Industry Analysis & Industry Trends
The Road Freight Transport industry dominates the Australian non-bulk freight market, leveraging advantages in price, speed, convenience and reliability. The industry's largest vehicles transport goods between and across states, competing successfully with rail, water and air freight industries. Within cities, light commercial vehicles are the dominant form of transport for the final stage of delivery. The industry's major markets span the entire economy and demand for road freight transport services is a lead indicator for changes in economic growth. Businesses hold less stock prior to and following economic downturns, which reduces demand for the transport of goods.
Industry revenue is forecast to grow at a compound annual rate of 2.6%... purchase to read more
Industry Report - Industry Investment Chapter
The industry is characterised by a medium level of capital intensity. IBISWorld estimates that the industry invests $0.25 in capital for every dollar spent on wages. The level of capital intensity differs substantially based on the size of the operator, with larger firms requiring much greater capital investment. Wages are the industry’s largest expense, and the use of subcontracting within the industry and the high number of owner-operators suppresses the true level of labour intensity.
The industry generates revenue on each trip based on distance and it is common 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 as low as $1,000... purchase to read more