In my region: Northern Rivers, NSW

The Northern Rivers region, which occupies NSW’s northeastern corner, is famous for its surf beaches, lush hinterland and subtropical climate. 

Among its best-known towns are Byron Bay and Tweed Heads on the coast, and Grafton and Kyogle inland. 

The region's economic development strategy identifies four macroeconomic trends likely to shape its future:

1. Digital transformation: Enabling local businesses to expand geographically
2. Changing migration patterns: New residents moving to the region despite working remotely elsewhere
3. Shift to net zero, with opportunities in renewable energy driven by the region’s traditional links to environmental sustainability
4. Uncertainty amid climatic events: Create immediate need for greater economic, infrastructure and community resilience 

Agriculture, healthcare and tourism are growth industries, despite the difficulties of recent years, and manufacturing is also posting modest gains.

The population has grown 2.5% since 2018, reaching 159,526 in 2021, while unemployment rates have remained more or less stable. As at June 2022, unemployment was 5.8% in Lismore, 4.4% in Byron Bay and 2.8% in Ballina – compared with a NSW benchmark of 3.3%.

Meanwhile, the median house price has increased by more than 50% across the region since 2018. As at June 2022, they were $1.6 million in the Byron LGA, $1.07 million in the Ballina LGA and $640,000 in Lismore. As at July 2021, the price-to-income ratio was 11.73% – 3.61% higher than the NSW benchmark.

Growth despite external challenges: Tech Lab and Fudge Yamba

In 2017, Alex Panetta left southern Italy for the coastal town of Yamba, 90 minutes’ drive south of Byron Bay. 

“I came with no money and no English,” he says.

“I came straight to Yamba to start a job as a waiter in an Italian restaurant, which was advertised on Facebook.”

Panetta worked 60-70 hours a week to earn money to organise a visa for his Italian partner, who, along with his first daughter, soon joined him.

Fast-forward seven years, and the couple owns two businesses in town – Tech Lab and Yamba Fudge. Plus, they welcomed a second daughter 18 months ago.

“I always wanted to start something in Yamba,” he says.

 “I’ve always had an entrepreneurial mindset – I used to have a little cafe in Italy.”

Tech Lab, which services mobile phones, was founded in Panetta’s garage. 

“Yamba had no phone repair shop,” he says. 

“I started doing repairs from home, and I was smashed from day one.” 

In 2019, a rental came up in the main street, and Tech Lab moved in. Meanwhile, Panetta’s wife started working for the Tech Lab landlord, at another local retailer Yamba Fudge. 

“We became close with the landlord, and, in 2023, when they were looking for someone to buy the fudge shop, we decided to take over. Now we’re living behind it."

Doing business in Yamba isn’t without its challenges. Panetta identifies three.

The first is the rising cost of housing. 

“The place I rented seven years ago for $350 per week is now $650,” says Panetta. 

“Before, you could buy a house for $600,000 – now you need at least a million.”

This impacts locals, as well as the spending power of tourists – more expensive accommodation means less money to spend around town.

The second is the weather.

“If Yamba floods, then, once you get in, you can’t get out,” says Panetta. 

He believes that recent heavy rain reduced tourist numbers over the April school holidays.

The third is a shortage of employees.

“We used to have a backpackers’ [accommodation], and people staying there used to fill all the positions in local cafes and restaurants,” he says.

“But, after COVID, it was turned into a brewery and hotel, so we don’t get any backpackers here whatsoever. It’s almost impossible to get staff.

“At the moment, around 20–30% of cafes and restaurants in town are for sale.”

Panetta’s observations reflect concerns raised by stakeholders across the region in a consultation with the NSW Government in 2023.

Despite these challenges, both Tech Lab and Yamba Fudge are growing steadily. 

“In November last year we started serving gelato at the fudge shop – authentic Italian gelato that we make – and over Christmas it was unbelievable,” he says.

“We extended our hours till 9pm. Summer was crazy.”

Local base, national reach: Circl Group

Brothers Aaron and Connor Aitken, and best mate Blake Waters, all grew up in Kingscliff, a coastal town in the Northern Rivers’ northeast. 

They worked in various construction roles before joining forces with Joshua Sattler in April 2021 to found Circl Group. It provides building solutions and field service management across a range of sectors.

By 2023, the company had 13 service centres across Australia, and was named the second fastest-growing startup on the Australian Financial Review’s 2023 Fast Starters List. Revenue increased from $15 million in FY21 to $30 million in FY23.

Circl is an example of the way in which digital transformation is enabling businesses to remain local, while expanding into national markets. 

“Despite [our growth], [we keep our headquarters] in Kingscliff,” says Sattler, who is CEO.

“It’s where Aaron, Connor and Blake grew up, where they now raise their children and give back to the community, and where we can service the entire east coast of Australia from a central point.”

In addition, the location provides fast and dependable access to a wide range of trades and services. 

Over the past three years, Sattler has noticed changes in the way people want construction done – locally and beyond.

“We’ve noticed a new desire for fixed-priced product and servicing, [including] assured pricing, transparency in costs, customer centric servicing, and speed and agility in every process,” he says.

“Some of these elements are not usually applied to this industry, but we believe they can be, and are actively pursuing this to be a unique offering by Circl in the coming months.”

And the company has even bigger plans.

“Our ambition is both bold and clear: to become the largest multi-trade workplace in Australia by 2028.”

Economic trends are impacting regions in varying ways. Share what’s happening in your region, and discuss how local businesses are facing challenges and grabbing opportunities: comms@publicaccountants.org.au