A billion dollar bonanza
THE economic impact of development generated $1.013 billion in the Gladstone region, according to the Australian Bureau of Statistics (ABS).
The ABS monthly building and construction industry data report to September 2010 states the Gladstone Region generated directly or indirectly $732 million in gross regional product, $209 million in incomes, $101 million in direct and indirect state and federal taxes, and employment for 4800 people in full-time equivalent terms.
“The development industry in the Gladstone Region is the third largest industry generator of employment in the region (after manufacturing and retail), accounting for 12.3 per cent of jobs,” the report states.
Developers of the Gladstone G80 and Pinnacle Apartments Sahben Group Director Ben Smith said, because of the under supply of housing and with new industry the demand is out-stripping supply.
“I see it increasing with the up-and-coming LNG projects and the markets have allowed more people to develop increasing investment in the area,” Mr Smith said.
The report also notes; for every $1million change in local development industry turnover results in a change of approximately $723,000 in gross regional product or value added, $206,000 in household incomes, conservatively $100,000 in direct and indirect state and federal taxes, and the employment of 4.7 people in full-time equivalent terms.
“Despite the inherent variations in employment data at a regional level, the Gladstone Region shows a trend of solid employment in the construction sector probably due to construction work being carried out in other sectors.
“There appears to be a strong statistical relationship between the rate of dwelling approvals and construction unemployment. Each approved new dwelling creates employment for 1.5 to 2 construction workers,” the report states
“Using this as a guide, 1600 unemployed could be employed in the Gladstone Region in 2010 if the number of dwelling approvals returned to the longer term levels. Economic flow-on effects, reduced government expenditure and improved social outcomes would also occur.”