Greetings from Freight Week 2007 in Melbourne. I thought I would start my reports on the week by giving you a quick insight into Transport & Logistics in Australia.
Firstly, Australia has some very similar issues to New Zealand.
• The average age of their drivers is 48 (NZ in their 50’s)
• They are struggling to be seen to be sexy enough to attract Gen Y’s and now Gen Alpha.
• They have reasonably high interest rates (although they are 2% below NZ)
• The cost of fuel is high.
• Unemployment is at all time lows.
• The industry is going to double by 2020.
Next, they actually bundle all of transport and logistics (T&L) together and I’ll post more on that later. In Victoria alone they have 330,000 people employed in T&L and it makes up 14% of the Gross State Product. Nationally, T&L employs 4.5% of the Aussie workforce, is 15% of GDP and the industry contributes A$76 billion to the ecomony.
Finally, the Linfox CEO spoke at lunch and said they would not be acquiring much in the next 18 months (He said they are preparing for large Asian acquisitions) Anyway the issues they face in the next 18months is higher fuel rates and higher interest rates, and they appear to be preparing to weather the storm of a slowing economy.
All in all, a very interesting day yesterday and I came away with a few ideas about what NZ could do better to improve the Transport & Logistics employer brand.