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Skills & Training Needs 2013Victorian Transport and Logistics Industry

Published by HESGDepartment of Education and Early Childhood Development

Melbourne February 2014

©State of Victoria (Department of Education and Early Childhood Development) 2014

The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission.

An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering

such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution.

Authorised by the Department of Education and Early Childhood Development,2 Treasury Place, East Melbourne, Victoria, 3002.ISBN [to be inserted if required]

This document is also available on the internet at http://www.education.vic.gov.au/training/employers/

industry/Pages/marketinfo.aspx

CIntroductionIndustry and data scopeTransport and logistics industry 3Data 5Industry trends and issuesSummary points 6Economic contribution 6Business profile 9Industry trends and outlook 13Workforce and skillsSummary points 16Workforce size 17Workforce location 19Labour market characteristics 21Transport occupations 23Specialised or in shortage occupations 26Skills gaps and emerging skills needs 30Labour market challenges 31Education and trainingSummary points 33Transport qualifications 34Training delivery 34Alignment to industry skills needs 40Training providers 42Students 45Training market challenges and opportunities 47Conclusion

Introduction

In the context of Victoria’s dynamic economy, a demand-led approach is the best way to ensure a responsive vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the VictorianTraining Guarantee, which has achieved positive outcomes for both students and the economy.

The Refocusing Vocational Training in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government is ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria.

Through Refocusing Vocational Training, there is a role for government in monitoring, providing information and responding to the performance of the vocational training

system. A key mechanism by which the Government exercises this role is through the Industry Participation Model. The Industry Participation Model is based on a new partnership approach between government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with government.

An aim of the Industry Participation Model is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve alignment between industry needs and training delivery. A suite of information products and tools are being developed, of which this report is one, to support this aim and an overview of these is provided overleaf.

This report describes training and economic activity and developments related to Victoria’s transport and logistics industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. Key metrics used in this report include enrolments by sub-industry, qualification level, occupation, courses, age group, gender, learners facing barriers and provider type. The report also covers apprentices and trainees, and an analysis of the alignment between training delivery and specific industry skills needs. The report produces industry, sub-industry and region-specific findings and, wherever possible, presents comparisons to developments at the State level.

The purpose of this report is:

1. To provide a basis for understanding the transport and logistics sector in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing.

2. To give detailed information around vocational training delivery as it relates to transport and logistics in order to gauge current alignment of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future.

3. To summarise the results of industry consultation and intelligence gathering activities undertaken in support of the Industry Participation Model, which involvedengagement with more than 50 stakeholders in Victoria’s transport and logistics industry over the course of 2013 via one-on-one meetings, workshops and roundtables.

4. To facilitate ongoing discussion with the transport and logistics industry in relation to skills and training. To this end, industry stakeholders are invited to respond to the challenges and opportunities highlighted in this report, and to work with government and training providers to develop sustainable, industry-led solutions.

Introduction 1

2 Skills & Training Needs 2013 – Victorian Transport and Logistics Industry

Suite of Information Products & ToolsVictorian Quarterly Training Market ReportsOn-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needshttp://www.education.vic.gov.au/ training/providers/market/Pages/ reports.aspx

Vocational Training: Victoria’s Regional ReportAnnual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building apicture of the relationship between the local training system and regional skills needs, training market performance and responsivenesshttp://www.education.vic.gov.au/ training/providers/market/Pages/ regionaltrends.aspx

Vocational Training: Victoria’s Industry ReportPublished annually, this report combines industry intelligence and economic analysis with training data to build a more complete picture of the relationship between industry skills needs, employment opportunities and skills training. Each of the 19 industry training profiles provide economic context and a summary of training challenges and highlights from IPM initiativeshttp://www.education.vic.gov.au/ training/employers/industry/Pages/ marketinfo.aspx

Industry Sub-sector summary reports & Industry Factsheets46 sub-sector industry summary reports produced annually highlight industry labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional levelA series of factsheets are also available for 19 industrieshttp://www.education.vic.gov.au/ training/employers/industry/Pages/ marketinfo.aspx

Business Toolkit and Case StudiesToolkit for employers providing information on how to get government- subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognitionof Prior Learning; and a range of interesting employer and training provider case studieshttp://www.education.vic.gov.au/ training/employers/workforce/Pages/ marketfacilitation.aspx

IPM Portfolio Industry ReportsReleased in line with IPM Portfolio cycles, these reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports. One are detailed reports, representing the focus industries forthe Department in 2013, and summary reports covering other industry sectorshttp://www.education.vic.gov.au/ training/employers/industry/Pages/ marketinfo.aspx

Industry BlogA forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activitieshttp://skillsblogvic.wordpress.com/

Industry Skills Update - e-AlertsRegular email update featuring the latest news about IPM activities; market facilitation and related government initiatives; reports; and training performance informationTo subscribe contact: Department of Education & Early ChildhoodDevelopment, skills.online@edumail. vic.gov.au

Web Pages – Industry Training Market Information19 webpages with information about the skills and training market for industry sectors. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports and factsheets along with more detailed reporting for each industry sub-sector. Information is updated regularlyhttp://www.education.vic.gov.au/ training/employers/industry/Pages/ marketinfo.aspx

Rate Your TrainingNew ratings tool for industry and employers is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employershttp://rateyourtraining.com.au/

E-Marketplace (in development)Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers

Victorian Skills GatewayOne-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purpose-built smartphone interface http://www.education.vic.gov.au/ victorianskillsgateway/Pages/home.aspx

Industry and data scope 3

Industry and data scope

This section summarises the scope of the transport and logistics industry, as well as key data sources used in this report.

Transport and logistics industryDue to availability of data, this report draws on sources which use the Australian and New Zealand Standard Industrial Classification (ANZSIC) industry classifications in the main, supplemented with alternative definitions where appropriate. However we recognise that the ANZSIC industry classification system has weaknesses in relation to the transport and logistics industry. The classification does not include transport and supply chain activities that are undertaken in-house by firms primarily involved in other activities, or related wholesaling activities in the wider economy. This means that estimates of the transport and logistics industry’s contribution to GDP are significantly underestimated when using the ANZSIC classification system only.

The Australian Bureau of Statistics industry category for transport, postal and warehousing1 covers businesses mainly engaged in providing:

• Transportation of passengers and freight by road, rail, water or air.• Other transportation activities such as postal services, pipeline transport and scenic and sightseeing transport.• Goods warehousing and storage activities.• Support services for the transportation of passengers and freight. These activities include stevedoring services, harbour

services, navigation services, airport operations and customs agency services.

Figure 1.1: Transport, postal and warehousing ANZSIC breakdown

ANZSIC code ANZSIC industry

46 Road transport

461 Road freight transport

462 Road passenger transport

4621 Interurban and rural bus transport

4622 Urban bus transport (including tramway)

4623 Taxi and other road transport

47 Rail transport

471 Rail freight transport

472 Rail passenger transport

48 Water transport

481 Water freight transport

482 Water passenger transport

49 Air and space transport

1 Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006


ANZSIC code ANZSIC industry

50 Other transport

501 Scenic and sightseeing transport

502 Pipeline and other transport

5021 Pipeline transport

5022 Other transport n.e.c.

51 Postal and courier pick-up and delivery services

510 Postal and courier pick-up and delivery services

5101 Postal services

5102 Courier pick-up and delivery services

52 Transport support services

521 Water transport support services

5211 Stevedoring services

5212 Port and water transport terminal operators

5213 Other water transport support services

522 Airport operations and other air transport support services

529 Other transport support services

5291 Customs agency services

5292 Freight forwarding services

5299 Other transport support services n.e.c.

53 Warehousing and storage services

530 Warehousing and storage services

5301 Grain storage services

5309 Other warehousing and storage services


DataThe data source for vocational training delivery presented in Section 4 is the Department of Education and Early Childhood Development (DEECD), Skills Victoria Training System (SVTS). The scope of training data is government subsidised enrolments, accredited (state or national) qualifications only (excluding foundation training).

The report presents findings for the time period from 2008 to 2012. Quarterly data is also included to the June 2013 (Q2) period, with Q2 2012 data provided as a point of comparison. The 2013 data is based on preliminary data extracted from SVTS as at November 2013 and subject to revision.

All enrolments referred to in the report are government subsidised only. Fee for service activity is currently only available for TAFE Institutes and not for private training organisations or Learn Local (ACE) providers, and is therefore excluded from the scope of this report unless otherwise stated.

All other data sources are referenced as appropriate within the report.


Industry trends and issues

This section focuses on the industry trends and outlook for the transport and logistics industry and the contribution the industry makes to the overall Victorian economy.

Summary points• The transport, postal and warehousing industry

contributed an estimated $15.5 billion to the Victorian economy in 2012- 13, around 5 per cent of Victoria’s total gross value added. When factoring in supply chain activities embedded in other industries and related wholesaling activities, however, transport’s economic contribution is considerably greater.

• Current forecasts suggest growth of 16 per cent in transport industry output through to 2017-18, slightly higher than average growth forecasts across all Victorian industries. Road transport (particularly freight) is the largest sector in transport and logistics, and it is expected to remain so into the future.

• The industry was hit by the global financial crisis, with reduced demand for imports and translating into reduced demand for transport and logistics services. Exports were also negatively affected by the strong Australian dollar, with a similar impact on industry demand.

• Growth has since returned to the industry and is expected to continue into the future in both the passenger and freight transport segments. Existing trends towards increased globalisation and complexity of operations, supported by technological advances and automation, are expected to continue, influencing the future skills profile of the industry.

• Metropolitan Melbourne accounts for a majority of transport output, 78 per cent of the total. Regional share of transport and logistics output is broadly in line with the regional share of overall Victorian economic output.

• An estimated 33,600 businesses were operating in Victoria’s transport industry in 2012, of which 55 per cent were operating in the road transport sector. A relatively high proportion of transport and logistics businesses are sole traders. Transport businesses are considerably less likely than the average across all industries to be large businesses (with annual turnover of $200,000+) – although this does vary considerably by sector.

• In terms of business location, 71 per cent of transport businesses are in metropolitan Melbourne – generally close to ports, major arterial road network, manufacturing hubs and supply chain networks. In regional Victoria, transport businesses are concentrated in regional centres and the areas surrounding Melbourne.

• Major drivers affecting the industry include international trade and the relative strength of the Australian dollar, fuel prices, investment in transport infrastructure and population growth and technology.

• Regulatory and policy drivers of relevance include the introduction of national regulators in three transport sectors (road, rail and maritime), as well as national and state strategies outlining infrastructure and network developments – largely in support of anticipated increases in the freight task in Australia.

Economic contributionVictoria’s transport, postal and warehousing industry contributed approximately $15.5 billion to the state economy in 2012-13, around 5 per cent of total gross value added for Victoria.2 The industry directly employs around 137,000 workers, representing 5 per cent of Victorian employment and 24 per cent of Australia’s total transport, postal and warehousing workforce.

However, as flagged above, the ANZSIC classification of transport, postal and warehousing underestimates the transport industry’s contribution to the state economy as it does not incorporate supply chain activity embedded in other industries, or related wholesaling activities in the wider economy. Alternative estimates have put transport’scontribution to the Victorian gross state product at between12.0 and 14.7 per cent,3 which would equate to nearer $40 billion in 2012-13.

The industry has generated consistent growth in output over much of the past two decades in Victoria. However, the global financial crisis has had an impact on the industry, with output weakening and the number of businesses declining since 2007-08.4

2 Australian Bureau of Statistics, 5220.0 Australian National Accounts: State Accounts, 28-Nov-133 Australian Logistics Council, Contribution of Transport & Logistics to the Economy, 2007; Department of Industry, Infrastructure and Regional

Development, The 2007 Victorian Transport and Logistics Industry Report


4 Department of Business and Innovation, Services Sector Industry Analysis: Transport, postal and warehousing, 2012

Industry trends and issues 7

Looking forward, output growth of 16 per cent is anticipated in the five years to 2017-18. This is slightly higher than the anticipated growth rate of 14 per cent across all Victorian industries.5 Freight transport in particular is projected to see considerable growth with the freight task in Victoria expected to triple by 2050.6 This will have implications for transport infrastructure as well as industry demand for skills.

The industry is expected to be supported by strong growth in freight volumes, high volumes of imports and exports, increased manufacturing activity, a larger population and increased outsourcing of the logistics function.7 Industry infrastructure will be supported by projected Government infrastructure investment of $5.8 billion in 2013-14, rising to $7.2 billion in 2014-15.8

Key segmentsThe road transport sector contributes the largest proportion of transport industry output, accounting for 39 per cent of the total. Water and other transport are the smallest sectors, making up a combined 3 per cent of output in 2012-13.9

Figure 2.1: Transport output by sector, 2012-13

Road transport

Air and space transport

Postal and courier

Rail transport 9%

Transport support services 4%

Warehousing and storage 3%

Water transport 2%

Other transport 1%

17%

25%

39%

Source: Monash CoPS Employment Forecasts, June 2013

5 Monash CoPS Employment Forecasts, June 20136 State Government of Victoria, Victoria – The Freight State: The Victorian freight and logistics plan, Aug-137 IBISWorld, Integrated Logistics in Australia, November 20138 Department of Treasury and Finance, Building for Growth: 2013-14 Victorian Budget Update, 13-Dec-20139 As highlighted earlier, this data is reflects the Australian Bureau of Statistics’ ANZSIC industry classification and will therefore exclude transport, warehousing and logistics

output embedded in other industries.


Regional contributionThe Melbourne metropolitan region accounts for a majority of transport output, 78 per cent of the total. Regional share of transport industry output is broadly in line with regional shares of the overall economy.

Figure 2.2: Transport, postal and warehousing output by region, 2012-13

78% 77%

6% 6%3% 3%

5% 4% 5% 5% 3% 4%

Melbourne Barwon South West Grampians Loddon Mallee Hume Gippsland

Transport All industries


In terms of the transport industry’s contribution to the regional economy, transport output makes up 5.0 per cent of total output for Melbourne (2012-13 figures). This compares to 5.6 per cent in the Loddon Mallee region and 3.5 per cent in Gippsland, with other regions similar to Melbourne.

68% 29% 2

61% 35% 4%


Business profileAt the end of June 2012 an estimated 33,600 businesses were operating in Victoria’s transport industry, 6 per cent of all businesses across the state. The transport industry is dominated by small businesses – 68 per cent of businesses are sole traders, while an additional 29 per cent are small businesses employing less than 20 people. Just 2 per cent of businesses in the industry employ 20 people or more.

Compared to the average across Victoria, transport businesses are more likely to be sole traders and less likely to be an employer (of any size).

Figure 2.3: Proportion of businesses by employment size, June 2012

Transport %

All industries

Non employing 1 to 19 20 to 199 200+

Source: ABS, Count of Australian Businesses, including Entries and Exits, Jun 2008 to Jun 2012


Over half of all businesses in the transport, postal and warehousing industry (55 per cent) are in the road transport sector. As shown in Figure 2.4, this is followed by the transport support services sector, which accounts for 26 per cent of businesses in the industry.

Employer size varies by industry sector, with rail transport seeing the highest proportion of large employers (200+ employees)– 9 per cent of the total. This contrasts with the transport support services sector, where 91 per cent of businesses are non- employing sole traders.

Figure 2.4: Number of businesses by sector and employment size, June 2012

Non employing

1 to 19 20 to 199 200+ Total

Road transport 10,929 6,936 432 59 18,356

Rail transport 17 12 3 3 35

Water transport 63 34 5 4 106

Air and space transport 198 55 10 3 266

Other transport 306 170 16 0 492

Postal and courier pick-up and delivery services 3,688 1,829 46 9 5,572

Transport support services 7,497 653 105 17 8,272

Warehousing and storage services 283 203 57 5 548

TOTAL 22,981 9,892 674 100 33,647



In terms of turnover, transport businesses are more likely than the average across all industries to have a low turnover of$50,000 or less, with 38 per cent of transport businesses falling within this category compared with 28 per cent across all industries. They are considerably less likely to have annual turnover of $200,000 or more (24 per cent of businesses compared with 37 per cent).

At the sector level, differences to the overall transport industry sector are most obvious in the following areas:

• Thirty-four per cent of rail transport businesses had annual turnover in excess of $2 million in 2012.This compares with just 1 per cent of businesses in the postal and courier pick-up and delivery services sector.

• Seventy-three per cent of businesses in the transport support services sector had annual turnover of $50,000 or less.• Forty-five per cent of warehousing and storage services businesses had annual turnover of $200,000 or less compared

with the transport industry average of 76 per cent.

Figure 2.5: Proportion of businesses by turnover, June 2012

Transport

All industries 28%

38%

35%

38%

31%

20% 4%

6%

Zero to $50k $50k to $200k $200k to $2m $2m or more


In terms of business location,10 71 per cent of transport businesses are in metropolitan Melbourne, mainly in the northern and western regions (Craigieburn, Tullamarine, St Albans, Sunshine, Deer Park and Truganina) and south eastern region (Cranbourne, Dandenong and Narre Warren). The industry is generally located close to Melbourne’s port, major arterial road network, manufacturing hubs and supply chain networks. Refer Figure 2.6, over, for details.

In regional Victoria, the transport businesses are concentrated in regional centres (Bairnsdale, City of Latrobe, Geelong, Ballarat, Bendigo, Mildura, Shepparton and Wodonga) and the peri-urban areas surrounding metropolitan Melbourne (Bacchus Marsh and Mitchell Shire).

It is anticipated that over the next 15 to 20 years there will be a continued shift in transport and logistics businesses towards intermodal hubs in suburban and / or regional locations, away from a concentration around Melbourne.

10 Department of Business and Innovation, Transport, Postal and Warehousing – Business location in Victoria: A decade of change, October 2012 (based on data from WorkSafe Victoria)


Figure 2.6: Location of transport businesses in metropolitan Melbourne, 2010-11

Figure 2.7: Location of transport businesses in regional Victoria, 2010-11


Industry trends and outlookThis section summarises trends and outlook for the transport and logistics industry.

Like many Victorian industries, transport and logistics was hit by the global financial crisis. As the Australian economy slowed, falling demand from consumers caused businesses to run down their inventories – meaning reduced demand for imports and therefore transport and logistics services. Exports were also negatively affected by the strong Australian dollar, with a similar impact on industry demand.

Businesses in the industry responded to pressures with strong competition, reducing costs and profit margins, and offering increasingly customised supply chain solutions to their customers. The combination of low profit margins and lower freight volumes took their toll on small operators within in the industry. Growth has since returned but, while low barriers to entry in the road transport sector in particular mean that new owner-operators continue to enter the industry, it is anticipated that they may find it increasingly difficult to compete against larger operators.11

Looking forward, growth is anticipated in both the passenger and freight segments of the industry. The rise of online business models is increasing demand for logistics and supply chain services, with many online retailers outsourcing their supply chain to third party logistics providers. Customer expectations are on the increase and the trend toward customised solutions in logistics is expected continue, with transport and logistics operations becoming increasingly complex and global in focus. Technology and automation are being incorporated into logistics and supply chain organisations to manage these new complexities as well as to improve efficiency and profitability, and the industry skills profile is changing accordingly.

The traditional image of transport roles as requiring physical strength and few qualifications is a decreasing reality. The industry’s increasingly complex operations are seeing a corresponding increase in demand for higher order skills. The supply of larger numbers of more highly-skilled employees into this growing industry will represent a challenge, particularly in a workforce where skill shortages are already a feature.

Industry drivers

International trade• The level of international trade has a significant influence on the transport and logistics industry, with any

increases representing an opportunity for industry operators.• The high Australian dollar has dampened export levels in recent years, as the relative cost of Australian goods has

increased. However, the Australian dollar is likely to weaken over the next few years and international trade is expected to increase, benefiting Victoria’s exporting businesses – including those in manufacturing and agriculture.

• The level of imports is also expected to increase, with a growing Australian population likely to increase domestic demand.

Fuel prices• Many sectors within the transport and logistics industry rely on fuel, and increases in fuel costs can be a threat to business

profitability.• Rising fuel prices for motorists will see increased patronage on public transport placing additional pressure on

existing services• Over the next few years, the price of crude oil is expected to increase as the value of the Australian dollar decreases,

intensifying the trend in rising fuel costs and making other modes of transport (such as rail and water) more price competitive.

11 IBISWorld, Integrated Logistics in Australia, November 2013


Industry drivers

Infrastructure investment• Investment in freight infrastructure has increased in recent years, and has included expenditure on rail networks and a

renewed focus on developing intermodal transport sites and distribution hubs.• Construction is ongoing on Victoria’s Regional Rail Link project, a new rail line linking West Werribee with Southern

Cross Station in the Melbourne CBD which is designed to remove bottlenecks in the rail network in Melbourne’s west.• Work is also underway on expanding capacity at Melbourne’s ports and airports. Melbourne Airport is upgrading and

expanding existing infrastructure to support anticipated growth in passengers and freight,12 while the Port of Melbourne’s Port Expansion Project will alleviate capacity constraints facing Melbourne’s Ports. The investment includes infrastructure development at both Swanson and Webb Dock East, and the creation of an automotive facility at Webb Dock West.13

• State and Commonwealth governments continue to invest in road infrastructure, with recent projects including EastLink and Peninsula Link. Planning is underway for the first stage of the East West Link, an 18 kilometre cross-city road connection extending across Melbourne from the Eastern Freeway to the Western Ring Road.

• Modernisation and expansion of Victoria’s transport infrastructure will have an impact on industry skill requirements as workers will need to adapt to increased automation and different technologies in segments such as ports and rail.

Population growth• Population growth drives demand for transport and logistics services in both freight and passenger segments.• Public transport has grown rapidly in the five years to 2011, with metropolitan public transport increasing by 36 per cent and

regional trains showing growth of 112 per cent. Further strong patronage growth is expected over the next decade driven by a growing population, rising traffic congestion and lifestyle changes.14

Utilisation of technology• There has been significant growth in the use of technology across all transport industry sectors. Technology is being used

to drive efficiency in the industry and has allowed the promotion of integrated networks, more efficient just-in-time inventory management and reduced costs for logistics operators.

• Technological developments will continue to be a key driver of sector growth, with stock tracking and monitoring, GPS location, voice-picking and increased automation all expected to improve sector productivity and help the flow of stock through the supply chain.

• Advances in technology were flagged during consultations as a key factor influencing the industry’s future skill requirements by a number of transport and logistics organisations. A key challenge for the industry will be the supply of increasing highly skilled employees, with demand driven both by technological advances and by overall industry growth.

12 Invest Victoria, Melbourne Airport embarks on huge infrastructure expansion program, 29-Oct-2013, www.invest.vic.gov.au/131029-melbourne-airport-embarks-on- huge-infrastructure-expansion-program, sighted 21-Dec-2013

13 Department of Transport, Planning and Local Infrastructure, Port capacity, www.transport.vic.gov.au/freight/ports/port-capacity, sighted 06-Dec-201314 Victorian Auditor-General’s Office, Public Transport Performance, February 2012


Industry drivers

Transport regulations and national regulators• Transport a highly regulated industry, and the necessity of complying with government regulations was raised often in

consultations with the industry. Regulatory compliance has considerable implications for industry skills and training needs, and has been flagged by employers as the primary driver of investment in training.15 The complex regulatory environment has also been cited by a number of stakeholders as a contributing factor to the industry’s skill shortages.

• Compliance management can be particularly challenging for small operators in the industry, who may not fully understand their responsibilities in terms of managing fatigue, speed and chain of responsibility.16

• The introduction of three national regulators in 2013 (covering the road, rail and maritime sectors) will move towards harmonisation of regulations across states and territories and is expected to bring about safety and productivity improvements as well as reduce the reporting burden for national operators.17

• In the short-term, however, stakeholders are reporting challenges in complying with the new regulatory environment. Rail operators for example, are working to align tasks and worker competence to the Australian Quality Training Framework in compliance with the Rail Safety National Law.18

Transport safety• Safe working requirements are prescribed for many sectors of the industry, with considerable implications for

industry skills and training needs.• In the rail sector, for example, rail infrastructure managers and rolling stock operators must be accredited by Transport

Safety Victoria and must demonstrate that they have the personnel, safety management system, resources, know-how and commitment to safely manage risks,19 while in road transport, fatigue management regulation articulates working practices for heavy vehicle drivers.

• Understanding of and compliance with these requirements has considerable implications for skills and training needs.

Victoria – The Freight State• In August 2013, the Victorian Government released Victoria – The Freight State, a long term strategy to improve freight

efficiency, grow productivity and better connect Victorian businesses with their markets, whether local, national or international.20

• The strategies and actions cover freight gateway capacity, better use / efficiency of the freight network, land use planning and projections and planning for efficient and sustainable freight movements.

National strategies• Major infrastructure developments are laid out in the National Ports Strategy and the National Land Freight Strategy

Update and include railway track upgrades and the extension of road and freight linkages, particularly at port and intermodal facilities.21

Sources: IBISWorld, Airport Operations in Australia, September 2013; IBISWorld, General Warehousing and Cold Storage in Australia, November 2013; IBISWorld, Integrated Logistics in Australia, November 2013; IBISWorld, Rail Freight Transport in Australia, September 2013; IBISWorld, Rail Passenger Transport in Australia, October 2013; IBISWorld, Road Freight Transport in Australia, September 2013

15 Transport & Logistics Industry Skills Council, E-Scan 2013 16 Transport & Logistics Industry Skills Council, E-Scan 2013 17 Transport & Logistics Industry Skills Council, E- Scan 201318 Office of the National Rail Safety Regulator, Application of AQTF and AQF to Rail Safety Worker Competency Assessment Policy, Apr-1319 www.transportsafety.vic.gov.au/rail-safety20 State Government of Victoria, Victoria – The Freight State: The Victorian freight and logistics plan, Aug-1321 Transport & Logistics Industry Skills Council, E- Scan 2013; Infrastructure Australia, National Ports Strategy 2012, Sep-12; Infrastructure Australia, National

Land Freight Strategy Update, Jun-12


Workforce and skills

This section focuses on employment levels and the major occupations within the transport and logistics industry, including employment by age, gender and qualification levels. It also includes information about which occupations are likely to be in demand now and in the future.

Summary points• In 2012-13, the transport, postal and warehousing industry employed around 137,000 people. Employment has grown by

11 per cent over the last five years and the outlook is one of continued growth. The road transport sector accounts for the largest proportion of industry employment (46 per cent) and future jobs growth (an additional 7,800 jobs anticipated through to 2017- 18).

• A majority of transport workers are based in Melbourne (78 per cent). The remaining workers are spread fairly evenly throughout the rest of Victoria, although Barwon South West and Hume have a slightly higher proportion of employment than the other rural regions.

• The transport industry workforce has an older than average age profile, with 45 per cent of the workforce aged 45 years or older compared to 39 per cent across all Victorian industries. This is consistent across all transport sectors except air and space transport, where 36 per cent of workers are 45 or over.

• The workforce is predominantly male, with women representing just 25 per cent of industry employees. The air and space transport sector employs the highest proportion of women, at 38 per cent of total employment.

• Over half of Victorian transport workers have no post-school qualifications, significantly higher than the all industry average of 40 per cent.

• It is anticipated that the highest demand for new workers within the transport and logistics industry will be for truck drivers, storepersons, forklift drivers, and purchasing/supply logistics clerks (including warehousing administrators).

• The following transport and logistics occupations are identified as being in shortage in Victoria: transport and logistics manager; workplace trainer and assessor; warehouse administrator; truck driver; aeroplane pilot; rail engineer; signal maintenance technician; train driver; railway track worker.

• Industry consultations have also highlighted a number of skills gaps or emerging skills needs, including higher level management and leadership skills, language literacy and numeracy skill requirements and issues with skills training and development keeping up with the rapid pace of technological change in the industry.

• Workforce challenges facing the industry include its ageing workforce and demographic mix; employee attraction and retention; the uptake of new and emerging technologies; the increasing complexity of transport operations; and the anticipated growth in the freight task.

Workforce and skills 17

Workforce sizeApproximately 137,000 people are employed in Victoria’s transport, postal and warehousing industry. The industry has seen employment growth of 11 per cent over the last five years, equating to approximately 13,200 employees. The outlook over the next five years is for employment to continue to grow, increasing by approximately 9 per cent (or 12,000 jobs).

The road transport sector accounts for the largest proportion of industry employment, 46 per cent of the total. This is followed by postal and courier services and warehousing and storage services. Despite accounting for 25 per cent of industry output, air and space transport accounts for just 6 per cent of industry employment.

Figure 3.1: Transport, postal and warehousing employment by sector, proportion of total, 2012-13

Road transport

Postal and courier

Warehousing and storage

Transport support

Air space and transport 6%

Rail transport 5%

Water transport 2%

Other transport 1%

10%

14%

17%

46%



In terms of future employment, a majority of the projected growth in industry employment is anticipated in the road transport sector, with forecast growth of 12 per cent (7,800 jobs). Employment in all other transport sectors is also expected to grow.

Figure 3.2: Transport, postal and warehousing employment growth by sector (000s), 2012-13 to 2017-18

Road transport

Postal and courier

Rail transport 0.8

2.1

7.8

Air space and transport

Transport and support services

0.5

0.3

Warehousing and storage 0.3

Other transport

Water transport

0.1

0.1



Workforce locationOver three quarters of transport employment is within metropolitan Melbourne. Regional employment in this industry is broadly in line with the regional share of all industry employment, although the share of transport employment in Melbourne is slightly higher than its share of employment across all industries.

Figure 3.3: Transport, postal and warehousing employment by region, 2012-13

78% 77%

6% 7%

3% 4% 4% 5% 5% 6% 3% 4%




22 According to the ABS ANZSIC definition of transport, postal and warehousing


While transport employment currently comprises 5 per cent of employment across Victoria,22 this varies by region. Transport is of greatest importance to the Melbourne region, where it makes up 4.9 per cent of total employment, followed by the Grampians and Hume. The industry is a relatively less significant employer in Gippsland, accounting for 3.7 per cent of total employment in the region.

Figure 3.4: Transport, postal and warehousing as a proportion of total regional employment, 2012-13

4.9%

4.0%4.4%

4.0%4.3%

3.7%




Labour market characteristicsEmployment by ageThe age profile of the transport industry is significantly older than the average for all industries. Approximately 45 per cent of workers are aged 45 or over, compared to 39 per cent across all industries.

Figure 3.5: Transport, postal and warehousing age profile, 2012-13

Transport

All industries

10% 22%

15% 24%

23% 22%

23%

21%

22%

17%

15-24 25-34 35-44 45-54 55+


The older age profile is consistent across all transport sectors, with the exception of air and space transport where just 36 per cent of the workforce are aged 45 years or older. The age profile of the warehousing and storage services sector is similar to the Victorian average, with 39 per cent of workers aged 45 years or more.

Employment by genderA majority of transport industry employees are male, approximately 75 per cent compared to 25 per cent female employees. This proportion of male employment is high compared with the average for all industries, but it aligns with other traditionally blue-collar industries.

The gender imbalance is consistent across all transport sectors, most markedly in road transport where 83 per cent of employees are male. The air and space transport sector employs the highest proportion of women within the transport industry, with female employees constituting 38 per cent of the workforce.


Employment by qualification levelA high proportion of workers in the transport industry have no post school qualifications – 53 per cent, significantly higher than the average of 40 per cent across all Victorian industries. Of those workers with post-school qualifications, Certificate III-IV is the most common qualification level, accounting for 18 per cent of the total workforce.

Employees with higher education qualifications are relatively less common in this industry, making up 16 per cent of employment compared with an average of 29 per cent across all Victorian industries.

Figure 3.6: Transport, postal and warehousing qualification profile, 2012-13

Transport53% 4% 18% 8% 16%

All industries 40% 3% 18% 11% 29%

No post school quals Certificate I-II Certificate III-IV Diploma + Higher education



Transport occupationsAlmost half of transport and logistics industry workers are employed as machinery operators and drivers.23 The industry also has a higher than average proportion of clerical and administrative workers, 23 per cent compared to 14 per cent across all industries.

This is offset by a much lower proportion of professionals, 7 per cent compared with a Victorian average of 24 per cent. Technicians and trades workers are also relatively under-represented in the transport industry.

Figure 3.7: Transport, postal and warehousing occupation profile, 2012-13

Managers

Professionals

Technicians / Trades

Community / PersonalService Workers

Clerical / Admin Workers

11%

7%

4%

2%9%

13%

14%

14%

24%

23%

Sales Workers

Machinery Operators / Drivers

Labourers

5%10%

6%

5%10%

42%



23 Occupations are categorised using the Australian Bureau of Statistics Australian and New Zealand Standard Classification of Occupations.


Employment growth and replacement demandFigure 3.8 highlights the top ten transport-related occupations by employment at the four-digit ANZSCO (Australian and New Zealand Standard Classification of Occupations) level, sorted by those expecting the highest average annual employment growth + replacement demand over the next five years.

Replacement demand is the number of workers in a particular occupation required to maintain existing employment levels in that occupation i.e. to replace workers that retire or leave for any reason. Net new employment growth is the additional new jobs in a particular occupation that are added to the workforce over and above the existing workforce. Replacement demand in a particular occupation will always be there, and can sometimes be quite high, even if the occupation overall is not adding any new jobs, or may even be reducing in number.

Figure 3.8: Transport-related occupations by estimated annual employment needs, 2012-13 to 2017-18

Occupation 2012-13employment total

Average annual employment needs

Overall employment growth to 2017-18Truck Drivers 40,900 1,930

Storepersons 36,100 1,540

Forklift Drivers 21,300 1,320

Purchasing and Supply Logistics Clerks 23,700 1,080

Automobile Drivers 8,100 680

Transport and Despatch Clerks 9,200 660

Supply and Distribution Managers 11,200 620

Bus and Coach Drivers 7,100 570

Couriers and Postal Deliverers 9,800 420

Transport Services Managers 5,500 370

Delivery Drivers 9,300 330

Air Transport Professionals 2,500 330

Mail Sorters 2,900 280

Freight and Furniture Handlers 3,400 260

Train and Tram Drivers 2,800 230

Railway Track Workers 600 170


24 Note: figures are based on Victorian employment growth forecasts between 2012-13 and 2017-18 + replacement demand figures for the five years between, rounded to the nearest 10. Figures are based on total employment in each occupation and are not limited to employment in the transport, postal and warehousing industry.


There is currently forecast to be reasonable employment growth + replacement demand to 2016-17 in:

• Truck drivers (+1,930 on average each year)• Storepersons (+1,540 on average each year)• Forklift drivers (+1,320 on average each year)• Purchasing and supply logistics clerks25 (+1,080 on average annually)

Job vacanciesFigure 3.9 highlights the number of vacancies posted online in Victoria over the last two years for selected transport-related occupations.

The number of online job advertisements is trending downwards across a majority of transport occupations, consistent with trends seen in the national Internet Vacancy Index.26 Despite this decline, there was still an average of approximately 1,600 newly lodged vacancies in the transport occupations featured below over the three months to June 2013, and the employment outlook for this industry is one of continuing growth. The highest proportion of these were for truck drivers, purchasing and supply logistics clerks and storepersons – in line with those jobs anticipating the highest average annual employment needs over the next few years (see Figure 3.8).

Figure 3.9: Number of newly lodged online vacancies in key transport occupations in Victoria, January 2011 to June 2013

900

800

700

600

500

400

300

200

100

0

Purchasing and Supply Logistics Clerks

Storepersons

Truck Drivers

Forklift Drivers

Transport andDespatch Clerks

Delivery Drivers

Supply andDistribution Managers

Transport Services Managers

Bus and Coach Drivers

Source: DEEWR Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: data is presented in three month moving averages, non-seasonally adjusted, and is susceptible to fluctuation from month to month.

28 Transport & Logistics Industry Skills Council, E-Scan 2013


Specialised or in shortage occupationsThis section focuses on current skills shortages in specific occupations related to the transport and logistics industry in Victoria as well as those occupations that are specialised.27 DEECD’s analysis of skill shortages considers both quantitative evidence and intelligence gathered through industry consultation.

Each of the occupations identified below as in shortage in Victoria have also been flagged by the Transport & Logistics Industry Skills Council as being in skills demand nationally.28

Workplace trainer and assessor (ANZSCO 242211 vocational education teacher) has been identified as a shortage occupation across Victoria’s transport and logistics industry.

Stakeholders in all sectors of the transport and logistics industry have highlighted a shortage of workplace trainers and assessors, in particular experienced trainers who also possess the required industry knowledge and skills. A contributing factor to this shortage is the relative income of workplace trainers when compared with operational roles, meaning there is little incentive for employees to transition into training.

VocationalEducation Teacher Skills Shortage S

pecialised Occupation

Logistics management, road transport and warehousingTransport / logistics manager (ANZSCO 133611 supply and distribution manager, 149413 transport company manager) is identified as a shortage occupation in Victoria.

Transport and logistics is a global industry, with skills needs influenced by increasingly complex operations and supporting technologies. The skill gap between operator and manager is significant, and businesses report difficulties in sourcing managerial level employees with the skills, experience and capability required.

Transport andLogistics Manager Skills Shortage S


Warehouse administrator / warehouse manager (ANZSCO 591116 warehouse administrator) is identified as a shortage occupation in Victoria’s warehousing and storage sector.

Employers have flagged difficulties in recruiting suitably qualified and experienced warehouse managers and administrators. One potential driver of shortages associated with this occupation is the increasing use of technology in warehousing and logistics, meaning this role is becoming more highly skilled.

Warehouse

Administrator Skills Shortage Specialised


Occupation

27 DEECD uses the Australian Workforce and Productivity Agency list of specialised occupations (http://www.awpa.gov.au/our-work/labour-market-information/ specialised-occupations-list/). These occupations have a long lead-time for training, high economic value and a significant match between training and employment

4



Truck driver (ANZSCO 733111 truck driver (general)) has been identified as a shortage occupation in Victoria’s road transport sector.

Truck driver shortages are an ongoing issue for Victoria’s transport and logistics industry. Consultations highlighted difficulties in recruiting and retaining truck drivers, with reports of considerable employee poaching between employers. However, industry stakeholders flagged that not all truck drivers are in shortage, rather that specific skills are in high demand –examples included:

• Heavy-combination drivers• Multi-combination (B double) drivers• Dangerous goods drivers

Outside of these specialist skills, some of the reported truck driver shortages can be considered labour shortages, influenced by industry attraction issues, pay rates or the long hours associated with this occupation.

Truck Driver Skills Shortage Specialised Occupation

In addition, the following road transport occupations have been identified as being in demand on a national level: delivery driver, bus driver, taxi driver, forklift operator, storeperson.29

AviationAeroplane pilot (ANZSCO 231111 airline pilot) is a shortage occupation in Victoria. It is also a specialised occupation, along with other air transport professional roles (i.e. air traffic controller, flying instructor, helicopter pilot).

There is global demand for pilots, with a projected need of 498,000 new commercial airline pilots worldwide by 2032 – 192,300 of these in the Asia-Pacific region.30 The industry has highlighted difficulties in attracting young people into the occupation, leading to an ageing pilot workforce. The high costs of training, license endorsements and the substantive number of flying hours across different aircraft type reduce the candidate pool for entry into commercial airline operations. Problems with are also experienced with pilots being poached by other operators.

Aeroplane Pilot Skills Shortage Specialised Occupation

Additional occupations in demand at a national level have been identified as: corporate services manager / human resources manager (particularly for airport operators), flying instructor, aircraft baggage handler.31



30 Boeing, Current Market Outlook 2013-2032: Pilot & Technician Outlook, http://www.boeing.com/boeing/commercial/cmo/pilot_technician_outlook.page, sighted 20-Dec-2013




Ports and maritimeWhile no shortages have been identified specific to Victoria, occupations flagged as in demand at a national level include:

• Maritime – deck hand; integrated rating; coxswain; ship’s officer / deck officer / ship’s navigating officer; ship’s captain / ship’s master; marine pilot / ship’s pilot / sea pilot; marine engine driver.

• Ports – stevedore; crane driver; forklift operator; gantry crane operator; straddle carrier operator; harbour master assistant/ deputy harbour master; vessel traffic services operator; port manager / terminal manager / terminal operators; berth and terminal planner; port finance manager and accountant; port engineer; cargo superintendent / load controller.32

Marine transport professionals are identified by the Australian Workforce and Productivity Agency as being specialised occupations – these occupations include master fisher, ship’s engineer, ship’s master, ship’s officer and ship’s surveyor.

RailRail engineer (ANZSCO 233211 civil engineer, 233215 transport engineer, 233311 electrical engineer) has been identified as a shortage occupation in Victoria’s rail industry. Engineer is also a specialised occupation.

An occupation aligned to higher education qualifications rather than vocational training, rail engineers are consistently highlighted as experiencing shortages. Limited options in terms of rail-specific engineering programs33 mean that on-the- job experience is the main route via which to gain relevant specialised skills. Limited formal career pathways to enable experienced workers to transition into engineering roles was also flagged in consultations.

Rail Engineer Skills Shortage Specialised Occupation

Signal maintenance technician (ANZSCO 341111 electrician) is identified as a shortage occupation. It is also a specialised occupation.

Competition from other industries for electrical skills means that the industry struggles to attract employees in this area.34 High attrition rates have also been flagged among trainees. This has been attributed to various factors (e.g. poor training materials, bottlenecks in training and assessment processes, perception of better pay or opportunities with other employers), but serves overall to undermine the efforts of rail operators to meet their workforce planning requirements and alleviate skills shortages in the industry.

Signal MaintenanceTechnician Skills Shortage

Specialised Occupation


31 Transport & Logistics Industry Skills Council, E-Scan 201332 Transport & Logistics Industry Skills Council, E-Scan 201333 Parliament of Victoria – Education and Training Committee, Inquiry into Skills Shortages in the Rail Industry, May 2012



Train driver (ANZSCO 731111 train driver) is identified as a shortage occupation in Victoria.

Rail operators have run extensive recruitment and training programs in recent years to successfully alleviate train driver shortages. Shortages are still being flagged by operators, however, due in part to network expansion.

Train Driver Skills Shortage Specialised Occupation

Railway track worker (ANZSCO 821611 railway track worker) is identified as experiencing skill shortages.

Rail infrastructure projects have increased demand for these roles. Shortages are evident at more senior levels rather than entry level skills, however, with gaps in succession planning flagged as one contributing factor during industry consultations.

Railway TrackWorker Skills Shortage S


The occupation electrical lines worker has also been identified as a shortage occupation in Victoria. While not specific to rail, it is aligned to certain specialist roles within the industry. Similarly construction project managers are identified as being in demand nationally.35


35 Transport & Logistics Industry Skills Council, E-Scan


Skills gaps and emerging skills needsSeveral skills gaps, niche skills or emerging needs were flagged during industry consultations:

• The growing development of technology in the industry has been highlighted throughout industry consultations, with implications for the industry’s skills requirements. Some organisations raised concerns about available training not keeping pace with technological change and with the capability in training organisations to deliver current industry requirements across the breadth of operations has seen some companies become training providers in their own right to ensure delivery of the training needed by their organisation.

• The industry’s increasingly complex operations are seeing a commensurate increase in demand for higher level skills in strategic management and leadership. Industry has advised that the jump from operator to manager is considerable, particularly given that relatively low level qualifications are the norm among the current workforce.

• Businesses continue to report skills gaps in the language, literacy and numeracy skills of their current employees, highlighting the difference between the skills of the current workforce and the higher level skills the industry will increasingly need. Reports were given during industry consultations of the business benefits of new technology not being fully realised due to foundation skills gaps in the existing workforce.

• A number of organisations have flagged lean techniques, efficiency and 6-sigma expertise as gaps in current industry training. While these tools are used extensively in business, driving cost savings and defining industry processes, they have not been considered a key component of skills training in transport and logistics. A focus on softer skills development was also flagged as an emerging need, including communication, presentation skills, rapport building and facilitation.

• Traditional stevedoring functions are changing as a result of increased automation in the ports sector, with a tendency towards increased skill specialisation among workers. Increased technical specialisation in job roles has also been flagged in the broader transport and logistics industry, driven in part by the need for cost savings. Job roles are tending towards a very specific skill set, focused on the technical task the business needs them to perform. The challenge with these very focused, technical skill sets is that employees may not be able to move readily into other roles, or take on management positions, as they can lack broad-based industry experience.

• Bus inspectors have been highlighted as a niche skill within the road transport sector, and one which is experiencing recruitment difficulties. Limited awareness of this specialist role is thought to be the driver behind these difficulties, rather than a lack of training or accreditation.


Labour market challengesIn addition to the shortage occupations highlighted above, the transport and logistics industry faces a number of challenges in relation to workforce planning and development.

Labour market challenges

Ageing workforce• An ageing workforce is a critical issue for the industry, as the industry has a high proportion of mature age workers (aged 45+)

when compared with other industries. Added to this are issues with attracting new, skilled entrants to the industry.36

• While certain occupations are able to specifically target young people in recruitment campaigns, age and experience pre- requisites for truck and rail drivers in obtaining commercial licenses and the necessary insurance restrict entry. This makes it difficult for the industry to lower its age profile,37 although the Victorian Transport Association is taking steps in this regard by working with Zurich Insurance to develop a Driver Cadetship Program aimed at reducing insurance premiums for younger drivers.

Industry demographics• The industry’s workforce remains largely male-dominated. Working practices and inflexible arrangements in some

sectors of the industry mean it can be difficult for parents of school age children (particularly women) to gain and retain employment, while mature-age workers can also face barriers to entry (e.g. physical barriers) in some workplaces.38

• Anecdotally, employer demand for female employees is on the increase although this is yet to translate into the industry’s employment profile. In recent industry consultations, increasing women’s participation in the industry was seen as an excellent way to help reduce skill shortages by a number of stakeholders.

Industry attraction and retention• Throughout consultations with industry, stakeholders flagged the need to promote job roles, career opportunities and pathways

available within the transport, logistics and supply chain industries. This is in line with the Transport & Logistics Industry Skills Council’s experience nationally.39

• The variety of transport and logistics career opportunities available are thought to be poorly understood by those external to the industry, with the traditional image of job roles within the industry not matching the myriad of careers available, or the influence of technology on industry operations.

• Transport and logistics businesses continue to identify the resources sector as one attracting employees away from the industry. This sector is thought to be relatively attractive – both in terms of image and remuneration.40

• Employee poaching within the industry has been highlighted as an issue, with some organisations turning to skilled migration as a way of resolving specialist skills needs.

36 Transport & Logistics Industry Skills Council, E-Scan 201337 DIIRD, The 2007 Victorian Transport and Logistics Industry Report38 Transport & Logistics Industry Skills Council, E-Scan 201339 Transport & Logistics Industry Skills Council, E-Scan 201340 Department of State Development, Business and Innovation, GEMS Employer Database, 2012-13; Transport & Logistics Industry Skills Council, E-Scan 2013


Labour market challenges

Utilisation of technology• There has been significant growth in the use of technology across all sectors of the transport, logistics and supply chain

industries, as companies increasingly adopt advanced technologies to support highly complex operations.

• The industry will need to increase its skill levels in order to keep pace with evolving technology and to compete on a global scale. Employees at all levels will therefore require a general understanding of technology applications and processes.41 This will be challenging in an industry with a lower than average qualification profile and where language literacy and numeracy skills have been flagged as an issue.

• A further challenge in sectors such as rail will be ongoing supply of skills to maintain legacy systems alongside the industry’s newer technologies.

Complexity of operations• The growing complexity of transport operations across all sectors of the industry means that advanced skills

will be require to oversee transport fleets and staffing.

• Managerial staff require high level spatial and problem solving skills as well as more general leadership and strategic skills to optimise transport operations in an increasingly sophisticated supply chain environment.42 Industry reports of an existing gap in leadership skills and strategic management capability may suggest that challenges lie ahead.

Growth in the freight task• The forecast growth in the freight task will create demand for new employees and is likely to exacerbate the existing skills

shortages and skills gaps being experienced by the industry.

41 Allen Consulting Group, The Future of Skills in Services in Victoria, December 201242 Allen Consulting Group, The Future of Skills in Services in Victoria, December 2012

Education and training 33

Education and training

This section focuses on government subsidised vocational training aligned to the main transport and logistics occupations in Victoria. It covers enrolments in vocational training activity over the period 2008 to Q2 2013 by occupation and qualification level, the most popular courses undertaken, funding patterns, regional training activity and student characteristics.

Source of data for all tables, graphs and text in this section, unless otherwise specified is: DEECD, Skills Victoria Training System (SVTS) – government subsidised enrolments, accredited (state or national) qualifications only. All enrolment data is rounded to the nearest 10.

Summary points• Vocational training in transport and logistics has seen

strong growth since the phased introduction of training market reforms and is now the fourth largest industry in terms of government subsidised training (as at Q2 2013), compared with tenth largest in 2008. Enrolments in courses aligned to the warehousing and storage sector account for over half of industry enrolments.

• The majority of enrolments are at Certificate III-IV level, with the highest concentration of enrolments aligned to the occupations storeperson or truck driver. Enrolments aligned to these two occupations accounted for almost 70 per cent of industry training in Q2 2013.

• The highest number of course enrolments is seen in the Certificate III in Warehousing Operations, comprising 32 per cent of industry enrolments in Q2 2013. Much of the growth in transport industry training between 2008 and 2012 has been driven by increased enrolments in this qualification along with the Certificate III in Driving Operations. More recently, enrolments in the Certificate III in Logistics have seen strong growth.

• Traineeships account for approximately 20 per cent of enrolments in transport and logistics courses, and trainee enrolments have remained stable between Q2 2012 and Q2 2013. There are very few apprenticeships in this industry.

• Around 45 per cent of transport enrolments are aligned to specialised or in shortage occupations. Enrolments aligned to these occupations have grown, increasing by 19 per cent between Q2 2012 and Q2 2013. These include courses aligned to the occupations truck driver, warehouse administrator and supply and distribution manager.

• A total of 97 training providers delivered government subsidised transport and logistics training in Q2 2013. Private training providers account for a majority of training in this industry, delivering just under 80 per cent of enrolments in Q2 2013.

• The largest region in terms of training delivery is Western Metro, which accounted for 18 per cent of transport and logistics enrolments in Q2 2013. Outside Melbourne, Barwon South West accounts for the highest proportion of industry enrolments, 11 per cent of total delivery.

• Transport and logistics students are more likely to be older males (25 or over) than the average across all-industry training in Victoria. Women account for only 13 per cent of transport and logistics industry enrolments.

• Training market challenges for the transport and logistics industry include: attracting young people and new entrants into the industry, and highlighting the diverse roles and career pathways the industry has to offer; responding to the need for increasingly skilled employees, driven in part by technological change, and providing careers advice which is genuinely aligned to the industry’s changing skills profile; ensuring access to training in specialist areas; maintaining training currency in an environment of technological change and transitioning skill needs; continuing to address quality concerns raised by the industry.


Transport qualificationsTraining packages of relevance to the transport and logistics industry, each the responsibility of the Transport & Logistics Industry Skills Council include:

• Transport and Logistics (TLI10)• Maritime (MAR, MAR13)• Aviation (AVI08)

The Transmission, Distribution and Rail Sector Training Package and the Electrotechnology Training Package have a number of qualifications relevant to the rail industry. In addition, there are some accredited courses in Victoria with specific relevance to the transport and logistics industry.

Training deliveryEnrolments in transport and logistics courses increased between 2008 and 2012, up by 153 per cent to 41,700 (government subsidised and TAFE fee for service). Early signs in 2013 indicate that 2012 enrolment levels are being maintained, with enrolments in Q2 2013 at a similar level to Q2 2012.

Growth has been driven by government subsidised enrolments, which have increased by over 200 per cent over the five years to 2012. Transport and logistics was the fourth largest industry in terms of government subsidised training delivery in Q2 2013, up from tenth largest in 2008.

Government subsidised activity accounted for 89 per cent of enrolments in Q2 2013, a proportion which has increased from 69 per cent in 2008 (note that fee for service delivery data is for TAFE only).

Figure 4.1: Transport enrolments by funding source, 2008–Q2 2013

2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Government subsidised 11,300 15,020 17,080 28,020 38,090 20,920 20,870

TAFE fee for service 5,150 3,950 3,190 2,430 3,580 1,620 2,590

Total 16,450 18,970 20,270 30,450 41,670 22,540 23,460


A majority of training falls within the warehousing and storage services sector, which accounted for over half of transport- related enrolments in Q2 2013. This is followed by road transport, accounting for 31 per cent of enrolments.

Figure 4.2: Transport enrolments by sector (% total), government subsidised, Q2 2013

Warehousing and Storage Services

Road Transport

Transport, Postal and Warehousing nfd13%

31%

51%

Rail Transport 4%

Transport Support 1%

Water Transport 0%

Air and Space Transport 0%


Qualification levelA majority of transport enrolments are at Certificate III-IV level. In Q2 2013, Certificate III-IV level enrolments accounted for 86 per cent of enrolments, a proportion which has been increasing over time. The proportion of enrolments at Diploma level and above level has remained relatively stable since 2010, at 2 per cent of government subsidised delivery in Q2 2013.

Industry stakeholders have flagged the need for higher level skills in the industry, as transport and logistics operations are becoming increasingly complex. The increasing proportion of enrolments at Certificate III-IV level is a first step in this regard, with enrolment numbers continuing to grow between Q2 2012 and Q2 2013 (up by 10 per cent to 17,980). Enrolments at Diploma level and above declined by 33 per cent over the same period, however, from 540 to 360.

Figure 4.3: Transport enrolments by qualification level (% total), government subsidised, 2008–Q2 2013

Q2 2013

2012

2011

2010

2009

2008

12% 86% 2%

19% 79% 2%

29% 69% 2%

40% 57% 3%

47% 49% 4%

31% 56% 13%

Cert I-II Cert III-IV Diploma +


OccupationStoreperson had the highest number of enrolments among transport and logistics qualifications in Q2 2013, accounting for40 per cent of government subsidised enrolments in this industry. This was followed by truck driver, accounting for 29 per cent of enrolments.

Figure 4.4: Top 15 transport occupations ranked by 2012 enrolments, government subsidised, 2008–Q2 2013

2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Storeperson 4,570 7,240 8,770 14,100 18,340 10,580 8,440

Truck Driver (General) 2,570 4,430 4,650 7,530 10,670 5,130 6,080

Warehouse Administrator 520 270 810 2,610 3,320 2,060 2,200

Despatching and Receiving Clerk 290 170 200 250 2,920 1,200 2,370

Delivery Driver 990 1,360 1,140 880 900 440 300

Supply and Distribution Manager 1,420 560 560 500 660 500 360

Train Driver 260 310 560 600 320 160 490

Truck Driver’s Offsider - - - 970 260 290 -

Deck Hand 260 230 220 200 220 150 40

Waterside Worker - - 10 110 100 110 50

Import-Export Clerk - - - - 90 60 90

Aeroplane Pilot - - - 40 70 80 10

Railway Track Worker - - - 20 50 40 380

Boiler or Engine Operator 40 120 60 40 50 40 10

Transport Operations Inspector 270 290 60 70 50 20 10

CoursesThe top 15 courses in transport and logistics accounted for over 95 per cent of industry enrolments in Q2 2013 (see Figure 4.5 for details). Certificate III in Warehousing Operations attracted the most enrolments, with 32 per cent of the total.

Much of the growth in transport industry enrolments between 2008 and 2012 came from two courses (and equivalent superseded qualifications), the Certificate III in Warehousing Operations and the Certificate III in Driving Operations, although enrolment growth in both these courses has stabilised in Q2 2013 when compared with Q2 2012.

In Q2 2013, the largest enrolment growth has been seen in the Certificate III in Logistics (up by 1,170 enrolments when compared with Q2 2012), the Certificate IV in Driving Operations (up by 930 enrolments) and the Certificate II in Rail Infrastructure (up by 350 enrolments, to 380 in Q2 2013). Enrolment growth in this latter course has been driven by new requirements to align rail worker competence to the Australian Qualification Framework.

Qualifications showing a decline in enrolments in Q2 2013 include the Diploma of Logistics, of potential concern given industry stakeholders have consistently flagged this as a key qualification in building higher level skills and capability within the industry, as well as providing a pathway to higher education.


Figure 4.5: Top 15 transport qualifications ranked by 2012 enrolments, government subsidised, 2008–Q2 2013

2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Certificate III in Warehousing Operations

2,330 1,810 3,270 8,020 12,320 7,400 6,640

Certificate III in Driving Operations 2,380 4,080 4,050 6,260 9,820 4,940 4,960

Certificate II in Warehousing Operations

2,080 5,240 5,380 6,020 5,950 3,050 1,790

Certificate IV in Warehousing Operations

480 210 690 2,550 3,300 2,050 2,200

Certificate III in Logistics 10 70 120 200 2,540 1,040 2,210

Certificate II in Driving Operations 990 1,360 1,140 880 900 440 300

Certificate IV in Driving Operations 190 350 600 1,260 860 190 1,120

Diploma of Logistics 30 420 550 490 640 490 350

Certificate IV in Logistics <10 <10 60 50 380 160 170

Certificate IV in Transport and Logistics (Rail Ops)

60 190 210 340 280 180 390

Certificate I in Transport and Logistics (Pathways)

- - - 950 250 300 -

Certificate II in Transport & Distribution (Coastal Maritime Ops - Coxswain)

- 170 110 110 140 80 30

Certificate III in Transport and Logistics (Stevedoring)

- - 10 110 100 100 50

Certificate III in Transport and Logistics (Rail Ops)

200 140 380 300 90 20 140

Certificate I in Warehousing Operations

150 200 110 60 70 130 10

Note: course totals include equivalent superseded courses.


Apprentices and traineesThere were 4,040 apprentice and trainee enrolments in courses relating to transport and logistics in Q2 2013, approximately 20 per cent of all enrolments in this industry. These are almost exclusively traineeship enrolments, as there are very few apprenticeships in this industry.

Traineeship enrolments grew by 25 per cent between 2011 and 2012, but now appear to have stabilised, with enrolments remaining steady between Q2 2012 and Q2 2013.

Figure 4.6: Transport enrolments by apprentices and trainees, government subsidised, 2008–Q2 2013

2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Apprentice 20 10 20 10 10 10 <10

Trainee 3,430 2,600 3,140 5,200 6,490 4,010 4,040

Total 3,450 2,610 3,160 5,210 6,500 4,020 4,040

Figure 4.7 shows the most popular traineeships in Q2 2013. These five courses accounted for 88 per cent of trainee enrolments in the transport and logistics industry in Q2 2013.

Figure 4.7: Top five transport traineeships, Q2 2013

Q2 2013 % total

Certificate III in Warehousing Operations 2,100 52%

Certificate III in Driving Operations 680 17%

Certificate IV in Warehousing Operations 540 13%

Certificate III in Transport and Logistics (Rail Operations) 140 3%

Certificate II in Warehousing Operations 110 3%


Alignment to industry skills needsSpecialised or in shortage occupationsThere were six transport and logistics occupations supported by the government subsidised vocational training system in Q2 2013 which are considered to be specialised or in shortage in Victoria.

Around 45 per cent of industry enrolments were linked to these specialised and shortage occupations, and enrolments in these courses have increased by 19 per cent since Q2 2012. Of these, a majority (64 per cent) were in truck driver qualifications.

Figure 4.8: Enrolments aligned to specialised or in shortage occupations ranked by 2012 enrolments, government subsidised, 2008–Q2 2013

2012 Q2 2013 Average annual employment needs

Enrolments in line with industry needs?

Truck Driver (General) 10,670 6,080 1,930

Warehouse Administrator 3,320 2,200 1,080

Supply and Distribution Manager 660 360 620 ?

Train Driver 320 490 230

Aeroplane Pilot 70 10 330 ?

Railway Track Worker 50 380 170 ?

By comparing enrolment levels with employment + replacement demand figures to 2016-17 (see Section 3), some broad conclusions can be drawn around whether enrolments in related training courses are in line with industry needs, which should be tested and further refined with industry stakeholders.

• Truck Driver: employment estimates suggest annual employment growth + replacement demand of around 1,930 truck drivers. Current enrolments in truck driver qualifications in both 2012 and Q2 2013 surpass these annual requirements for additional employees.

• Warehouse Administrator: employment growth + replacement demand forecasts for the ANZSCO occupational group purchasing and supply logistics clerks, which includes warehouse administrators, indicate annual employment needs of 1,080 additional employees. Current vocational training enrolment levels appear to be in line with these requirements.

• Supply and Distribution Manager: employment forecasts estimate average annual employment needs for supply distribution managers at around 620, with an estimated additional 370 transport services manager needed each year. This occupation is also aligned to higher education qualifications, and it is unclear whether annual employment + replacement demand needs are being met by a combination of vocational and higher education or whether there remains a gap.

• Train Driver: with average annual employment needs (employment + replacement demand) estimated at 230 for train and tram drivers, enrolment levels of 490 as at Q2 2013 appear to be in line with industry needs.


• Aeroplane Pilot: government subsidised vocational training enrolments are well below the forecast average annual employment requirements of 330 for air transport professionals (which includes aeroplane pilots). However, vocational training delivery aligned to this occupation is known to be delivered largely on a fee for service basis and so the degree of alignment between training delivery and industry skills needs remains unclear. Fee for service training delivery data will be available from 2014, after which a more complete picture should become available.

• Railway Track Worker: enrolments aligned to this occupation have shown strong growth in 2013 and now exceed annual employment + replacement demand forecasts. While this suggests that current levels of government subsidised training are in line with industry needs, growth in training is being driven in part by new regulations to align worker competence with the Australian Qualification Framework and is likely to be aimed at existing workers in the industry rather than new recruits.

Subsidy bandsIn Q2 2013, 86 per cent of transport enrolments were funded at subsidy levels A and B, increasing from 79 per cent in 2012. The proportion of enrolments funded at subsidy levels C and D fell from 21 per cent to 14 per cent over the same period.

Figure 4.9: Enrolments by subsidy band, government subsidised, 2012 – Q2 2013

Q2 2013 2% 84% 12% 2%

2012 1% 78% 19% 2%

Band A Band B Band C Band D


Training providersA total of 97 training providers delivered government subsidised transport and logistics training in Q2 2013. Of these, 78 were private training providers, 14 were TAFE Institutes and 5 were Learn Local (ACE) providers.

While the numbers of providers offering government subsidised vocational training in transport and logistics qualifications has increased since the phased introduction of training market reforms (up from 75 in 2008), a number of sectors within the industry are faced with limited choices in terms of providers. Six training providers delivered government subsidised training in rail in Q2 2013, for example, while three providers delivered qualifications from the maritime training package and two delivered government subsidised training in aviation.

Provider typeThe majority of transport and logistics training is with private providers, who accounted for just under 80 per cent of industry enrolments in Q2 2013. This proportion has been increasing over time. TAFE’s share of industry enrolments was 21 per cent in Q2 2013. Learn Local provision in this industry remains low, at less than one per cent of total enrolments.

Figure 4.10: Transport enrolments by provider type, government subsidised, 2008–Q2 013

Q2 2013

2012

2011

2010

2009

0% 79% 21%

1% 72% 27%

1% 59% 40%

0% 36% 64%

1% 28% 71%

2008 0% 37% 62%

ACE Private TAFE


Location of deliveryIn Q2 2013, the largest region in terms of transport training delivery was Western Melbourne, with 18 per cent of industry enrolments. This is followed by Melbourne CBD, which accounted for 16 per cent of industry enrolments in this period.

Outside of metropolitan Melbourne, Barwon South West is the largest region for transport and logistics training delivery, followed by Hume. These two regions accounted for a combined share of 18 per cent of transport enrolments in Q2 2013. Barwon South West in particular has seen considerable growth in enrolments in recent years.

Figure 4.11: Transport enrolments by delivery location ranked by 2012 enrolments, government subsidised, 2008–Q2 2013

2008 2009 2010 2011 2012 Q2 2012 Q2 2013

Melbourne CBD 760 590 740 2,970 6,720 4,290 3,350

Western Metropolitan 1,540 1,280 2,040 3,460 5,460 2,280 3,810

Northern Metropolitan 1,000 2,400 2,300 4,370 5,450 3,200 2,310

Barwon South West 680 1,190 1,820 4,980 5,120 2,920 2,210

Southern Metropolitan 840 4,210 4,700 2,530 4,310 2,350 3,130

Hume 1,260 1,600 1,720 2,080 2,410 1,240 1,550

Loddon Mallee 1,080 1,220 1,000 1,490 1,890 1,130 1,270

Grampians 180 250 630 1,260 1,790 780 890

Eastern Metropolitan 1,410 1,360 1,180 1,430 1,540 1,040 970

Gippsland 390 430 550 430 810 330 590

Note: data excludes online and interstate delivery

While vocational training enrolments in transport and logistics qualifications have increased in each of Victoria’s regions over the last few years, consultations with industry stakeholders have highlighted ongoing difficulties in accessing training in more remote rural areas. With numbers often insufficient to attract training providers to deliver in the local area, employees need to travel to regional centres or to Melbourne to access the training they need, resulting in increased travel time, more time away from work and potential accommodation costs.


The following maps highlight where transport enrolments took place in Q2 2013, and the number of training providers delivering in these areas.

Figure 4.12: Transport enrolments and training provision, government subsidised, Q2 2013


StudentsAge profileJust 31 per cent of government funded transport and logistics enrolments were by students aged 24 years and under in Q2 2013. This is significantly below the all-industry average, where 46 per cent of students were in this age bracket, and is in line with the transport industry’s ageing employment profile.

Enrolment growth between Q2 2012 and Q2 2013 was highest among students aged 24 years and under, with enrolments from this age group increasing by 9 per cent. In comparison, enrolments in all other age categories declined slightly over this period. With over half the enrolment growth among young people aged 24 and under has been in qualifications aligned to the occupation truck driver, it may raise questions around employment outcomes given the insurance issues for young drivers highlighted earlier.

With industry continuing to report driver shortages and difficulties in attracting younger people, one challenge going forward will be how to transition vocational training graduates into available job roles while acknowledging the entry level criteria of a graduated vehicle licensing system and insurance premiums for those aged 24 and under.

Figure 4.13: Transport enrolments by age (% total), government subsidised, Q2 2013

Transport

All industries

31%

46%

24%

20%

21%

16%

16% 7%

12% 5%

15 to 24 25 to 34 35 to 44 45 to 54 55 to 64


Gender profileJust 13 per cent of enrolments in transport-related courses were by women in Q2 2013, a proportion which has remained fairly stable over the last few years. This compares with an all-industry average of 47 per cent female enrolments.

When compared with men, women are less likely to enrol in courses related to truck driving – these courses account for 22 per cent of enrolments by women compared to 30 per cent of those by men. They are slightly more likely to be enrolling in courses aligned to the occupation storeperson (45 per cent of enrolments compared with 40 per cent of enrolments by men).

Learners facing barriersTransport enrolments by learners facing barriers were generally on a par with the all industry average, with the exception of enrolments by unemployed students. This cohort accounted for 37 per cent of enrolments in transport-related courses in Q2 2013, compared to an all-industry average of 24 per cent of enrolments (see Figure 4.14).

Government subsidised enrolments by culturally and linguistically diverse (CALD) students accounted for 25 per cent of transport enrolments, while enrolments by students with a disability make up 8 per cent. Enrolments by Indigenous students account for 1 per cent of enrolments in transport and logistics qualifications.

Figure 4.14: Transport enrolments by learners facing barriers (% total), government subsidised, Q2 2013

37%

25% 24%24%

8% 7%

1% 1%

CALD Disability Indigenous Unemployed


Government subsidised enrolments by learners facing barriers has increased across all groups in Q2 2013 compared with Q2 2012, although overall transport and logistics enrolments remained flat over this period. Enrolments by unemployed students showed particularly strong growth, increasing by 22 per cent.


Training market challenges and opportunitiesChallenges and opportunities

Industry attraction• With stakeholders across the industry flagging issues with attracting new entrants, promotion of transport, logistics and

supply chain careers and pathways will be essential in informing young people of the potential available within the industry.• The Transport & Logistics Industry Skills Council has developed the Go Places website to promote the range of

jobs and potential career paths available in the industry. Sector-specific online resources have also been developed by organisations including the Australasian Railway Association (Rail Careers site) and the CRC for Rail Innovation (Rail Career Pathways site):o tlisc.org.au/goplaces/o www.railcareers.net.auo www.railcareerpathways.net.au

• A number of organisations are using cadetships in logistics as a way of promoting careers and career pathways in logistics to young people.43 VET in Schools (VETiS) also provides opportunities and pathways for secondary school studentsto undertake vocational training in as part of their senior secondary certificate, with VETiS enrolments in qualifications aligned to transport and logistics reaching approximately 300 in 2012. If successful in helping to attract young people into the industry, these initiatives will start to address some of the issues associated with the industry’s ageing workforce.

• The Victorian Skills Gateway (http://www.education.vic.gov.au/victorianskillsgateway) provides information on vocational training available for students wanting to pursue a career in transport and logistics. DEECD is developing links fromthe Gateway through to the targeted information available on Go Places, Rail Careers and Rail Career Pathways, to help signpost potential students to material which will support them in their decision-making.

• DEECD continues to develop the information available to students via the Victorian Skills Gateway, and will work with industry to identify case studies of transport and logistics workers in skills shortage areas as a way of lifting awareness about opportunities on offer in the industry.

Workforce diversity• Given the current workforce and training profile of the transport and logistics industry, opportunities remain in increasing

diversity in the workforce.• With research by the Transport & Logistics Industry Skills Council highlighting a decrease in strategies designed to

increase the number of women in the workforce coupled with no increase in strategies aiming to attract and retain older workers between 2012 and 2013,44 this highlights ongoing opportunities for future development in this regard.

• Groups such as Women in Supply Chain and Aviation/Aerospace Australia’s Women in A/AA are working to establish networks for women in the industry and to promote gender diversity within the industry.

43 The cadetship developed by TDT Victoria in collaboration with industry and delivered through Kangan Institute offers a two-year program for young, full time logistics employees aged 18-23 studying for a Certificate IV in Logistics and a Diploma of Logistics. Victorian Transport Association, in partnership with Victoria University and GO TAFE, now offers a similar program.



Challenges and opportunities

Increasing skill requirements• The need for employees with higher level skills has consistently been highlighted during stakeholder consultations, driven in

part by increasing adoption of technology in workplaces and a more complex, global operating environment.• While computer literacy and a capacity to understand and use technology are required at all levels, some employers

report that developing these higher order skills could be a challenge given the language, literacy and numeracy skills of some existing employees.

• The step from operator to manager level in the industry is thought to be considerable, and the Diploma of Logistics is considered by the industry to provide a valuable stepping stone in this regard. The qualification serves to upskillemployees in an industry which has a relatively low qualification profile when compared with other industries, and canalso serve as a pathway to higher education for employees wishing to take the next step in their careers. While enrolments have increased in Certificate II, III and IV level qualifications, uptake at Diploma level remains relatively low. Cost of training at this level has been highlighted by industry as one potential barrier, but the issue appears to be broader than this. Enrolment trends suggest that industry has embraced training at the operator level but not for higher order skills, which are acknowledged as being critical for future growth. DEECD will continue to monitor enrolment trends in the Diploma of Logistics and to seek feedback from industry on whether the available qualifications address the identified need for higher order skills.

• There is a wider opportunity to work with careers advisers to ensure they have an up-to-date view of the industry and its skill needs, in order to provide well-informed careers advice to prospective students and their parents. Ensuring information about job roles and careers genuinely reflects the industry’s skill needs will help over time to narrow thegap between the industry’s skill requirements and the profile of its employee base. The careers websites flagged above are one important link in this chain, while DEECD can also facilitate linkages between the transport industry and career associations and resources in Victoria.

• Looking longer term, DEECD supports opportunities to raise levels of achievement among young people in literacy, maths and science and is developing a portfolio-wide literacy strategy and a science, technology, engineering and maths (STEM) Plan to build teacher capacity and capability across all levels of the school system.

Training availability• There are few training providers delivering specialist government subsidised training into transport sectors such as

rail, aviation and maritime.• This can create problems for businesses in terms of training bottlenecks, risk management and price, as there is very

little competition or choice among training providers. A number of companies have responded to these challenges by taking the step of becoming Registered Training Organisations in their own right – most notably in the rail sector.

• Delivering training in regional Victoria remains a challenge for the industry, particularly for small transport businesses where only one person may require training.45

• There is potential for collaboration between businesses with similar training needs, building the critical mass needed to make local training delivery a viable option. This partnership approach in areas of common need may be one way in which industry can engage with training providers to ensure their needs are met.

45 Deloitte Access Economics, 2012 Market Effectiveness Report


Challenges and opportunities

Trainer shortage• Shortages in trainers and assessors have been highlighted across the transport, logistics and supply chain industries

during consultations, in some instances limiting the ability of employers to address existing skills shortages within the industry.

• Potential solutions proposed by industry include increasing the salaries associated with training roles and providing ongoing support to allow people to maintain operational experience while moving into training.46

• Encouraging older workers who may want to transition to a less physically demanding job role to move into training could have the benefit of facilitating knowledge transfer between technical experts about to exit the workforce through retirement and the industry’s new entrants.

Training currency• During consultations, a number organisations raised concerns with the relevance and currency of industry training,

reporting that training has not always kept up with technological change in the industry and that it was difficult to find training providers who will tailor training delivery to suit industry needs.

• The importance of collaboration between industry and training providers has been highlighted as a way of maintaining training currency, with businesses providing access to up-to-date systems, processes and machinery. There is also an opportunity for training providers to partner with transport and logistics businesses in understanding their needs and developing appropriately tailored training which meets requirements. DEECD can help support businesses to develop these linkages with training providers via its network of Regional Market Facilitation Managers.

Training quality and alignment• There are some concerns relating to the quality of training and assessments delivered by some training providers.

Potential issues have also been flagged around employment outcomes, particularly in some areas of high training growth. TDT Victoria has highlighted a disconnect in some cases between what the training system is delivering and the minimum competency the industry requires.47

• DEECD launched the Rate Your Training website in October 2013 in response to employer demand for clear and easily accessible information about the quality of training in Victoria. It provides employers with the opportunity to rate the training they have received, and to view and compare ratings provided by others.

www.rateyourtraining.com.au• DEECD’s Market Monitoring Unit monitors the vocational training market and investigates any evidence that quality

outcomes may not be achieved, while the Victorian Registration & Qualifications Authority continues to respond to concerns relating to individual training providers.

46 Transport & Logistics Industry Training Council, E-Scan 201347 Deloitte Access Economics, 2012 Market Effectiveness Report


Conclusion

The transport and logistics industry is anticipating considerable growth in the years ahead. It is a rapidly evolving industry, in terms of customer expectations, technologies and associated skill requirements. The industry is already experiencing skills shortages and skills gaps in the current workforce, and a combination of strong employment growth and evolving skill requirements mean that meeting the industry’s skill needs into the future will be a challenge.

This report has presented a snapshot of transport and logistics training delivery within Victoria, alongside some of the challenges and opportunities facing industry and training market stakeholders. Consultations carried out with the industry over the course of 2013 have highlighted a number of pressures being experienced by the industry in relation to skills, but a significant opportunity lies in promoting the variety and range of careers and pathways on offer to potential new entrants, and in diversifying the workforce beyond its traditional demographic.

The Industry Participation Model described earlier in this report provides the framework for ongoing monitoring of the alignment between industry skill needs and training delivery and for industry stakeholders to work with government in identifying any areas where government intervention may be necessary to ensure any market failures are addressed.

Within this context, this report is intended to be part of an ongoing conversation with the transport and logistics industry regarding its experience of the Victorian training system. To this end, industry stakeholders are invited to further engage with DEECD on any of the challenges and opportunities identified in this report and to collaborate with government in developing sustainable solutions in areas of identified need.

Skills & Training Needs - Transport and Logistics · Web viewpl o y m e n t n ee d s O v e r al l e m pl o y m e n t g ro w t h t o 2 0 1 7-1 8 Truck Drivers 40,900 1,930 Storepersons

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