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Confidence increases for transport industry (Part 2)

Confidence increases for transport industry (Part 2)

In the second instalment of our two-part series, we’re going to look more closely at transport industry infrastructure and the role this part of the industry plays in generating consumer confidence and economic growth.

Is transport the key to consumer confidence?

As we explained in the first post in this two-part series, the latest Sensis Business Index for June 2016 showed that confidence in the transport and storage sectors increased by 18 points to +34 for the quarter. The survey was based on the views of small and medium businesses (SMBs) within the transport and storage industry.

And while increased transport movements and volumes are clear indicators of goods purchased, the transport industry covers a wide range of business types – from the logistics providers and passenger vehicle manufacturers through to fuel suppliers and transport trailer manufacturers.

Road transport’s role in supply chain efficiency

In the case of which aspect of the transport industry generates the most consumer confidence, the answer is often – but not always – infrastructure spending. And, the subsector of transport infrastructure spending that sees the most investment is road transport.

This is because our road infrastructure forms the backbone of the supply chain. When consumer confidence and consumer spending is high, goods purchased need to get to their destination and that involves road transport. In Australia, with vast distances to cover and a lack of other transport infrastructure such as rail available, the supply chain relies on heavy transport trailers and heavy haulage trailers to keep the economy moving.

Quality transport infrastructure key to efficiency and safety

All investment in road infrastructure is viewed positively by heavy transport trailer manufacturers in Australia. This is not only because improved infrastructure means more efficient operating conditions for transport owners and operators, it’s also because the equipment needed to build the roads, tunnels and bridges is huge, over-size construction and engineering equipment that requires custom-built trailers to transport the equipment to site.

The quality of road infrastructure is the fundamental factor in how well a supply chain can meet the needs of consumers and generate economic growth. Investing in good quality road infrastructure is the best way to ensure safe, efficient and effective operations across every link in the supply chain. An effective supply chain generates employment across all the related industries, including:

  • Freight transportation
  • Commercial vehicle manufacturing, including heavy equipment trailers
  • Warehousing
  • Distribution services
  • Electronic payment systems

At Drake Trailers, we’re supportive of investment that makes our roads safer and our vital industries, such as transport, stronger. Contact us to discuss how a Drake Trailer can meet your transport business needs.

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