PwC Australia CEO Tom Seymour says Adelaide will be a winner city from pandemic change

Adelaide is set up for expansion and prosperity because of profound changes unleashed by the coronavirus pandemic, writes PwC Australia CEO Tom Seymour.

This pandemic has turned our world upside down, disrupting everything from the way we work, the way we travel and our connection to the world. With this massive disruption also comes opportunity.

Adelaide is a city that is perfectly placed to seize these opportunities and capitalise on economic growth.

Adelaide’s population currently sits at just over 1.3 million people.

While this seems small compared to cities like Melbourne and Sydney (both closer to 5 million), the size of Adelaide in 2020 is on the rise.

South Australia’s capital has traditionally seen slower growth – but now, with our nation in COVID recovery, this looks to be changing.

I recently spent time in Adelaide, talking with key business and government leaders about why more people are turning to this part of the country.

By making smart decisions today around planning and investment opportunities, this city is well and truly setting up for future expansion.

Multinationals will want to invest in a ‘COVID-safe’ environment.

Previously, when looking to invest in Australia, larger organisations wouldn’t necessarily have differentiated between its various cities.

Today, they want to choose an environment that’s safe to operate in – safe for their people, and reliable for their supply chains.

Adelaide gets a big ‘tick’ on this front. We’re seeing multinationals increasingly looking to SA.

The cost of living advantages and lifestyle experience that Adelaide has long enjoyed are on the rise in terms of “things that matter” for large employers.

You no longer need to live where you work in knowledge-based industries.

Working during a global pandemic is proving the possibility of working from anywhere.

For those in professional services, they now don’t need to be permanently based in a major city.

We heard this loud and clear from our people at PwC, with numerous requests to move to smaller cities or regional areas – for example back to their home town to live with their parents to save on rent.

Many believe that getting paid a little less and commuting a little more, is well worth an easier lifestyle, cheaper housing costs and affordable schooling fees.

Organisations will ‘de-risk’ their offshoring centres

Businesses are realising they can enhance many of their functions with remote workers within Australia.

Over the past few years, organisations here have built massive offshore hubs countries like India, the Philippines or Indonesia.

But more recently, offshoring has seen a decline – particularly this year as these hubs themselves have also struggled with lockdowns.

Additionally offshore centres rely on a rotation of workers from Australia to manage quality, and with international travel off the cards for some time to come, a window exists for Adelaide to benefit.

Governments will invest more in the defence sector

The defence sector will attract more investment by governments and it will target high tech and cyber.

SA has a unique opportunity to spin off high tech start ups and create a global reputation. What an opportunity for Adelaide.

Australia will continue to attract foreign exchange students

Medium term, international students will return to Australia.

For parents overseas, Australia stands out as the safer place to send their children, compared with others like the US and UK, where COVID numbers continue to jump.

Interstate migration will increase

As COVID-19 continues, attention is turning to the impact of the pandemic on population size, structure and distribution across Australia.

Over the last decade, net overseas migration has been the main driver of population growth in Australia.

Now, Aussies are going to want to get out of their territory or state for recreation or just a change of scene.

But they can’t leave the country for a while yet. So winner cities here will be Brisbane and again Adelaide, with plenty of Melburnians already driving across the border. And of course, more people means more business, more economic activity and more jobs.

Tom Seymour is advisory firm PwC Australia’s chief executive officer.