Spotlight on increasing role of supply chain in economy

<p>The Australian transport and logistics industry will increasingly contribute to the nation’s economy, with sea, air and road freight volumes growing and rail quickly catching up, national and international supply chain and logistics experts said in a report today.</p> <p>Australia’s transport and storage industry was now the seventh largest employing industry and would grow by 1.6% every year for the next five years, the report said.</p> <p>The first annual report on the state of the logistics and supply chain industry in Australia is from the Logistics Association of Australia (LAA) in partnership with international consultants at the Logistics Bureau.</p> <p>The main threats to Australia’s growth was the credit crisis in the US, rising inflation, increased fuel and commodity prices and weaker consumer demand, the 2008 supply chain report said.</p> <p>It predicted the global economy would stabilise in 2009 and recover in 2010.</p> <p>LAA president Brad Harrison said that the report would provide the industry with research content and analysis.</p> <p>It comprised an economic update, a market update it defines market participants and reviewed Australian industry performance, he said.</p> <p>&#8220Transport and logistics are increasingly significant in Australia’s economy with a total product equal to 14.5% of GDP,&#8221 the report said.</p> <p>&#8220Road transport and services and storage are the major contributors to the industry gross product.&#8221</p> <p>The report said that freight volumes would continually increase due to demand from Japan, the nation’s largest export market, and China.</p> <p>Sea was the dominant form of international freight transport, with air having a significant share, it said.</p> <p>Road was the major player in domestic freight transport, but rail was quickly catching up.</p> <p>The report said that the Federal Government’s proposed infrastructure investments could significantly improve land transport infrastructure for road and rail.</p> <p>Fuel prices would continue to be a major challenge for the transport industry with wages, depreciation and rent contributing to the total cost of transport and warehousing, it said.</p> <p>Over the last year labour costs in the transport and storage sector increased by 3.8%, less than the country’s average rise of 4.2%.</p> <p>Mr Harrison said that the next supply chain report would focus on service providers, employment and training and regulatory environment.</p> <br />