REGIONAL communities can be subject to a lot of hits, with mining downturns, drought, bushfires and pandemic-induced lockdowns just some of the turmoil in recent years.
Options for building resilience against these "shocks" were among the key topics in the final Regional Australia Institute event for 2020, held online late last week.
University of SA business school executive dean Andrew Beer said there were two main options for regional towns - specialising in one particular industry or diversifying into several areas.
"There's the argument if we depend on one or two industries alone, if there is a shock in that industry - drought, changes to trade terms or labour force issues - all of a sudden industry declines and a region suffers," he said.
Professor Beer said a diversified economy could also potentially allow more room for entrepreneurs to thrive as there were more niches to develop.
But he said there were also examples of specialised towns, such as mining or agriculture reliant, that developed efficiencies, enabling them to grow.
"They do one or two things and do them well," he said.
UniSA research looked at 180 centres across Australia, using the 2016 census to assess a town's growth, using metrics such as wages and population.
While each community was unique, he said there were some common themes.
"If they do diversify, it's best to build on existing strengths," he said.
"Some towns get the best benefit of growth if (a new sector) takes place alongside an industry they already specialise in."
Prof Beer used Whyalla as an example of a specialist town that had suffered in recent years, but appeared to be on a growth track.
He said part of this growth could be linked to the newly-emerging renewable energy sector being developed in the region.
"It's a good fit since one-third of the cost of steel production is electrical costs," he said. "But it's also reliant on natural resources and inexpensive land to move towards a stronger future."
He also highlighted Hay, NSW, which "had been a town of population loss, but had achieved population stability". He said the region had diversified somewhat by shifting from a solely pastoral-driven focus, into growing cotton and other irrigated crops.
But he said this could also be seen as a story of further specialisation in agriculture, using many of the same skills and resources.
Prof Beer said each town was different, with its own opportunities, but it was best if the drive came from the town.
"What's really important is a shared vision - sometimes crisis makes having the conversation easier but then the journey starts and you have to do the hard work," he said.
While looking at the future of regional towns, Prof Beer expected the much-touted COVID-inspired regional relocation would just be a "moderate change", with the towns to benefit in close distance to larger centres.
But Bendigo and Adelaide Bank economic and market research head David Robertson said as well as anecdotal reports of relocations, property prices also showed confidence.
He said Melbourne and Sydney had experienced a 2 per cent to 5pc drop in median prices, while regional property continued to grow.
"Having 40pc of the population in two capital cities is a barrier," he said.
"There are opportunities for further decentralisation."
Federal Regional Health, Regional Communications and Local Government Minister Mark Coulton said this was a rare chance to market regional Australia to a "captive audience".
"People are looking across regional Australia to have an experience and our challenge is to seal the deal on what was an enjoyable visit into someone thinking about relocating," he said.
Mr Coulton said he had heard of Regional Development Australia organisations leaving flyers in hotel rooms talking up the cost of real estate and job opportunities in that town.
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