Strength Through Diversification: Opportunities across Asia Pacific

While there are many drivers that are positively impacting the logistics and industrial sector in Asia Pacific, several key challenges need to be overcome. Some of these derive from inherent inertia in the system, while others will require significant investment.

LABOUR SUPPLY

As producer of almost 15% of the world exports, it is unsurprising to note that mainland China has a significantly sized workforce dedicated to the industrial sector. In simple numerical terms, 53% of Asia Pacific’s total warehouse employment, some 163 million employees are located in mainland China. The drop-off afterwards is stark with India accounting for 20% (60 million) and Indonesia 8% (25 million). Despite strong growth rates across much of South East Asia and India, of up to 4% per annum through to the end of the decade, the situation is forecast to remain little changed (Figure 4).

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CHALLENGES IN EXPANDING ACROSS ASIA PACIFIC