5260.0.55.001 - Information paper: Experimental Estimates of Industry Multifactor Productivity, 2007  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 07/09/2007  First Issue
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Contents >> Transport and storage >> Capital inputs

CAPITAL INPUTS

Growth in capital services in Transport & storage accelerated from 2002-03 (figure 11.3). This is linked to the significant increase in gross fixed capital formation (GFCF) since 2001-02. The increase in GFCF has been driven by a significant increase in both investment in machinery and equipment and non-dwelling construction (figure 11.7).

11.7 TRANSPORT & STORAGE GROSS FIXED CAPITAL FORMATION BY ASSET TYPE, Chain volume measure (a)
Graph: 11.7 TRANSPORT & STORAGE GROSS FIXED CAPITAL FORMATION BY ASSET TYPE, Chain volume measure (a)

In 2005-06, non-dwelling construction and machinery and equipment each represented around half of total GFCF. Figure 11.8 shows GFCF for different assets in machinery and equipment. The figure shows the bulk of investment is in motor vehicles and other transport equipment. This is consistent with data that shows above average growth in commercial vehicle sales (ABS 2007b) along with a significant increase in commercial aircraft investment (Qantas 2003-2006, Virgin 2005). A significant proportion of capital in this industry is leased, but is classified as a finance lease and therefore placed within Transport & storage capital inputs and not as an intermediate input. A significant proportion of commercial aircraft, motor vehicles and other transport equipment would be classified in this manner.

11.8 TRANSPORT & STORAGE MACHINERY AND EQUIPMENT GROSS FIXED CAPITAL FORMATION, Chain volume measure (a)
Graph: 11.8 TRANSPORT & STORAGE MACHINERY AND EQUIPMENT GROSS FIXED CAPITAL FORMATION, Chain volume measure (a)
11.9 TRANSPORT & STORAGE, RENTAL PRICE WEIGHTS (a)
Graph: 11.9 TRANSPORT & STORAGE, RENTAL PRICE WEIGHTS (a)

Figure 11.9 shows the rental price weights used to aggregate the component capital services series in respect of the Transport & storage industry. Since 2001-02 there has been an increase in the weight for other transport equipment. This increase reflects the fact that the prices of these types of assets have been falling over this period while the prices of the other assets have remained steady or have been increasing. In the user cost formulation used to model rental prices of assets, a relative decline in the price of an asset translates into a relative increase in its rental price.

11.10 TRANSPORT & STORAGE PRODUCTIVE CAPITAL STOCK BY ASSET
Graph: 11.10 TRANSPORT & STORAGE PRODUCTIVE CAPITAL STOCK BY ASSET

Figure 11.10 shows the significant increase in the productive capital stock for both road vehicles and other transport equipment since 2001-02. Growth in the productive capital stock of non-dwelling construction has not changed significantly, despite the large increase in GFCF for this asset type.

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