100430 ps ritc process manufacturing environmental scan

Western Australian Process Manufacturing Industry: ENVIRONMENTAL SCAN

April 2010

The Resources Industry Training Council is a State Government funded; APPEA (www.appea.com.au) and CME (www.cmewa.com) joint venture initiative to represent the training and workforce development needs of the Western Australian resources (mining, gas and oil) and downstream process manufacturing industries.

Right Place

Right Attitude

Skilled Workforce

Right Skills

Note and Declaimer:

This document is an environmental scan for the Western Australian resources sector and was developed by the Resources Industry Training Council (RITC). Its purpose is to provide the Department of Training and Workforce Development and the State Training Board with an overview of the industry with the intention of being incorporated into a workforce development plan for Western Australia.

This report is supplied in good faith and reflects the knowledge, expertise and experience of the developer. The information provided is derived from sources believed to be reliable and accurate at the time of publication.

The use of the information in the environmental scan is at your own risk. The RITC does not warrant the accuracy of any forecast or prediction in the report. The environmental scan is provided solely on the basis that users will be responsible for making their own assessment of the information provided therein and users are advised to verify all representations, statements and information for decisions that concern the conduct of business that involves monetary or operational consequences. Each user waives and releases the Resources Industry Training Council and the State of Western Australia and its servants to the full extent permitted by law from all and any claims relating to the use of the material in the environmental scan. In no event shall the Resources Industry Training Council or the State of Western Australia be liable for any incidental or consequential damages arising from any use or reliance on any material in the environmental scan.

The Resources Industry Training Council

7th Floor, 12 St Georges Terrace,

Locked Bag N984, Perth, WA, 6844

Phone: +61 8 9325 2955

Facsimile: +61 8 9221 3701

For information regarding this report contact:

Debra Dixon

Executive Officer

Resources Industry Training Council

Telephone: +61 8 9220 8538

Email: [email protected]

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Contents

Process Manufacturing Environmental Scan ................................................................................ 1

State And National Training Councils ....................................................................................... 2

Industry Organisations/Associations ......................................................................................... 2

Nationally Recognised Training Packages .................................................................................. 3

Employment ..................................................................................................................... 3

Workforce Demographics ................................................................................................... 6

Occupations ................................................................................................................... 6

Impact Of Globalization ....................................................................................................... 9

Technological impacts ......................................................................................................... 9

Economic Overview ............................................................................................................ 9

Qualification profile of workforce ........................................................................................... 9

Supply And Demand of Training ............................................................................................. 10

Industry Expectation Of VET .............................................................................................. 11

Sustainability ................................................................................................................... 11

Industry Overviews ............................................................................................................ 12

Chemicals, Hydrocarbons Refining and Manufacturing ............................................................... 12

Fertilizers And Explosives Manufacturing ............................................................................... 18

Plastics, Rubber And Cablemaking ....................................................................................... 20

Industrial Gas Manufacturing ............................................................................................. 23

Manufactured Mineral Products (Bricks, Glass, Ceramics, Plaster, Concrete, Asphalt) ........................ 24

Pharmaceutical Products Manufacturing ............................................................................... 27

Tyre Manufacturing ......................................................................................................... 29

Adhesives, Cleaning And Other Chemical Product Manufacturing ................................................. 29

Paint Manufacturing ........................................................................................................ 29

Resin And Rubber Manufacturing ......................................................................................... 30

Ceramic Sanitary Ware And Other Ceramic Product Manufacturing ............................................... 30

Clay Brick Manufacturing .................................................................................................. 31

Cement And Lime Manufacturing ........................................................................................ 31

Laboratory Operations ..................................................................................................... 31

Industry Area Coverage ....................................................................................................... 34

Date Sources .................................................................................................................... 36

1

PROCESS MANUFACTURING ENVIRONMENTAL SCAN

The Department of Training and Workforce Development commissioned the Resources Industry Training Council to undertake research and prepare a industry workforce development plan for the Western Australian process manufacturing industry. This environmental scan is a component of that workforce development plan. The purpose of the initial research was to develop an industry analysis of current and future employment demand, to identify barriers to employment and develop strategies to ensure this demand for skills and labour could be met.

The manufacturing industry is the third largest employing industry in the Australian economy, employing 1,008,200 people (or 9.3% of the total workforce) in 75,000 businesses and accounts for approximately 10% of the Gross Domestic Product (GDP). Australian Bureau of Statistics (ABS) data for May 2009 show that

~98,000 people are employed in chemical, hydrocarbon and refining sector

~39,000 people are employed in the plastics rubber and cablemaking sector

~35,000 are employed in the manufactured mineral product sector.

The manufacturing industry is affected by currency fluctuations and both the global and domestic economies which lead to business profitability and employment levels fluctuating on a regular basis.

The manufacturing industry is divided into 15 sectors: Basic Chemical and Chemical, Primary Metal and Metal Product, Non-Metallic Mineral, Polymer and Rubber Product, Food Product, Machinery and Equipment, Transport Equipment, Fabricated Metal Product, Furniture and Other, Textile, Leather, Clothing and Footwear, Printing (including Recorded Media), Wood Product, Beverage and Tobacco, Pulp, Paper and Converted Paper.

This report attempts to cover the process manufacturing industries which depend on the resources sectors for raw materials and include:

Petroleum Refining and Fuel Manufacturing

Petroleum and Coal Product Manufacturing

Industrial Gas Manufacturing

Basic Organic and Inorganic Chemical Manufacturing

Synthetic Resin and Synthetic Rubber Manufacturing

Basic Polymer Manufacturing

Fertiliser Manufacturing

Pesticide Manufacturing

Pharmaceutical & Medicinal Product Manufacturing

Cleaning Compound Manufacturing

Cosmetic and Toiletry Preparation Manufacturing

Photographic Chemical Product Manufacturing

Explosive Manufacturing

Basic Chemical Product Manufacturing

Polymer Film and Sheet Packaging Material Manufacturing

Rigid and Semi-Rigid Polymer Product Manufacturing

Polymer Foam Product Manufacturing

Tyre Manufacturing

Adhesive Manufacturing

Paint and Coatings Manufacturing

Other Polymer Product Manufacturing

Natural Rubber Product Manufacturing

Clay Brick Manufacturing

Ceramic Product Manufacturing

Cement and Lime Manufacturing

Plaster Product Manufacturing

Ready-Mixed Concrete Manufacturing

Concrete Product Manufacturing

Non-Metallic Mineral Product Manufacturing

The chemicals, hydrocarbons and refining industries source raw materials from the resources sector (minerals mining, hydrocarbon extraction and quarrying). Most products produced by this sector are not

2

used directly by the consumer but rather are transformed by downstream industries into consumer products such as plastics, pharmaceuticals, cosmetics and toiletries etc.

The two main downstream industries include the plastics, rubber and cablemaking industry and the manufactured mineral products industry which source raw materials from the chemicals, hydrocarbons and refining industries sectors.

The manufactured mineral products industry uses minerals sourced from the extractive industries such as quarrying to produce a range of products which are used by other downstream industries such as building and construction, heavy industry, automotive and landscaping. Products which are produced to directly service the consumer market include clay and ceramic products such as bricks, roof tiles, ceramic ware and concrete products such as blocks, pavers and prestressed concrete components for bridge construction.

Prior to the global economic downturn the process manufacturing industries (with the exception of both fuel and alumina manufacturing) experienced a skill drain to the resources industry leading to a skills shortage, which hampered production capacity and competiveness in most sectors. Additional challenges were experienced as a result of global competition, the introduction of the Carbon Pollution Reduction Scheme (CPRS) and the recent global economic downturn.

The global economic downturn may have reduced skilled labour shortages but it has added the additional burden of reduced product demand. In most industries, the full impact of the global economic downturn was delayed by orders placed prior to the downturn.

The Australian Bureau of Statistics (ABS) conducts a census of the manufacturing industry every five years. The last ABS census on manufacturing in Australia was 2006 – 07; therefore available data relates to prior to the global economic downturn. Other data sourced in the writing of this paper include the ABS Labour Force Survey, the Department of Education, Employment and Workplace Relations (DEEWR)‟s Employment Outlook for Manufacturing, Manufacturing Skills Australia (MSA)‟s Manufacturing Environmental Scan and the Job Outlook website.

STATE AND NATIONAL TRAINING COUNCILS

The Resources Industry Training Council (RITC) is one of ten industry advisory bodies established by the State Government to provide strategic, forward looking training advice to the Western Australian State Training Board (STB) and the Department of Training and Workforce Development. A major function of the RITC is to work with industry, training providers and government to develop and implement innovative solutions for skill shortages and changing workforce needs.

The RITC is a State Government funded joint venture between the Chamber of Minerals and Energy of Western Australia (CMEWA) and the Australian Petroleum Production & Exploration Association Ltd (APPEA). The RITC is the peak body for the development and implementation of a vocational education and training (VET) framework to meet the diverse needs of the industry sectors of minerals, oil and gas and downstream processing.

Manufacturing Skills Australia (MSA) is the recognised national industry skills council with coverage for the manufacturing sector which includes process manufacturing. MSA represents over 75,000 manufacturing businesses employing almost one million Australians and is the source of information on skills and workforce development for the process manufacturing sector.

MSA provides accurate industry intelligence to the Vocational Education and Training sector about current and future skill needs and training requirements through industry skills reports, and supports the development, implementation and continuous improvement of quality nationally recognised training products and services, including Training Packages.

INDUSTRY ORGANISATIONS/ASSOCIATIONS

This list is not exhaustive – a guide only.

Australian Competitive Energy (ACE)

Australian Institute of Petroleum

Australian National and Competency Employment Register (ANTCER)

Australian Petroleum Production and Exploration Association (APPEA)

Australian Pipeline Industry Association (APIA)

Australian Plastics and Rubber Institute INC. (APRI)

Australian Pre-mixed Concrete Association

Australian Workers Union (AWU)

Cement and Concrete Association of Australia

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Cement Concrete and Aggregates Australia

Clay and Brick Manufacturers Association

Composites Australia

Composites West

Concrete Institute of Australia

Concrete Masonry Association of Australia

Concrete Pipe Association

Federated Brick, Tile and Potters Union

Institute of Refractory Engineers

Liquor, Hospitality and Miscellaneous Workers Union

National Association of Testing Authorities

National Precast Concrete Association of Australia

National Union of Workers (NUW)

Petroleum Industry Contractors Association (PICA)

Plastic Industry Pipe Association (PIPA)

Plastic Injection Moulders Association (PIMA)

Plastics and Allied Industries Association of South Australia (PAIA)

Plastics and Chemicals Industry Association (PACIA)

Royal Australian Chemical Institute

Rubber Manufacturers Association of Australia

Scientific Glassblowers Society of Australian and New Zealand

Society of Plastics Engineers Australia-New Zealand (SPE)

Surface Coatings Association of Australia

Synthetic Organic Chemical Manufacturers Association (SOCMA)

The National Offshore Petroleum Safety Authority (NOPSA)

The Packaging Council of Australia INC.

Vinyl Council of Australia

NATIONALLY RECOGNISED TRAINING PACKAGES

The process manufacturing industry has coverage within the following Training Packages:

PMA - Chemical, Hydrocarbons and Oil Refining

PMB - Plastics, Rubber and Cablemaking

PMC - Manufactured Mineral Products

MSL - Laboratory Operations

EMPLOYMENT

Employment in manufacturing fluctuates considerably as it is affected by currency fluctuations as well as the global and domestic competition and economies. For the period 1995 to 2009, the industry employment growth peaked in 2000 with an employment change of 46,600, reflecting the lead up to the introduction of the GST. In 2009 employment fell by 55,900; the largest decline over the period and occurred as a result of the global economic downturn.

18.8

-11.6

23.2

-14.8

-38.3

46.6

-17.8 -18.6

34.7

-45.8

13

-14 -5.9

39.2

-55.9

Changes in Employment in Manufacturing 1995 to 2009

1995 1996 1997 1998 1999 2000 2001 2002

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Source: ABS Labour Force Survey (DEEWR trend data)

Employment data is released by the ABS quarterly (February, May, August and November). The ABS labour force data provides data showing the employment levels in the various manufacturing sectors. A graph of this data follows which shows the top five largest sectors based on employment are food product manufacturing, machinery and equipment manufacturing, transport equipment manufacturing, primary metal, metal product manufacturing and fabricated metal product manufacturing. Petroleum and coal product manufacturing is in 15th place in respect to employment figures but is still a significant industry in regards to value. Basic chemical and chemical manufacturing is in 9th place, non-metallic mineral manufacturing in 11th and polymer, rubber product manufacturing in 12th position.


Australian manufacturing employment is expected to continue to fall further over the next five years. The DEEWR

employment growth projection for manufacturing is expected to decline in 13 of the 15 manufacturing sectors at an average rate of 1.2% per annum. In contrast the all industries average is expected to grow at a rate of 1.0% per annum.


Basic chemical manufacturing is expected to fall by 1.4% per annum. Petroleum and coal product manufacturing is predicted to fall by 1.2% per annum. Non-metallic mineral manufacturing along with

193.8

118.488.1 75.4 75.3 62.7 57.8 49.5 44.8 42.2 38.8 33.4 30.9 19.9 8.9

Employment Levels (‘000) - February 2009

1

-0.2

-1.2 -1.2 -1.4 -1.4

-2.8-3

-2

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1

2

Projected Employment Growth (% pa) to 2013-2014

ALL INDUSTRIES Basic Chemical, Chemical Manufacturing

Petroleum and Coal Product Manufacturing Manufacturing

Non-Metallic Mineral Manufacturing Primary Metal, Metal Product Manufacturing

Polymer, Rubber Product Manufacturing

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primary metals manufacturing are both expected to fall by 1.4% per annum. Polymers, rubber product manufacturing will fall by 2.8 % per annum.

The following graph shows that as of February Quarter 2009, all Manufacturing subdivisions in the process manufacturing industry (Petroleum and Coal Product Manufacturing, Basic Chemical and Chemical Product Manufacturing, Polymer Product and Rubber Product Manufacturing, and Non-Metallic Mineral Product Manufacturing) could make more use of females as employees since they are underutilised. As for Professional Scientific and Technical Services groups (Scientific Research Services and Other Professional Scientific and Technical Service), they appear to be utilising female as well as male employees equally.

Source: ABS Labour Force data

As at February Quarter 2009, all Manufacturing subdivisions in the process manufacturing industry (Petroleum and Coal Product Manufacturing, Basic Chemical and Chemical Product Manufacturing, Polymer Product and Rubber Product Manufacturing, and Non-Metallic Mineral Product Manufacturing) could make more use of part-time employees as none is utilised. As for Professional Scientific and Technical Services groups (Scientific Research Services and Other Professional Scientific and Technical Service), they appear to be utilising part-time as well as full-time employees equally.


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WORKFORCE DEMOGRAPHICS

Workforce demographics information provided below is based on 2008 ABS data as more current data has not been identified.

With 38.2 % of workers over the age of 45 years, manufacturing had a slightly older than average age profile over other industries. The all industries average for workers over 45 years is 37.4%. However, only 1.5% of workers in the manufacturing industry are aged 65 years and over, compared to 2.4% for all industries.

Petroleum and coal product manufacturing has the highest median employee age of 45 years, followed by basic chemical, chemical manufacturing with 43 years, primary metal, metal product manufacturing and polymer, rubber product manufacturing have a medium age of 42. Non-metallic mineral manufacturing has the youngest medium age being 40 years.

In the 10 years to 2008, the number of workers aged 45 years and over increased by 80,000, while employment of workers aged under 45 years fell by 87,700. With a decrease of 41,200 to 238,600 workers for the 25 to 34 years group, there needs to be a strategy for attracting young people into the industry.

The DEEWR report „Employment Outlook for Manufacturing‟ (no date) projects that employment within the manufacturing industry will continue to decrease with a projected fall of 1.2% per annum over the next five years. The ageing of the workforce is an issue facing manufacturing industry sectors. In 2008 the petroleum and coal product manufacturing sector had the highest median age (45 years) of all manufacturing sectors. This is four years older than for manufacturing in general and eight years older than the median age of all industries. Basic Chemical and Chemical Products Manufacturing sector had the third highest median age.

Male workers dominate in 14 out of the 15 sectors in the manufacturing industry. Primary Metal and Metal Product Manufacturing has the greatest percentage of male workers with an 89.2% share.


OCCUPATIONS

Occupations are generally spread across a variety of industries and may not normally be associated with particular industries. Employment data is released by the ABS quarterly (February, May, August and November). In 2008, the trades lead the occupation and in particular welding, structural steel (54,600) and fitters and machinists (43,400).

Occupations utilised by the manufacturing industries include product assemblers, packers, production managers, engineering production workers, process and resources engineers, structural engineers, sales assistants, plastics technicians, chemists and chemical engineers, design engineers, materials engineers, plant operators, samplers and testers, laboratory assistants, technical officers, chemists and design engineer etc.

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The following chart summarizes the 14 of the top occupations for the manufacturing sector.


Current and Emerging Skill / Labour Gaps Apprentices in traditional metals and mechanical trades

Chemical Engineers

Chemists

Conveyor Belt Repairer

Electrical Instrumentation Technicians

Electricians

Mechanical Trades

Metals Trades

Plant Mechanics

Process Operators

Production Process Engineers

The Institute of Refractories Engineers which represents the Refractory Installation industry notes that refractory installation industry has acute shortage of trained and experienced refractory bricklayers in WA. Not many people have joined the industry as apprentices in the last 15 to 20 years.

The industry brings refractory bricklayers, nozzlemen and also trade assistants for major outage or greenfield construction work from interstate. There is also a shortage of trained supervisors in this field. All the refractory installers draw their workforce depending on their work load from the available pool of experienced refractory workers across the country.

In terms of the difficulties in attracting (and retaining) people to its industry, the Institute of Refractories Engineers notes that Refractory Installation industry work is of hazardous nature as the work is mainly performed at heavy industry sites and involves hazards like dust, heat, confined space, working at heights etc. Also refractory installation has a cyclic nature of work and mainly revolves around shutdown and outage type of work in resource, cement, oil & gas, steel industries. Hence it is very difficult to attract and retain young or adult apprentices into the industry.

Cement Concrete & Aggregates Australia (CCAA) which represents the Quarrying and Pre-mixed Concrete industries notes that generally it is difficult to source quarry managers and supervisors. Companies experience a revolving door effect, especially in quarry operations where employees seeking work in the mining industry use the company as a stepping stone to gain valuable experience. Also, CCAA mentions shortages in truck drivers, fleet allocators, quarry workers, OHS personnel, weighbridge operators, sales assistants, sales/account managers, site supervisors and field testers (concrete).

With regards to the difficulties in attracting and retaining people to its industry, CCAA notes that it is difficult to compete with the mining industry, „who seem able to pay more and entice staff to move’. They experience difficulty in attracting and retaining employees due to higher wages/salaries, allowances and

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Top Employing Occupations (‘000)

Structural Steel and Welding Trades Workers Metal Fitters and MachinistsProduct Assemblers PackersProduction Managers Engineering Production Systems WorkersSales Assistants (General) ManufacturersStorepersons Forklift Drivers

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other benefits on offer from the mining and petroleum sectors. It is hard to attract employees from the eastern states to Perth even though employment can offer family-friendly conditions and work-life balance.

Australian Brick & Blocklaying Training Foundation (ABBTF) which represents the Building and Construction industry notes that projected shortfalls in bricklayers will be acute given:

Poor commencements

Poor in-training numbers

Poor Apprenticeship completions

50% of bricklayers are between 45 years old and 75 years old

WA population rate 3% (66,000 per annum) and long term housing pressure

Regarding the difficulties in attracting (and retaining) people to its industry, ABBTF notes that the barriers include:

Poor image of trade

Apprenticeship pay relatively low

Many other career choices

Y-Gen commitment to apprenticeship term ABBTF was created to address the critical shortage of skilled bricklayers. In doing so, ABBTF have implemented an apprenticeship scheme in WA, which is jointly funded by an industry contribution of $2 per thousand clay bricks and a matching contribution from the clay brick manufacturers of WA (Austral Bricks, Geraldton Bricks and Midland Brick). The scheme has been approved by the Australian Competition and Consumer Commission.

A number of strategies are implemented to increase the number of trade qualified bricklayers including:

Sponsorship of industry trade awards (MBA/HIA/Employers/Registered Training Providers) and skill development programs such as World Skills.

Provision of bricklaying Try a Trades at various Career and Community events.

Provide Step Out programs to secondary school students. This “free of charge program” provides students with hands on experience in bricklaying to enable young people to make an informed choice to commence an apprenticeship.

Support for pre-apprenticeships (pre-vocational) by providing a $250 tool voucher for students successfully completing the program.

Subsidise employers with $6,000 (based over 3 years) for employing a new bricklaying apprentice over the age of 21 (paid after the 1st year of service).

Support up skilling in the form of Trade Skills Recognition. $400 available for bricklayers obtaining trade qualifications via recognition of prior learning assessment.

Support for apprentices required to travel further than 100 kms to attend training. Up to $2,000 per annum or $50 per training day. ARTS-Apprentice Regional Travel Support.

Support for skilled bricklayers migrating to Australia under General Skilled Migration Visas. Up to $2,000 available for successful applicants.

All ABBTF benefits are provided above any BCITF, State and Federal Government initiatives.

Emerging Occupations

Occupations related to sustainability and hydro-blasting have been identified as potential new occupations. In order to provide a competitive edge MSA has identified the following skills as in need of further development in exiting workers: design, product development, supply chain and technology skills. For management skills development in workforce planning, business planning. With the reliance on computer aided design (CAD), computer aided manufacturing (CAM) and computer numerical control (CNC) machines there is s growth in the need to develop these skills in existing workers.

Declining Occupations

No declining occupations have been identified.

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IMPACT OF GLOBALIZATION

The Australian manufacturing industry find it difficult to compete with the low labour costs of developing countries and so must improve performance and develop its competitive strengths through niche markets, automation and smarter manufacturing.

MSA notes that many enterprises complain that Australian conditions do not achieve a level playing field for Australian manufacturers in the global marketplace. Varying approaches to tariff protection, government support and regulatory requirements are listed as conditions that make it comparatively difficult for Australian manufacturers, especially small to medium enterprises.1

TECHNOLOGICAL IMPACTS

In an effort to compete on the global marketplace, many companies are installing technology such as computer aided design (CAD), computer aided manufacturing (CAM) and computer numerical control (CNC) machines which require a different skill sets than the traditional manufacturing worker held.

Process control rooms are becoming more sophisticated and remote from the operation. With the increase in control room sophistication comes a change in the skill sets required of process operators and technicians in that they need to be multi-skilled.

ECONOMIC OVERVIEW

No data was able to be located for the Western Australian manufacturing sector‟s contribution to the GDP.

QUALIFICATION PROFILE OF WORKFORCE

The manufacturing industry provides a diverse range of occupations and employment opportunities at all educational and skill levels.

Source: ABS Education and Work, cat. no. 6227.0

53.3 % of workers in the overall manufacturing industry have non-school qualification with 24.8% having a Certificate III or IV, 7.2% having an Advanced Diploma or Diploma and 13.7% having a Bachelor degree or above.

Manufacturing provide job opportunities for low skill workers through new jobs and job turnover, and these are represented by 46.7 % of workers having no non-school qualification. The manufacturing industry is a keen supporter of the Productivity Placement Program and traineeships which are used to up-skill new and existing employees.

1 Manufacturing Skills Australia Environmental Scan 2010.

53.30%

13.70%

7.20%

24.80%

5%1.30% 1.30%

46.70%

0%

10%

20%

30%

40%

50%

60%

Educational Attainment (% employees) – May 2008

Total Non School Qualifications Bachelor degree or above

Advanced diploma and diploma Certificate III and IV

Certificate I and II Certificate not further defined

Level not determined Without a Non School Qualification

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SUPPLY AND DEMAND OF TRAINING

There is an adequate number of training providers, but there is a question as to the quality of the training and assessment being provided. The industry links quality training and assessment to improved safety behaviour and increased production and does not see a need to train for the sake of providing employees with qualifications. Although some employers have reported that providing employees the opportunity to complete qualifications is used as a retention strategy. The quality of training is paramount, and the validity and integrity of the assessment process is critical.

The majority of in-house training is provided to the operator level employees as there has been inadequate pre-employment training available that will equip recruits to be work ready. There is a preference for on-the-job training as training and assessment will be directly linked to the equipment being utilised by the individual and to the company‟s standards. An issue with workplace training is the lack of equipment availability for the purpose of training as production needs equipment to be fully utilised for production purposes and therefore may not be available for training purposes. Trainers who have little or no recent industry exposure is an issue and affects the quality of training being provided.

Ensuring access to affordable high quality training in manufacturing is essential in order for companies to meet the challenges presented by increased competition and the trend to employ Greenfield employees. Shortages of specialised skills are having an impact in niche areas such as instrumentation, electroplating and lean manufacturing processes.

The Institute of Refractory Engineer, Australia is currently developing some course modules, which can be used by member industries for training and evaluation of workforce. Each individual refractory installation company follows its own training system and impart knowledge of the industry mainly through work experience. Updated PMC qualifications now include a Vocational Graduate Certificate in Refractories Engineering which has been developed to address industry needs in refractories engineering.

Typically, the refractory installation industry recruits both young and adult apprentices and provides on the job training for 3 to 4 years. Apprentices attend theoretical course work in conventional bricklaying at a local TAFE and are awarded a certificate on successful completion of the apprentice program. The Institute of Refractory Engineer Australia also provide industry general induction and other refractory user‟s industry induction program to the workforce. Supervisor‟s induction, leadership program, etc are provided to refractory bricklayers and experienced refractory workers who choose to take supervisory role in the industry. Some refractory workers also undertake a refractory technician certificate course offered by overseas training providers.

Cement Concrete & Aggregates Australia (CCAA) notes that training related to the use of concrete especially by smaller businesses which are involved in Concrete Placing (concrete placers/grano workers) is an industry difficulty. Poor quality construction results from the incorrect handling and placing of concrete. This in turn results in the concrete product being questioned whereas the problems are often caused by bad placement methods. Formal training and/or apprenticeships (say Cert III) should be considered for introduction as a requirement for concrete placers.

Typically, CCAA provides some in-house training plus also external leadership programs and industry-based programs from time to time such as:

Leadership Development Programs

Management & Executive Development Programs

Sales, Personal and Professional Development Programs

Project Management

Specialised Industry Technical Training Courses offered by CCAA including:

Concrete Basics Course

Concrete Practice Course

Concrete Technology Course

Australian Brick & Blocklaying Training Foundation (ABBTF) notes that training is fair however training resources are relatively poor especially in TAFEs. Building and Construction trades have less money spent on them in comparison to other TAFE studies (ie facilities & resources) training systems need to be more in tune with characteristics of Y-Gen.

Typically, ABBTF promotes and financially supports:

RPL for existing bricklayers

Pre apprenticeships

Apprenticeships

Try & trades

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Regional travel support

INDUSTRY EXPECTATION OF VET

There is a demand for VET to provide a more consultative and collaborative training service by conducting training needs analysis and providing a customised on-the-job flexible training program. Many employers call for improved access to funding support and a reduction in red tape. Working more closely with employers to identify and cater to their specific training needs will lead to a VET system that is more responsive and industry-led and demand-driven.

There are concerns over the ability of the training providers to provide institutionalised training on industry current equipment and technology. It is critical to industry that employees are trained on equipment that is current with industry practice. This is further compounded when the trainers also have no recent exposure to the industry or modern industry technology, equipment and practices.

There are opportunities for training providers to develop competence in workforce planning and to offer a holistic service involving conducting a skills analysis, identifying skills gaps and the production of a well informed workforce plan which identifies career pathways as well as succession planning, exiting worker training and a retention strategy.

SUSTAINABILITY

When the manufacturing industries commenced in Western Australia it did not take long for the industry to see the impact of their operations on the environment and subsequently many companies adopted responsible environmental practices. There is also an increasing call by shareholders and Governments for industry to adopt even more sustainable practices. In 2009 the Deputy Prime Minister Julia Gillard called for all training packages to incorporate the principles and competencies of sustainability by 2010.

As defined by the Brundlandt Commission sustainability is – „Development that meets the needs of the present without compromising the ability of future generations to meet their own needs …‟

The Federal Government‟s proposed Carbon Pollution Reduction Scheme (CPRS) is directed at achieving responsiveness to climate change. Industry can only achieve this through an effecting and cost effective emissions trading scheme that does not harm Western Australia‟s international competitiveness and attractiveness as a destination for investment. The Australian Industry Group and KPMG information shows that the manufacturing industries are more prepared than other industries but they require accurate information and need to assess the potential impacts on their operations to determine an appropriate course of action and to build their workforce capacity to act accordingly2.

In September 2009, MSA published Sustainable Manufacturing – Unpacking the Issues; in this report climate change was identified as presenting high market risk to the manufacturing industry.

MSA is developing a specific training pathway covering in-depth sustainability skills relevant for manufacturing. This is being designed for training of specialist technicians and as additional study for someone who may already be qualified in another manufacturing related discipline. This new sustainability qualification goes further than the traditional areas of environment protection and waste and pollution control. This new pathway will support a combination of environmental skills and responsibilities with technical level skills in community liaison, regulatory compliance and quality as well as in the traditional environmental protection skills.

MSA has also identified evidence of the need for a broader industrial ecology approach that looks at industrial business systems in association with their economic, social and ecological systems. MSA reports this as a strongly emerging concept that can assist the development of sustainable manufacturing.

2 Manufacturing Skills Australia report: Sustainable Manufacturing – Unpacking the Issues; September 2009

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INDUSTRY OVERVIEWS

CHEMICALS, HYDROCARBONS REFINING AND MANUFACTURING

Chemicals, hydrocarbons and refining industries include:

Petroleum and Coal Product Manufacturing

Basic Chemical and Chemical Product Manufacturing

Major employers (in Western Australia) include CSBP Limited, BHP Billiton Limited and Coogee Chemicals.

The Chemicals, hydrocarbons and refining industries source raw materials from the minerals / hydrocarbons exploration and mineral mining sectors. Most products produced by this sector are not used directly by the consumer but rather are transformed by downstream industries such as plastics, food and clothing into consumer products. The major exceptions are oil refinery products such as petrol and lubricants as well as oil paint.

Basic Chemical Manufacturing industry is concerned with those companies involved in the production of various organic and inorganic industrial chemicals which are mainly used as a chemical input into other chemical manufacturing processes. Key products include ethylene, propylene, styrene, phenol, acetone and fatty acids.

The primary activities of Organic Chemical Manufacturing industry are:

Organic acid manufacturing including lactic acid and industrial fatty acids

Carbon tetrachloride manufacturing

Chemical colour, organic, manufacturing (except prepared tinting colour for paints)

Chloroform manufacturing

Dye intermediates and organic dyeing extracts

Ether manufacturing

Ethylene and ethylene glycol manufacturing

Phenol manufacturing

Organic Pigment manufacturing

Plasticisers manufacturing

Propylene manufacturing

Styrene Manufacturing

Tanning extract manufacturing

Toluol Manufacturing

Turpentine manufacturing (except mineral turpentine)

Urea manufacturing (except fertiliser grade)

Vinyl chloride manufacturing

Wood tar manufacturing

The major products and services in Organic Chemical Manufacturing industry are:

Ethylene & ethylene oxide

Propylene & propylene oxide

Other alcohols, phenols, fatty acids etc

Other organic chemicals

Ethers

Compound plasticisers

Synthetic organic colouring matter

At a national level the Organic Chemical Manufacturing industry, revenue will be worth an estimated $1.16 billion at the end of the performance period, down from $1.26 billion in 2004-05 (in constant 2009-10 dollars), reflecting an overall contraction of 7.4% and an average annual decline of 1.5%.

By year end 2009-10, Organic Chemical Manufacturing industry employment levels are expected to be in the order of 1,265 compared with 1,610 in 2004-05, representing an overall fall of 21%.

Inorganic Chemical Manufacturing industry covers companies involved in the production of a variety of basic inorganic chemicals. These in turn tend to be intermediate products used as basic chemicals in industrial processes or manufacturing products. Key identifiable products within the industry include titanium dioxide, sodium cyanide, industrial grade ammonia, caustic soda, sulphuric acid, soda ash and chlor-alkali products.

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The primary activities of Inorganic Chemical Manufacturing industry are:

Inorganic Acids, including hydrochloric acid, nitric acid, phosphorice acid and polyphosphoric acid

Sodium hydroxide manufacturing

Fluoride and fluorine salt manufacturing

Hydrogen peroxide manufacturing

Nitrite and nitric acid manufacturing

Oleum manufacturing

Sodium, sodium carbonate, sodium bicarbonate and sodium hydroxide manufacturing

Titanium dioxide and titanium dioxide pigment manufacturing

The major products and services in Inorganic Chemical Manufacturing industry are:

Titanium Dioxide

Sodium Cyanide

Ammonia (industrial)

Soda Ash

Caustic Soda

Sulphuric Acid

Chlorine

For the Inorganic Chemical Manufacturing industry, overall average growth rates are expected to be in the order of just 0.7% with revenue reaching an estimated $3.68 billion in 2009-10, up only marginally from $3.55 billion in 2004-05.

By year end 2009-10, Inorganic Chemical Manufacturing industry employment levels will be an estimated 4,625 compared with 4,690 in 2004-05.

Employment Trends

The following graph shows that between the years 1995 and 2009, employment remained stable in Basic Chemical and Chemical Product Manufacturing with the industry being one of the few that had an increase in 2009. If this industry was to experience labour shortages in the future, looking at recruiting more females could be an option.


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The following shows that between the years 1995 and 2009, number of part-time employment in Petroleum and Coal Product Manufacturing was noticeably low compared to full-time employment. Utilising more part-time employees may be one of the options to consider in addressing labour shortages.


The following graph shows that between the years 1995 and 2009, employment in Basic Chemical and Chemical Product Manufacturing was dominated by full-time employees with periods of utilising part-time employees.


Industry Organisations/Associations


Australian Petroleum Production and Exploration Association (APPEA)




Australian Institute of Petroleum

Australian Competitive Energy (ACE)

Australian Pipeline Industry Association (APIA)

The National Offshore Petroleum Safety Authority (NOPSA)

Petroleum Industry Contractors Association (PICA)

Australian National and Competency Employment Register (ANTCER)

Surface Coatings Association of Australia

Royal Australian Chemical Institute

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Workforce Issues, Characteristics, Activities

All sectors of the chemical, oil and gas industries tend to involve increasing computerisation, and rapid technological change and as the products produced are typically hazardous the skill levels of workers across all disciplines need to be of the highest standards. Remote computer controlled systems have become the norm which has lead to a decrease in number of technicians required to manage the physical operations of both upstream and downstream processes. The technicians are becoming more highly trained and multi-skilled to enable them to cope with the changing working environment and changes in equipment and technology.

Enterprises designated as major hazardous facilities have increased regulatory requirements. Significant increases in the demand for incident response and management competency training has occurred since Offshore incident response team member and Incident response team leader competencies have been endorsed.

The ageing workforce is a major issue facing all sectors of the Hydrocarbons, Chemical and Oil Refining industry. The industry has an ageing workforce with the largest group of workers aged between 35-44 with a significant number of workers over 45 years of age. Process Plant Operators within the petroleum sector and the downstream chemical and oil refining sectors are averaging close to 50 years. Of the total cohort, a significant portion of workers have indicated their intention to retire over the next 5 to 10 years.

Training Environment and Issues

Increases in technological advances in all areas of process manufacturing require on-going up-skilling of existing workers. Industry supports the use of skill sets to meet the operational requirements of the organisation and only see offering full qualifications to employees as a recruitment and retention strategy although some employers feel once the employees gain the qualification they will seek alternative employment.

Traditionally the majority of training has been performed in-house by use of enterprise developed training programs and the shadowing of “experienced” workers. There are some issues with the quality of training outcomes, and there is a need to coordinate a consistent approach across all industries covered. With the industry usages of shift work there is a need for more flexibility in training arrangements and the need for provision of self paced learning opportunities has been identified. With the increased awareness of the Productivity Places Program more accredited training is occurring.

There are several RTOs registered in Western Australia, however most of these only deliver selected competencies from the Training Package. Only the Australian Centre for Energy and Process Training can deliver whole programs up to Certificate IV.

The Australian Centre for Energy and Process Training (ACEPT) is the leading provider of process operations training, offering AQTF qualifications for the Australian oil and gas, mineral and chemical processing industries. Developed from collaboration between industry and State and Federal governments, and led by an Industry Management Board comprising representatives from leading companies, ACEPT features state-of-the-art equipment and highly experienced training staff.

ACEPT courses include:

Certificates II and III in Process Plant Operations

Certificate IV in Process Plant Technology

Certificate IV in Engineering (Instrumentation)

A Diploma and Advanced Diploma available now for RPL purposes and a new Associate Degree in Process Engineering are currently being developed.

ACEPT, along with a few other RTOs, can also auspice enterprise based training and assessment to higher qualification levels.

Development of advanced operator skills for the existing workforce requires focused training in information processing, data analysis, problem solving, decision making, project management, lead risk assessment, leadership skills. Training to support competitive manufacturing through increased focus on production efficiencies, quality and safety, health and environment considerations are also in demand.

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Technological Complexity

The technology used in Organic Chemical Manufacturing industry has been fairly static over the past ten years. At the same time however, recent years have seen a number of systems changes as an increasing number of global players seek to divest themselves of underperforming operations and cut back on capital expenditure as a means of competing in an increasingly tough operating environment. Another key factor influencing system changes experienced by the industry are the continued advances in Internet technology and e-commerce which are proving to have profound implications for the downstream activities of manufacturers and distribution channels used. Such trends will have fundamental implications for chemical manufacturers and the ways in which they conduct their operations.

The level of Technology Change used in Inorganic Chemical manufacturing industry is medium. One issue to note is the general trends in electronic commerce and technology which are affecting a number of industries worldwide, including various chemical industries. As an increasing number of chemical players trade online, this will have profound implications for chemical manufacturers and the ways in which they conduct their operations.

For the Organic Chemical Manufacturing industry, in line with historical trends, employment in the industry tended to decline, reflecting in part the effects of further industry rationalisation, the increased efficiency of remaining industry operators, as well as the effects of increasing import penetration in the face of tariff reductions.3

For the Inorganic Chemical Manufacturing industry, employment levels tended to rise over the performance period despite the existence of two conflicting forces. On the one hand, employment levels increased in line with new and expanded production facilities and increased titanium dioxide pigment and sodium cyanide production. On the other hand, industry players also sought to improve operating efficiencies and to close down less efficient plants which in turn saw employment cuts as did moves to rationalise product portfolios.4

Oil and Gas Production in Australia Companies who mainly engaged in treating crude oil, natural gas, or condensate to produce purified natural gas or liquefied hydrocarbon gases are included in the Resources Industry Environmental Scan.

Petroleum Refining in Western Australia

Petrol sold in Australia is either refined from crude oil in one of the eight refineries in Australia, or imported as a finished product from overseas refineries. Western Australia‟s only refinery BP Australia produces petroleum products which are manufactured by refining crude oil at the company's refinery at Kwinana. In 2006-07, BP Australia‟s refineries supplied around 75% of total Australian demand for petroleum products. The remaining 25% of demand was met by imports.

Australia‟s refineries are relatively small compared to the newer refineries in the region, particularly in Singapore, which is the main source of imported products. Significant investments have led to Kwinana becoming one of the most modern refineries in the southern hemisphere enabling the refinery to produce cleaner fuels such as BP Ultimate.

This industry typically does not experience skill or labour shortages as wages and conditions are well above the average and comparable to the resources sector, aside from occasional shortage in process operators, chemical and process engineers. The following graph shows that between the years 1995 and 2009, the number of people employed in Petroleum and Coal Product Manufacturing fluctuated. As an industry there is a mismatch in the number of male and females in the industry, this could be due females not being attracted to the industry because of the reliance on shift work and the preference for tradespersons. Also there is a lack of understanding of diversity of roles in the industry.

3 IBISWorld Industry Report, 20 January 2010, Ethylene, Propylene and Other Organic Industrial Chemical Manufacturing in Australia: C2534

4 IBISWorld Industry Report, 27 January 2010, Titanium Dioxide and Other Inorganic Chemical Manufacturing in Australia: C2535

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BP Australia

BP Australia produces petroleum products which are manufactured by refining crude oil at the company's refineries at Kwinana in Western Australia and Bulwer Island in Queensland. BP Kwinana is the largest refinery in Australia with a capacity of 137,000 barrels of crude oil per day. The Kwinana refinery began operations in 1955 and employs around 387 people.

Kwinana‟s product range includes:

Petrol – Unleaded, Premium Unleaded, BP Ultimate and BP Opal

Diesel fuels

Aviation fuel, including jet fuel and aviation gasoline

Bitumen

Fuel oil

Hydrogen

Kerosene

LPG (including propane and butane)

Key occupations include:

Chemical Engineers

Electrical (& Instrumentation Control) Engineers

Environmental Scientists

Mechanical Engineers

Process Operators (including control room operators)

Process Engineers

Mechanical & electrical tradespersons

In Western Australia the petroleum refinery industry employs around 1000 people including part-time and casual employees with a gender mix of 85% male, 15% female. Employee attraction and retention is above average leading to a stable workforce. There is a reported medium term shortage of Process Engineers.

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FERTILIZERS AND EXPLOSIVES MANUFACTURING

The fertilizers manufacturing industry consists of companies mainly engaged in manufacturing chemical or chemical based fertilisers including mixed fertilisers and organic fertilisers.

The primary activities of this industry are:

Ammonia aqua and ammonium nitrate, both fertiliser grade

Ammonium phosphate fertilisers and ammonium sulphate

Animal or vegetable fertilisers and other organic fertilisers

Bonedust, bonemeal and fishmeal fertilisers

Phosphate, ground, and superphosphate fertilisers

Potash fertilisers

Potassium chloride fertilisers

Sodium nitrate fertilisers

Sulphuric lime (dry or solution)

Urea, fertiliser grade

The major products and services in the fertilizers manufacturing industry are:

Superphosphates

Urea (nitrogen based)

Ammonium phosphates (includes DAP and MAP)

Ammonium nitrate

Potash, potassium chloride & ammonium sulphate

The explosives manufacturing industry comprises companies primarily engaged in the manufacture of explosives. The main product segment comprises various explosives (including primary explosives, secondary explosives and high explosive materials), followed by fireworks and matches. Industry participants may also be involved in the production of blasting accessories such as blasting and detonating caps, fuses and cords, detonators and safety fuses.

The primary activities of the explosives manufacturing industry are:

Blasting powder

Caps, detonators and fuses

Dynamite

Fireworks

Gelignite

Matches and other pyrotechnic products

Propellant powder

Signal flares

The major products and services in the explosives manufacturing industry are:

Secondary explosives

High explosive materials

Primary Explosives

Australia uses between five and six million tonnes of fertilizers each year. This provides around one million tonnes of nitrogen, half a million tonnes of phosphorus and two hundred thousand tonnes of potassium. About half of this is manufactured in Australia, including superphosphate, which is manufactured from imported phosphate rock.

Competition

Manufacturers operate in a highly competitive domestic market where barriers to entry are low. Import and export prices are determined by world markets and therefore are subject to the pressures of global supply and demand. Major fertilizer products are traded in significant volume on the world market and the only barriers to entry into Australia are strict quarantine requirements. Potential global fertilizer supply is constrained by the cost of raw materials, the capital requirements for new mines and manufacturing plants and development lead times. The combination of these factors means that if demand increases faster than anticipated the response in supply can lag leading to price spikes like the one experienced in 2008-09.

The fall in demand was equally quick as a result of the global economic downturn and of farmers reassessing the economics of fertilizer use at very high fertilizer prices and declining prices for agricultural commodities. As demand quickly dropped there was excess capacity and fertilizer prices fell. The other

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significant influence on global fertilizer prices is the price of fossil fuels, in particular natural gas. Fossil fuels (and air) are the main input into nitrogen fertilizer production and changes in global prices for natural gas will be reflected in nitrogen fertilizer prices over time.

As domestic production competes with imported product, or could be sold on the world market at international traded prices the international market determines the Australian domestic price for both imported and locally manufactured fertilizers.

Demand

Demand for fertilizers is seasonal and reflects the times when crops and pastures are fertilized. To manage this uneven demand, fertilizer companies, distributors and farmers use a mixture of storage capacity and careful planning of purchases. More than 85% of fertilizer is transported and sold as bulk product with less than 15% in bags of between 20kg and 1 tonne.

The key driver of fertilizer demand is the growth in population and wealth which increases demand for agricultural commodities. The large populations of China, India and other parts of Asia, in particular, are benefiting from high rates of economic growth. The use of crops to produce bio-fuels is adding to this demand and there are projections that bio-fuel production will increase fourfold in the period 2000 to 2015. Whilst total fertilizer use on bio-fuel crops is relatively small, it is new high intensity demand and additional to the strong growth in fertilizer demand for traditional food and fibre crops. The demand for fertilisers continues to increase as arable land diminishes and existing farmland requires enhanced soil enrichment.

Major employers include CSBP, Burrup Fertilisers Pty Ltd.

CSBP Limited

Located in Kwinana, CSBP Limited, its subsidiaries and joint ventures form the Chemicals and Fertilisers division of Wesfarmers Limited. Established in the 1910s as Cuming Smith and Company, it became the first firm in Australia to make superphosphate, manufacturing from their Bassendean plant under the brand name Florida. CSBP and Farmers Ltd took over Cresco Fertilisers in 1970.

CSBP is a major manufacturer and supplier of chemicals, fertilisers and related services to the mining, minerals processing, industrial and agricultural sectors. The Kwinana CSBP plant primarily produces agricultural fertilisers, ammonia, ammonium nitrate, sodium cyanide and other industrial chemicals. Many of CSBP products are essential inputs into a variety of Australian industries including broadacre agriculture, iron ore and coal mining, nickel and gold extraction, and construction. They have a state-of-the-art soil and plant analysis laboratory located in metropolitan Perth, with major regional fertiliser storage and despatch facilities in Geraldton, Bunbury, Albany and Esperance. They also have CSBP fertiliser depots and field-based agricultural advisers operating throughout WA‟s agricultural region.

CSBP is the sole producer of ammonium nitrate in Western Australia producing up to 520,000 tonnes of explosive grade ammonium nitrate per annum and 260,000 tonnes per annum of ammonia. Ammonium nitrate is a major input to the mining sector and is also used in the production of liquid fertilisers. Ammonia is used by CSBP as a raw material to produce fertilisers, downstream chemicals (sodium cyanide, nitric acid, ammonium nitrate), and is also used by nickel refining operations in Western Australia. 5

Employee numbers are around 1000 including full-time, part-time and casual personnel. Employment gender mix is reported at 79% male and 21% female.

Technology in plant operation including software, tools and machines change every 5+ years on average.

Skills shortages are reported in Electrical Instrumentation trades and medium level of shortage for Area Managers and Management, Low level of shortage for Engineers and Process Technicians.

Burrup Fertilisers Pty Ltd

Burrup Fertilisers‟ A$700 million liquid ammonia plant on the Burrup Peninsula, near Karratha in Western Australia, commenced production in April 2006 with the first export shipment from the port of Dampier occurring in mid 2006. Burrup Fertilisers is a private company with owners based in India. Yara International Yara International ASA, has signed an agreement to take BFPL's total production of ammonia for 20 years. Yara is also an equity-holder in the project6.

With a production capacity of 760,000 tonnes annually, the plant is one of the world's largest ammonia

5 CSBP Limited industry visit

6 http://www.bfpl.com.au/

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production facilities, producing 6% of the total world output of tradable ammonia. Its take-or-pay contract for the purchase of gas from the North West Shelf means the plant will be in production for at least 25 years.

The project created 1100 jobs (at peak) during construction, and now provides employment for nearly 100 production and administrative staff. Burrup Fertilisers has a commitment to recruiting and training local staff to operate the plant, which is the only one of its kind in Australia. To facilitate this, the company has purchased a $1 million Operator Training Simulator, one of only two in the world, to train operations staff.

The Government of Western Australia supported the development of the project with an investment of A$160 million in an infrastructure package designed to attract downstream processing to the Burrup Peninsula. This package included an upgrade of the port of Dampier which incorporated a new purpose built Bulk Liquids Berth, a multi-user service corridor and a desalination plant. Development of BFPL's project enabled Government approval of the supporting infrastructure package

The plant uses natural gas as a feedstock for the manufacture of liquid ammonia, used primarily in the manufacture of fertiliser. Gas is purchased via a 25-year take-or-pay contract with Apache Energy Limited, Kufpec Australia Pty Ltd and Tap Oil Limited, worth more than A$1 billion.

Perdaman Chemicals and Fertilisers (Perdaman)

Perdaman Chemicals and Fertilisers (formally North West Chemicals and Fertilisers), is developing a $2.8 billion urea manufacturing plant at Collie, Western Australia. Using innovative and coal gasification technology, the plant will transform sub-bituminous coal into urea.7

The Collie plant has a 2 million tonnes per annum capacity, and most, if not all of the urea produced at the plant will be exported for global use. The plant will be a world-scale facility with high operating efficiencies achieved by using proven, best-in-class technologies. Although coal gasification technology is new to Australia, it has been established and proven worldwide.

Nitrogen is critical to the development and growth of crops and urea has the highest nitrogen content of all available fertilisers. It is estimated that the enhanced yields created from the urea produced at the Collie Urea plant could help produce crops feeding 90 million people annually.

The Collie Urea operation is expected to create around 200 permanent jobs at the plant. These employees and their families will boost the already established community at Collie, bringing in significant economic opportunities to the region.

PLASTICS, RUBBER AND CABLEMAKING

The Plastics, rubber and cablemaking industries are downstream industries to the chemical and petrochemical industries, sourcing both polymer raw materials and many of the additives from these sectors. Other additives such as fillers may be sourced from the minerals sector. The outputs from these industries are used as components in many consumer products.

Over the course of 2009-10, the economic environment was not conducive to the Plastic Blow Moulded Product Manufacturing industry achieving significant growth. IBISWorld estimates that revenue growth of 3.5% will be achieved this year, in real terms. This will come on the back of stronger economic growth, as Australia recovers from the global economic downturn. This will see an increase in discretionary household expenditure on items such as soft drinks, bottled water, juices and packaged foods which are all packaged in polymer products. Further aiding the industry is the increased use of plastic blow moulded products in the packaging of beverages such wine. With more and more manufacturers of beverages using plastic to package their goods the industry is set to achieve the highest growth in the last five years.8

In Western Australia, Viscount Plastics is the largest employer as the largest moulder of blow moulded bottles for the general market in WA. Companies in Plastic Blow Moulded Product Manufacturing industry manufacture plastic bottles and other plastic products using the blow molding method. Blow molding/forming is a manufacturing process which begins with the melting of plastic to form a parison/perform. A parison resembles a tube and is hollow at one end, allowing for compressed air to pass through it. Once created, pressurized air is used to shape it against a mold cavity. The pressure is held until the plastic cools, creating the desired shape of the product.

The primary activities of Plastic Blow Moulded Product Manufacturing industry are:

Plastic soft drink bottle manufacturing

7 http://www.perdaman.com.au/home.aspx

8 IBISWorld Industry Report, 14 January 2010, Plastic Blow Moulded Product Manufacturing in Australia: C2561

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Plastic prescription bottle manufacturing

Household product plastic bottle manufacturing

The major products and services in Plastic Blow Moulded Product Manufacturing industry are:

Beverage (except milk and beer) containers (PET)

Food Containers (PET)

Household product containers (HDPE)

Milk bottles (HDPE)

Beer bottles (PET)

Other containers (HDPE)

PMB - Plastics, Rubber and Cablemaking Training Package

The Training Package is designed to address the specific needs of three sectors of the Process Manufacturing industry:

Plastics,

Rubber, and

Cablemaking.

The Training Package has been designed to meet the different needs of the industry by including units of competency for the different production processes within each sector. The Package also acknowledges the commonalities of each sector and will provide flexible, comprehensive and integrated training for new entrants and existing workers. Twelve qualifications have been identified within the Training Package at Certificates I to Advanced Diploma level.

The Plastics, Rubber and Cablemaking industry sector is very diverse, coverage includes the following disciplines:

Plastics – blow moulding, calendering, composites, compounding, extrusion, fabrication, film, injection moulding, polystyrene, polyurethane, rotational moulding, thermoforming and surface coating;

Rubber - extrusion, fabrication, injection moulding, polyurethane, belt splicing, rubber lining, tyre manufacture, tyre retreading and surface coating;

Cablemaking there are no manufacturers located in Western Australia.

Qualifications at the Certificate II and III levels may be streamed into Blow Moulding, Fabrication, Polyurethane, Rubber Lining, Calendering, Film, Rotational Moulding, Tyre Manufacture, Composites, Injection Moulding, Thermoforming, Tyre Retreading, Compounding, Polystyrene, Belt Splicing, Surface Coating and Extrusion.



Australian Workers Union (AMU)


Liquor, Hospitality and Miscellaneous Workers Union (LHMWU)


Plastic Injection Moulders Association (PIMA)

Australian Plastics and Rubber Institute INC. (APRI)

Plastic Industry Pipe Association (PIPA)

Plastics and Allied Industries Association of South Australia (PAIA)

Society of Plastics Engineers Australia-New Zealand (SPE)

Rubber Manufacturers Association of Australia

Vinyl Council of Australia

The Packaging Council of Australia

Composites Australia

Composites West

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Competition from cheap imported products means that the industry needs to work smarter if they are to remain competitive they need to introduce technology to automate or train their workforce work more effectively.

A shortage of skilled labour has contributed to employers seeking alternative sources of employment including recruiting from overseas using 457 visas.

The following graph shows that between the years 1995 and 2009, employment fluctuated slightly but mostly remained stable in Polymer Product and Rubber Product Manufacturing. If this industry was to experience labour shortages in the future, looking at recruiting more females could be an option.


The following graph shows that between the years 1995 and 2009, employment in Polymer Product and Rubber Product Manufacturing was dominated by full-time employees with periods of utilising part-time employees.


The polymer sector reports an ageing workforce profile with little effective succession planning leading to little transfer of skills from the skilled to the unskilled. The number of new entrants entering the overall polymer industry is relatively low with decreased student attraction being recorded across several sectors.

The barriers to employment include often wrongly perceived: -low wages, limited career prospects, lack of employment security, poor image and status of industry. There is a perception that these industries are “unskilled” and that “anyone can do them” which leads to a poor quality of recruit entering the industry, and many of these people have no desire to be trained.

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Employers want better trained operators, able to work autonomously, undertake quality control, be able to carry out their own problem solving and fault rectification.

The rubber lining and belt splicing sector also has high staff turnover rates. The industry intention is to try and reduce the level of turnover rate by better training and improved industry work practices.


Traditionally the majority of training has been by shadowing of “experienced” workers and the quality of the skills learned varies widely. Industry requires training and assessment to be predominantly on-the-job due to the difficulties involved with shift work, continuous production lines and the costs incurred to release learners.

Most training occurs at the skills set level with some employers recognising the offering of full qualifications as a recruitment and retentions strategy. Employers are aware of the traineeships available and utilise these and the PPP for training purposes.

Generally, the industry suffers from low esteem, with workers in these sectors being viewed as unskilled or semi-skilled and with little or no prospects of advancement or career development. The industry has attempted to address these issues with the establishment of traineeships in Injection Moulding, Polystyrene and an apprenticeship in Composites Laminating to provide high quality entry level training for new employees and also to have the existing workforce‟s current skills and competencies assessed against. Operators that have qualifications at the operator Certificate II and III levels need to extend their skill sets through access to specific units of competence and the incorporation of these units in Certificate IV, Diploma and Advanced Diploma qualifications.

Competitive manufacturing training of senior operators and staff needs to include advanced training programs including communications skills, management skills, project management and customer service skills.

INDUSTRIAL GAS MANUFACTURING

This industry consists of companies mainly engaged in manufacturing hydrogen, oxygen, acetylene or other industrial gases (except gases obtained from petroleum mining or refining). Its products include:

Acetylene gas manufacturing

Carbon dioxide gas manufacturing

Carbon monoxide gas manufacturing

Dry ice manufacturing

Hydrogen manufacturing

Nitrogen manufacturing

Nitrous oxide manufacturing

Oxygen manufacturing

By year end 2009-10, the industry is expected to generate revenue worth $2.58 billion, compared with $1.84 billion in 2004-05 (in constant 2009-10 dollar terms). This represents an average growth rate of 6.2% per annum though year on year growth rates fluctuated between a high of 9.5% in 2007-08 and an expected low of 5.1% for 2009-10.9

Major Customers include:

Petroleum, Coal, Chemical and Associated Product Manufacturing

In recent years the industrial gas manufacturing industry has benefited from the increasing demand for hydrogen in the oil and chemical industries in the production of low-sulphur content transportation fuels. It is also expected to benefit from calls for cleaner burning fuels and the hydrosulphurisation of petroleum products.

Metal Product Manufacturing

The industry in question is a large user of bulk gases such as oxygen

Health and Community Services in Australia

One of the areas a number of industry participants have entered into in recent years is the health sector with a number of industrial gases including oxygen, nitrogen, helium and carbon dioxide being used in various medical applications.

Pulp, Paper and Paperboard Manufacturing in Australia

9 IBISWorld Industry Report, 02 December 2009, Industrial Gas Manufacturing in Australia: C2532

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The level of activity within the Pulp, Paper and Paperboard Manufacturing industry affects the demand for particular industry products, including oxygen applications.

Major Western Australian employers include; BOC Limited (part of the Linde Group) 65.0%, Air Liquide Australia Limited 17.0% and Wesfarmers Limited 7.0%.

Technological Complexity

Technological developments in both the industrial gas industry as well as their user industries may give one manufacturer a competitive edge over another or increase the demand for a particular product.10


By year end 2009-10, industry employment numbers are expected to be in the order of 3,090 compared with an estimated 2,700 in 2004-05.

Employment levels fluctuate in line with changes in demand for the industry‟s products. However, the commissioning of new plants (such as the air separation unit operated by Air Liquide WA for Hlsmelt‟s pig iron operations at Kwinana) also served to boost industry employment levels.

Major Employers

BOC Limited is a member of The Linde Group and supplies compressed and bulk gases, chemicals and equipment throughout Australia, New Zealand and the South Pacific. The company develops safe, sustainable and innovative solutions for customers in many specialty sectors, heavy industry and medical environments.

For more than a century the company's gases and expertise have contributed to advances in industry and everyday life, including steelmaking, refining, chemical processing, environmental protection, wastewater treatment, welding and cutting, food processing and distribution, glass production, electronics and health care.

BOC produces industrial gases such as: Nitrogen, Industrial Oxygen, Industrial Argon, High Purity Helium, Industrial Carbon Dioxide, Dissolved Acetylene, Diving Grade Oxygen, Diving Grade Air, Hospital grade oxygen,

MANUFACTURED MINERAL PRODUCTS (BRICKS, GLASS, CERAMICS, PLASTER, CONCRETE, ASPHALT)

The Manufactured mineral products industry includes:

Non-Metallic Mineral Product Manufacturing

The Manufactured mineral products industry includes a number of sectors which use minerals sourced from the extractive industries such as quarrying to produce a range of products. The Manufactured Mineral Products (MMP) industry produces cement, ceramics, clay, concrete, glass, plaster, refractories, asphalt and related products which are used by other industries such as building and construction, food and beverage, heavy industry, automotive and landscaping. Parts of the industry do directly service the consumer market including:

glass bottles, glass used for buildings and cars, stained glass, glass lenses

talcum powder, lime powder, chalk powder

bricks, paving blocks

plaster, ornate plaster pieces

terracotta roof tiles, floor and wall tiles, pottery

concrete blocks for building, concrete pipes, garden products

asphalt for road building.

There are some 4200 businesses throughout Australia operating in the MMP industry employing approximately 36,000 persons. The annual growth rate of industry output from 2001 - 2007 was 6% per annum.

Major Western Australian employers include Midland Brick, Delta Corporation, Austral Bricks, CSR (Gyprock), Boral BCG, Hanson Australia, Cemex, Holcim, Bradys, WALCO, Lime Industries.

The following graph shows that between the years 1995 and 2009, employment remained stable in Non-Metallic Mineral Product Manufacturing. If this industry was to experience labour shortages in the future, looking at recruiting more females could be an option.

10 IBISWorld Industry Report, 02 December 2009, Industrial Gas Manufacturing in Australia: C2532

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The following graph shows that between the years 1995 and 2009, employment in Non-Metallic Mineral Product Manufacturing was dominated by full-time employees with periods of utilising part-time employees.


PMC - Manufactured Mineral Products Training Package

The Manufactured Mineral Products Training Package addresses the training needs of the cement, ceramics, clay, concrete, glass, premix concrete, asphalt, plasterboard, fibre cement, refractories and related products sectors of the process manufacturing industry. The Training Package has been designed to meet a variety of industry requirements and will promote flexible, comprehensive and integrated training, providing new entrants and existing workers with skills and knowledge that are transferable across each sector of the industry.

The Manufactured Mineral Products Training Package has recently been updated. Seven qualifications have been identified within the training package at Certificate I to Vocational Graduate Certificate level.



Australian Pre-mix Concrete Association

Australian Precast Concrete Industry Association


Clay and Brick Manufacturers Association

Cement and Concrete Association

Concrete Institute of Australia

Concrete Pipe Association of Australia

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Federated Brick, Tile and Potters Union

Institute of Refractory Engineers


The Institute of Quarrying Australia

Concrete Masonry Association of Association

Construction Material Processors Association

Cement Concrete and Aggregates Australia


A large number of employees in manufactured mineral products manufacturing have no qualification and would benefit greatly from Certificate II and III industry qualification training. Training plans should be developed to incorporate units from the Competitive Manufacturing Training Package at AQF levels 3 and 4.

Operator skill training for new entrants with traineeship programs at Certificate II and III levels

Cost effective production is extremely important in this sector as export replacement is decreasing the demand for locally produced goods. Demand remains high for building resources supporting the local construction activity

There is significant shift work utilised in this sector which complicates training delivery.

Concrete Sector

Significant proportion of concrete, cement and clay sectors are from non-English speaking backgrounds.

Concrete products: Reliant on health of the building industry economy. Health and safety requirements especially for sub-contractors are an issue.

Reported shortages for concrete manufacturing operators.

The larger employers in the concrete industry tend to deliver their own training in-house; however there is strong support for the Training Package being the accepted standard for such training. Apart from these few large companies, the overall majority of businesses in the concrete industry are small and scattered around the State. This poses problems with developing structured training for relatively small numbers in each regional location.

Refractory Sector

Large Installers in the Refractory industry are keen to have competency-based training programs. However, there is currently no public provider to deliver the training. It is hoped that a public provider may enter the market in the near future.

The preferred mode of delivery for this industry group is utilising workplace-based training and assessment and workplace mentoring. This is especially important as firstly, the majority of training is delivered in-house and secondly, the widespread locations of the participating enterprises and worksites.

Clay and ceramics

Clay and ceramics: brick and tile manufacturing dependent on building industry. Future plant mechanisation and expansion. Process Manufacturing TAC Report Page 19 of 23

Clay and ceramics: Brick and tile manufacturing dependent on building industry. Future plant mechanisation and expansion.

Cement

Cement: Reliant on building industry, desire for RPL for experienced, unqualified workers.

Cement: Reliant on building industry economy. Health and safety requirements especially for subcontractors are an issue.


Worksafe legislation requires all industries to have competent workers that perform the tasks they are allocated. Until now that level of competency has been assumed, rather than measured, and the Training Package is now being looked at as the benchmark for performance and competency.

Much of the industry is very labour intensive due to the processes used to manufacture many of the products, and that a lot of the tasks haven‟t yet been automated. In the case of Clay Brick manufacturing this is the opposite trend, with much of the process now being fully automated. There is an increase in skills assessment and skills recognition for existing industry workers but with the focus on skill sets rather

27

than on the broad acquisition of qualifications. Opportunities for VET in school programs to articulate with Certificate I and II programs in concrete products manufacturing, cement manufacturing, clay and ceramics manufacturing.

Increasing demand for English language and literacy skill development requiring greater support for Workplace English Language and Literacy (WELL) Programs to support migrant workers and operators that need to increase skills to meet multi-skilling requirements

Much of the Industry is still unaware of the Training Package. Traditionally the majority of training has been by shadowing of “experienced” workers, and the quality of the skills learned varies widely. In some sectors, especially concrete, there is a lack of definition where ITAB responsibility of coverage lies between Process Manufacturing and Building & Construction. The existence of some extremely thin training markets within the majority of the sectors covered by the Manufactured Mineral Products training package make any direct institutional training delivery unviable.

Future training responses will mainly involve auspicing training arrangements and other flexible innovative modes of mentoring led work-based delivery and assessment.

PHARMACEUTICAL PRODUCTS MANUFACTURING

The Australian Pharmaceutical Product Manufacturing industry is thought to have experienced a moderate rate of growth over the past five years with revenue expected to reach $9.4 billion in 2009-10, up from $7.5 billion in 2004-05 representing overall growth of 26% and an average growth rate of 4.6% per annum. Year on year growth rates ranged between an expected low of 1.5% for 2009-10 and a high of 7.9% in 2006-07. In 2008-09 and 2009-10 industry revenue growth rates are expected to be a very modest 2.9% and 1.5% respectively (down from 4.6% in 2007-08) as the industry contends with price cuts associated with the latest Pharmaceutical Benefits Scheme(PBS) reforms.11


Antibacterial, antibiotic and antitoxin manufacturing

General pharmaceutical manufacturing

Contraceptive manufacturing

Feed supplement manufacturing

Medical gas and ether manufacturing

Sanitary napkins and tampons manufacturing

Vaccine manufacturing

Vitamin product manufacturing

The major products and services in this industry are:

Pharmaceuticals

Alternative medicines

Veterinary products

The Pharmaceuticals Education Council (PEC) investigated pharmaceutical workforce needs, assessed skills gaps and worked with governments and tertiary institutions to ensure that the Australian education system produces the right skills for this knowledge based industry. In order to move its agenda forward, the PEC successfully applied for a Commonwealth grant under the Collaboration and Structural Reform (CASR) Fund.

The three phase CASR project aims to achieve an understanding of ways to create a substantial increase in the scientific and business workforce for the pharmaceutical and biopharmaceuticals industry. Phase Two involved a review of specialised courses run by tertiary institutions and industry associations across the country aimed at equipping students with relevant skills for the biopharmaceutical industry.

Growth in industry employment levels was weak or negative over much of the five years to 2009-10, and levels are expected to be in the order of 13,400 by year end 2009-10, down from an estimated 14,610 in 2004-05. Of note are reports of up to six manufacturing plant capacity cutbacks/closures over 2007-08 and 2008-09, which equated to job cuts of some 400 people at the manufacturing level as overseas players sought to resize their global operations.

The skills gaps identified could be broadly categorised into three areas:

1. Lack of understanding of the biopharmaceutical industry sector, in terms of:

general knowledge of the sector

11IBISWorld Industry Report, 25 February 2010, Pharmaceutical Product Manufacturing in Australia: C2543

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career opportunities

scope of work

2. Ability to undertake specific tasks:

turn raw materials into a product

specific practical skills, including proof of concept; fermentation; pre-clinical toxicology

medicinal and synthetic chemistry; instrument management; stability testing

reimbursement

basic research skills

QA and regulatory affairs

clinical development

IP and commercialisation

Project management

3. Ability to work effectively in the biopharmaceutical industry sector:

timelines/work smart tools

job readiness

resilience and initiative

attention to detail

ability to come to conclusions

ability to develop a clear statement of purpose

presentation and communication skills

ability to handle electronic data

With respect to addressing the skills gaps, seven consistent themes and recommendations emerged from the workshops:

Dramatically increase the profile of the pharmaceutical industry in the education sector and wider community

Encourage government/ industry bodies to act as brokers between industry and academia to ensure there is a unified approach to developing the industry

Bring industry expertise into academia

Ensure that courses provide a consistent standard that meets industry requirements. This may involve either the structure of the course or its content, or both

Provide financial incentives to industry and to students to ensure that graduates are job-ready

Change the culture within industry and academia to work together more productively

Introduce Industry linkage programs bringing academics into industry and students into industry via work experience opportunities.

Major employers include:

Merck Sharp & Dohme (Australia) Pty Limited

AstraZeneca Pty Limited

Pfizer Australia Pty Limited

GlaxoSmithKline Holdings Pty Ltd

Sigma Pharmaceuticals Limited

Technological complexity

One of the factors which will help to gradually change the profile of the industry over the next five years include sustained developments in technology, including the increasing use of the Internet and e-commerce (particularly for the dissemination of information on major branded pharmaceuticals), as well as continued falls in exclusivity times combined with an increased roll out of second and third generation products as a result of technological advancements. The five years to 2014-15 will also witness a growing reliance on new technologies such as genomics which is hoped will accelerate research and reduce development times in bringing new drugs to the market. Biotech products will also increase in importance, while nanotechnology may also come to the fore as industry players look to nano-engineered reformulations of various key products due to come off patent over the next five years12.

12IBISWorld Industry Report, 25 February 2010, Pharmaceutical Product Manufacturing in Australia: C2543

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TYRE MANUFACTURING

Companies in this industry manufacture or retread inflatable rubber tyres, using natural or synthetic rubber mixed in any proportions.


Motor vehicle tyres manufacturing

Tread rubber manufacturing

Tubes, pneumatic, manufacturing

Tyres, retreading or recapping

Tyres, pneumatic, manufacturing


Replacement Passenger Vehicle Tyres

Original Passenger Vehicle Tyres

Retreading

Replacement Commercial Vehicle Tyres

Original Commercial Vehicle Tyres

There are no known tyre manufacturers in Western Australia.

ADHESIVES, CLEANING AND OTHER CHEMICAL PRODUCT MANUFACTURING

This industry comprises companies primarily engaged in manufacturing or formulating polishes or cleaners (except abrasive), waxes, dry cleaning preparations, essential oils (refined or crude), adhesives (except bituminous) or other chemical products not elsewhere classified. Inputs are often sourced from other components of the chemical industry then sold to various industrial segments as well as the household market.


Adhesive manufacturing (except bituminous)

Antifreeze compound manufacturing

Casein glue and glue manufacturing

Concrete additive or masonry surface treatment manufacturing

Dry cleaning compound manufacturing

Flux, soldering or welding manufacturing (liquid)

Gelatin manufacturing

Hydraulic brake fluid manufacturing

Surface cleaning or degreasing preparation manufacturing

Wax and liquid polish manufacturing


Adhesives

Other chemical products

Other cleaning polishes, creams & waxes (including insect)

Gelatines & natural gums

Surface cleaning & degreasing (including stove & oven)

PAINT MANUFACTURING

This industry comprises companies primarily involved in the manufacture of various paints, timber finishes and other surface coatings products for the decoration and protection of surfaces against wear, weather and corrosion. Key products include paints (with the exception of bituminous paints), enamels, varnishes, lacquers, and stains. Other products include fillers, putty, as well as prepared paint thinners and removers and prepared tinting colours.


Caulking compound manufacturing

Filler or putty manufacturing

Lacquer manufacturing

Paint manufacturing (except bituminous)

Paint or varnish remover, prepared, manufacturing

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Paint tinting colour, prepared, manufacturing

Primer or undercoat, paint, manufacturing

Rubbing compound manufacturing

Stain manufacturing

Wood stain manufacturing (packed for sale)


Architectural & decorative paints

Industrial paints

Thinners

Heavy duty coatings

Timber finishes

RESIN AND RUBBER MANUFACTURING

This industry comprises companies primarily engaged in the manufacture of synthetic resins and/or synthetic rubber. These manufacturing activities may be undertaken on both a customized or non customized basis. Key products include polyethylene, polypropylene, polyvinyl chloride, polystyrene and synthetic rubber. Industry products are then sold to a variety of downstream industries including packaging, chemicals, construction, and transportation.


Cellulose nitrate and cellulosic resins

Gun-cotton

Plastic raw materials

Plastic and rubber recycling

Polyethylene

Polypropylene

Polystyrene

Polyvinyl acetate and polyvinyl chloride

Synthetic resins (except adhesives)

Synthetic rubber


Polyethylene

Polypropylene

Mixed or compounded with other substances

Other including polyvinyl acetate and PVC

Synthetic rubber

Polystyrene

Carbon black

Resin acids

CERAMIC SANITARY WARE AND OTHER CERAMIC PRODUCT MANUFACTURING

Companies in this industry manufacture ceramic kitchen or tableware and non-refractory type ceramic containers and goods.


Art pottery

Vitreous china, porcelain and earthenware crockery and vases

Ceramic flower pots

Porcelain insulators

Ornamental ceramics (except tiles)

Ovenware ceramics

Ceramic bathroom fixtures and fittings mfg


Ceramic sanitary ware

Crockery

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Ceramic insulators & other

Ceramic floor and wall tiles

CLAY BRICK MANUFACTURING

Firms in this industry are engaged in the manufacture of clay and pavers bricks (excluding refractory bricks).


Clay bricks manufacturing

Clay pavers manufacturing


Premium bricks (firsts)

Seconds, boutique or facia bricks

Clay pavers

Major employers in Western Australia include Midland Brick (Boral), Geraldton Bricks and Austral Bricks.

CEMENT AND LIME MANUFACTURING

Companies in this industry are mainly engaged in manufacturing hydraulic cement or lime.


Cement manufacturing (except adhesive or refractory)

Hydraulic cement manufacturing

Portland cement manufacturing

Lime manufacturing from calcitic limestone, dolomitic limestone and other materials


Portland cement

Clinker (unprocessed)

Lime

LABORATORY OPERATIONS

The following graph shows that between the years 1995 and 2009, employment fluctuated slightly but mostly remained stable in Scientific Research Services. If this industry was to experience labour shortages in the future, looking at recruiting more females could be an option. It is a relatively equitable industry with regards to male/female employment ratio.


The following graph shows that between the years 1995 and 2009, employment remained stable in Other Professional, Scientific and Technical Services Other Professional, Scientific and Technical Services with an increase in 2009 due to demand from mining. It is one of the few industries that utilises women well in the workforce.

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The following graph shows that between the years 1995 and 2009, employment in Scientific Research Services was dominated by full-time employees with periods of utilising part-time employees.


The following graph shows that between the years 1995 and 2009, Other Professional, Scientific and Technical Services was one of the industries that utilised part-time employees in similar numbers as full-time employees.

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Laboratory Operations Training Package – (MSL)

The Laboratory Operations Training Package is a cross-industry Package which includes a diverse group of technical and scientific occupations across many industry sectors including biological testing, biological and environmental testing, biotechnology, calibration, chemical testing, construction material testing, environmental monitoring, food testing, manufacturing testing, mineral assay, pathology testing and scientific glassblowing.

The training package is designed to address the training needs of laboratory personnel working in five broad occupational categories which include:

1. laboratory supervisors, senior technical officers, technical specialists 2. technical officers 3. technical assistants 4. laboratory assistants 5. samplers/testers.

The range of qualifications covered by the Laboratory Operations Training Package is at Certificate II to Advanced Diploma.



National Association of Testing Authorities (NATA)

Scientific Glassblowers Society of Australian and New Zealand



The main issue for this sector is the recruitment of well trained staff for the larger batch operation testing companies. Tertiary trained applicants are not attracted to this kind of work and there exists many openings for VET trained personnel to fill those roles.

Employment on a shift basis or in remote and rural locations leads to training delivery issues. Other issues for this sector include; the rapid rate of change in technological development and innovation and the changes to legislation particularly in the areas of environmental and medical testing.

With more and more accountability being placed on industry to meet exacting product specifications and environmental standards the need for fast, accurate, reliable laboratory testing is becoming more apparent. Many companies employ their own laboratory staff who were traditionally drawn from University trained graduates. Nowadays there is a move towards non-tertiary trained people to perform continuous routine testing and analysis, using more sophisticated techniques and software systems. There is more of a

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shift to laboratory work being focussed on Quality Assurance (QA) and Quality Control (QC) roles, as more of the routine sample testing is being automated to some extent.

Many laboratories have NATA (National Association of Testing Authorities) accreditation which requires them to be able to demonstrate a high level of competence of their staff. This ultimately leads to higher qualified staff, doing more complex testing and data analysis.

Environmental legislation placed on many industries has seen a proliferation of associated testing groups formed, and given the current thrust of Government policies the industry sees this as a continuing growth area.

Within the remote and regional area employers have focused on skills sets rather than qualifications. The provision of training to achieve a full qualification has been used as a recruitment and retention strategy. Workplace training structures and enterprise specific training typically involves on the job training by supervisors or peers. There has been an increase in the use of registered training providers and the uptake of nationally accredited training occurs utilising the PPP and EBPPP.

Delivery of training and assessment is carried out in a simulated workplace environment, using the high quality laboratories available through the public and private RTOs. Challenger TAFE offers to place a lecturer in enterprises should a viable cohort of trainees exist. Work based training and assessment is carried out where applicable, generally more for existing worker Skills Recognition processes.

INDUSTRY AREA COVERAGE

GROUP CLASS DESCRIPTION

120 Oil and Gas Extraction

1200 Oil & Gas Extraction

(Coverage of: Onshore and Offshore Plant Technicians, Control Room Technician, Team Leaders)

251 Petroleum Refining

2510 Petroleum Refining

(Coverage of: Process Plant Operator, Process Plant Technician, Control Room Technician, Team Leader, Process Plant Supervisor)

252 Petroleum & Coal Product Manufacturing n.e.c.

2520 Petroleum & Coal Product Manufacturing n.e.c.


253 Basic Chemical Manufacturing

2531 Fertiliser Manufacturing


2532 Industrial Gas Manufacturing


2533 Synthetic Resin Manufacturing


2534 Organic Industrial Chemical Manufacturing n.e.c.


2535 Inorganic Industrial Chemical Manufacturing n.e.c.


254 Other Chemical Product Manufacturing

35

2541 Explosive Manufacturing


2542 Paint Manufacturing

(Coverage of: Product Blender, Process Plant Operator, Team Leader)

2544 Pesticide Manufacturing


2545 Soap & Other Detergent Manufacturing


2546 Cosmetic & Toiletry Preparation Manufacturing


2549 Chemical Product Manufacturing n.e.c.


255 Rubber Product Manufacturing

2551 Rubber Tyre Manufacturing

(Coverage of: Tyre Retreader, Moulding Machine Operator, Production Team Leader, Quality Control)

2559 Rubber Product Manufacturing n.e.c.

(Coverage of: Belt Splicer, Rubber Liner, Hose Builder, Production Team Leader, Quality Control)

256 - Plastic Product Manufacturing

2561 Plastic Blow Moulded Product Manufacturing

(Coverage of: Blow Moulding Machine Operator, Production Team Leader, Quality Control)

2562 Plastic Extruded Product Manufacturing

(Coverage of: Extrusion Machine Operator, Production Team Leader, Quality Control)

2563 Plastic Bag & Film Manufacturing

(Coverage of: Film Machine Operator, Production Team Leader, Quality Control)

2564 Plastic Product Rigid Fibre Reinforced Manufacturing

(Coverage of: Composites

(Fibreglass) Operator, Production Team Leader, Quality Control)

2565 Plastic Foam Product Manufacturing

(Coverage of: Moulding Machine Operator, Production Team Leader, Quality Control)

2566 Plastic Injection Moulded Product Manufacturing

(Coverage of: Injection Moulding Machine Operator, Production Team Leader, Quality Control)

261 Glass and Glass Product Manufacturing

2610 Glass & Glass Product Manufacturing

(Coverage of: Glassware Maker, Glass Blower, Furnace/Kiln Operator, Glass Production Operator, Glass Fuser, Production Technician, Production Team Leader, Quality Control)

262 Ceramic Manufacturing

2621 Clay Brick Manufacturing

(Coverage of: Machine Operator, Furnace/Kiln Operator, Production Technician, Production Team Leader, Quality Control)

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2622 Ceramic Product Manufacturing

(Coverage of: Machine Operator, Furnace/Kiln Operator, Mould Maker, Production Technician, Production Team Leader, Quality Control)

2623 Ceramic Tile & Pipe Manufacturing


2629 Ceramic Product Manufacturing n.e.c.


263 Cement, Lime, Plaster and Concrete Product Manufacturing

2631 Cement & Lime Manufacturing

(Coverage of: Cement Operator, Furnace/Kiln Operator, Production Technician, Production Team Leader, Quality Control)

2632 Plaster Product Manufacturing

(Coverage of: Plasterer, Plaster Product Maker, Production Technician, Production Team Leader, Quality Control)

2633 Concrete Slurry Manufacturing

(Coverage of: Concrete Plant Operator, Production Technician, Production Team Leader, Quality Control)

2634 Concrete Pipe and Box Culvert Manufacturing

(Coverage of: Concrete Plant Operator, , Production Technician, Production Team Leader, Quality Control)

2635 Concrete Product Manufacturing n.e.c.

(Coverage of: Concrete Plant Operator, , Production Technician, Production Team Leader, Quality Control)

264 Non-Metallic Mineral Product Manufacturing n.e.c.

2640 Non-Metallic Mineral Product Manufacturing n.e.c. (mostly covered in the 261/262/263 sections)

294 Other Manufacturing

2942 Toy and Sporting Good Manufacturing (Coverage of: Injection Moulding Machine Operator, Production Team Leader, Quality Control)

* ANZSIC Group - Australian New Zealand Standard Industrial Classification Group

** n.e.c. - not elsewhere classified

DATE SOURCES

1. Australian Bureau of Statistics Australian and New Zealand Standard Industrial Classification 1993 2. Australian Bureau of Statistics Australian Standard Classification of Education 2001 3. Australian Bureau of Statistics Counts of Australian Businesses 2007 4. Australian Bureau of Statistics Education and Work May 2009 5. Australian Bureau of Statistics Labour Force May 2009 6. Australian Bureau of Statistics Manufacturing Industry, Australia 2006 - 07 7. http://www.skillsinfo.gov.au/skills/IndustryProfiles/EmploymentbyAge 8. Manufacturing Skills Australia – Industry statistics as at January 2010 9. National Centre for Vocational Education Research 2009 National Apprentice and trainee

collection 10. National Centre for Vocational Education Research 2009 National VET provider collection 11. National Training Information Service www.ntis.com.au 12. NCVER National VET provider collection May 2009 13. Pharmaceuticals Education Council Report on skills gaps in pharmaceutical and biopharmaceutical

industries December 2007 Phase Two report prepared by Mercury Advisory 14. Source: ABS Counts of Australian Businesses 2007

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15. Source: http://www.skillsinfo.gov.au/skills Industry Profiles/Future Growth by Industry 16. Source: http://www.skillsinfo.gov.au/skills Industry Profiles/Employment by Age 17. http://www.fertilizer-index.com/ 18. IBISWorld Industry Report, 02 December 2009, Industrial Gas Manufacturing in Australia: C2532 19. IBISWorld Industry Report, 25 February 2010, Pharmaceutical Product Manufacturing in Australia:

C2543 20. IBISWorld Industry Report, 22 October 2009, Tyre Manufacturing in Australia: C2551 21. Australian Management Academy, Manufactured Mineral Products

http://webcache.googleusercontent.com/search?q=cache:oRS0hPGM3jQJ:www.ama.edu.au/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D49%26Itemid%3D18+%22The+annual+growth+rate+of+industry+output+from+2001+-+2007%22&cd=1&hl=en&ct=clnk&gl=au

22. IBISWorld Industry Report, 14 January 2010, Plastic Blow Moulded Product Manufacturing in Australia: C2561

23. IBISWorld Industry Report, 20 January 2010, Ethylene, Propylene and Other Organic Industrial Chemical Manufacturing in Australia: C2534

24. IBISWorld Industry Report, 27 January 2010, Titanium Dioxide and Other Inorganic Chemical Manufacturing in Australia: C2535