Recent Release | 01 Mar 2024
The value of goods through Australia’s industrial assets
Macroeconomic Consulting Team
Oxford Economics Australia was engaged by the Property Council of Australia to undertake a study into the economic importance of the industrial and logistics sector in Australia by quantifying the value of goods flowing through industrial assets.
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.
Our analysis estimated that $1.2 trillion worth of goods flowed through industrial assets in FY22. Many sectors rely on industrial assets to support growth and activity:
- 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.
The experts behind the research
Our Macro Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the-art techniques. Lead consultants on this project were:
Emily Dabbs
Head of Macroeconomic Consulting
Hayden Toohey
Economic Analyst, Macroeconomic Consulting