Depending on who you ask there are presently between nine and 17 cranes operating in building sites around Wollongong.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The significance of that was not lost on Commsec chief economist Craig James speaking at an Illawarra Business Chamber Federal Budget lunch hosted by KPMG and Access Law Group in early April.
The exact number of cranes is determined by the area the count takes in but some observers suggest it is close to a record.
"One of the things that tells us if a city is doing well or not nowadays is counting the number of cranes on the horizon," Mr James said.
"And it appears Wollongong is going pretty well".
Mr James said the strength of the Illawarra economy was presently in home construction.
"Dwelling approvals and council approvals to build new dwellings is up there with the highest levels we have ever seen. And that has significant multiplier benefits across the economy".
Mr James said it comes as more and more people move to the Illawarra and construction resulting from that is creating more momentum.
"The expectation is that a growing population will correlate with increased business numbers," he said.
"Business numbers are up 12 per cent in the space of three years.
"That is an extra 1400 businesses across the Wollongong local government area".
Mr James said there was also good news on the jobs front.
"Unemployment in Wollongong in the past has tended to be a little bit higher than the rest of the economy," he said.
"At the moment the unemployment rate is sitting at about five per cent. And that is where unemployment is nationally".
Looking at the overall picture Mr James said as more people have been moving to the area there has been a 1.3 to 1.4 per cent growth in population in the last couple of years.
And that has created a demand for homes which have have been and continue to be built.
With the growing population there has also been the establishment of more new businesses. And as a result more jobs are being created.
The news is not quite so good for property prices. Data on home values across the region show there was a six year period where there was a doubling in house prices. But they have have come back about 10 per cent during the last 12 months.
"I think most rational observers would have expected that to happen anyway. And the outlook is probably for a further period of correction".
Mr James also shared Deloitte Access Economics data showing construction and projects presently underway or likely to start in the region. He said that meant there were more opportunities for business and employment.
Federal budget wish list discussed over lunch
After dissecting the Federal Government's budget and Opposition's budget reply at an Illawarra Business Chamber lunch on Friday in early April one of the speakers made a wish.
KPMG Australia partner David Apolo and CommSec chief economist Craig James were at the KPMG and Access Law Group supported event to discuss some of the likely impacts the pre-election budget will have to more than 300 guests present.
But what Mr Apolo wished for at the end of his presentation drew a positive response from the largely business audience. "Both parties initiatives are clearly different. But with the focus on small changes they are clearly tinkering with the current tax legislation rather than any structural tax reform".
Mr Apolo said with both parties forecasting surpluses it was time real structural tax reform was back on the agenda. "What I would love to see is certainly removing the burden of our current system from direct taxes on companies and individuals and looking at broad based taxes such as the GST system".
Increasing our international competitiveness by focusing on a reduction in the company tax rate, simplifying the number of taxes in Australia and more transparent administration were on the wish list. As was finding ways to foster more innovation.
The more successful businesses we have in Australia the more tax will be collected. And that will in turn providing more certainty to retirees so they can understand the system they are retiring into.