Access Economics’ Chris Richardson has warned the tough economic climate is not over yet and has urged Australian businesses to brace for the worst economic climate since the 1930s.
Speaking at the 2009 Australian Trucking Convention, Mr Richardson said news that an upcoming Australian recession would be smaller than most other nations was little comfort.
“This year will have the ugliest economic news the world has faced since the Great Depression. And its little consolation that Australia will have a smaller recession while most other rich nations large one,” Mr Richardson told the trucking industry on the Gold Coast today.
Mr Richardson warned the crisis will most affect those in the trucking industry exposed to international markets.
“Some Australian firms are being particularly hard hit - especially those most exposed to the downswing in international trade,” he said.
“But the wider Australian transport sector has always mirrored developments in the Australian economy as a whole, and it seems set to do the same through this recession as well.
“That means bad news ahead, but it also means that - on average - the transport sector will move in line with Australia’s economy, rather than suffering more sharply.”
Mr Richardson said while the economic outlook, at least in the short to medium term, may be weak, the trucking industry in Australia does have opportunities to take some benefits from the downturn.
“There are opportunities in the extent to which Federal stimulus invests in much needed upgrades to Australian road infrastructure, while fuel prices are unlikely to return to their 2008 highs for some years to come,” Mr Richardson said.
The Australian Trucking Convention brings together trucking industry leaders in the field to discuss the key issues facing the industry today. Highlights still to come include ‘What Really Causes Truck Crashes’, ‘Labour Market Challenges - Scanning the Market’ and the 2009 National Trucking Industry Awards.
The convention continues until Friday.