Property
Issue No. 43 - October/November 2008
Sustained industrial growth
by Mr Kel Spencer
The Industrial sector in Adelaide covers an estimated area of about 108 million m2. Planning SA estimates the average amount of land occupied by industrial business increases at a rate of 85ha per year. The total area includes a possible 551ha of land that is ready for immediate industrial development, with an extra 391ha thought to be easily prepared for “ready status” in the short term. Planning SA also states 25% of land uses in industrial zones are not of industrial nature, and feels a focus is necessary to develop these areas to draw the maximum potential from the industry. The South Australian economy is operating at high confidence levels despite the uncertainty in the US. With a record low unemployment rate of 4.6%. Further accelerating the economy is a high population growth rate of 1.05% and a high migration rate of overseas students who are estimated to be worth $648 million to the local economy.
Within the industrial sector, manufacturing and engineering are considered two of the main areas contributing to SA’s economy. A breakdown of this sector shows as of May, 96,700 people, or 13% of total employment in SA, were employed in the manufacturing industry.
Manufacturing/engineering has been outperforming the transport and logistics areas of late, which is also illustrated by the significant area of industrial land in SA. This increase in the demand for manufacturing could possibly be interpreted as the trailing affects of the resource boom and following multiplier effects of spending by consumers.
Improvements to major transport routes including the Port River Expressway, the South Road upgrade and the Northern Expressway continue to reduce travel time and improve accessibility to Adelaide’s major Industrial precincts. The first Stage of the Port River Expressway was completed in July 2005, with Stages 2 & 3 completed in July 2008. The Expressway was formally opened 1 August 2008. Stage 2 of the project saw a four lane opening...
