Toowoomba Region’s diverse economy underpins return to growth

The Toowoomba Region’s diverse economy is underpinning a return to pre-Covid growth trends, with indicators forecasting strong business investment prospects, according to data contained in the latest Toowoomba Region Economic Profile.

Toowoomba Region Mayor and Economic Development Committee chair Cr Paul Antonio said the positive news on the growth and investment front was tempered by wider global economic conditions, particularly rising inflation and its flow-on effects to national and household budgets.

Mayor Antonio said the Toowoomba Region’s broad economy had generated $11.74 billion in Gross Regional Product (GRP) in the 2020-21 financial year, which equated to 3.3% of the Queensland economy. Both indicators were up slightly on the previous recording period.

“These measures rank the Toowoomba Region economy as the second largest in Queensland outside the metropolitan areas and the third largest regional city economy. (Townsville ranks first, with Cairns third by GRP),” Mayor Antonio said.

“The data is contained in the Toowoomba Region Economic Profile (June 2022) that has been released by Toowoomba Regional Council’s Strategic Planning and Economic Development branch. An online version is available at www.tr.qld.gov.au/economicprofile 

“Our Region’s economy supported an estimated 84, 614 jobs in the reporting period. (Townsville and Cairns are first and second respectively for jobs in regional Queensland)

“It is pleasing to see more than $13.1 billion in planned infrastructure and major projects, both private and public, that will drive economic development and future productivity, while improving our Region’s accessibility and amenity for future generations.

“The latest figures reveal we have reversed the 4.5% or $127 million hit to our GRP in the June quarter 2020. Our 2021 figures show our GRP rose by 4.2% year on year and local jobs rose by 3.8%. Unemployment peaked at 6.7% September 2020, with the June 2021 (four quarter average) back down to 4.1%, ranking well below the Queensland (6.8%) and national average (6.2%).”

Mayor Antonio said the Toowoomba Region’s rating as the seventh most diverse economy in Queensland (2019-20 – based on the value added by different sectors) had buttressed the Region from the worst effects of the pandemic, while positioning the Region for future growth.

“Strong private sector investment will underpin our long-term growth and support employment in line with our population and growth targets,” Mayor Antonio said.

“Positive signs continue to emerge across most economic sectors, especially our foundation pillar of Agriculture, which has rebounded strongly after the effects of the drought weighed on the sector from 2018-2020.

“Our top five industry sectors ranked by value added for 2020-21 include: Health Care and Social Assistance ($1.25 billion), Mining ($996 million), Manufacturing ($847 million), Education and Training ($814 million) and Construction ($799 million), followed by Financial and Insurance Services ($723 million) and Retail Trade ($652 million).

“Water security will be an essential part of underpinning ongoing growth. Our current water sources are designed to cater for demand to 2049 and Council is planning to ensure we have reliable water to cater for population growth, plus business and industrial expansion.”

Other notable points include: • Exports to international and domestic markets generated $7.7 billion in 2020-21.

• The Transport and Logistics industry contributed $357 million to the GRP in 2020-21 and accounted for 3200 jobs.

• Toowoomba ranks seventh in regional Australian cities for the highest share of professional services as a share of total jobs behind Launceston, Wollongong, Sunshine Coast, Noosa, Gold Coast and Greater Geelong).

• Emergence of Financial and Insurance Services, Professional, Scientific and Technical Services – adding 1302 jobs and $358 million in value added in the past decade. In 2020-21, these industries generated a combined $1.24 billion in value added and employed 6882 workers.

• Health Care and Social Assistance is the largest employing industry (almost 15,000 jobs in 2020-21) and the second largest contributor to the GRP ($1.25 billion contribution in 2020-21). The largest sub-sector is Hospitals, which employs 5506 workers, followed by social Assistance Service with 4405 jobs.

• Education and Training retained its ranking as the second largest employer with 9714 jobs in 2020-21. It also contributed $431 million in exports, building on a solid decade of growth (adding 1580 jobs and $192 million in economic value over 10 years).

• Manufacturing contributed $847 million in the latest reporting period and is the Region’s second largest international exporter. (driven by the specialisation in food product manufacturing).

• Mining contributed $996 million in 2020-21, making it the Region’s largest international exporter. The sector has seen a growth in mining support services (well drilling and servicing).

• Continued emergence of the Transport and Logistics sector, based on our strategic location at the western gateway to the $237 billion South East Queensland economy, proximity to the Surat and Cooper energy basins and prime access to the planned Melbourne to Brisbane Inland Rail route.

• Retail trade contributed $652 million in value added in 2020-21 and accounted for 8505 jobs.

• A strong pipeline of building projects, which if approved, will transition the economy from recovery to expansion. The value of total building approved reached a record $700 million in 2020-21.

• The Construction industry was the fifth largest employer in the Region in 2020-21, generating $799 million of value added. There is a mix of commercial, industrial, education and health-related projects that are planned.

• The Toowoomba Region’s Defence industry contributes 6% of the value added in the Defence industry in Queensland, while contributing 5.1% to the sector’s state employment. 

• In 2020-21, the Defence industry contributed $271 million in value added to the Region’s economy.

• Food Product Manufacturing is the Region’s largest manufacturing industry, generating $300 million in economic value and accounting for 40% of the total manufacturing industry.

• In 2020-21, Agriculture, Forestry and Fishing contributed $504 million to the Region’s economy thanks to production in eggs, poultry, beef, cotton, cereal crops, milk and pulses.

• The Toowoomba Region will continue to benefit from national shifts underlining the importance of regional cities based on affordability, housing choice, high range of health and education services and overall liveability.

• The Toowoomba Region local government area recorded population growth of 1.54% per year during the five years from 2016 to the 2021 Census date. The most recent annual growth rate was slightly up on the 1.26% annual population growth recorded between 2011 and 2016. The 10-year, average annual growth rate 2011-2021 is 1.45%, which demonstrates steady growth.