Australian Freight And Logistics Market To Enjoy Continued Growth Until 2024
- Written by Bri Billings
Despite the contraction of the economy by 0.3% in the first three months of 2020, and by a further 7% in the June quarter, the economy has enjoyed its largest quarterly expansion since 1976 in the three months leading up to September 30, reports The Sydney Morning Herald. Digitalisation, new shopping behaviours, and the JobKeeper scheme have helped many businesses either stay afloat or thrive, and some sectors - such as freight and logistics - are expected to witness a growth rate of 2.5% from 2019 to 2024. The market is being bolstered by increasing investment in infrastructure and the role played by the government in strengthening the sector. The likelihood of rivals entering the market is low owing to the high costs involved in launching, and the already tough rivalry between top tier players - as reported in Australia Freight and Logistics Market - Growth, Trends, and Forecast (2020 - 2025).
Trends Driving Market Growth
One of the main reasons for the continued growth of the freight and logistics market in tough times is the big boom in online shopping. IBISWorld reports that the online shopping industry has grown dramatically in recent times, with rapid growth in Internet and broadband penetration and consumer interest in e-commerce aiding the trend. Customers value the border-free nature of online shopping, the ability to find items at lower prices, and the immense amount of choice the online experience offers. The sector was expected to grow at around 17.3% between 2015 and 2020.
Growing Jobs In The Logistics Sector
Supply and logistics jobs are varied, and are currently enjoying healthy growth on a global basis. SEEK job postings show that the number of jobs posted at the end of May 2020 revealed a 49.2% rise compared to the April 2020 average. SEEK reveals that the biggest boom is seen in manufacturing, transport and logistics. Logically, jobs in the supply chain are also seeing a rise, owing to the many stages involved in transporting goods from one part of the country to another. New technologies such as AI and robotics are also seeing job shifts, with more repetitive tasks being assigned to machines, and skilled jobs such as planning, route selection, and other jobs requiring a weighing of pros and cons being left to human teams. SEEK data shows that jobs in everything from machine operation to warehousing, storage and distribution, and road transport are all on the up.
Key Trends
The Australia Freight and Logistics Market - Growth, Trends, and Forecast (2020 - 2025) has indicated that one of the biggest trends in upcoming years will be that of small goods transportation, since the number of light commercial vehicles has grown by 35%. Another big player will be urban freight, owing to the projected population growth in major cities. Finally, e-commerce is expected to enjoy continued growth, with as many as 33% of Australian e-shoppers buying goods from abroad owing to the easier availability of products, and 32% doing so because offers are appealing. In Australia, online sales are expected to grow exponentially, meaning a boost for freight and logistics operators dealing in cross-border trade.
The economy may need to rise to the challenge of the current global crisis, but the freight and logistics sector is showing healthy growth. The rise of online shopping during the crisis has led to a need for stronger, more robust freight and logistics services. Predictions indicate that e-commerce will continue to appeal to Australians, owing to interesting offers and a wide arrange of offers from abroad. New technologies that may fill the gap posed by the big demand include drone delivery, machine learning, and cutting edge transport and warehouse management systems.
