Report outlines risks to Geelong business growth

KPMG has released a report outlining both the opportunities and the risks the Geelong region will need to face in the future to maintain its high levels of business growth.

The Geelong Risk Landscape was developed based on interviews with 31 business and community leaders.

It also includes a review of strategies from City of Greater Geelong, Deakin University, Regional Development Victoria and Committee for Geelong.

The report, released on Monday this week, noted Geelong was growing at the second-fastest rate of any of the top 50 Australian cities at 12.7 per cent between 2018 and 2023, behind only the Sunshine Coast at 12.8 per cent, and business numbers had grown by 23.3 per cent over the three years from 2021 to 2023.

“Understanding the risks and enablers of business growth in the Geelong region is vital for achieving business success in the future,” KPMG partner of risk consulting and advisory Claire Richards said.

“The way that businesses in the region operate, innovate and deliver goods and services continues to evolve with the region, the industry, and the wider economy.”

She said participants cited cost of living and rising interest rates as short-term risks to growth, but the medium to long term view was one of cautious optimism, based on factors including confidence in Geelong’s business environment and the importance of leveraging Geelong’s unique assets, such as its access to an international airport and seaport.

In terms of risk, participants were asked what specific challenges and risked they faced as a Greater Geelong business that may impede their future growth plans, with five major themes emerging in response:

• Clear vision and strong leadership for the region; Tract Consultants’ Simon Loader commented: “We have all the key players in Geelong and all the elements required for success. But what we need are champions to bring it all together”
• Investment attraction and access to capital, including how Geelong needed to be both “investment ready and investment worthy”
• Access to skilled labour; genU chief executive officer Claire Amies commented: “Geelong’s future depends on its ability to embrace diversity and inclusion within the workforce, particularly for people with disabilities”
• Population growth and urbanisation, and
• Geelong’s proximity to Melbourne and its impact; NAB regional manager of business banking David Lynch commented: “Geelong has opportunities Melbourne does not. People here live, shop, and breathe Geelong and aren’t under as much pressure”.

The report then lays out five insights to “de-risk our region”:

• Leaders creating a unifying vision
• Deliberately growing businesses
• Geelong as a centre for innovation
• Growing a workforce of the future, and
• Stay true to the Geelong identity.

Ms Richards said the Geelong Risk Landscape showed Geelong needed to transform from a region reliant on government support to a thriving hub where investors were eager to invest.

“I would emphasise that business growth creates jobs of the future, which will be critical for the region’s ongoing economic prosperity.”

KPMG’s Geelong Risk Profile follows its Geelong Economic Blueprint 2023-24 and its Enterprising Cities report.