Economic Spotlight on Toowoomba
Case Studies Economics
The Client
The region of Toowoomba
Challenge
The region of Toowoomba required an Economic Health Check to assess recent economic performance, growth drivers, analysis of key industries and concludes with the likely forces that might affect the future of the economy.
Our Method
.id analysed the economic drivers with an economic story about Toowoomba and its place in the regional and larger macro environment. Our approach was designed to better inform Council about the locations strategic strengths, weaknesses and gaps and how these have developed overtime, rather than repeating factual statements and presenting data.
Highlights
.id presented an economic analysis of the Toowoomba economy that covered its recent performance, competitive industries, workforce skills and economic outlook.
Results
The outcome for Council is evidence based insights that helps identify key opportunities and challenges and prioritise actions to address them.
Economic Spotlight on Toowoomba
In 2024, Toowoomba Regional Council engaged .id to undertake a targeted economic development analysis. This analysis aimed to inform the development of the next Economic Development Strategy for the region. The project addressed the unique challenges and opportunities faced by Toowoomba. Here's what we found.
Recovering economy emerging from challenges
Despite enduring a severe drought and the global COVID-19 pandemic, Toowoomba's economy has shown remarkable resilience. The region's economic growth has even surpassed regional benchmarks, driven by a rise in domestic migration, a robust construction sector, and an expanding job market.
Strong employment and economic growth across most industries
In 2023, Toowoomba experienced economic expansion across most industries. Healthcare, construction, agriculture (experiencing a post-drought and pandemic recovery), and education sectors all saw significant growth. Investment in food processing facilities and a regional demand for machinery and transport equipment further propelled manufacturing forward. However, the tourism and hospitality industry is still recovering, with airport passenger numbers yet to reach pre-pandemic levels.
Industry specialisations attract investment
Toowoomba is home to a range of industry specialisations that present opportunities for attracting further investment. These specialisations include food production and processing, mining support for the nearby Surat Basin, defence industries, healthcare, and freight and logistics. Recent and upcoming projects like the Toowoomba Bypass, Inland Rail Project, and the Toowoomba Trade Gateway further enhance these specializations.
Residential and skill attraction
The demographic profile of Toowoomba has been instrumental in supporting its economic growth. The city's economic and labour market dynamics have been strengthened by a rise in in-migration, particularly among families and older demographics.
Addressing obstacles for sustainable growth
While Toowoomba's future is promising, some challenges need to be addressed to ensure sustainable economic growth. These challenges include workforce availability, housing diversity and affordability, and a potential over-reliance on the care economy (a common concern for many regional cities).
Future opportunities
The regions strategic location and industry expertise position it for growth in areas such as renewable energy, advanced manufacturing, and logistics. These opportunities align with sustainability and innovation trends offering further opportunity for economic prosperity and resilience in the region of Toowoomba.
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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