The state's peak business organisation, the Chamber of Commerce and Industry of Western Australia, has released a landmark paper which for the first time provides a comprehensive snapshot of WA business and industry.
The Profile of WA Business examines the diversity and importance of Western Australia's business and industry sectors, and the role each plays in generating wealth and opportunities across the state.
In recent years, Western Australia has emerged from the shadows of its eastern states counterparts to be recognised as a world leader in its own right across a number of industry sectors, and firmly cement its position as the powerhouse of the nation’s recent economic success.
The paper is a comprehensive study of the state's major business and industry sectors, and maps out how the state's economy has expanded and diversified since settlement in 1829.
From its beginnings as a largely agrarian economy, the Western Australian business sector has steadily evolved to include a broad range of industries including mining, manufacturing, construction, tourism and technology, just to name a few.
While the resources sector is the state's single largest industry, worth $38.8 billion in 2006-07 and employing nearly 52,000 workers, Western Australia is more than just a quarry to the world.
The state has cemented its reputation as an international economic powerhouse through the growth and emergence of new industries, including world class downstream mineral processing activities, shipbuilding operations, wine making abilities, innovation in the science and technology fields and excellence across a range of key service industries. As a result, WA continues to be regarded as a centre of business and industry excellence.
Business is the lifeblood of the economy and has been the centre of economic growth in recent years. The report found that:
- 16,230 new business have been established in WA over the past three years, a rise of almost nine per cent.
- The largest concentration of businesses was in property and business services, which represented almost one-quarter of all businesses in the state. While in contrast, mining businesses only accounted for one per cent.
- The strongest growth in business numbers has occurred in the mining sector (up 14 per cent) and construction (up 20 per cent).
- Double digit growth in business numbers has been evident across a range of other industries, including property and business services, finance and insurance, and education and health.
- Business activity in regional WA is also alive and well, with 57,684 businesses operating outside the Perth metropolitan area in 2006-07.
Although 70 per cent of the state's population reside in Perth, and a majority of the state's 204,750 businesses are located in the state's capital, the importance of the regions and their wealth generating capacity can not be underestimated.
The regions inject more than $38 billion into the economy, and are home to more than 57,000 businesses. Regional economic expansion has been led by the minerals rich Pilbara region, which has averaged 14 per cent growth per annum over the past five years.
However, strong growth and development has been evident across the whole state, with all regions generating growth rates in excess of eight per cent annually over the past five years.
CCI's Profile of WA Business recognises the importance of all business and industry sectors across the state, and is a celebration of their contribution to the state's prosperity.
Statement by CCI Chief Economist John Nicolaou