THG

Economics, Strategy and Research

Economics, Strategy and Research gives our clients the opportunities to see developments beyond the bricks and mortar.Considering the intricacies of how a project will impact the community – both economically and socially – is a core area of expertise.THG then goes beyond the research to integrate this analysis throughout all elements of the project, from the planning application to the urban design.

The following outlines some of the services offered by THG’s ESR unit.

Economic Impact Assessment

Generally these assessments are prepared to convince the public sector of the benefits of your project on the local economy. This looks at both the construction and operation stages of your project and may include the:

• Creation of jobs
• Generation of tax revenue for the government
• Increase of spending in the economy
• Resulting population growth within the local economy
• Additional demand for goods and services
• Alignment of the project with the identified economic development priorities for the area.

Economic Needs Assessment

Generally these are requested by Council as a supporting document to your planning application to show that the demand within the defined catchment is sufficient to support your project, whilst not adversely impacting existing and proposed facilities and services. This assessment may consider:

• Existing and projected population
• Existing and projected average spend per household
• Any economic and social trends that may impact upon demand
• Identification and mapping of relevant existing and proposed facilities
• Assessment of the share of the market your project will attract

Social Impact Assessment

Similarly to the economic impact assessment, this work is generally undertaken to convince the public sector of the social benefits of a specific project on the local community, but also to provide comfort that the project will not have any adverse social impacts. This assessment will create compelling arguments around the following:

• Assess the demographic structure of the local community
• Illustrate how the project aligns with public sector priorities for the community
• Qualify the benefits of the project to the community through the provision of public open spaces and other facilities
• Demonstrate acknowledgement or the use of cultural heritage themes to maximise the integration of the project within the existing community

Social Needs Assessment

This assessment may be included in your application to beef up your planning arguments in relation to the existing requirement within the community for the type of project you are proposing and to reflect that the current scheme fails to address the changing profile of the local community. This may include:

• Identification and mapping of existing services and facilities that fulfil a social role in order to determine gaps in this provision;
• Social profiling to assess demand for the demand for the facility/services offered
• Assessment of relevant socio-economic trends to assess changing requirements (e.g. household size and characteristics, car ownership, distance to work and method of travel, lifestyle preferences, migration, and cultural trends)

Retail/Commercial Analysis

This is a legislative requirement under a number of local planning schemes to justify both the economic need for a specific retail facility but also ensure that it will not adversely impact upon other similar facilities in a defined catchment. Some planning schemes have set criteria and methodologies for undertaking these studies. Retail analyses may also be prepared for the client to establish that there is a sufficient underlying demand to determine whether the local catchment will viably support the proposed facility in that particular location.

Economic Profiling and Trend Analysis

This research can be conducted quite easily to identify the economic structure, drivers and likely movements within a specified area/sector. This can also be conducted for the public sector to guide their economic development priorities and strategies. Economic profiling and trend analysis can also be used on behalf of major projects to influence Councils economic strategy development. This may include:

• Which sectors are dominant within an economy from both a revenue and employment perspective
• Which sectors have the greatest potential
• Which sectors are likely to provide the greatest return from public sector investment
• Wider socio-economic and commercial trends which may affect the local economy or the potential viability of a specific project

Demographic Profiling and Trend Analysis

This research will identify the structure and characteristics of a defined population, how it is changing, and what it will look like in the future, in order to determine the services and facilities required in the future. This can be used by the public sector for infrastructure planning purposes and also by the private sector to identify opportunities proactively. This may include:

• The breakdown of different family structures and the associated trends
• The changing housing form within a specific area
• The influence cultural trends have on the demand for goods and services
• Changing consumption trends

Pricing Assessment

A pricing assessment will take into consideration a myriad of market variables enabling your client to determine what prices their project may be able to achieve. This may include:

• Comparative sales data
• Likely socio-economic trends and changes
• Assessment of existing and future competing supply

Market Take Up Assessment and Staging Strategy

This information will enable your client to determine how quickly their proposed product will sell overtime based on current and projected levels of demand and likely market trends.     This may include:

• Comparative sales periods
• Historical selling periods for comparative data
• Likely socio-economic trends and changes
• Assessment of existing and future competing supply

Determination of Site Specific Product Type

Through the combination of economic and demographic profiles, with site and location specific data, we can provide analysis which will assist in the determination of what product best suits the site. This may include:

• Site specific constraints and opportunities analysis including proximity to public transport and other desirable services
• Demographic profiling to determine if say the dominant demographic was young professionals and subsequently there is a high demand for apartments
• Retail/Commercial Analysis to determine any sectors in which the area is undersupplied
• Economic profiling to determine the likely purchasers ability to access certain price points
• Analysis of competing product within the area to assist in product differentiation

Likely Purchaser Profiling 

Using economic and demographic data we can establish who is likely to purchase/use your products. This is often conducted in conjunction with the determination of site specific product type and is conducted through a similar methodology.

Project Visioning

Inform the design process with relevant economic and social data at project conception rather than retro testing once a significant quantum of work has already been undertaken.

Strategic Policy Response

We can use economic, social and strategic planning arguments to ensure our clients’ opportunities are maximised through establishing persuasive submissions and responses to local, state and federal policy directions. This may involve reviews of the housing affordability strategy, expansion of urban footprint, or site specific designation changes that are proposed in legislation.