Bankwest show economic growth in the South West

Professor Duncan gave a presentation on May 20 about the region's economic performance over the last year and said the rise in manufacturing was a positive sign.

He said this time last year, manufacturing was ranked seventh for employment and currently the sector sits first - ahead of construction and health care.

"To see that fly to rank one in such a short time, this sort of diversification is important and will offer great opportunities for south west," he said.

Manufacturing covers a broad range of industries under the classification, including heavy manufacturing, advance manufacturing and high technology Professor Duncan said.

"Diversity in the economy is critically important, we have been saying this for quite some time, the reliance on single sectors when going well it is a benefit but there is a risk of volatility when that happens," he said.

Alongside the growth in the manufacturing industry Professor Duncan's presentation showed the increase in job creation as well.

From May 2020 to March 2021 the South West's job vacancy rate has increased by 178 per cent.

However, Professor Duncan said this meant there was a skilled worker shortage and strategies needed to be put in place to meet the demand.

"Overseas migration will see strong barriers for at least the next year," he said.

"To satisfy labour demands intrastate and interstate migration would be key."

Professor Duncan said adequate and affordable supply of housing was also important.

"It is clear that if moving into the South West and there are challenges to secure housing, then it is going to cause an issue and create barriers to population growth," he said.

Bunbury MLA Don Punch said there had been a renewed investment within the manufacturing sector which contributed to the boost.

"I think we are seeing a churn and lift in the economy and the role of manufacturing in our sector we have great capability in the South West with fabrication, mineral processing, food production and beverage production which would be contributing to that rise," he said,

"It is a major objective for us as a government is building diversity in the economy and it goes into the innovation and technology changes in WA and its important that in the manufacturing sector that we are building on our comparative advantages on a primary level but also making us more competitive."