Wellington & East Gippsland - Timber Sector

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$311M

SALES

2018/19

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123

BUSINESSES

2019

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1,096

LOCAL JOBS

2018/19

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87%

FULL TIME

2016

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LOG SAWMILLING

SPECIALISATION

2018/19

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Heyfield

WORKER HUBS

2019

 

VALUE ADDED

The Timber Sector generated $311 million in direct output and $101 million in direct value added in 2018/19, 3.2% of the total Wellington & East Gippsland's output

When flow on effects are taken into account the Sector contributed $514 million in total output and $179 million in value added.

In 2018/19, $51.8M (51%) of direct value added was generated by Wood Manufacturing activities.

 

Output in the sector peaked in 2016/17 at $436M, but has subsequently fallen to $310.7M in 2018/19.

Value Added also peaked in 2016/17 at $150.3M. In 2018/19 it was estimated to be $101.3M

In 2018/19, 70% ($215M) of direct  sales/output in the Timber Sector was exported.

This meant the Sector generated 5.9% of Wellington and East Gippslands' total export value.

 

 

EMPLOYMENT

The Timber Sector directly supported 1,092 jobs in 2018/19 with a further 764 indirect jobs for a total impact of 1,856 jobs. 

This local sector's direct jobs represented 2.9% of Wellington and East Gippsland's total jobs in 2018/19.

Local Jobs in the sector grew strongly between 2014/15 and 2016/17, before declining in recent years. Growth in local residents who work in the sector (inside and outside the LGA) mirrored this trend.

 

However recent falls in employed residents have not been as strong as the local job falls suggesting residents are maintaining employment outside the region.

In 2018/19, 534 (48%) of local jobs were in Wood products manufacturing.

 

Forestry and Logging employed another 40%.

 

SPECIALISATIONS

In 2018/19, the share of local jobs in Forestry and Logging In Wellington and East Gippsland was 12 times the Australian average.

The number of jobs in Wood Product Manufacturing was 4 times the national average.

7th

Largest number of jobs in Australia in:

Forestry and Logging

Log Sawmilling and Timber Dressing

Wellington

Largest number of jobs in Australia in:

6th

East Gippsland

10th

Largest number of jobs in Australia in:

Forestry Support Services

 

BUSINESSES

In 2019, the largest share of registered businesses, 33% (42), were in Logging.

Another 19% (24) were in Forestry and 13% (16) in Forestry Support Services.

Registered business numbers declined by 19 businesses between December 2014 and 2016, led by falls in Forestry (-13).

However, since 2016 business numbers have been relatively stable.

 

WORKFORCE PROFILE

In 2016, the Wellington and East Gippsland (WEG) Timber Sector workforce is generally made up of Australian born, middle aged men. They were generally less qualified than the general Wellington and East Gippsland workforce but more likely to be working full-time and earning higher salaries.

44

years

old

Median Age

Male

88%

Female

12%

8% Born o/s

47% Post-School Qualification

87% Full-Time

$49,800

Median Income

WEG - 45 years;

Victoria - 41 years

WEG - 51% M; 48% F

Victoria - 53% M, 47% F

WEG - 11%;

Victoria - 31%

WEG - 61%;

Victoria - 67%

WEG - 56%;

Victoria - 61%

WEG - $43,380;

Victoria - $51,100

In 2016, the main occupations of local workers in the Wellington and East Gippsland Timber Sector were Factory Workers and Machinery Operators.

The top field of study areas for qualified workers were: Building; Manufacturing Engineering; and Mechanical Engineering.

In 2016, 37% of local workers in the Wellington and East Gippsland Timber Sector had Certificate level qualifications. This is higher than the share of local workers in all sectors (32%).

Qualification attainment (47%) is below that for the region's workers as a whole (61% qualified in 2016).

In 2016, 25% of local workers in the Wellington and East Gippsland Timber Sector were aged between 45 and 54 years.

The sector had a higher share of workers aged under 35 (33%) than the average for the region (30%), and a lower share aged over 64 (2%).

 

 

GEOGRAPHY

In 2016, Heyfield (in the Maffra Statistical Area) had an estimated 248 jobs in the Timber Sector, just under a quarter of the Wellington and East Gippsland total. The greater Orbost area and Yarrum were other key locations.

This report relies on data sourced from NIEIR (2020) and ABS Census of Population and Housing (2016).

The sector definition is based on industries directly related to timber felling and the use of timber products. Relevnt industries have been taken from the AISC definition. The flow-on industries are modelled using NIEIR's impact model based on region specific Input-Output multipliers.

 Data notes
Data notes