Postal Services in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) March 16, 2014 -- The Postal Services industry in Australia used to be the main vehicle for communication in the nation. With changes in technology, this monopoly on communications is long gone. The industry is in a state of transition as participants adapt to a long-term decline in traditional mail. The industry is extremely concentrated and dominated by Australia Post, which is Australia's largest logistics company. Other players in the industry are focused on third-party communications services, of which bulk mail-outs are one communications channel, among many. According to IBISWorld industry analyst Caroline Finch, “the strategies of these two sets of participants have diverged, with Australia Post investing heavily in infrastructure to support a growing parcels business in the past five years.” Smaller operators, in contrast, have shifted focus to other areas of communications, with some pulling out of the industry altogether to follow their clients online.
Over the five years through 2013-14, the industry has returned to growth after declines over the past decade, with revenue forecast to expand at a compound annual rate of 1.5%. For Australia Post, investment in automation and parcel services is starting to bear fruit. The bright spot in the industry is the parcels market. Information technology changes have affected retail and communication. The boom in online shopping has resulted in increased demand for parcel transport within, to and from Australia. “Ongoing growth in the number of parcels transported domestically and high mail and advertising expenditure during the federal election are forecast to contribute to strong growth in the current year of 11.6%, taking industry revenue to $6.5 billion,” says Finch.
Despite its stronger performance, the future shape of Australia Post's business remains uncertain. Pressure is building from the business community for privatisation, which is within the terms of reference given to the Commission of Audit by the new Coalition Government. Other options floated for the company include an increased role in government service delivery. Strong growth in parcels over the next two years is expected to mature. As the explosive growth in parcels moderates, the performance of the Postal Services industry is forecast to lag in later years, with declines in letter volumes and industry participation cutting into growth.
For more information, visit IBISWorld’s Postal Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Organisations in the industry pick up and deliver letters, documents and parcels that usually weigh less than 30 kilograms. The pick-up activity is from pre-determined collection points such as post offices and postal agencies and excludes the activities of couriers. Organisations that operate the predetermined collection points are also included in the industry as are bulk mail houses.
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About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]
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