Owner/Driver #339

INDUSTRY COMMENT Andrew Harbison
Around the curve
Transport planning in the COVID recovery phase
JUST 12 MONTHS AGO, I was penning
a speech for an industry event
and the theme was ‘Preparing
for Change’. All signs pointed to
Australia’s road transport industry
as poised at the edge of sweeping
change – in terms of technological
advancement, customer preference and
product appeal.
As the name of the theme suggests, one of
the focus points was the concept of preparing
our businesses to pivot with change.
I still believe the most successful to emerge
on the other side of this ‘evolution’ will be
those planning for, and adapting quickly to,
unfolding challenges.
It was truly a significant year for road
transport in Australia last year.
From bushfires to COVID-19, to supply
chain chaos and a national truck law review,
not to mention intrastate border restrictions
that continued to change week on week.
Planning and processes that help guide
and inform our response to situations such
as we’ve seen over the past year are critical for
a functioning industry, and in supporting the
country post-COVID.
I place particular emphasis here on
having a structured, robust and, importantly,
practiced approach to critical incidents.
This ‘business readiness’ will give operators
a strong head start when issues arise,
whatever they may be.
At the time of writing this article, my
hometown of Melbourne has recently
emerged from a five-day ‘snap’ lockdown in
another attempt to quash virus outbreaks.
Western Australia is also coming out of a
similar lock-down period.
Let us take some spirit in the fact that we
are now well-versed and prepared to tackle
these disruptions head-on. It is one more
bump, and assuredly not the last, on the road
to national recovery.
ENCOURAGING SIGNS
News of a vaccine rollout is imminent and a
stronger than expected economic recovery
predicted for 2021.
According to Deloitte’s Access Economics
report, conditions post vaccine will look very
different to those now – with a 3.1 per cent
hike in business investment and a 6 per cent
increase in household spending predicted
in 2021, while Australia’s overall economic
output is expected to jump 4.4 per cent.
This is supported by Westpac’s rolling
Consumer Sentiment Index, which shows
confidence at a 10-year high in October 2020:
this is 48 per cent above the lowest levels
reached during our toughest lockdown
period in April 2020.
Our behaviour as consumers serves to
highlight the difference between this COVID
recession and others in the past, including
the downturn during the Global Financial
Crisis and the grinding recession of the 1990s.
Evidence of this confidence and other
positive indicators (including the job
market’s steady improvement with six out
of seven initial job losses caused by the
pandemic reclaimed), should provide further
hope that the longer-lasting downsides seen
in recessions of the past, will be contained.
It is vital that businesses and households
fortunate enough to have established a buffer
over the past year, while taking advantage of
various incentives and tax breaks, will use
that buffer to help offset the impact on the
economy with the withdrawal of support
programs.
Indeed, Isuzu’s own research into the road
transport industry shows businesses are
prepared to ‘spend to stimulate,’ with 50 per
cent of operators willing to purchase new
equipment with the help of government
incentives, which bodes well for the
recovering economy.
SOLID FOUNDATIONS
Share markets worldwide have broadly
reflected business and consumer confidence,
with gains almost wiping out the huge losses
experienced at the outset of COVID.
However, the volatility of these markets
and the chain effects of international trade
‘obstacles’ – for want of a better word – must
be recognised, particularly here in Australia.
Given our delicate situation with China at
the moment, this is a work in progress.
On this point, I think it is important to
note that Australia is increasingly standing
on its own two feet.
ANDREW HARBISON
is director and chief
operating officer of Isuzu
Australia Limited (IAL)
According to Deloitte economist, Chris
Richardson, our national income has so
far increased rather than been adversely
impacted by current trade circumstances.
In reference to the effect of trade tensions
on the road transport sector and other
industries fundamental to the national
economy, I believe, in essence, that we
are fully prepared to grow and find new
opportunities and markets.
TRANSPORT ADAPTABILITY
Businesses in road transport now have
a better understanding of the idea that
we must adapt processes and plans for
uncertainty in international parts supply,
and be well prepared to meet these sorts of
challenges before they arise.
And in many ways, Australia’s road
transport operators are old hands at evolving.
In a diverse and competitive industry,
operators are quick to adopt technology,
build cooperative relationships and have
comprehensive strategies in place to
changing address market demands.
As for demand in Isuzu’s own market of
truck and power solutions manufacturing
and sales – the federal and state budget
stimulus has created somewhat of a ‘perfect
storm’ of conditions this year.
Average growth of two and a half per cent
each year is forecast for the freight and
logistics sector through to 2024. Construction
and related industries are also booming.
All economic indicators are pointing to a
strong year ahead, with a few headwinds to
be mindful of and a concerted push to take
up new technology.
As always, we should be looking for growth
as usual, not business as usual.
We know it will be strong industry
relationships and innovative thinking, along
with rock-solid planning and processes, that
will drive us into the future.
This in the hope that ‘change’, in whatever
form it may take, is ours to embrace and
harness.
“We should be looking
for growth as usual, not
business as usual.”
54 APRIL 2021 ownerdriver.com.au