Industry Analysis & Industry Trends
Operators in the Grain Storage industry have struggled over the past five years. Industry revenue is forecast to fall at an annualised 2.1% over the five years through 2016-17, to total $2.4 billion. However, this result is not reflective of the volatility that many industry operators have experienced over the past five years. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall levels have influenced industry demand and therefore earnings. Additionally, a record national grain harvest during 2011-12 created a high base year and skewed the industry's revenue growth figure for the five-year period. Industry revenue is forecast to contract 5.2% during 2016-17, due to reduced demand from grain growers for storage services... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. In 2016-17, for every $1.00 spent as wages, an estimated $0.31 is invested in capital. Capital expenditure is required to build silos, other storage facilities, elevators and conveyor belts. Purchasing land and large properties such as storage sheds also contribute to capital costs, although many grain storage providers rent these facilities to reduce their capital requirements.
Labour is used to operate and maintain loading and unloading equipment. Employees are also required to complete management, pest control, and grain segregation and classification tasks. The industry uses casual and seasonal labour due to volatile demand for services and revenue... purchase to read more