Not even the global wave of euphoria over the election of a new American president will immediately solve the most
Not even the global wave of euphoria over the election of a new American president will immediately solve the most complex and most devastating economic crisis in decades. And there are new warnings the situation could stall growth in the freight task domestically and overseas.
The ‘double the fight by 2020’ mantra the logistics sector has promulgated and built its strategies around may need to be reassessed. Australian Logistics Council (ALC) Chairman and former Linfox executive Ivan Backman tells SupplyChain Review the declining world economy will impact consumer demand for goods in Australia and will hit Asian demand for our lucrative minerals.
Retail demand will receive a boost from the Federal Government’s Christmas-time economic stimulus package, according to Backman. But in the short to longer term volumes could decrease.
Which is, perhaps, not all bad news. Our flat-out economy has driven demand for freight services faster than supply chain networks can keep up.
Now is the time to take stock.
To re-examine and re-engineer supply chain networks in light of tighter costs and slowing demand in traditional markets. Business is increasingly looking to its supply chain operations as the economic times get tough.
And governments must use this temporary breather to plan and build the supply chain links of the future. The economic downturn and slowing freight growth actually presents the opportunity to catch up on a long list of infrastructure projects vital to meeting even revised-down growth targets.
Indeed, infrastructure investment as an economic stimulant is one of the safest bets in a shaky market.
The freight task may not double as quickly as once thought, but it shouldn’t stop a doubling in the investment in Australia’s supply chain future.
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