What is the state of the Australian warehousing sector this year?
In a sector as broad and diverse as warehousing, it's important for business leaders to always be ahead of the curve. While your particular part of the industry could be progressing well, there might be new and inventive practices that could take your enterprise to the next level.
According to trend data from the Australian Bureau of Statistics, the transport, postal and warehousing industry employs around 635,000 people – about 5 per cent of the national workforce. This number has been steadily increasing over recent years, thanks to our expanding economy.
So, will 2018 bring more good times for those in warehousing?
Major growth expected in coming years
In late 2017, Ken Research released its latest Australia Logistics and Warehousing Market by Sector report – an overview assessment of the strengths of the industry moving forward. Overall, the outlook is positive with the market expected to reach AUD$187 billion by 2021. Why is this the case?
- Investment in infrastructure
As Australia's population has continued to rapidly grow so has the need to develop sustainable infrastructure. From the ongoing rail development in NSW to the expansion of airports, the federal government is committed to improving major facilities. This is having a trickle-down effect on the growth of the logistics and warehousing industry.
- The rise of artificial intelligence (AI) and e-commerce
In recent years, we've seen a considerable rise in the use of AI across the world as well as more consumers taking advantage of e-commerce. E-commerce Foundation reports that around 65 per cent of Australians shop online and this figure is only going up with the proliferation of the internet. As such, warehousing facilities from a retail background are seeing more demand than ever.
- Demand for Australian agriculture
With the middle class population in Asia expanding and demanding higher quality goods and services, the spotlight is heading towards the Australian agricultural sector. Exports continue to rise year-on-year and with Australia's reputation for quality produce around the world, the warehousing and cold chain logistics industry is taking advantage.
How to support your warehousing business
During economic highs, it's important for business leaders to invest in talent and push forward with expansion and development plans. This is where the team at Baytech can add value to your operations.
To learn more about the services we provide in the warehousing and industrial spaces, check out the Baytech site here.