Delivering growth: New technologies improve efficiency while outsourcing trends drive demand

The Integrated Logistics sector provides door-to-door transport, storage and distribution services. The sector includes transport operators such as trucking and railroad companies, storage facilities, freight forwarders, customs brokers and infrastructure operators. Sector revenue is expected to grow at an annualised 0.9% over the five years through 2018-19, to $91.2 billion. While demand from the Manufacturing division has fallen over the past five years, increasing international trade has underpinned sector revenue growth. The sector is expected to expand by 1.5% in the current year on the back of rising downstream demand and the ongoing trend towards outsourcing more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • New automation and tracking technologies have enabled greater economies of scale
  • Declining fuel prices passed on to consumers in lower prices has boosted industry demand
  • Increasing international trade is anticipated to underpin sector revenue growth
  • Industry Report - Starting a New Business Chapter

    The sector is characterised by moderate barriers to entry, although there is significant variation between segments. For example, the road transport segment has low barriers to entry, with few regulatory requirements and low capital investment needed. Potential entrants into this segment can operate with a small truck or van, and a mobile phone. These characteristics have encouraged many small owner-operators to enter the segment. Barriers are moderate in the warehousing and storage segment. Warehouses have become larger and more complex over the past decade with computerised order picking and voice-directed technology becoming increasingly common. As a result, the capital investment required to enter this segment has increased significantly...purchase to read more.

    Additional Insights for the Integrated Logistics Industry

    IBISWorld has determined the most important Key Success Factors for the Integrated Logistics are:

  • Proximity to key markets
  • Access to highly skilled workforce
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Road freight service price and Total merchandise imports and exports in the Integrated Logistics industry impact industry performance..

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    What's in this report

    What is the Integrated Logistics Industry?

    Companies in this sector provide logistics, transport, storage, handling, distribution and other support services to transport companies as part of third-party vertically integrated supply networks. The sector does not include bulk freight services, which are typically provided by water freight transport and rail freight transport operators.

    Industry Products
  • Road freight transport
  • Rail, water and air freight transport
  • Postal and courier services
  • Freight forwarding and customs brokerage
  • Warehousing and storage services
  • Handling and distribution services
  • Industry Activities
  • Freight transport by road
  • Freight transport by rail and air
  • Freight transport by water
  • Freight forwarding and customs brokerage
  • Storage and warehousing provision
  • Goods handling and distribution
  • Postal and courier delivery services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Road freight service price
  • Total merchandise imports and exports
  • Demand from wholesale trade
  • Trade-weighted index
  • World price of crude oil

  • Current Performance
  • Volumes and structure
  • Investment and efficiency
  • Fuel and freight rates
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Sector consolidation
  • Improving infrastructure
  • Table: Integrated Logistics Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Integrated Logistics Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry and Fishing
  • Manufacturing
  • Wholesale Trade
  • Retail Trade

  • Key Selling Industries
  • Commercial Vehicle Wholesaling
  • Petroleum Product Wholesaling
  • Railway Equipment Manufacturing and Repair

  • Products & Services
  • Road freight transport
  • Postal and courier services
  • Freight forwarding and customs brokerage
  • Rail, water and air freight transport
  • Handling and distribution services
  • Warehousing and storage services
  • Chart: Integrated Logistics Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Wholesalers
  • Manufacturers
  • Other markets
  • Chart: Major Market Segmentation for the Integrated Logistics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Integrated Logistics

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Integrated Logistics Industry

  • Industry Globalization
    Australian Postal Corporation, Toll Holdings Limited,
  • Table: Australian Postal Corporation - financial performance
  • Table: Toll Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Integrated Logistics Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Integrated Logistics Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Freight
  • Unpackaged goods transported in large quantities, predominately mineral and agricultural products.
  • Fuel Surcharge
  • An additional charge introduced by transport operators to pass on changing fuel costs to customers. Surcharges are charged in addition to the freight rate.
  • Just-In-Time (Jit)
  • An inventory management system whereby inventory is received only when needed, reducing inventory costs.
  • Non-Bulk Freight
  • General merchandise freight that is carried in standardised containers for transport, such as shipping containers, general freight wagons or on pallets.
  • What Our Customers Say

    Why buy this report?

    The Integrated Logistics market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Integrated Logistics:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Integrated Logistics market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Integrated Logistics, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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