Higher imports and consumer spending support industry revenue growth
Melbourne, Australia (PRWEB) June 01, 2013
Customs agents act on the behalf of third-party importers, wholesalers, retailers or exporters to facilitate customs approval processes. Industry participants ensure a smooth flow of goods through the nation's ports and airports. The Customs Agency Services industry's largest service is providing import clearance, which contributes close to 90% of industry revenue. According to IBISWorld industry analyst Caroline Finch, “in an environment of a strong Australian economy, strong retail spending and a record high Australian dollar, imports have grown solidly”. In the five years through 2012-13, merchandise imports are estimated to have grown at a compound annual rate of 4.9%. This is despite a substantial dip in trade during 2009-10, when the global financial crisis spooked importers. Retailers, wholesalers and manufacturers reduced the level of stock they held in reserve in response to the uncertainty wrought by the global recession.
The Customs Agency Services industry has grown slowly over the past five years as demand for import support services has waxed and waned. The industry is forecast to turn over $3.35 billion in 2012-13, representing a compound annual growth of 1.1% over the past five years. The highly fragmented industry has been unable to substantially increase its commission rate in the past five years. Revenue is expected to rise by 2.1% over 2012-13.
In the coming five years, industry participants are expected to diversify the range of products and services they provide. This will enable industry operators to continue to improve productivity, as consolidation within the industry slows. “Ongoing improvements in information technology, such as electronic lodgements, have accelerated this trend over the past five years”, says Finch. There is also the potential for reform to the Australian Customs and Border Protection Service in the coming years. A customs reform panel has been established under the Home Affairs Department in 2012-13. The reforms are primarily targeting the services ability to detect and prevent criminal activity but may spill over into other areas of operation.
For more information, visit IBISWorld’s Customs Agency Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that provide customs services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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