Draft Economic Growth Plan

Building a vibrant community and prosperous economy through proactive leadership, shaping growth, delivering and maintaining infrastructure and valuing our surroundings.

MAY 2023

The Draft Economic Growth Plan was endorsed by Council for exhibition 22 November 2022, Minute No. 555. It has since been subject to graphic design and editing however there has been no material change to the content or outcomes presented to Council and endorsed for public exhibition.

DISCLAIMER

Every reasonable effort has been made to ensure that this document is correct at the time of printing. The Hills Shire Council disclaims all liability in respect of the consequences of anything done or omitted.

COPYRIGHT NOTICE

This document represents the collaboration of information from a number of sources, including Government plans and policies, and plans and policies of The Hills Shire Council in addition to on-site investigations. This document may be reproduced for personal, in-house or non-commercial use. Reproduction of this document for any other purpose shall only be permitted with the written permission of The Hills Shire Council.

Mayor's Message

I’m proud to be introducing Council’s revitalised Plan for growing the economy in our Shire. By partnering with business and industry we will work together to deliver opportunities for our residents and businesses to thrive.

Over the next decade it will be important to focus more on high value-adding industries, exports and innovation, while balancing our residents' lifestyle expectations. Creating this future economy will create and build wealth for our community.

This Plan will promote the vision and aspirations of our community and provide a framework for business to capitalise on new opportunities in The Hills. A collaborative effort by government, industry and business is required to capitalise on the forecast future growth.

Our new direction will focus on four key themes:

Place

A Shire that attracts new business, development and visitors.

Business

A Shire that grows local businesses.

People

A Shire that invests in its people.

Partnership

A Shire that demonstrates leadership though collaboration and advocacy.

These four key themes will drive a range of initiatives to guide the region’s future economic development efforts, including a focus on four priority industry sectors that are high valueadding and are expected to provide the foundations for economic growth over the next decade:

• Healthcare and Social Assistance;

• Professional, Scientific and Technical Services;

• Advanced Manufacturing; and

• Education and Training.

Our Goals by 2041 include:

• 56,000 New Jobs;

• $24 Billion Economy; and

• 42% of Working Residents Live and Work Locally.

This is not just a plan for Council, but a plan for how a vibrant and prosperous economy can better serve and support the community. This Plan represents the first steps into a new phase of economic growth for the region. It is not the end, but the beginning of a new approach to economic development that seeks to capitalise on our competitive advantages.

Mayor Dr Peter Gangemi Hills Shire Council

The goal is not simply to grow the local economy, but to transform it as a recognised powerhouse for investment and the growth and success of businesses.

1.Executive Summary

The Hills Shire is experiencing an intense period of change and is a key player in the growth of Greater Sydney.

The Hills Shire is experiencing an intense period of change and is a key player in the growth of Greater Sydney. This significant growth is transforming the way we think, plan and act. Council understands the transformation that is underway and is planning for the opportunities this change will bring to ensure an excellent quality of life for the community. The purpose of this Plan is to advance the Shire’s identity and reputation as a business destination.

The Shire’s economy is aligned to industries such as retail trade, healthcare, education and construction. It is important that over the next 20 years we reduce our reliance on population serving industries and focus on high value-adding industries, exports and innovation that can take advantage of our skilled and educated residents.

This Economic Growth Plan provides a clear direction for economic development within the Shire and sets out actions to progress this vision. It has been developed with insights from local businesses, chamber of commerce and industry associations.

Our objectives are to:

• Be investment ready.

• Revitalise employment centres.

• Preserve employment lands.

• Foster innovation and diversification of industry.

• Increase economic resilience.

• Advocate for and partner with our business community.

At a strategic level, insight is provided into the current and emerging conditions, as well as the strategic opportunities and risks that are shaping the local economy. At an operational level, Council’s role in economic development is defined, including how Council can work to improve economic prosperity for residents, businesses and workers.

We want to continue the success story and growth trajectory of The Hills over the next decade, by harnessing the economic benefits associated with significant growth, attracting new jobs and business activity to serve the local population and strengthening the role of The Hills Shire as a place of productive and diverse employment.

This Plan identifies opportunities to attract new investment and create jobs aligned to our local labour force, while building on the many successful businesses that already call our Shire home.

The development of this Plan evolved during a historical event, the COVID-19 Pandemic, which will change many aspects of our lives and lifestyles. The Pandemic has highlighted the need to have a strong and resilient local economy that has the capacity to remain diverse, flexible and offer opportunities to work closer to home and in vibrant locations with high levels of amenity.

The goal is not simply to grow the local economy, but to transform it as a recognised powerhouse for investment and the growth and success of businesses.

192,509 Population

101,770 Working Residents

84,157 Jobs

22,821 Businesses

The Hills Shire Population, Working Residents, Local Businesses and Local Jobs.

(Source: Economy.ID 2021).

2.Context

The Shire’s population is rapidly increasing and is forecast to reach 284,292 by 2041, with predictions telling us that families will remain the strongest demographic. While we are already home to nearly 23,000 businesses and counting, rapid population growth will lead to a huge increase in the demand for more services close to home and quality local jobs.

Our centres are changing now and will continue to change dramatically in the next few decades - with the most significant transformation around the seven new Station Precincts. Our centres will need to perform differently in the future – working harder to make the most of the space we have available.

Located in North West Sydney, The Hills is Sydney’s thirdlargest local government area and is expected to be one of its fastest-growing areas over the coming decades. Growth within The Hills is supported by significant NSW Government investment in transport infrastructure with the Sydney Metro Northwest, a future extension of the Metro towards St Marys and Western Sydney Airport and a planned mass transit link between Norwest and Parramatta (via Baulkham Hills).

The Hills’ strengths are its highly skilled workforce, its existing and developing economic assets and its three Strategic Centres - Norwest, Rouse Hill and Castle Hill. Its current and rapidly expanding transport connectivity makes it an increasingly attractive location for employment activity and investment.

Our increasing diversity of residents from countries such as China and India will bring opportunities for expanding cultural experiences and potential growth in the visitor economy with friends and relatives visiting the Shire.

Our three Strategic Centres are undergoing substantial transformative change, which will continue over the next few decades and beyond. They are expected to attract high levels of private sector investment and provide flexibility so that the private sector can choose where and when to invest.

The Strategic Centres will offer an opportunity to increase jobs in targeted industries that are attractive to the resident workforce. Building our Strategic Centres will offer local jobs, contribute to the Hills Shire lifestyle and provide opportunities for the growth of local businesses.

The Castle Hill Strategic Centre is already experiencing incredible transformation. Emerging apartment living near the new Castle Hill Metro Station has triggered the beginning of a café and restaurant culture, alive with both day and night economies. It will further develop as more people arrive. Expansion plans are in the pipeline for Castle Towers and the upgrade of Castle Grand Community Centre has delivered a 380 seat theatre – providing jobs and entertainment options.

The Rouse Hill Strategic Centre is also transforming, with apartment and townhouse living being constructed at a rapid pace, making the most of a new Metro Station at its doorstep. Another jobs generator for Rouse Hill will be the development of the planned Rouse Hill Hospital. The NSW Government has committed $300 million to develop Rouse Hill Hospital which will be a significant contributor for jobs and the catalyst for a health and innovation precinct.

With three new Metro Stations at Bella Vista, Norwest and Hills Showground, significant residential opportunities and more than 30,000 existing workers, the Norwest Strategic Centre (spanning from Old Windsor Road through to Showground Road) is expected to transform into a thriving employment destination accommodating nearly 65,000 employees by 2041, supported by increased retail growth and leisure opportunities.

It won’t be long before significantly more commercial and retail growth will occur business will boom in The Hills.

386km2

Area

3.Strategic Alignment

This Plan sits within Council’s decision-making framework and has been developed to align with other key strategic and policy documents.

This Plan sits within Council’s decision-making framework and has been developed to align with key strategic and policy documents, including relevant local, regional and state strategies and plans. Key strategies that have informed the preparation of this document are identified below.

NSW 2040 Economic Blueprint

The Strategy has the aspiration for NSW to become the first 2 trillion-dollar economy after 2040 through improved transport links, resource security and infrastructure investment.

It focuses on a future that promotes high growth areas such as advanced manufacturing, tech innovation, medicine, education and tourism.

Greater Sydney Region Plan and Central City District Plan

The Greater Sydney Region Plan was developed concurrently with Future Transport 2056 and the State Infrastructure Strategy. It is the starting point for delivering integrated planning and the delivery of infrastructure to support the anticipated growth across the Greater Sydney Region.

It is supported by the Central City District Plan, which translates the objectives articulated within the Region Plan to a more localised context for each district.

Community Strategic Plan

The Hills Community Strategic Plan is a policy that guides the delivery of outcomes and allocation of Council resources over the short, medium and long term.

Hills Future 2036 Local Strategic Planning Statement

The Hills Future 2036 Local Strategic Planning Statement (LSPS) provides a vision for The Hills Shire to 2036 and provides key planning priorities and actions. It was formally made on 6 March 2020 and is underpinned by a suite of supporting strategies. It requires Council to prepare an Economic Growth Plan, which is intended to establish:

• Programs to attract new investment and jobs.

• Business partnering to attract knowledge-based industries.

• Research around what attracts those companies to The Hills.

• Changes to land use controls to attract the right businesses.

• Changes to works program to create better places.

• Changes to promote low impact night-time economy uses.

• Measures to grow the visitor economy.

Economic development is an important contributor to the quality of life for our community. Successful businesses, high employment and complementary industries (including the visitor economy) all provide a conducive environment for business.

The Hills Shire Council’s vision is to support sustainable economic development that promotes growth in local business and industry, attracts skilled and educated employees, encourages visitors and helps increase local employment opportunities for residents.

Relevant

Community Strategic Plan

Other Council Strategies and Plans (including Precinct Plans and Economic Growth Plan)

Operational Plan Quarterly Review Annual Report Including Environmental Reporting

Resourcing Strategy

The Economic Growth Plan will operate alongside other relevant local, regional and state strategies and plans.

4. The Local Economy

In 2020-21, The Hills Shire’s economic output was $22.6 billion, which represents 1.9% of the NSW economy ($1.2 trillion) and 0.6% of the Australian economy ($3.7 trillion).

In 2021, there were 83 jobs within The Hills Shire for every 100 residents in the workforce. The Shire’s resident workforce is expected to almost double in size with forecasted population growth of 100,000 additional people between 2021 to 2041. This includes strong growth in the working age population (63% of the LGA’s growth in this period will be in the 15–64 years age group). Local jobs growth is forecast to continue to be driven by household services and white-collar jobs, particularly in the Health, Education and Professional, Scientific and Technical Services sectors.

The Shire’s current local job market is population serving, focused on the provision of services to households (both essential and non-essential) within the local area and beyond. This industry supports almost 60% of local jobs and is primarily located in the three Strategic CentresNorwest, Castle Hill and Rouse Hill. The agricultural areas in the northern parts of the Shire add diversity to the local employment mix, supported by a rural offering of bushland, areas of productive agriculture and rural residential communities at Middle Dural, Kenthurst and Annangrove.

Employment

The three largest industries of employment are Retail Trade (17.8% of local jobs), Health Care and Social Assistance (15.4% of local jobs) and Construction (12.3% of local jobs). These three industries combined employ a total of 38,280 local workers.

The Hills further supports strong growth in the non-employing and small business sector. The local Business Community consists of 22,821 businesses, of which Professional, Scientific and Technical Services, Construction and Rental, Hiring and Real Estate Services are the largest industries.

The economic output for rural industries in 2020-2021 was $399 Million, which accounts for 1.7% of the total output for the Shire, despite only generating 1,254 jobs. While it represents a small proportion of the Shire’s output, it is an important contributor to the Sydney produce supplies and the flower/nursery industry. The current move to more intense and technological driven forms of cropping is seeing increases in economic output.

Employment in the tourism industry has declined in recent years, with only 3,000 people directly employed in the industry in The Shire in 2020-21. However, tourism sales in The Shire was valued at $615.3 million with $385.7 million value added.

The Hills Shire LGA

Economic Snapshot

The Hills Shire is a dynamic and well-resourced location in the north-west of Sydney. It has a large quantity of rural land that provides a distinct landscaped backdrop to the expanding urban area in Sydney’s North West. We are part of the Metropolitan Area, approximately 30km from the CBD at our nearest point and connected to Sydney via a metro rail and the M2 & M7 corridor. Approximately 70% of the land area of the Hills is within the Metropolitan Rural Area, with the remaining 30% spanning urban areas of varying densities and character. For the foreseeable future, development within the Shire will be contained to this urban area. $12.68b

Population

2016

2021

2041

Key Indicators

162,975

183,930

284,292

Gross Regional Product Local Businesses Local Jobs Employed Residents

Building Approvals

Employment Areas

Of The

resident workers were employed locally

3.5%

31.2% Live in the area but work outside

65.3% Source:

5. Key Advantages

The Hills Shire has a strong track record of economic growth and is becoming an increasingly attractive location for new investment. We have an established business services sector and are the 8th largest employment node in Greater Sydney for these workers. We also have a strong manufacturing and wholesale hub with specialisations in Medical and Surgical Equipment Manufacturing. 01

Size and Scale

The Hills Shire comprises a large and diverse landscape with significant critical mass for businesses to capitalise on. There is a large customer base (both consumers and businesses) in the Hills and across the North West Region.

Lifestyle

The Hills Shire is known as “The Garden Shire” due to its natural environment and a rural area that forms a scenic, green backdrop to the urban area. The range of lifestyle and employment options combined with contemporary transport, health, recreation and education infrastructure makes The Hills an appealing location to live, work and visit. 02

Access to Markets

03

The Hills Shire is located around 30 kilometres from Sydney's CBD. Rapidly expanding transport connectivity makes it an increasingly attractive location for employment activity. It has strong links to the Eastern Harbour City (via the M2 Motorway and the Metro) and will grow connections to the future Western Parkland City and the Aerotropolis around the planned Western Sydney International Airport (via the M9 Motorway and the planned extension of the Metro), making it an ideal location for businesses. Connections with the Airport will give business in The Hills access to increased markets throughout Australia and internationally. Regional connectivity will also be enhanced through the planned mass transit link from Norwest to Parramatta.

Workforce

The Hills is home to a highly skilled workforce and is central to a Sydney’s rapidly growing North West Region. 44% of our working residents have a bachelor’s degree or higher. We also have access to one of the largest workforces in the country, with more than one million workers within a 30-minute drive of the Region. 04

Room for Future Growth

The Hills has a diverse range of business and employment areas that are in different locations and stages of evolution, including the highly prestigious and successful Norwest Business Park. This provides opportunities for businesses to choose the type of land best suited to their industry and the location that accommodates their business plan. 05

The Hills Shire's key advantages are its size and scale, lifestyle, access to markets, workforce and room for future growth.

6. Opportunities

The Hills Shire is located in North West Sydney, approximately 30km from the Sydney CBD and 10km from Parramatta. It is well positioned within Metropolitan Sydney through its connections via road and rail.

The Greater Sydney Region Plan identifies several city shaping opportunities that will enhance our connectivity and access to markets, talent and resources. These include an extension of the metro line to the new airport in Western Sydney and a mass transit link between Norwest and Sydney’s second CBD – Parramatta.

The Sydney Metro Northwest is already making it easier for people to travel and creating commercial opportunities within the Station Precincts. The planned city shaping infrastructure will provide further stimulus to our local economy as surrounding areas continue to evolve.

The Shire’s geography and rapid growth presents a range of opportunities for our local economy.

Most of our skilled workforce are in the urban parts of the Shire, where there are several defined employment areas and centres catering for different types of businesses. These employment locations are in different stages of evolution and have substantial capacity to accommodate a range of new business opportunities, driven by our population growth. Opportunities also exist outside of the centres and precincts, dispersed throughout The Shire.

Key Employment and Residential Growth Areas

LGA Boundary

Urban Growth Boundary

Box Hill Business Park

Annangrove Road Employment Area

Rouse Hill Strategic Centre

Norwest Strategic Centre

Norwest Service

Norwest Central

Norwest Innovation

Castle Hill Strategic Centre

Winston Hills Employment Area

Baulkham Hills Town Centre

Metro Station

Metro Line

Agribusiness Cluster Zone

Housing Development in the North West Growth Areas

Outer Sydney Orbital

Industry Sectors

Our largest industry sectors are supported by a growing local population and are concentrated within the key employment areas within the Shire.

We have a highly skilled and educated resident population that work in knowledge intensive and health and education jobs. Businesses can capitalise on access to this workforce in close proximity to our evolving employment areas to grow and prosper.

255

Box Hill Business Park

2,011

Annangrove Rd Employment Area

LGA Boundary

= 100 Jobs

Knowledge Intensive

Health and Education

Population Serving Industrial Other

2,717

Rouse Hill Strategic Centre

5,738

Castle Hill Strategic Centre

Norwest Strategic Centre 29,329

Norwest Central Norwest Innovation

Norwest Service

Agricultural, Mining and Tourism Activity

Our rural lands have long been integral to our identity as the ‘Garden Shire’. Agriculture, mining and tourism from the Shire's rural areas are significant contributors to our economy. Generating $76 million in economic activity to the Shire, most agricultural and extractive output is sold locally within the Shire and Greater Sydney Region.

Rural uses for agriculture within the Shire include fruit and vegetable production, poultry, nurseries and a small number of livestock. The Hills also contributes heavily to the State’s cut-flower and nursery industries. Agriculture in our rural areas spans from Middle Dural to Glenorie and Maroota. Over the last decade, the focus has shifted to intensive horticulture, utilising greenhouse and hydroponics facilities – rather than the traditional use of soil for agricultural production. As a result, this sector has increased its output and experienced growth in employment levels.

Our mining industry is located in Maroota in the north of the Shire. Our local extractive industries produce sand and materials for the construction and landscaping industries. The primary focus of our mining industry is to supply raw materials for building and construction (mainly within Sydney).

Tourism and other local services that support our rural industries are significant contributors to the functioning of the Shire’s rural area and its economic success. Key components of the Shire’s tourism industry are located in and around our rural areas, including farm-gate sales, farmers’ markets, eco-tourist facilities and recreation on the Hawkesbury River. We offer an authentic rural experience on Sydney’s doorstep. Other notable tourist facilities and destinations include Riverside Oaks Golf Resort in Cattai and Wisemans Ferry at the northernmost point of the Shire.

Hawkesbury River

Urban Growth boundary

Agricultural cluster zones

LGA Boundary

Metro Station

Metro Line

Annangrove

Wisemans Ferry

Industry Clusters

Clustering of businesses drives interaction and innovation. Our Shire already has several locations where like-minded businesses have formed clusters aligned around their industry sector. This Plan seeks to develop and encourage clusters and support the exchange of ideas. The 4 priority industry clusters are:

• Professional and Technical Services

• Advanced Manufacturing

• Education Industries

• Health Industries

These clusters are emerging within the Norwest, Castle Hill and Rouse Hill Strategic Centres. Growth in these clusters indicates that our economy is resilient, thriving and conductive to innovation and investment across these industry groups.

Professional and Technical Services and Advanced Manufacturing

Metro Station

Metro Line

Rouse Hill Strategic Centre

Norwest Strategic Centre

Castle Hill Strategic Centre

Professional and Technical Services

Advanced Manufacturing

Professional and Technical Services and Advanced Manufacturing by Business Location (ABR Data) in Strategic Centres

Education Industries and Health Industries

Metro Station

Metro Line

Rouse Hill Strategic Centre

Norwest Strategic Centre

Castle Hill Strategic Centre

Health Industries

Education Industries

Education Industries and Health Industries by Business Location (ABR Data) in Strategic Centres

Council plays a role in positioning The Hills to have a strong and progressive regional reputation – so the area becomes well known for its capabilities, products, services, people and offerings.

7. Key Influences

The Shire's economy will be influenced by market trends and industry advances and regulatory, environmental and social challenges.

Liveability and Accessibility

Economic development seeks to improve the quality of life for all community members through supporting local businesses and encouraging new investment. To maintain standards of liveability, improvements in health and wellbeing and city attractiveness, sustainable development must be ongoing. Urbanisation, changes in the form and density of development and economic challenges place continued pressures on maintaining standards of liveability.

Communities continue to require more usable and attractive public spaces, better designed urban systems, improved connectivity (both digital and physical) between and within communities and increased social cohesion.

Circular Economy

A circular business model emphasises designing out waste and ensuring the use of materials and resources that can easily be reused and recycled. Promotion of a circular economy and the integration of circular principles to evolve business models will help ensure that materials and resources stay in use for as long as possible and that the amount of virgin materials entering the system and the amount of waste being created is reduced.

Changing Nature of Work Environments

The Pandemic has influenced our sentiment, behaviour and lifestyle – from how we shop to how we work, educate, engage as a community and participate in events. The impacts have been significant and will continue to be felt for years to come.

Working from home will become part of the new normal which will have implications on the demand and supply of commercial spaces throughout the Shire and in particular, employment hubs such as Norwest, Castle Hill and Rouse Hill.

More people working from home has led to less people leaving the suburbs and commuting to work, resulting in an increase in customers for local businesses. It has however also resulted in some professional and social isolation and higher household running costs.

It is evident that a hybrid working model (with workers alternating between remote work and time in the office over the course of a week) may be emerging as the "new normal" moving forward.

COVID-19

In 2020, the world was presented with one of its biggest health and economic challenges in recent history, the COVID-19 Pandemic. The Pandemic drastically changed everyday life as well as the economic conditions and outlook, with particular impact on the retail, hospitality and tourism sectors.

Retail

The retail sector has been changing over the last decade with growth in online shopping. Businesses across the sector have felt this shift in consumer behaviour, which was accelerated during the Pandemic, with many traditional bricks and mortar retail stores closing their doors due to a lack of consumer demand.

Many retailers have increased their online capabilities quickly to maintain their business cashflow. Whilst online sales are expected to fall marginally, it is expected that the trend towards online shopping will stabilise at approximately 12% of sales, which will have a sustained impact on bricks and mortar sales in Australia. The challenge for retailers is to remain agile and responsive to changes in consumer spending.

Changes in retailing have resulted in a greater emphasis on entertainment and leisure activities to attract customers to retail locations. The effect has been an increase in night time economy and other activities aimed at maintaining "dwell time" onsite for shoppers, which correlates with expenditure.

Hospitality

Food and beverage hospitality businesses were significantly impacted by the Pandemic with many cafes, restaurants and pubs only able to offer takeaway or delivery services. Other hospitality businesses were unable to trade (either at full capacity or at all) for extended periods of time. This resulted in a decline in revenue and levels of employment generated by many hospitality businesses during this period.

The critical role that retail and hospitality play in the activation and experience of places means that their recovery is critical to the success of many centres moving forward.

Anecdotally, this industry segment is recovering, however is struggling like many others due to a lack of available labour.

Tourism

This sector is considered one of the hardest hit by the Pandemic, experiencing a rapid and sustained drop in demand, leading to job losses and many businesses at risk of closure. Travel restrictions and significant declines in demand added to the pressures many faced during the Pandemic, following the devastating bushfires in the summer of 2019–2020.

The Pandemic is anticipated to have a longer lasting effect of increasing local travel. To leverage this opportunity, it will be critical for all tourism businesses to provide unique experiences as a point of difference. The rural experience The Shire can offer on Sydney's doorstep is a key advantage in this respect.

Buy Local

The importance of supporting local business was magnified during the Pandemic. The Pandemic demonstrated the need to support and protect the local supply chain, instead of relying as heavily on global supply chains for manufacturing. It gave businesses the opportunity to experiment in value adding and in many cases, it forced businesses to adapt and be agile in order to meet local demand and new markets.

Supporting local means nurturing locally owned and operated businesses which use local resources and employ local workers. Small businesses are the largest employers nationally and it is vital that the Federal, State and Local Governments provide support to reduce the economic impacts, as well as offer friendly services and information to assist businesses as they recover and rebuild.

Accessing Talent

Difficulties in accessing talent has resulted in changes to the traditional ways of looking at business location, with more emphasis on seeking locations of high amenity where talent is attracted to for the lifestyle. This means a revision in the thinking of how our employment areas function. A key focus of Council's Precinct Plans for Norwest, Castle Hill and Rouse Hill Strategic Centres is creating great places of high amenity, with vibrant activity and leisure opportunities.

Technological Changes

The transformational impact of digital technology is creating exciting opportunities, which have the potential to enhance all industry sectors.

The subscription economy business model used by companies like Amazon and Netflix, is an example of disruption within the media and entertainment industries by changing how content is accessed by customers and monetised by advertisers.

Ensuring that the Shire’s business environment is conducive to supporting digital technology that is fast and reliable is essential for the longevity and sustainability of all businesses and professions that rely on it.

A Changing Climate

There is a need to prepare for the consequences of a changing climate and value 'natural capital' in the same way as other forms of capital such as human and technological. Without it, the ability of businesses to operate effectively could be hindered and the health and well-being of those in the local community would be at risk. Quality of life and liveability would also be compromised.

Employment opportunities are changing because of our changing climate and the new challenges that are being presented. Climate change adaptation and resource use and management are driving change and creating jobs in new areas and industries that were not previously anticipated. Education and awareness are key to responding to the challenges.

Environmental and business sustainability are key factors in promoting and maximising economic growth. It is about improving the sustainability of our environmental resources and of business practices to ensure they have the resources to expand, grow and respond to changing conditions over time.

City Shaping Opportunities

Greater Sydney is experiencing transformational change. The Greater Sydney Region Plan envisages a metropolis of three connected cities with planning and infrastructure investment to enable more balanced employment growth across the Region.

The vision for a Western Parkland City centred around the Western City Aerotropolis with a significant pipeline of infrastructure is planned for delivery over the coming decades. The new Western Sydney Airport will be connected to the Aerotropolis and Sydney via a Metro line with future extensions of the public transport network to The Hills via Marsden Park.

The planned Outer Sydney Orbital will also transform connectivity within and surrounding The Hills. The developing business park and industrial estate at Box Hill and Rouse Hill (Annangrove Road Employment Area) will rely on the Orbital to connect to the Western Sydney International Airport and the Central Coast, the Shire's primary freight destination.

The Greater Sydney Region Plan and Future Transport Strategy nominate a city-shaping link between Norwest and Parramatta as a visionary project. A rapid bus link is also earmarked between Castle Hill and Parramatta.

The Shire is well-positioned to leverage these transformational public transport connections that will extend the reach of the LGA and enable better business-to-business links, as well as increased accessibility for the Shire’s local population and the highly skilled workforce that lives in the 30 minute catchment of our key employment centres.

The Greater Cities Commission is now developing a new vision of a Six Cities Region that will work together to form a ‘globally competitive city’. It’s goal is to create housing that is more affordable and accessible, as well as an interconnected and diverse economy across the Region that builds in the infrastructure investment of the State and Federal Governments. A clear focus is on the knowledge and capability of our people and the innovation of our industries.

8. The Role of Council

Council must work with other levels of government and industry stakeholders to assist in delivering better economic outcomes.

Council has an important role to play in economic development as it can connect, inform and implement policies that encourage business growth and improve infrastructure, open space and access to services and employees. In many cases, Council is the first point of contact for local businesses and the community in relation to day-to-day concerns and questions. It can also facilitate programs explicitly directed at improving networks, knowledge and assistance in navigating compliance and education for businesses.

Council’s capacity to influence economic objectives does however have jurisdictional and funding limitations. These limitations must be understood when considering implementation actions and responsibilities.

Promoting the economic viability and sustainability of the local community is a primary objective of local government under the Local Government Act. As well as stimulating the economy through being an employer, Council delivers a major capital expenditure program where, through procurement strategies, a high proportion of local spend is able to support local and/or regional businesses.

It is essential to note that business and industry 'drive' economic development. Local Economic Development is business and industry led and government supported. Council must work with other levels of government and industry stakeholders to assist in delivering better economic outcomes.

Council can continue to play an effective role in economic development in the following key areas:

Facilitating Investment

Creating Efficient and Effective Infrastructure

Business Support

Supportive Governance Structures

Supporting appropriate development through the land use planning framework that is attractive to new investors and supports local businesses

Strategic leadership on economic development issues to promote our Shire, improve its reputation and create business confidence

Fostering links between research and learning institutions and business to encourage industry innovation

Connecting local businesses to the region, state, nation and globe.

9. Listening to Business

Consultation with businesses in The Hills has been occurring since 2015 through the Performance Sentiment Index (PSI) Focus Group.

The PSI is a survey that measures ongoing performance, conditions and sentiment of businesses. It delivers a snapshot of the current pulse of the business community.

The Business PSI surveys involved a series of 21 questions centred on three categories:

Conditions

Performance

Future Sentiment

The Hills Business PSI revealed infrastructure and red tape were the leading conditions challenges facing business owners, while wages and on-costs were the areas of concern around performance. The highest scoring area in the PSI was future sentiment, with economic outlook and growth forecasts the positive leading aspects.

The key areas concerning businesses were:

The Cost of Compliance:

Participants were concerned about the costs associated with making their business compliant at all levels of government. This included the changing requirements and perceived lack of engagement between government and businesses.

Inadequate Infrastructure:

Internet speeds were a major concern and are generally poor in the region. There is a lack of visibility of when the NBN will connect businesses and localities. Traffic congestion, inadequate parking and poor public transport were all areas that were deemed to affect business - draining productivity and increasing costs.

Staffing:

The increased costs associated with finding, hiring, motivating, training and retaining staff was included as a key area of concern for most businesses.

Access to Accurate Information:

The final recurring theme (particularly for smaller businesses) was the challenge of navigating sources that can provide accurate information. Whether related to local or state government regulation, training, government grants, education services or general business advice.

Local Economic Development is business and industry led and government supported.

10. Strategic Direction

This Plan provides clear directions regarding future activities to support economic development, jobs and investment. It is underpinned by both Industry Development and Investment Attraction.

Industry Development

In most advanced economies like Australia, 60% to 80% of all new jobs and investment comes from growth of existing businesses. It is important to support local businesses and seek to assist them to grow. Industry development requires engagement with local businesses and business groups. Through engagement with the business community, it is possible to understand the current trends and pressures experienced by businesses across a number of industry sectors.

Actions to support individual industries will be varied, with some businesses benefiting from educational and informative workshops, whereas others may benefit more from infrastructure development, which provides access to either a larger workforce or potentially new or expanding markets.

Investment Attraction

Attracting new investment provides significant economic stimulus, as new businesses in the community provide new jobs and also bring in new technology, spawn innovation, build depth and diversity across clusters and stimulate additional investment and job creation through supply chains.

The investment attraction process includes a range of activities to promote and market investment opportunities in a broad and/or targeted fashion. This requires marketing materials that highlight the various investment opportunities, provide an overview of the area and articulate a compelling case for the investment. It includes working with identified businesses, government agencies, health and education providers and providing them with information, data and general customer service (in terms of the investment process).

The Direction

It is acknowledged that the economy and local businesses are not in the state that they once were. While the long-term vision remains the same, the impact of changes over the last decade on the local and global economy means that we must recover and rebuild our local economy in the first instance by continuing Council’s good work with the existing businesses in our Shire. This will then need to be supplemented by our growing efforts across four key themes:

This Section sets out a range of initiatives that will be pursued, with a key focus on the four priority industry sectors of health, education, professional and technical services and advanced manufacturing. These industry sectors are high value-adding, export focused industries and will provide the foundations for the expected growth over the next decade and beyond. They also align with the skillsets of our working residents, meaning growth in these industries and increased local job opportunities will allow for more residents to live and work locally.

Place

Outcome

A Shire that attracts new business, development, and visitors

Description

Investment attraction is an important element of Council’s objective to generate sufficient jobs to match the forecast in population growth. The investment attraction process includes a range of activities to promote and market investment opportunities in a broad and/or targeted fashion. It also includes facilitating investment outcomes once a project is identified.

The overall process depends on maintaining a wide variety of relationships and working with a range of partners. Attracting investment provides a significant economic stimulus, as new businesses in the community provide new jobs, and can also bring in new technology, encourage innovation, build depth within a cluster and stimulate additional investment and job creation through supply chains and diverse employment options.

Strategies

1. Positioning and promoting the Hills Shire as a destination for business, investment and visitors.

2. Develop a suite of information and tools that will facilitate decision making for investment in the Hills Shire.

3. Consider planning outcomes to facilitate business development and accommodation.

4. Establish a whole of Council approach to support business attraction.

5. Pursue opportunities with government, institutional and industry partners in key industry sectors of professional services, education, medical, hospitality and business start-ups.

Key Initiatives

A. Pursue the four identified key industry sectors and their supply chains to facilitate business investment into the region.

B. Position the Region as a destination for business, investment and visitors through a business marketing campaign.

C. Develop a suite of information and tools that will facilitate decision making for investment.

D. Survey lead firms to identify the factors affecting their operation, impediments to relocation or investment in The Hills and their importance to the local economy's supply chain.

Business

Outcome

A Shire that grows local businesses

Description

Supporting individual industries requires a range of activities, with some businesses benefiting from educational and informative workshops, and others benefiting more from infrastructure development.

In most advanced economies like Australia, 60%-80% of all new jobs and investment comes from growth in existing businesses. As such, it is important to support local businesses and seek to assist them to grow, creating new jobs and future investment.

Strategies

6. Facilitate and promote opportunities for business engagement, knowledge sharing and networking amongst businesses of varying sizes in The Hills.

7. Build Council’s relationship with the business community and maintain an ongoing understanding of the needs of business.

8. Implement a program of communication to disseminate information about support and best practice.

9. Deliver and promote a program of business development and training events as well as initiatives to enhance the operation and growth potential of local business.

10. Deliver specialised program support for professional services, education, medical, hospitality and business start-ups.

11. Encourage and support collaboration between industries and business associations.

12. Facilitate the connection of procurement opportunities for local businesses that encourage the use of local services and suppliers.

Key Initiatives

E. Facilitate the connection of procurement opportunities for local businesses and encourage the use of local services and suppliers.

F. Deliver a specialised education support program for start-ups and small businesses.

G. Develop a suite of information and tools that will facilitate decision making for our local businesses.

H. Promote business excellence and success stories through a business spotlight program.

I. Support business retention and expansion through business engagement program.

People

Outcome

A Shire that invests in its people

Description

Investing in people as a strategy for economic development is to focus on our Shire's workforce and their skill development. This requires Council to work with a variety of partners including local universities, local vocational training providers and other educational providers including high schools. Through engagement with industry and industry associations, Council can start to bridge the gap between the local skills that are required and the local skills that exist in the workforce.

Additionally, Council can play a key role in attracting new workers through investments into community infrastructure and other initiatives that support the liveability of the area and make it a desirible place to live. Council can also support local businesses that are trying to recruit skilled workers from other areas through provision of information packages, digital media resources and other promotional materials that reinforce the strong sense of lifestyle and amenity that local residents and workers enjoy.

Strategies

13. Promote the Hills as a destination for additional education and training services to build capacity in the Hills workforce and promote industry development with a focus on addressing the professional skills gaps.

14. Pursue the delivery of programs, initiatives, information and resources that improve access to local employment opportunities with a focus on migrants and youth.

15. Work with schools, tertiary education providers and business groups to understand and develop career pathways across key industries.

Key Initiatives

J. Support the delivery of a capacity building program with a focus on addressing the skills gaps in priority industry sectors.

K. Support improved access to local employment opportunities with a focus on priority industry and youth.

Partnership

Outcome

A Shire that demonstrates leadership through collaboration and advocacy

Description

Partnership is about advocacy and leadership. This involves engaging with State and Commonwealth Governments to encourage investment in new infrastructure and the public realm, as a significant catalyst for future economic development. This should include preparing business case material that supports investment decisions, as well as meeting with various State and Commonwealth Ministers and senior officers.

Council’s funding capacity makes it difficult to undertake major infrastructure projects in its own right without additional funding from the State and/or Commonwealth Government. However, as the local government authority, Council has a significant role to play in advocating for the local community, businesses and economy regarding future infrastructure. This expectation was confirmed through consultation and engagement with stakeholders and business.

Stakeholders felt strongly that both State and Commonwealth Governments should invest more directly into infrastructure in The Hills Shire, given the substantial economic contribution that the region makes to both the State and Nation. There is no other organisation that represents the entire community in a similar way to Council, so its leadership role and partnerships with other levels of Government are critical.

Strategies

16. Continue to work with regional, state and federal organisations as well as neighbouring Councils to identify, encourage and advocate for investment and development in the Region.

17. Facilitate industry groups, membership bodies and associations to deliver key priority areas, that suit their capacity, for strategic purposes and outcomes for The Hills Shire.

18. Foster a culture of collaboration and partnership between Council’s departments and the private and public sector.

Key Initiatives

L. Demonstrate strong leadership and collaboration with government, industry and community to encourage and advocate for investment, funding and development.

M. Facilitate key industry groups, membership bodies and associations to deliver key priority areas, that suit their capacity, for strategic purposes and outcomes for The Hills Shire.

N. Foster a culture of collaboration and partnership within Council’s departments and with the private and public sector.

An annual economic scorecard will be developed to track our progress and evaluate the key changes across the economy as well as emerging trends.

11. Action Plans

This section contains an Action Plan that will be delivered through collaboration with industry and key delivery partners. It is set out as a five year delivery program aligned with the four key themes and related initiatives. Each action has a specific target to measure its completion.

A. Pursue the 4 key industry sectors and their supply chains to facilitate business investment into the region

A.1 Investigate options for attracting new large and small businesses / industry.

A.2 Develop and deliver a Business and Investment Attraction Plan to attract investment, forward thinking business leaders and workforce and create jobs in high growth and emerging sectors.

Increase in the number of businesses and employees in each of the four priority sectors (Remplan).

Completion of:

- Prospectus material.

- List of industry targets.

- Meetings with industry groups.

B. Position the Shire as a destination for business, investment, and visitors through a business marketing campaign

B.1 Develop a strategic economic marketing program for the Shire, including the promotion of key employment locations and specialist industry precincts.

B.2 Identify and promote nature based and agritourism opportunities in the Shire including:

- Boutique value adding.

- Farm gate sales.

- Nature based accommodation and activities next to natural attractions and assets.

- Agritourism opportunities such as farm stays and destination wineries.

B.3 Establish a promotional document that identifies and quantifies Council’s key investment drivers and opportunities.

Key economic development themes for consideration include:

- Major road infrastructure upgrades.

- Business hubs.

- Industrial precincts.

- Visitor economy.

- Rural activities.

- Implementation of Precinct Plans and Structure Plans.

Completion of program.

Number of opportunities included in Council publications.

Investment prospectus produced.

C. Develop a suite of information and tools that will facilitate decision making for investment

C.1 Undertake a tourism land use review, including the potential agricultural tourism precincts, rivers and iconic tourism attractions.

Review completed

C.2 Ensure tourism related issues are adequately considered in planning decisions.

Data and trends relating to visitor numbers and tourism experiences.

C.3 Establish a series of annual updates on the state of business and the economy in the Shire.

Annual report produced.

D. Survey lead firms to identify the factors affecting their operation, impediments to relocation or investment in The Hills and their importance to the local economy supply chain.

D.1 Undertake an annual survey of industry, which builds on the Performance Sentiment Index (PSI) Survey and also considers industry performance and growth.

Annual survey produced.

D.2 Increase transparency and quality of data across the organisation to enable informed realtime decisions by Council and the community.

Regular information provided as needed.

E. Facilitate the connection of procurement opportunities for local business and encourage the use of local services and suppliers

E.1 Provide information to increase the proportion of goods and services that are sourced locally and promote Small and Medium-sized Enterprises (SME's) within the Region.

Set up and maintain a local business register.

E.2 Develop and implement a marketing campaign that promotes local procurement.

Campaign completed and refreshed as needed.

F. Deliver a specialised education support program for start-ups and small businesses

F.1 Develop an annual program to deliver a range of educational and information sessions that targets new and established business.

Annual program delivered.

G. Develop a suite of information and tools that will facilitate decision making for our local businesses

G.1 Prepare a rural activity review which looks at opportunities for greater productivity in the rural areas including:

- Horticulture and intensive agriculture.

- Agritourism and nature-based tourism opportunities.

- Value add industries such as farmers’ markets and farm stays.

Review completed

G.2 Develop and roll out a new business welcome pack (potentially electronic).

Pack completed.

G.3 Develop and maintain a business database for Council use only (due to privacy requirements) which includes the following fields:

- Business name

- Address

- Industry classification

- Business size (estimated number of jobs)

- History of Council contact with the business

Database operational and maintained.

H. Promote business excellence and success stories through a business spotlight program

H.1 Showcase best practice, innovation and technology in local industries and business through case studies, networking events, business forums and other similar initiatives.

Number of stories.

I. Support business retention and expansion through business engagement program

I.1 Regularly disseminate information via Council’s website on Government incentive programs and assistance packages to support local employment generation and business growth, especially for small to medium businesses

As required.

I.2 Facilitate local businessrelated networking opportunities targeting homebased business, exporters, women in business and young entrepreneurs.

As required.

People

J. Support the delivery of a capacity building program with a focus to addressing the skills gaps in priority industry sectors

J.1 Collaborate with key stakeholders to provide and promote education and training opportunities that match local career paths.

As required.

K. Support improved access to local employment opportunities with a focus on priority industry and youth

K.1 Connect workers with education institutions and businesses to upskill, reskill or employ.

K.2 Develop mentoring and work placement programs for youth, indigenous persons and tertiary graduates to grow local demands for business and entrepreneurial skills in collaboration with the Shire’s business chambers, network and industry organisations.

Partnerships

As required.

Program developed.

L. Demonstrate strong leadership and collaboration with government, industry and community to encourage and advocate for investment and development

L.1 Advocate for improved connectivity through smart technology and public and private investment in technology solutions for business and employment areas.

L.2 Establish a Business Leaders Forum to enable Council to partner with major strategic businesses in the Shire to jointly advocate for our economic priorities.

L.3 Build partnerships with key tourism businesses and organisations operating in the Shire, to maximise strategic tourism opportunities.

As required.

Host annual Business Forum.

As required.

M. Facilitate key industry groups, membership bodies and associations to deliver key priority areas

M.1 Provide positive economic development media statements (together with partners) associated with key targeted industries and recent success stories (externally focused).

M.2 Connect businesses with organisations that take a futureoriented and ecosystem approach to productivity and new products and services which results in business growth, jobs creation and opportunities to grow emerging businesses.

As required –minimum of 4 statements per year.

As required –delivered through Business Connect Program.

N. Establish a whole of Council approach to support business attraction and demonstrate Council is business responsive

N.1 Foster a business-friendly culture across the organisation that can adapt to business needs.

Level of business satisfaction with the Council’s performance in attracting and supporting businesses.

N.2 Design a streamlined process for businesses working with the Council and across departments.

Increase the number of businesses that access the Council’s pre-lodgement development assessment service.

N.3 Actively consider planning and development that stimulates economic growth and delivers high quality urban form and amenities.

N.4 Ensure that capital works, infrastructure projects and major developments take into consideration impacts on local businesses and develop strategic solutions to mitigate them.

As required.

As required.

12. Measure & Monitor

The ultimate goal is to deliver on the vision and aspirations of our community. A collaborative effort by government, industry and business will be required to capitalise on the future growth, as neither Council nor the delivery partners can control these outcomes.

This Economic Growth Plan has been designed to create and foster an environment that will encourage and support future economic growth and achievement of the goals. An annual scorecard will be produced, which tracks the progress of the local economy and reports on the implementation of this Plan. It will monitor and review:

• Changing conditions and opportunities;

• Whether we are staying true to our long-term direction; and

• That our initiatives are reinforcing the long term goals.

The success of this Plan will require ongoing monitoring and changes to actions in response to economic conditions that occur over the life of the Plan.

The following indicators will be referenced to demonstrate change in the local economy over time:

Population

Employment

Gross Regional Product

Income and Wages

Skills

Building Activity

Whilst Council does not directly control or influence these economic indicators, these measures can demonstrate positive growth.

An additional set of measures are also set out within this Section that will be included in the annual review, as these are measures that Council can directly control through the work of its Economic Development Team.

Place A Shire that attracts new business, development and visitors

Business A Shire that grows local businesses

A

Partnerships A Shire that demonstrates leadership though collaboration and advocacy

13. Collaboration

Council’s Economic Development Team will work with a range of partners to achieve the initiatives detailed in this Plan including but not limited to:

• Service NSW

• Resilience NSW

• Investment NSW

• TAFE NSW

• Destination NSW

• NSW Department of Planning and Environment

• NSW Productivity Commission

• Greater Cities Commission

• Small Business Commissioners Office

• Western Parkland City Authority

• Australian Taxation Office

• Surrounding Local Councils

• Business Associations and Industry Groups

• Community Groups and Volunteers

References

This Plan was developed considering the following key documents and strategies:

• The Hills Shire – Economic Background Report 2022

• Hills Future 2022-2024 – Delivery Program

• Hills Future 2036 – Local Strategic Planning Statement 2019

• The Hills Shire Productivity and Centres Strategy 2019

• The Hills Shire Rural Strategy 2019

• Shire Economic Health Check - .id Consulting

• Shire Economic Profile - .id Consulting

• COVID-19 Business Implications – McCrindle

• Investment Attraction Study – McCrindle

• Strategic Centres Discussion Paper – Mecone

• Retail Floorspace Analysis - SGS Economics & Planning

• Commercial Floorspace Demand in Strategic Centres - SGS Economics & Planning

• Housing Market Report - Bis Oxford Economics

• Big Data Analytics - Place Intelligence

Acronym

ABR Australian Business Register

ABS Australian Bureau of Statistics

CBD Central Business District

ERP Estimated Resident Population

KPI Key Performance Indicator

LEP Local Environmental Plan

LGA Local Government Area

LSPS Local Strategic Planning Statement

NSW New South Wales

PSI Performance Sentiment Index

TAFE Technical and Further Education