TRANSPORT & DISTRIBUTION
TRANSPORT & DISTRIBUTION
Industry overview
Australia’s transport, distribution and logistics sector is a leading barometer of economic activity, as it intersects with most of Australia’s key industries. Medium term growth prospects forecast total demand for freight to increase over the next five years at a compound annual rate of circa 3 to 4% to 2019.
Despite the potential for growth, Australia’s under investment in infrastructure will see road transport continue to dominate this sector as the prime means of moving goods in the country. A highly fragmented industry, road transport competes aggressively for market share.
Key influences
Rapid transformation of the Australian economy as the manufacturing base declines, the mining sector shifts from construction to production, consumer use of online technologies, global demand for our commodities and agricultural products is changing the mix of freight demand, requiring operators to review business models to respond to structural change.
Operators fighting for market share face challenges to profitability from growing skills shortages, rising wages costs (to both attract staff but equally to meet expanding WH&S standards), reductions in fuel rebates, increasing fuel costs, customer pricing demands and the need to deliver more integrated services, rising vehicle safety requirements and audits, the likelihood of future increases to fleet financing costs from interest rate uplifts and the threat of potential higher access costs to the country’s road networks.
REID Logistics can help transport providers identifying critical issues, develop the right strategies and assist implementing necessary solutions to respond to current challenges and position organisations for success.
ABOUT US
Phone number
E-mail address
ABOUT US
Reid Logistics is an independent logistics service provider, delivering a wide range of transport and customer- specific logistics services.
Phone number
Call us: 07 3172 7540
E-mail address
graeme@reidlogistics.com.au
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