A new report by Oxford Economics Australia, commissioned by the Property Council of Australia estimates that $1.2 trillion worth of goods flowed through industrial assets in FY22.
Industrial assets, including warehouses, distribution centres and manufacturing facilities, play a vital role in moving goods through the economy in an effective and efficient manner. Goods from our domestic production sectors and imported through our ports and airports make their way through these assets to final consumers, which includes industry, households, government and overseas markets.
- Industrial assets are critical for supporting Australian business activity. Around 44% of the value of goods moving through industrial assets are consumed by businesses in their provision of goods and services to other parts of the Australian and global economies
- Household consumption of goods cannot occur without industrial assets. Around 34% of the value of goods moving through industrial assets make their way into Australian homes. This was over a third of total household consumption in FY22
- Australia’s connection to the global economy is supported by industrial assets. About 54% of the value of goods flowing through industrial assets are either imported into Australia or exported to the global market.
Industrial assets play an important role in the supply chain given the breadth of industries that rely on these assets to enable their economic activity. More efficient supply chains can help drive stronger economic growth, improve global competitiveness and reduce costs to businesses and consumers.
Improvements to industrial asset planning and associated infrastructure can result in more effective and efficient supply chains, for example:
- Zoning and planning for industrial assets is critical to supporting an efficient supply chain. Land constraints have put a greater emphasis on space utilisationof industrial assets, requiring a rethink of height restrictions for industrial-zoned land
- Retaining and managing industrial corridors around Australia’s ports and intermodal freight terminals is crucial to supporting productivity of industrial assets
- Improved planning of public transport infrastructure linking industrial hubs can reduce the barriers for business and industry collaboration, driving productivity growth.
