Posts by Category: Australian Tracking Industry: Statistics, Trends and Overview

The growth of Australian transport industry is tightly connected with the growth of the entire economy. The four main transport sub sectors are road freight, rail freight, water freight and passenger transport, and they all contribute to the growth of the whole transport industry at a certain percent, with the road freight being the largest contributor.

Road freight transport contributes the most to the industry, with estimated 80% of the total revenue. This is due to the sector’s large exposure to retail and wholesale’s trade where a large number of used work trucks do most of the work in logistics. It is estimated that in 2014-15 the trucking industry’s growth will reach it’s pick due to improvements in the work conditions, mainly replacing the used work trucks with new ones, therefore improving road connection between key customer markets in mining, construction, manufacturing and agriculture industries.

This increase is also going to be supported by the various projects that have commenced under the National Building Program, which is transferring $36 billion for building infrastructure (roads, rail and freight). 70% of this funding is named for construction and maintenance of Australia’s road network. As a positive consequence to this, the department of Education, Employment and Working Relations estimates an increase in employment by 1.8 % in 2016-17.

The growth trend of the trucking industry is variable. Over the past decade it has eased to 3.5% per annum, compared to the 6.6 % per annum a decade earlier. This variable trend is largely reflected by four factors: economic activity, infrastructure improvement, quality of road freight services and competition. As the level of these factors changes over years, so will the growth of the trucking industry. Estimations are that by 2020 this industry will grow by 3.6% per year, which points out a small increase in all the determining factors mentioned before.

In conclusion, the current economic downturn, which dictates for companies to hold less stock, reduces the demand for road freight transport services, and since the key customers of the trucking industry are diversified across the entire economy, the estimated low growth during 2014-15 is a real indicator of the current economic situation in Australia.