Economy another three years from full recovery: Crook


Logistics leader DHL has steered away from acquisitions to organic growth

Economy another three years from full recovery: Crook
Economy another three years from full recovery: Crook
By Ruza Zivkusic-Aftasi | October 7, 2013

Logistics leader DHL has steered away from acquisitions to organic growth due to the current state of the economy, Global Forwarding Freight CEO Roger Crook says.

During his address at DHL’s launch of a new global forwarding facility at Matraville in Sydney, Crook told attendees the global economy was better than last year but adds it will take another two to three years to fully recover.

While saying the manufacturing sector is under pressure because of the high dollar and cheap overseas labour, Crook believes Australia is still faring better compared to the rest of the world.

"When you see your unemployment rate in comparison to many countries in the rest of the world, you’re in a very strong position and I think it’s very positive," Crook says.

"The economy has changed here in Australia with the manufacturing declining and service industry coming back but I also think this is a very entrepreneurial part of the world and I have no doubt that the new industries will grow and that will help us from an import and export point of view."

Crook expects to see further growth in live sciences, including aviation and precision manufacturing but says sectors such as technology and heavy equipment engineering are suffering due to slow demand from Asia.

DHL saw a slowdown in 2009 during the global financial crisis but recovered quickly the next year later, he adds.

"We have slowed down on our acquisitions as a company and we focus more on organic growth and improving our processes," Crook says.

"What we learnt from it is how to be aware and that crisis can happen very fast.

"I think the real question is how do you react quickly and for any company in financial crisis – what do you do?

"The challenge is how do you minimise your cost to get the business aligned with what happens out there.

Crook is hoping the new Federal Government will make it a priority to invest in the economy and growth, saying infrastructure is critical.

"For instance the Sydney Airport, with the growth in population and growth in the country, as a company that does import and export it needs to make an effort," he says.

The new 19, 619 square-metre warehouse, of which 5,000sqm is office space, was launched last Thursday.

Located near Port Botany and Sydney Airport, the $61.6 million custom-built facility was completed in May and includes temperature controlled space.

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