2014 Australian Logistics Council Report - now available for download
A report has been released last week which has revealed the logistics industry as a significant contributor to the Australian economy.
The report, titled ‘The Economic Significance of the Australian Logistics Industry’, was commissioned by The Australian Logistics Council (ALC) to quantify the true size, scope and breadth of the logistics industry. The report also encourages governments to focus on delivering reforms in a number of key areas, such as infrastructure investment, national regulation and better freight planning, to improve the efficiency of the sector and to achieve economy-wide benefits.
SCF CEO, Richard Sykes’s appointment to the ALC Board earlier in 2014, will allow SCF and the container industry, ongoing contribution to the discussion on the rising national freight task which is set to double by 2030.
“As a board member, I look forward to working with the ALC to formulate new ways to innovate the industry and adopt a national approach to improve supply chain efficiency.”
Produced by ACIL Allen Consulting, the report shows four key takeaways about the Australian Logistics Industry, which:
- Represents 8.6% of the nation’s GDP in 2013
- Directly contributed $131.6 billion to Australia’s economy in 2013
- Employs around 1.2 million people
- A 1% improvement in the efficiency of the sector generates $2 billion of gains to the economy each year. Sectors to benefit most from this 1% increase in logistics productivity would be forestry, manufacturing, processed food, wholesale and retail trade and construction
Michael Kilgariff, Managing Director of ALC, said the report shows the logistics industry is the backbone of the Australian economy.
“The report demonstrates that with focus and attention on reform, greater efficiencies can be achieved across the supply chain and all Australians will benefit as a result.”
With a supply chain efficiency improvement as little as 1%, generations in the billions could be gained to the country’s economy each year, meaning inefficiencies could present significant costs.
“Australia’s rising freight task makes it essential that government, industry and the community put aside sectional and regional interests and focus on improving national supply chain efficiency for the greater national good”.