Services Financial Asset Investing Other Specialised Design Services Other Personal Services n.e.c Other Creative Artists, Writers and Performers Engineering Design and Engineering Consulting Services Hairdressing and Beauty Services Musicians and Entertainers Bricklaying Services Adult, Community and Other Education n.e.c Complementary and Alternative Services Courier Pick-up and Delivery Services Plastering and Ceiling Services Professional Photographic Services Arts Education Architectural Services Other Allied Health Services (Mainstream) Advertising Services Non-Store Retailing n.e.c Source: Australian Business Register: ANZSIC Level 4 4 Australian Business Register MAROONDAH CITY COUNCIL JUNE