Industry Analysis & Industry Trends
Since the mid-1990s, the development of vertically integrated supply chains in Australian transport industries has transformed the General Warehousing and Cold Storage industry. Warehouses are no longer simply vast, temperature-appropriate spaces to store stock. They are complex distribution and information centres linking the entire supply chain, facilitating just-in-time supply of stock. Advances in the industry and across the supply chain have allowed the average amount of inventory held as a share of sales by major markets to decrease. Manufacturers, retailers and wholesalers have adjusted their supply chains to hold less stock on hand. Hence, the volume handled by the industry is growing, but the time each unit spends in storage is decreasing... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are medium, and relate to the need for capital to fund the development of new sites and the difficulty of accessing suitable locations. Price competition is also a factor in the small to mid-tier of the industry, where existing operators use their economies of scale relative to new comers to engage in price competition.
More capital is required to enter into the specialised areas of the industry, with investment required in equipment for moving and sorting goods. Competition in these areas is more service based, which means that clients are more likely to enter into long-term contracts once they have been won over by new operators. Industry participants reduce their use of capital by leasing sites from commercial property operators... purchase to read more