Industry Analysis & Industry Trends
The Integrated Logistics sector provides door-to-door transport, storage and distribution services. It includes transport operators such as trucking and railroad companies, storage facilities, freight forwarders, customs brokers and infrastructure operators. Over the five years through 2013-14, sector revenue is forecast to grow by an annualised rate of 3.8%, to reach $101.3 billion. The recovery of demand from major markets has driven the lift in sector performance over this period. In the base year, 2008-09, sector performance stagnated as the global financial crisis and a slower domestic economy caused retailers, wholesalers and manufacturers to cut orders of new stock and run down inventories. This resulted in a decline in imports and falling demand for trucking and warehouses... purchase to read more
Industry Report - Industry Investment Chapter
The sector exhibits a medium level of capital intensity, with variations between segments. Overall, the sector spends $0.20 on capital for every dollar spent on wages. Some areas of sector activity, such as airline and shipping operations, railroads, port operations and even warehouses, require large capital investments. At the other end of the scale, road freight, customs brokerage, professional and consultative services, and freight forwarding require much lower levels of capital investment.
The level of capital intensity has been increasing steadily over the past five years. With competition in the industry increasing, the use of advanced technology systems has become significant in the delivery of fast, cheap and profitable services... purchase to read more