Industry News

Combilift named timber trade supplier of the year

Government boosts hydrogen supply chain projects

Holzkurier, the leading Austrian publication for the timber sector, has named Combilift as its Timber Trade Supplier of the Year for 2022.

The company’s continual product development, its impressive growth in the Austrian market and a policy of always putting the customer centre stage were some of the reasons cited by the editorial panel for choosing Combilift.

Combilift delivered its first truck to Austria in 2003, when one of the original C-Series multidirectional models was bought by a customer from the timber sector. Since 2018, Gregor Kramar has held the position of Combilift’s Austrian Country Manager and has overseen the steady growth of the dealer network and the expansion of the customer base. For the last few years Combilift’s incoming orders have recorded doubledigit growth rates in German-speaking countries and sales of more than €4 million were generated in Austria last year.

“Although the majority of our customers come from the timber sector, we are also seeing significant growth in other markets, for example in the steel industry and in aluminum, modular and window construction,” Gregor says.

“Austria is a demanding market and customers have very high expectations when it comes to product quality and service, which we can fulfil thanks to our wide, ever growing range and our reputation for putting the customer first.”

“We are delighted with this award, which recognises the position that Combilift now enjoys in this region, which is home to some of the world’s leading companies in the timber industry,” Gregor says. “So, many thanks go to the editors of Holzkurier and of course our ever growing band of satisfied customers.”

The Combilift Aisle-Master.

The federal government is expanding Australia’s clean hydrogen export industry via a new initiative involving overseas investment in Australian hydrogen supply chains.

The initiative is the Australian Clean Hydrogen Trade Program (ACHTP) which is worth $150 million.

It will support Australian-based hydrogen supply chain projects. This will involve securing public or private sector investments from overseas.

It will firstly be exporting clean hydrogen to Japan under the JapanAustralia Partnership on Decarbonisation through Technology scheme.

Prime Minister Scott Morrison says the ACHTP will help Australia keep to its commitment to reduce emissions by cooperating with other countries to lower the cost of clean energy technologies.

“It is critical that we work closely with our international partners such as Japan to deliver on Australia’s low emissions objectives,” the PM says.

“Clean hydrogen is central to both Australia’s and Japan’s plans to achieve net zero emissions while growing our economies and jobs.”

The ACHTP will support projects to develop export supply chains as well as allow clean hydrogen and derivative clean hydrogen-based compounds such as ammonia to be commercialised.

Clean hydrogen is a top priority technology for the Coalition. It is outlined in the Government’s Long Term Emissions Reduction Plan and Technology Investment Roadmap.

Angus Taylor, Minister for Industry, Energy and Emissions Reduction says Australia is creating new economic and employment opportunities while achieving the goal of net-zero emissions.

“Establishing clean hydrogen supply chains will facilitate investment into Australia and will create jobs for Australians, many in our regional areas,” Angus says.

He adds the federal government is “providing an innovative and economically viable solution to producing clean hydrogen not only for Australia” but “also for [its] international partners.”

The ACHTP will be funded over five years. These funds will come from the more than $565 million that has been committed towards low emissions technology international partnerships as presented in the 2021-2022 Budget.

Clean hydrogen could provide direct support to 16,000 jobs by 2050. An additional 13,000 jobs could come from the newly-made related renewable energy infrastructure, the government says.

Australia’s hydrogen production for export and domestic use could generate more than $50 billion in additional GDP by 2050.

Gavin Bishop heading Colliers national industrial team

Gavin Bishop, Managing Director I&L for Colliers.

Industrial expert Gavin Bishop will take the helm of Colliers’ national industrial business after being promoted to Managing Director.

As Managing Director, Gavin will oversee the growth of Colliers’ national industrial business and continue his leadership of the company’s national Industrial Capital Markets team.

Malcom Tyson, Colliers’ Chief Executive Officer for Australia says Gavin will step into the role of Managing Director from his current position as Head of the Industrial Capital Markets team and leading the company’s New South Wales industrial business.

“As the leader of these key markets for many years, Gavin has played a significant role in the growth of our Industrial business and been responsible for building teams that are recognised across the industry for their expertise and service excellence,” he says.

Gavin takes the reins from Malcolm, who was appointed as Colliers’ Chief Executive Officer for Australia in 2021.

“Gavin has been with Colliers for more than 21 years and is a longstanding member of our Australian senior leadership team. He is a respected industry leader who has been involved in some of the largest deals across Australia including the GIC/ Australand Portfolio, Altis Portfolios, Qantas Investment & Land Portfolio, JP Morgan Portfolio, McPhee Portfolio and the Greenlit Brands Portfolio.

“Working closely with our industrial experts across each market, Gavin will leverage this experience to maximise the potential of property for our valued industrial clients across Australia.”

Trade Window teams up with Mastercard

Trade Window is collaborating with Mastercard to boost cash flow for Australasian businesses through integrated crossborder payments solutions.

Trade Window provides digital solutions for exporters, importers, freight forwarders and customs brokers, and says the partnership moves to increase trust across the supply chain.

Digitisation has brought physical supply chains and financial supply chains closer together. Trade Window’s digital trade platform ‘Cube’ is designed to improve trust between trading partners and support eventbased payment triggers, enabling earlier payment options and better reconciliation.

AJ Smith, TradeWindow CEO, says that the partnership with Mastercard is an exciting step for the NZX listed software company.

“Our aim is to make cross border trade easier for exporters, and also support the acceleration of global trade,” he says. “Working with a trusted global technology leader like Mastercard, TradeWindow is advancing a secure and robust payment and trade finance offering on our platform that will help our customers to grow their export, import and trade-related businesses.”

Claire Thompson, Executive Vice President, Global Trade, Mastercard Enterprise Partnerships says Mastercard is powering the digital economy, providing organisations large and small with the tools they need to run and grow their business.

“By combining our payments technology with TradeWindow, our collaboration aims to remove barriers to cross-border trade, simplifying payment processes and empowering Australasian businesses with integrated and automated solutions that help them to pay and get paid more easily,” she says.

The Trade Window-Mastercard collaboration aims to remove barriers to cross-border trade.

Investors buy almost $16b worth of assets: CBRE

The highest-ever annual investment sales in Australia were recorded last year with investors buying almost $16 billion worth of income-generating industrial and logistics assets, according to new research by CBRE.

The occupier take-up has hit 4.2 million sqm and has driven the vacancy rate to a record-low of 1.3 per cent.

National midpoint yields for super prime grade assets were also documented as the lowest ever at 4.50 per cent.

Occupiers have absorbed 4,200,000 sqm of floorspace. This is up from 2020’s benchmark of 3,300,000 sqm and has driven the national vacancy rate to a new record-low of 1.3 per cent.

“Demand from investors and occupiers alike drove Australia’s industrial and logistics sector to new heights in 2021, with records smashed on a host of key metrics,” Sass J-Baleh, CBRE’s Head of Industrial and Logistics Research Australia says.

“Given investment sale transaction volumes had only ever surpassed $5 billion three times before, and peaked at $7.2 billion, the result of $16 billion in 2021 is ground-breaking and demonstrates the strong demand for Australian industrial and logistics assets from local, regional and global investors.”

During 2021, over $10 million income-producing assets were sold in Australia for $15.9 billion.

This is just over three times the 10-year average annual transaction volume of $4.2 billion, and more than double the previous record of $7.2 billion which was set in 2016.

“Institutional investment appetite continues to favour I&L due to high quality covenants in those institutionalgrade assets and confidence in the ability to collect income, with multiple domestic and offshore capital sources competing to elevate capital allocation to the strongest performing sector,” Sass says.

Melbourne had the highest occupier take-up of Australia’s five major cities

Occupier take-up has hit 4.2 million sqm and has driven the vacancy rate to a record-low of 1.3 per cent.

with 2,000,000 sqm of floorspace. This is roughly half of the national total.

Occupier take-up of space in 2021 was up by almost 900,000 sqm compared to the previous record set in 2020. The figure of 4,200,000 sqm is about double the 10-year average of 2,400,000 sqm.

“The national average vacancy rate has been trending down over the past three years and is now at a record low,” Sass says.

“We expect vacancy to remain stable throughout 2022, and that leasing transactions will remain in line with or below the long-term average, as a shortage of available supply continues to shape the market.

“Although the forecast new supply for 2022 matches the 10-year average for occupier take-up, the shortfall in recent years has generated significant pent-up demand for space.”

The vacancy rate fell nationally from 2.2 per cent to 1.3 per cent during 2021 following 1,800,000 sqm of floorspace going online, with a further 2,700,000 sqm forecast for 2022.

Australia’s e-commerce penetration rate continues to rise. It now accounts for 14.3 per cent of total spending with groups involved in ecommerce accounting for 19 per cent of the 800,000 sqm of take-up space in 2021.

Perth led the way on both average net face rents which increased significantly, and midpoint yields which contracted in all five major cities. It had a 5.6 per cent rental increase and 115 basis points yield fall year-on-year.

Super prime average rents grew by 4.4 per cent year-on-year during 2021. Prime rents grew by 7.7 per cent and secondary rents by a record 12.0 per cent.

Midpoint super prime yields across Australia now sits at 4.50 per cent, compressing 56 basis points throughout the year. It now sits at a record 40 basis points lower than the office sector of 4.90 per cent as of the fourth quarter in 2021.

“Lockdowns in the second half of 2021 continued to accelerate the major growth trends for industrial and logistics, as more consumers took their shopping online,” Sass says.

“The transport, postal and warehousing sector finished 2021 as the most-active sector, followed by a wholesale and retail traders, that cross-section accounting for 69 per cent of the Q4 leasing activity.

“We expect rents to grow at an everstronger rate in 2022, in excess of five per cent [year-on-year],” Sass says.

Five retail trends to shape customer experience in 2022

Manhattan Associates predicts five key technology trends that will impact Australian and New Zealand retailers and supply chains this year.

Raghav Sibal, Manhattan Associates’ Managing Director for Australia and New Zealand, says the retail landscape is significantly challenged today.

“With supply chain issues impacting on stock levels, increasing volumes of returns and increased customer expectations in relation to online deliveries – local brands will have a hard time in satisfying customers in 2022,” he says.

“As a result, retailers will find that they quickly need to adopt new systems and approaches that help meet the consumer demand for a seamless and more personalised shopping experience today and into the future.”

1. SUSTAINABLE E-COMMERCE

DELIVERY TO BECOME

A BIGGER ISSUE

Due to the ongoing impact of the pandemic, home delivery is now the preferred purchasing option for the majority of Australian online shoppers. However, consumers are not prepared to just accept the convenience of delivery at the cost of the environment, with research showing that 60 per cent of Australian consumers are open to receiving goods at a later date if it meant that it was delivered more sustainably.

Consumer research also shows that over half (60 per cent) of Australians often receive their online order in multiple shipments, and 81 per cent of them said that they think this is an inefficient and unsustainable way of delivering goods. In fact, the same number (81 percent) also said they would prefer to receive their order at a later date if it meant that it would arrive in one consolidated delivery.

“As online shopping delivery rates and the corresponding impact on the environment continue to rise, retailers and 3PLs will need to make sustainability a bigger priority,” Raghav says. “Those retailers who don’t make sustainability a core part of their business will likely find that down the track they lose out on this potential competitive advantage and drive environmentally aware consumers to other retailers.”

2. RETURNS MANAGEMENT WILL

INCREASINGLY IMPACT CONSUMERS’

PERCEPTION OF RETAIL BRANDS

While e-commerce has served as a lifeline for retailers over the past year, the ever-increasing volume of returns is posing significant challenges, including impacting consumer perceptions of a retail brand. The returns process can regularly make or break the overall brand experience and savvy retailers

Manhattan Associates has identified five key technology trends that will affect supply chain in 2022..

are increasingly viewing the return process as an opportunity to further engage with customers, providing as it does, an additional touchpoint to enhance the overall customer experience.

“In 2022, retailers will need to have greater visibility and more intelligence around their inventory, regardless of where it is currently residing in their network,” he adds. “Smarter frontend omnichannel systems capable of efficiently dealing with customer enquiries and greater insight into data around transportation processes will be the key areas for brands looking to solve the challenges presented by the growing returns trend.”

3. THE WAR FOR TALENT WILL

PUT PRESSURE ON SUPPLY

CHAIN OPERATIONS

Given the extent to which a positive or negative customer service interaction can have on a shopper’s perception of a retail brand, the war for talent and need to retain high performing staff will create additional business pressures in 2022.

In such an environment, organisations need to focus on selling themselves as an employer of choice and create and promote initiatives that set their business apart in a competitive hiring field.

Given the need to retain IP in a challenging hiring market, more employers are focusing on career planning and succession internally to ensure adequate support and training for workers to move up the ladder. Many supply chain and retail organisations are also offering financial support for further tertiary education studies or providing retention bonuses to ensure continuity.

4. MICRO-FULFILMENT WILL

HELP DRIVE SUPPLY CHAIN

EFFICIENCIES AND COST SAVINGS

“As e-commerce and ‘store to door’ delivery continues to grow, many retailers are struggling to turn a profit from online sales,” Raghav says. “The challenges of the last two years didn’t just fast-track e-commerce uptake, they also accelerated advances in technology, pushed businesses to revaluate traditional models, and forced many to rethink relationships between retailers, disruptive startups and automation; setting the scene for a radical shake up of fulfilment strategies in 2022.”

One of these fulfilment strategies, and one of the most cost-effective trends retailers and supply chains are adopting is micro-fulfilment. Micro-fulfilment involves moving out of large singular DCs to smaller and more local and convenient hubs. By expediting the fulfilment process, micro-fulfilment gives brands the opportunity to get goods to their customers quickly ; whilst also providing convenient collection point for consumers. With the adoption of this kind of smart fulfilment method, retailers can get their goods to consumers faster, cheaper and more efficiently.

5. VISIBILITY AND FORWARD

PLANNING WILL HELP FUTURE-

PROOF RETAIL AND SUPPLY

CHAIN OPERATIONS

With supply chain issues leading to stock level challenges for many retailers, the last thing any business wants is to run out of stock – or worse, to later find out that the stock they needed was in the warehouse the whole time.

“To mitigate this, operational visibility and forward planning remain fundamental to retail and supply chain continuity and efficiency. To gain these insights, solutions like a Warehouse Management System (WMS), which integrate all sales and distribution channels into one place are required. With innovations like a WMS, retailers have absolute transparency around their goods and are able to review the rules of stock allocation, temporarily giving priority to in-store stock over warehouse stock, thus, freeing up any trapped inventory confined within closed stores,” he says.

JLL Australia CEO retires

On 25 January it was announced that Stephen Conry, CEO of JLL Australia & New Zealand, would retire from the firm after 40 years, including 13 years as CEO.

“I thought it the right time, on the anniversary today of 40 years with the firm, to announce my intention to retire from JLL in coming months after the transition to a new CEO,” Stephen said.

“The Australian business is positioned well, after a very successful 2021, and with an impressive national leadership team whose commitment, energy and collaboration is inspirational.

“It has been a very fulfilling career journey – full of challenges, opportunities and great people. Property is an industry that I have been passionate about since 1982 when I started at JLL as a trainee property valuer,” he said.

In 2019, Stephen was appointed

After 13 years at the helm, JLL Australia & New Zealand CEO Stephen Conry is retiring.

a Member of the Order of Australia (AM), in recognition of his service to the commercial property sector. Over the last two years Stephen also helped navigate the property industry through the challenges of the COVID-19 environment in his role as National President of the Property Council of Australia from 2019-2021.

Anthony Couse, Asia Pacific CEO, JLL, was effusive in his praise for Stephen’s work.

“I congratulate Stephen on reaching this significant milestone of 40 years at JLL,” Anthony said. “During his tenure as CEO, Stephen has helped make our Australia business what it is today: the largest commercial property services firm in the country, with a talented and committed workforce and an impressive cohort of leaders. His focus on clients, and strategic investments in people and technology, have delivered impressive growth, setting us up for continued success.”

“While I will be sad to see Stephen leave the firm, I am grateful for the immense contribution he’s made to JLL over the years. I look forward to working with him and the Australia leadership team to ensure a smooth transition to a new CEO. We have a great depth of talent, and the business has strong momentum coming out of 2021 to continue delivering impressive growth.”

Conry’s successor has not yet been named. JLL will undertake a thorough process in the coming weeks before appointing a new CEO.

Conry joined the firm in 1982 as a trainee, working his way up to Director in 1989. He was appointed Managing Director for Queensland in 1996 and has served in various national business leadership roles before being named Australia CEO and joining JLL’s Asia Pacific Executive Board in 2009. He added New Zealand to his responsibilities in 2018.

Beyond his role at JLL, Conry has served on various business and community boards, including the Property Council of Australia since 2014, and as the National President from 2019 to 2021. He is a Fellow of the Australian Property Institute; a Fellow of the Royal Institution of Chartered Surveyors; and a Fellow of the Australian Institute of Company Directors.

Australia Post finalises leadership team

Paul Graham, Group CEO and Managing Director of Australia Post.

Paul Graham, Group Chief Executive Officer & Managing Director for Australia Post, says he has finalised his new leadership team following his first four months in the job.

Paul says he has listened to feedback from customers and stakeholders from across the network, as well as team members, who are all ready to take Australia Post to the next level.

“We are on a journey to becoming a modern mail, e-commerce, digital services and retail business, and the new team will make that happen, along with our dedicated 64,000strong team,” Paul says.

“My new team will be able to better position Australia Post to enhance experiences for its customers – wherever they are in the country, and every time they need our help – including through our Post Offices, customer care, delivery network and digital channels.”

The Executive Team will be comprised of: • Paul Graham, Group Chief

Executive Officer & Managing

Director (joined Australia Post in

September 2021) • Rod Barnes, Executive General

Manager Network Operations (January 2016) • Rodney Boys, Group Chief Financial

Officer (May 2019) • Sue Davies, Executive General

Manager People & Culture

(February 2015) • Tanny Mangos, Executive

General Manager

Community, Sustainability &

Stakeholder Engagement (December 2021) • Catriona Noble, Executive General

Manager Retail (January 2022) • Gary Starr, Executive General

Manager Customer & Commercial (January 2016) • Leonie Valentine, Executive General

Manager Customer Experience &

Digital (January 2022)

The following functions and leaders will also report directly to the Group Chief Executive Officer & Managing Director: Amber Collins (Chief Marketing Officer), Ben Franzi (Group General Manager, Strategy and Simplification) and Nick Macdonald (Group General Counsel and Corporate Secretary).

Australia Post says the new structure shows its commitment to delivering for its stakeholders, with a team that is well placed with the right skills and strategy to ensure the organisation fully meet customers’ expectations now and into the future.