Economic Spotlight on Ballarat
Case Studies Economics
The Client
City of Ballarat
Challenge
The local council was keen to explore the changing nature of the local economy and how the city compares to other benchmark locations.
Our Method
.id prepared a comprehensive report of the local Ballarat economy covering recent economic performance, growth drivers, benchmark analysis against other regional cities in Australia, and a detailed SWOT analysis.
Highlights
We identified that while economic growth had generally been faster than the regional average it had been slower than some coastal and peri-urban areas. A major hospital development will substantially boost construction and local supply
chain businesses in the near future and contribute to increased retail, health and hospitality in central ballarat. However, more could be done to hasten development in a major industrial area and also plans need to be made to address slow growth in Ballarat's education/tech precinct.
Results
The outcome for the council is evidence-based insights that informed and supported the Council economic decision making, focusing on precinct development, industry transition, and infrastructure needs.
Economic Spotlight on Ballarat
In 2024, our consultants conducted an Economic Health Check and benchmark analysis for the Ballarat City economy as council looked to explore recent trends and identify what factors or industry changes were driving the economy. Here's what we found.
Strong growth but but slower than some coastal and peri-urban areas
Ballarat experienced stronger economic and population growth than the regional Victoria average, with Gross Regional Product (GRP) growth of 3.5% annually in the five years to 2023. However, some coastal areas such as Geelong and Surf Coast have exceeded 5% p.a. growth over the same period.
Residential developments and demographics supporting allied industries
An increasing number of over 65 year olds migrating in from
neighbouring shires has supported growth in Health Care and Social Assistance. In-migration of families from the outer western suburbs of Greater Melbourne into growth areas boosting Education and Retail trade employment.
Different growth outcomes across the city
Between 2016 to 2021, the central Ballarat area saw the largest growth in employment, however, the largest % growth was experienced in Delacombe. In contrast to other areas, the Mount Helen area actually experienced a decline in stated employment.
Ballarat has established specialisations in diverse industries
Employment is over-represented in transport manufacturing, info media/telecom, mining, arts and rec, computer design, and tertiary education. This is due to historical roots (e.g. mining) and the presence of key companies like Freighter Group [MaxiTrans], Alstom, IBM, and larger employing institutions such as Federation University.
The Ballarat Base Hospital will substantially boost construction and local supply chain businesses.
The new hospital offers a great opportunity to explore and plan for unlocking investment opportunities in the surrounding area over the next 20 years. However, the development may crowd out smaller construction projects in the short term due to labor and materials shortages, affecting other infrastructure projects.
Future growth opportunities and risks
A number of actions could help support increased economic activity including continued advocacy for the intermodal hub and BWEZ investments, expanded development around Mars Stadium to increase expenditure gains from an upgraded Ballarat Major Events Precinct, and collaborative planning for future development in Mount Helen to address low jobs growth.
About our economic consulting team
Our economic consulting team is engaged by councils and organisations across Australia to provide in-depth insights behind the data. Our experts draw on their knowledge of urban and regional economic development and years of experience working with decision makers across Australia. This information is used by councils to develop evidence based economic development strategies, investment attraction plans and support grant applications.
If you need help on a project, please contact us and we will get in touch.
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