Adelaide most competitive place to do business

Discussion in 'Property Market Economics' started by D.T., 4th Apr, 2016.

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  1. sanj

    sanj Well-Known Member Premium Member

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    ikea perth and adelaide are the only franchised ones in australia, with the rest being ikea owned so will be interesting to see if adelaide does indeed get these new stores first

    both are owned by the same guy based in perth and he also put together the syndicate that developed the pretty large site for the perth store so collects a fair sum in rent too.
     
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  2. Foxy Moron

    Foxy Moron Well-Known Member

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    Nice suggestion. It looks like the mini stores being set up in Canada are a 'mere' 20,000 feet in size (6100 sqm).
    On average the Masters stores are 13,000 sqm.
    So there's an innovative way to fill half of an empty site should they choose to roll them out in oz, particularly metro areas.
     
    Last edited: 29th Jul, 2016
  3. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Cheap rent and properties for employees relocating alongside would be a factor to consider, never mind the HQ rent as well.
     
    Last edited: 19th Aug, 2016
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  5. 2FAST4U

    2FAST4U Well-Known Member

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    +lower wages due to living costs generally being lower in Adelaide.
     
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  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Also its a geographic central point for the rest of Australia.
     
  7. Drgonzo

    Drgonzo Well-Known Member

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    looking forward to getting some good rent on my MPW property from the people building the Northern Connector... its a massive job, great for the north.
     
  8. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    Proposal for Cannabis production facility at Holden s plant.

    As pasted from advertiser:

    THE Holden plant at Elizabeth is proposed as the base for a medical cannabis industry that backers claim will be worth $800 million a year and create more than 2500 jobs.

    But shareholders in the Australian Cannabis Corporation have blasted the State Government for being slow to react to meeting requests and failing to make regulatory changes the industry needs.

    Australian Cannabis Corporation founder Ben Fitzsimons said South Australia “could become the next Colorado’’ if it moved first into the legal cannabis business.

    But shareholders in the Australian Cannabis Corporation have blasted the State Government for being slow to react to meeting requests and failing to make regulatory changes the industry needs.

    Australian Cannabis Corporation founder Ben Fitzsimons said South Australia “could become the next Colorado’’ if it moved first into the legal cannabis business.

    Colorado legalised cannabis for medical and recreational purposes in 2014 and a report in Time Magazinelast month estimated it had a $US2.4 billion ($3.2 billion) economic impact on the state.

    The report said it had helped create 18,000 jobs, was the state’s fastest-growing economic sector and raised about $US135 million in state taxes.

    “We are saying to the government ‘why are you afraid of this?’,’’ Mr Fitzsimons said.

    “Why is our thinking restricted to digging a hole in the ground in the desert and burying nuclear waste?’’

    He said his struggles to set up business were common in South Australia and pointed to the decision of property developer Con Makris to leave SA and move to Queensland.

    “There are guys out there trying to do innovative stuff but they keep hitting the wall,’’ he said. Mr Fitzsimons wants to use half the Holden site to cultivate marijuana crops after Holden closes the doors on its Elizabeth plant next year.

    The factory has about 25ha under its roof and the Australian Cannabis Corporation would grow four crops a year hydroponically.

    It is not clear what will happen to the site when car manufacturing stops but Mr Fitzsimons said it was possible the State Government could take responsibility for the site in the same way as it did at Lonsdale after Mitsubishi left.

    Mr Fitzsimons said the proposal was not just about growing the crops.

    The company also had an agreement with an Adelaide laboratory and was interested in becoming a manufacturer of cannabis products, whether it be for medical purposes in pills and oils, or even building and clothing products.

    He also said the Australian Cannabis Corporation was interested in setting up research partnerships with the SA Health and Medical Research Institute and the University of SA.

    Australian Cannabis Corporation shareholder Shane Yeend says “we want to employ thousands of South Australians’’.

    “If SA could grow medical marijuana at the Holden site, using only half of the existing buildings, it could generate $800,000,000 per annum and create over 2500 new jobs,’’ he says in an advert in today’s Sunday Mail.

    “After a year, we have managed two meetings and a fluffy generic letter from our Innovation Minster (Kyam Maher).’’

    Mr Yeend had asked for a letter from Premier Jay Weatherill supporting their bid for a federal medical cannabis cultivation licence.

    The therapeutic benefits of medical cannabis include reducing nausea in cancer patients. It is also believed to help sufferers of multiple sclerosis, and PTSD.

    The Australian Cannabis Corporation has not applied for a cultivation licence as yet because, under the convoluted rules, it needs to verify the market place or patient numbers which a manufacturer would have in place before they are able to gain a licence. To help prove it has a market, the Australian Cannabis Corporation launched a website, cannabiscorp.com.au, on Friday for potential patients to register an interest.

    A State Government statement provided to the Sunday Mail says meetings have been “facilitated” between the company and representatives from the departments of Premier and Cabinet, Health and State Development, as well as Investment Attraction South Australia. The statement says Investment Attraction South Australia has been working with the company to establish a presence in SA and researching potential sites.

    “IASA staff have provided a range of information to help the company understand the legislative and regulatory requirements in South Australia — in line with the recent Federal Government changes — and sourced information from other government agencies at the request of Australian Cannabis Corporation,” the statement says.

    A Holden spokesman said the company had no knowledge of any Cannabis Corporation approach but hoped for a productive use for the site, which was available for sale.
     
  9. ollidrac nosaj

    ollidrac nosaj Well-Known Member

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    As pasted from 9 news:

    Coca-Cola Amatil will close its manufacturing operations in South Australia in 2019.

    The decision follows a review of its Australian supply chain that recommended increasing production in Queensland and Western Australia and ending manufacturing in SA.

    Workers at the company's bottling plant in Thebarton in central Adelaide met on Wednesday morning to learn their jobs, about 180, will be lost.


    In a statement, the company says its review found several barriers to expanding the Thebarton plant.

    "Further development of our facility at Thebarton in South Australia was constrained by its CBD location, site layout, dated infrastructure and expensive logistics," CC Amatil Group Managing Director Alison Watkins said.

    "This isn't a decision to be taken lightly, but we know it will be important for ensuring our position in the market into the future."

    CC Amatil will maintain between 200 and 250 jobs in SA in other areas, like sales and the suburban Salisbury distribution centre.

    In remodelling its supply chain the company will invest about $90 million in new production facilities in Richlands in Queensland and other manufacturing activities will shift to Kewdale in WA, Moorabbin in Victoria and Northmead in NSW.

    Gino Gaddy, who has worked at the Thebarton plant for 15 years said he was unsure what he would do next.

    "The main mood is just shock," he told reporters.

    SA Manufacturing Minister Kyam Maher said the move was "exceptionally disappointing".

    "Our first thoughts are with the workers and importantly their families. Many people have worked for many, many years at Coca-Cola," he told FiveAA radio.

    He said the government would have liked the opportunity to speak with CC Amatil about consolidation possibilities in SA before the decision was made.

    "In the lead up we had no discussions with Coca-Cola, they didn't talk with us," he said.

    Opposition Leader Bill Shorten said manufacturing jobs must be safeguarded.

    "Very sad day for workers at Coca-Cola factories in SA. Australia must stand up for manufacturing jobs," he posted on Twitter.


    Read more at Coca Cola to stop South Australia manufacturing in 2019
     
  10. Brady

    Brady Well-Known Member

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    Looking for an article a couple years ago where the development plan got changed for that whole strip where Coke is located.

    I remember thinking won't be too long until they sell out, would have been nice to see them go elsewhere though.

    Will now turn into another mix residential development site I'm sure.
     
  11. Corey Batt

    Corey Batt Well-Known Member

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    I swear if I see even more apartments...
     
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  12. Brady

    Brady Well-Known Member

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    Guarantee it will happen... with marketing along the line of...

    - so close the city CBD
    - tram straight into the city
    - close the nRAH
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    But far from oRAH which will still be going for a whole yet :p
     
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  14. DaveM

    DaveM Well-Known Member

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    That would be the CBD where the stockbrokers and investment firm are? :D
     
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  15. 2FAST4U

    2FAST4U Well-Known Member

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    It's sad news. I know Coca Cola hasn't come out and said it but surely having the highest electricity prices in Australia along with some of the most inconsistent supply would be a huge red mark against doing business/expanding a business in SA. BHP alone suffered a $137 million dollar hit because of recent power outages! I know Coke's not selling that well but it's not stopping the company spending $90 million in QLD expanding.
     
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  16. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Not if the product contains sugar....Its a long way for cane.
     
  17. Redom

    Redom Mortgage Broker Business Plus Member

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    Neat article Dave.

    FYI these reports has a good insight into state by state performance.

    State of the States

    The ABS also measures this stuff every quarter and there's a state based GDP figure that comes out quarterly.

    Down the bottom of the link you can add a dynamic concept and look at how individual states have performed over time. Looking into state budgets is also a great tool for objective judgement on state economic performance.

    Usual narrative about Adelaide is that its population growth & economic performance are its weak points, particularly when commenting about house price growth.

    Interestingly, business investment is viewed as a potential positive to Adelaide (although it is middle of the pack here). Investment usually precedes employment growth. On the whole i'd agree that SA is a good place for business to go - its cheap, there's massive employment issues which drags down wages, and you do get similar institution benefits and regulatory benefits of being in Australia (same federal taxes, laws, governing bodies, etc). Basic economic theory should suggest at some businesses may move there over time as cost advantages increase. Gov't can lead the way here with some of their service based jobs. I suspect on the whole it will be lower paying jobs, etc (its generally harder to move high performing/high income earners).
     
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  18. Northboy

    Northboy Well-Known Member

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    A Coca Cola executive was interviewed about this this afternoon on Sky News and she ruled out energy prices and reliability as an issue. The interviewer kept pushing it but the exec said it definitely wasn't a consideration in this decision.
     
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  19. Tattler

    Tattler Well-Known Member

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    When will nRAH actually open for business? That must be a huge money drain!
     
  20. Brady

    Brady Well-Known Member

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    Believe it's meant to be June 2017 now, but wouldn't count on it.
     

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