THE MARKET

Online shopping has been the big influence on the courier pick-up and delivery industry as the focus on smaller parcel delivery from wholesaler/ retailer to customer shifts the business away from mining and manufacture transportation.

As online transactions increased between businesses and between consumers and business, the markets for industry services have expanded.

Report author Hayley Munro-Smith, writes “The growing diversity of major markets is likely to insulate the industry from future shifts in demand, helping to limit revenue volatility to a degree. Over the next five years, revenue volatility is expected to decrease, as online shopping becomes more commonplace and as the industry continues to expand into new markets.”

IBISWorld points out that significant investment in automated systems that provide clients with up to date information about their consignments is essential.

“To grow to a large interstate or international business, good freight forwarding skills or access to international transport networks are required. Larger industry participants are also required to have a large customer base, substantial investments (diversification) and volumes to reduce risk,” the report reads.

Looking at 10 year growth from 2012-13 to 2022-23, IBISWorld predicts an annualised contribution to the economy of 2.8 per cent, that compares favourably with an annualised GDP growth of 2.5 per cent. The industry is growing faster than the overall economy and more operators are expected to join the sector over this decade.