Industry Analysis & Industry Trends
The Road Freight Transport industry leverages advantages in price, speed, convenience and reliability to dominate the Australian market for non-bulk freight. The industry's largest vehicles transport goods between and around states, competing successfully with the rail freight, water freight and airfreight industries. Within cities, light commercial vehicles are the dominant form of transport for the so-called ‘last mile' of delivery. The industry's major markets are diversified across the entire economy and demand for road freight transport services is a lead indicator for changes in economic growth. Leading into an economic downturn, and for a period afterwards, businesses hold less stock and this reduces demand for the transport of goods... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity, with $0.18 spent on capital for every dollar spent on wages. Wages are the industry's largest expense at 24.2% of revenue in 2013-14. The use of subcontracting within the industry and the high number of owner-operators suppress the true level of labour intensity.
Revenue is generated on a trip basis based on distance and it is not uncommon for interstate trucks to travel 300,000 kilometres per year. Although prices vary depending on the size and nature of trucks, a light commercial vehicle can be purchased for less than $1,000. A new prime mover starts from $110,000 and increases rapidly in price. Larger operators have increased capital costs by investing in storage and maintenance facilities and yards to store their vehicles... purchase to read more