Rennie launches economic model to support policy and transition planning
Rennie has launched a new economic modelling capability aimed at helping governments, industry and investors navigate Australia’s energy transition, regional development and long-term infrastructure needs.
Hitting the market under the brand name ‘Recon’, the new economic model is a full-stack, spatially detailed economic model designed to produce 30-year projections of population, employment, industry output, housing demand and macroeconomic indicators – broken down by sub-regions and by more than 100 industry sectors.
According to Rennie, the model has been purpose-built to support decisions in sectors facing major structural change, including energy, resources, infrastructure and housing.
“Governments and investors are increasingly focused on the regional and distributional impacts of Australia’s transition,” said Eamon McGinn, who recently joined the firm and leads the Economics offering. “They need modelling that’s robust enough for Treasury but practical enough for real-time planning – especially when assessing major decarbonisation and infrastructure strategies.”
Presented as a lightweight, transparent modelling option, McGinn said that Recon is capable of producing rapid forecasts and scenario testing across thousands of regional and sector combinations. Its outputs include GVA by sector and region, employment by ANZSIC Level 4, floor space and housing demand projections, and forecast input-output tables at national and sub-national levels.
“Recon can support rapid economic assessments and offers a complementary alternative for long-run planning and policy development.”
Economics expansion
For Rennie, the model extends its Economics offering and complements its other services that build on economic modelling insights. The model has for instance already been applied in projects involving decarbonisation, regional investment, and major project business cases.
CEO Simone Rennie said: “The Economics offering is an exciting part of our new, integrated Economics, Reform and Sustainability service area – focused on advising governments, industry and investors on policy, reform and regulation to enable decisions that deliver economic growth, social progress and sustainable impact.”
Rennie
The launch of Recon continues a period of service line and offerings growth at Rennie. Over the past year, the private equity-backed firm has grown to more than 80 staff across capital advisory, policy, energy, infrastructure and reform. Its client base includes federal and state governments, investors, and industry players operating in regulated environments.
