Logistics is backbone of Oz economy: Report

Governments at all levels have been thrown a challenge to improve efficiency in the logistics industry by a major report published in July by the Australian Logistics Council, the peak industry body for the Australian logistics industry.


Logistics is backbone of Oz economy: Report


Governments at all levels have been thrown a challenge to improve efficiency in the logistics industry by a major report published in July by the Australian Logistics Council, the peak industry body for the Australian logistics industry. The report, produced for ALC by ACIL Allen, shows that the Australian logistics industry adds A$131.6 billion (US$123.3 billion) a year (8.6 per cent) to GDP and employs approximately 1.2 million people. Government figures also show that Australia’s freight volume is projected to increase by 80 per cent between 2010 and 2030 and triple by 2050.

The report also shows that inefficiencies in the industry will cost Australia dearly unless all governments continue to focus on reform of regulation and infrastructure. Reform such as this can improve supply chain efficiency and the report shows that a one per cent increase in productivity would increase GDP by $2 billion per year.

“Th i s landmark economic report shows the logistics industry is the backbone of the Australian economy, making an enormous contribution to GDP and employing more than 1 million Australians,” said Michael Kilgariff, ALC managing director. “The report also 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.