Industry Analysis & Industry Trends
The General Warehousing and Cold Storage industry has achieved stable growth over the past five years. The ongoing development of vertically integrated supply chains in Australian transport industries has continued to transform warehousing and storage services. Warehouses have developed to become complex distribution and information centres that provide linkages along a product's entire supply chain, facilitating just-in-time supply of stock. Manufacturers, retailers and wholesalers have adjusted their supply chains and now tend to hold less stock on hand. The trend towards outsourcing warehousing to third-party operators has boosted demand for general warehousing and cold storage services.
The industry is forecast to grow at an annualised 2.5%... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. In 2015-16, for every dollar spent as wages, an estimated $0.24 is invested in capital. Depending on their size and main operations, industry operators invest in machinery and equipment such as forklifts, cranes, motorised docks and pallet trucks. Some firms may incur operating leases rather than purchasing this equipment outright. Firms that purchase their own warehouses and storage facilities also have greater capital outlays compared with companies that rent these facilities.
Cold storage providers are required to invest in refrigerated facilities and large-scale cool rooms. Large refrigerated cold storage facilities are therefore more capital-intensive compared with self-storage facilities... purchase to read more