Study Cites Australian Logistics Evolution as Factor for $187B Growth


Australia’s logistics and warehousing industries have become better in terms of an integrated and digitalised supply chain, which would allow it to reach a market value of $187 billion, according to Ken Research.

The research firm’s study cited the recent evolution of the sectors as a factor to achieve the higher value by 2021. It claimed that the developments had created a more productive and efficient system for distributing products from the point of origin to their destination.

Growth Drivers

One reason for the expected increase in the industry’s value stems from an increasing demand for Australian agricultural produce from abroad and cold chain logistics, according to the report.

Government infrastructure investments also served as a factor, including a $70 billion budget for transportation between 2014 and 2021 and a $75 billion funding for road and rail systems between 2018 and 2027.

The study cited the freight-forwarding industry to remain as the largest revenue source of the sector. This expectation should lead logistics firms to invest in products that secure cargo shipments.

Suppliers of Cordstrap here in Australia, for instance, would be important as the industry attracts international players.

Near Future

In the next 12 months, a survey of logistics occupiers showed that a majority expect that business would improve, according to CBRE.

The survey’s findings partly aligned with the Ken Research study, as 66 percent of respondents anticipate financial gains and only 25 percent expect neutral growth in the near future.

On the other hand, manufacturers would most likely prefer high-tech manufacturing as 21 percent favour a smaller footprint, according to CBRE senior research manager Kate Bailey


Australia’s supply chain owes its improvement to the industry’s ongoing pursuit to use modern tools and strategies, whether it is a digital system or simply investing in a better cargo-securing solution.