Employment and Demand in the Industrial Sector

Employment and Demand in the Industrial Sector - Beyond the Headline Figures

The typical methodology frequently used to project industrial floorspace demand has been to look at the change in the 'headline' employment figures of those industry sectors that traditionally occupy industrial zoned land (i.e. Manufacturing, Wholesale, Trade, and Transport, Postal and Warehousing). However, the questions needs to be raised - Is this the most accurate method of forecasting demand for industrial space where historically there has been an inverse relationship between the headline employment in manufacturing (decreasing) and the demand/net absorption for industrial floorspace (increasing)?

This paper highlights the following:

  • The headline ABS employment trend figures for the traditional industry sectors occupying industrial zoned land
  • The sub-industry sectors that have experienced growth within the overall declining Manufacturing and Wholesale Trade Industries
  • The need to look at a basket of employment industries that could potentially occupy industrial zoned land/be a part of an industrial business
  • The implication for industrial space going forward, with respect to new (retail) entrants into then Australian market
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