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South Australia is in the midst of a growth period, driven by demand for agriculture, wine, metals and renewables. This growth will have vast knock-on effects across the state, much of which will be beneficial to the SME community.
In recognising the impending boom, Peter Langley, Vice President at FedEx Express Australasia, shares how FedEx is helping local businesses tap into these opportunities, by expanding its transportation capabilities in South Australia, furthering our goal of providing the best possible last mile experience for our customers.
Why South Australia is poised to grow
The South Australian economy has been growing at an impressive rate, with exports reaching a record high of $17 billion following 27% growth in the 12 months to February 2023. This growth is being driven by various factors, the strongest of which is soaring demand from countries like Malaysia. The state’s third-largest destination market recorded a huge jump of 39% to $1.33 billion during that same 12 month period, and other key Asian markets also continued to boom, including South Korea (+110%) and the Philippines (+70%).
This growth in exports is driving increased freight across the state. According to Adelaide Airport, South Australia’s total air freight is expected to more than double over the next 20 years to 146,000 tonnes in 2039, with the majority to continue to be in cargo holds of scheduled passenger flights from 2019. This growth will likely bring more interstate and international visitors into South Australia, as air freight plays a key factor in stabilising passenger services and reaffirming new routes.
With more visitors experiencing everything the wonderful state of South Australia has to offer, that means more money circulating in the state economy and more opportunities for South Australian businesses — large and small.
Renewables and a population boom
The state is also well placed to leverage off the thriving renewables sector, with abundant opportunities for growth in hydrogen, wind and solar energy. Having always been at the forefront of renewable adoption and innovative technologies — home to the world’s first large Tesla battery — the growing global demand for renewables is also driving interest in South Australian copper ore and concentrates.
Another key factor influencing the State’s economic boom is people power. South Australia is expected to experience a population surge of more than a quarter of a million people by 2023, which will deliver significant economic opportunities for SMEs. The state’s $45 billion small business sector employs over 350,000 people, representing 98% of all businesses in South Australia and almost 40% of the workforce.
Based on the data above, we think that SMEs in South Australia, particularly small and micro-sized businesses, are well-positioned to take advantage of these opportunities and help drive the State’s economy forward. Of course, we cannot ignore current financial headwinds impacting businesses and economies in South Australia and across the country and world, so please ensure you do your own research and seek professional advice before taking advantage of any trends or opportunities
How FedEx is helping
FedEx is playing a key role in supporting SMEs with its new South Australian gateway, which is helping to manage surging air-freight demand out of the state. Adjacent to Adelaide Airport, the new facility forms part of the planned Freight and Logistics Hub for the Airport East Precinct. Featuring enhanced sorting and storage capabilities, and supported by state-of-the-art technology, the FedEx Adelaide gateway spans approximately 64,000 square meters – more than double the size of the previous facilities combined. It’s also equipped with 435-metre conveyor belts and an advanced automated sortation system that can handle up to 10,000 packages per hour, which is four times the previous sorting capacity.
The increased sorting capacity has helped enable selected one-day delivery services to be extended to homes and businesses in 130 additional postcodes. Locations enjoying faster delivery times include the wine-business behemoths of the Barossa Valley, Adelaide Hills and Fleurieu Peninsula regions.
With 25 weekly flights into and out of Adelaide Airport carrying FedEx Express cargo, the new facility provides importers and exporters – including SMEs and heavy-weight shippers – with more reliable access to other Australia cities and into international markets.
SMEs are the lifeblood of the South Australian economy, and FedEx’s continued investment demonstrates its commitment to helping SMEs grow and succeed. As an ignitor of e-commerce growth, FedEx will help connect South Australian SMEs and e-tailers with Australian and global markets, making it easier for them to reach new customers and grow their businesses.
To discover more about e-commerce and logistics trends read here.
Disclaimer: This article is provided for informational purposes only. It is not intended to address the circumstances of any specific entity or individual. Every business has its own unique circumstances, and due diligence must be undertaken by businesses before taking advantage of any trend or opportunity, such as economic ones.
FedEx Express is one of the world's largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date.
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