Most of the industrial and logistics occupiers in Australia remain positive about financial growth prospects in the next 12 months, according to CBRE’s Australian Industrial and Logistics Occupier Survey.
The survey’s findings reflected a consensus on a favourable market environment, according to Kate Bailey, CBRE senior research manager. Only 25 per cent of respondents believe that business will remain the same in the near future, while 66 per cent expect to achieve financial growth.
Bailey said that surveys on what influences logistics companies’ decisions have remained limited. For this reason, the CBRE poll provided a somewhat rare insight on the industry’s general consensus on future growth prospects.
The most positive sector in terms of future business improvement comprises the retailing, warehousing and distribution sector, as 86 per cent of respondents believe that business would be better in the next 12 months. This positive approach would likely cause a continued investment in logistics equipment such as poly-woven strapping solutions for more secure cargo. Investments in modern resources would be necessary to sustain an expected increase in market value for the Australian logistics industry by 2021.
A rising offshore demand for agriculture products and cold-chain logistics would lead to a $187 billion market value for the warehousing and logistics industries, according to a Ken Research study. The integration and digitalisation of the supply chain have served as a foundation for this anticipated increase.
The Australian government’s planned infrastructure investments also contributed to the industries’ recent developments. It plans to spend $70 billion on transport infrastructure between 2014 and 2021, while $75 billion would fund road and rail infrastructure projects between 2018 and 2027.
The growth of the logistics industry in Australia relies on the sector’s decision to invest in modern technology and equipment. Demand also plays a key role, as it prompts companies to improve their business to sustain clients and build stronger trade relations.