A Recent Published Report Revealed a Substantial Economic Impact of $1.2 trillion Generated by Industrial Assets

by IS_Indust

A recently released report sheds light on the significance of industrial properties as essential assets in the property sector. The report, conducted by Oxford Economics Australia for the Property Council of Australia, highlights that a staggering $1.2 trillion worth of goods passes through Australia’s industrial facilities each year. In the fiscal year 2022, the report estimates that 38% of household consumption, totaling $423 billion, was attributed to goods flowing through industrial assets like warehouses, manufacturing facilities, and distribution centers.

Matthew Kandelaars, Property Council Group Executive Policy and Advocacy, emphasized the pivotal role of industrial assets in the Australian economy and stressed the need to ensure an adequate supply to enhance productivity and support efficient business activity. He noted that industrial facilities, often overlooked compared to other real estate forms, play a critical role in moving goods into Australian homes and serve as gateways to the world. Over half of the goods passing through these facilities are either imported or prepared for export.

Kandelaars highlighted the shortage of warehouse space, with vacancy rates around one percent nationwide, which can lead to longer wait times and higher prices for consumers. He emphasized the need for more warehouse space near key population centers to support the growth of online shopping and meet consumer demands for faster delivery times. The report found that 44% of goods passing through industrial sites are consumed by other businesses, 34% make their way into Australian homes, and 54% are imports or exports. Kandelaars urged governments to reconsider zoning and planning laws for industrial assets to enhance the efficiency of supply chains, especially considering the crucial role these assets played during the pandemic in maintaining efficient supply chains for the economy.

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