AOG2019 Matt Judkins

AOG 2019
Matt Judkins
14 March 2019
© 2018 Deloitte Touche Tohmatsu.
AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

Image courtesy of Time Magazine
AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

Image courtesy of Time Magazine
AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

A new WAy
Western Australia

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Where Global Drivers meets

Comparative Advantage exists Opportunity

Global Drivers Drivers of WA

• Environmental concerns Comparative Advantage
• Demographic change • Natural resources
• Societal expectations • Renewable energy sources
• Digital disruption • Relative isolation
• Future of Work • Same time zone as
60% world population
• Stable policy and
political environment
• Skilled labour
• Cost competitiveness

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Global annual population growth

2.5%

Forecast
2.0%

1.5%

1.0%

0.5%

0.0%
1955 1970 1985 2000 2015 2030 2045 2060 2075 2090
Source: United Nations

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Share of China’s population aged 65 and over

30%

Forecast
25%

20%

15%

10%

5%

0%
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Source: World Bank

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Steel consumption and GDP – United States, 1900 to 2008

Steel consumption
(kg per capita)

700

600

500

400

300

200

100

0
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Source: Ridsdale (2011); ASPI (2012)
Real GDP per capita

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Steel consumption and GDP

Steel consumption
(kg per capita)

1,400
South Korea (1970-2008)
1,200 Heavy industry
export economies
1,000 Taiwan (1970-2008)

800 China (2011-2040, forecast)

China (1980-2010)
Japan (1955-2008) Developed and
600 India (1970-2008) diversified
Germany (1946-2008) economies
400
EU15 (1948-2008) US (1900-2008)
200 Low asset
intensity
Mexico (1967-2008) economies
0
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Source: Ridsdale (2011); ASPI (2012)
Real GDP per capita

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Industrialisation is not a simple story

Commodity
demand index

250 Emerging economies Developed economies

Corn and soybean

200
Meat

Electricity
150

Copper
100

Steel

50

0
0 10,000 20,000 30,000 40,000 50,000 60,000
Source: BHP Billiton
Note: The demand intensity index represents the volume consumption per Real GDP per capita (PPP adjusted)
capita, with 1972 consumption representing 100 for electricity, and 1968
consumption representing 100 for the other commodities.

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Environmental Societal Demographic

Concerns Expectations Change

The Way we Digital

Work Disruption

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

A New WAy in working collaboratively to bring together the right people, the right
thinking and the right tools to deliver on the opportunity

Government – The enabler

• Supportive policy
• Structuring markets
• Enabling infrastructure
• Overarching economic narrative providing forward guidance
• State to State relations (Commonwealth and foreign)
• Fact based business cases
• Agile skills development environment.

Community – The shaper

• Active input into the future vision of Western Australia
• Define what is important
• Be ready to participate in the jobs of the future
• Agility in a fast changing world
• Know what is in it for them.

Business – The driver

• Opportunity identification
• Innovation and creativity
• Risk mindset
• Bring the capital
• Identification of barriers and articulation of the solutions.

© 2018 Deloitte Touche Tohmatsu.

AOG2019 Matt Judkins

Nine clusters of opportunity...

...to unlock potential across WA

Natural advantage Right place, right time Technology platforms

Battery supply chain Powered by hydrogen Our place in space Digital operations
A new way for WA to participate A new way to decarbonise the A new way to play a leading A new way to capitalise on the technological
in the growing supply chain for world’s industrial, transport role in new space race legacy of the resources boom through
lithium batteries and energy sectors application to other sectors

Indigenous owned business Biodiversity products Indian Ocean defence Industry education Integrated energy solutions
A new way to build a foundation for A new way to commercialise A new way to think about defence A new way to provide applied A new way in delivering bespoke energy
Indigenous economic ownership products from our unique activity and the role Western industry experience to the solutions, matching local energy sources
biodiversity Australia should play world’s leading students with community needs

© 2018 Deloitte Touche Tohmatsu.

A new WAy Shaping Future Cities

Thank you

© 2018 Deloitte Touche Tohmatsu.