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Transport and Logistics Industry Skills Council 2015 Environmental Scan
KEY FINDINGS Discussion PaperDECEMBER 2014
tlisc.org.au
DISCUSSION PAPER
As the sixth largest country in the world and one which is geographically isolated from its key overseas markets, Australia’s ability to sustain economic growth relies heavily on efficient transport and logistics systems. The Transport and Logistics Industry employs 797,000 Australian workers and employment growth in the Industry is predicted to exceed all other industries by 2017.
The purpose of this discussion paper is to provide stakeholders with the key findings from the 2015 Transport and Logistics Environmental Scan (E-Scan) Industry consultation process prior to publication of the E-Scan in February 2015. Stakeholders are invited to provide comment and input.
The 2015 E-Scan process has revealed drivers of change and emerging trends at an industry level, identified skills and workforce development challenges and highlighted opportunities for moving forward. It has also identified key findings relating to skills and labour shortages for each sector, as provided by the industry.
Each year the Transport and Logistics Industry Skills Council (TLISC) releases an annual E-Scan which provides a basis from which Industry and government can be advised on issues affecting workplace productivity, national skills development and workforce planning. It enables the Skills Council and its stakeholders to gain a strategic understanding of existing and emerging skills shortages and provides the context and driving force behind the continuous improvement of Training Packages for the coming year.
The E-Scan development process is conducted over a short but intense time period and relies on ‘real time’ views and evidence captured across all Industry sectors.
TLISC uses a variety of intelligence and information gathering methods throughout the year to inform its annual E-Scan. For the 2015 E-Scan development, contemporary Industry intelligence has been obtained from sources including:
• Ongoing dialogue and face-to-face consultation with key stakeholders from Industry including; enterprises, peak bodies and Industry associations, employee associations, regulators and government representatives; Skills Council technical working groups, and Registered Training Organisations (RTOs);
• Attendance and presentations at key Industry conferences and forums; and
• Monitoring of media, internet and research publications for cataloguing and inclusion in the Transport Education e-Library.
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A number of targeted strategies were employed to collect Industry intelligence as part of the development process:
• A call for submissions process involving the collection of responses from a cross-section of the industry;
• A Skills in Demand Survey designed to seek information on occupations in skill demand;
• An RTO Survey designed to gain information about Training Package uptake; and
• An Employer Survey designed to seek more comprehensive advice about the workforce development and skill needs of the Transport and Logistics Industry.
Stakeholders are invited to submit their comments on the findings outlined in this document by close of business on Monday, 19 January 2015.
Comments can be emailed to [email protected].
For further information contact either:
Amanda Thomas Marianne Wehby
General Manager - Strategy & Policy Industry Intelligence & Engagement Manager
[email protected] [email protected]
(02) 6163 7227 0408 429 536
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Industry Overview
The Transport and Logistics Industry plays a critical and enabling role in every facet of Australia’s economy. Its performance underpins the competitiveness of flagship industries such as mining and agriculture and that of high-growth sectors including construction and online retailing.
The Transport and Logistics Industry accounts for 15 per cent of Australia’s GDP. It is estimated that every one percent increase in the industry’s productivity adds $2 billion to national GDP.
Research undertaken for the 2015 E-Scan shows many of the trends identified in previous years have continued with fast-paced digital disruption at the forefront.
KEY TRENDS
• Freight volumes have nearly tripled over the past three decades and are predicted to double by 2030
• Business-to-consumer and consumer-to-consumer freight traffic is increasing
• Passenger movements through Australia’s airports have more than quadrupled over the past three decades
• International air cargo traffic is projected to double in the next 20 years
• The bulk of the private costs of urban congestion in Australia (estimated to exceed $15 billion in 2014) is borne by Transport and Logistics businesses, with congestion significantly hindering the efficient pick-up and delivery of freight for all modes of transport
• Investment in transport infrastructure is ranked by Australian businesses as a high reform priority
• Activity in the mining industry is slowing, subsequently reducing the demand for new rail infrastructure projects; as well as easing pressure on the ports and aviation sectors and competition for skills in some sectors of regional labour markets. Activity to offset the continued slowing in the mining industry varies on a regional basis.
ISSUES COMMON ACROSS SECTORS
• Diversity in the size and scale of businesses
• Rapid technological advances mean sophisticated systems are becoming more prevalent
• Online retailing has changed the customer interface and distribution networks
• Freight task is becoming smaller, lighter and faster
• Companies which adapt to advancing technology and changing markets will be able to differentiate themselves from their competitors
• Broad support for reducing red tape and streamlining regulations across jurisdictions
• Rapid ageing of an already older-than-average workforce
• Demand for more flexible training and career pathways (including Skill Sets and pre-vocational training)
• Small and regional/remote businesses face greater difficulties in recruiting and retaining staff and in accessing training.
Key opportunities and challenges for each sector which emerged from our consultation process are outlined in the following pages. This includes a list of the skills identified as being in high demand and a list of emerging skill needs. The industry’s response to these opportunities and challenges will be instrumental in ensuring its ability to attract, retain and skill the workforce to deliver services that will enhance Australia’s domestic and international competitiveness.
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Logistics and WarehousingEmerging skill needs Occupations in
Demand and Skills Shortagesi
Challenges for the sector Opportunities for the sector
• Business management and leadership skills
• System and technology skills
• ‘Big Data’ analytics
• Pre-vocational training for ‘job readiness’
• Workplace Training and Assessor –transport industry specific
• Warehouse Administrator
• Transport/Logistics Manager (Supply Chain Management, Procurement, Inventory Management, Distribution Management)
• Customs Brokers
• Freight Forwarding Operators
• Transport/Logistics Scheduler
• Increasingly fast-paced technology disruption requires different business and workforce planning practices.
• Rapid turnover and difficulty in retaining staff in entry-level positions can act as a disincentive to invest in workforce development.
• Collaboration with other organisations in supply chains is necessary for meeting regulatory responsibilities as well as service standards.
• Diversity in the size and scale of businesses influence the nature of skills in demand and how technology is used. New systems of work result from the application of technology and there is a need for skills to adapt quickly.
• The ability of the industry to attract, retain and upskill young workers will be critical in addressing the impact of an ageing workforce, and in alleviating future skill shortages.
• With the growth of the business-to-consumer and consumer-to-consumer segments, flexibility and personalised customer interface will become a major differentiating factor for logistics businesses.
• Traditional warehouses are transforming into highly specialised warehouses, requiring equally specialised skills. Specialisation may be around a particular product, supply chain, customer or distribution network.
• Intermodal hubs are moving closer to airports, which act as distribution centres for the rapidly expanding online shopping market.
• More sophisticated contract management practices are enabled by real time data analytics. Technology skills and problem solving skills are highly valuable in such an environment.
• Disruptive technologies are changing the nature of work as there are tasks which can be performed by computers or machines. Operations experience is increasingly valued in procurement and facility design decisions.
• Customs’ processes and systems have a critical role in addressing demands for more efficient and quicker delivery times as online shopping and personal supply chains continue to expand.
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Road TransportEmerging skill needs Occupations in
Demand and Skills Shortages
Challenges for the sector Opportunities for the sector
• Fleet and Supply Chain Managers
• Transport Compliance Officer
• Trainers /Assessors with experience in current vehicle technology and features
• Truck Driver
• Local Delivery Driver (MR-HR license)
• Truck Driver (General Freight, B-Double, Multi Combination)
• Bus Driver
• Road Transport Workplace Trainer and Assessor – transport industry specific
• Taxi Driver
• SMEs and enterprises with low operating margins are challenged by increased regulatory reporting requirements.
• The impact on efficiency and the cost of doing business arising from road congestion and planning issues are challenging to drivers and route planners in both metropolitan and regional environments. Finding ways to address “avoidable costs” can be outside the control of the transport business.
• Improving the public image of the industry to attract new entrants and encourage participation in skills development pathways.
• The superhubs and distribution centres being established often require changes in the transport fleet and associated driver skills. The flexibility required can be a challenge to some operators.
• SMEs and single operators cannot always afford the time or costs of additional training.
• Challenges for the workforce include compliance with regulatory requirements, work patterns and hours.
• Trainers and assessors need appropriate skills in the vehicles relevant to the program they are involved in.
• Skilled and experienced drivers may be more available in regional areas as the slowdown in the resources sector continues.
• A more integrated network using rail and road transport between regions and ports will also alleviate the demand for drivers of heavy vehicles and reduce associated road congestion.
• Customer service skills for delivery drivers are increasing in significance as online shopping continues to increase. Suppliers anywhere in the world can be judged by performance in the first and “last mile” of the supply chain.
• On board technology continues to improve and data relating to fleet utilisation, individual vehicle performance and efficiency, road safety and “real time” transparency is readily available for use in operational planning, troubleshooting and problem solving.
• Raising awareness of the industry is critical to encouraging new entrants. Focusing on online shopping and supply chain concepts may be helpful in raising the profile of the road transport sector with young people.
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AviationEmerging skill needs Occupations in
Demand and Skills Shortages
Challenges for the sector Opportunities for the sector
• Use of automated systems
• Aviation ground support equipment maintenance function including servicing, diagnostics and limited repair capability for manual handling equipment, ground power units and loading equipment
• Safety Management Systems (SMS)
• Unmanned aircraft flight skills
• Multi crew coordination instruction
• Aeroplane Pilot
• Flying Instructor (Aeroplane and Helicopter)
• Workplace Trainers and Assessors –transport industry specific
• Cockpit automation and other advances in technology mean that the non-technical skills required in a range of flight crew licenses are changing how pilots need to be trained and then employed.
• Retention of baggage handling and ground crew staff is difficult.
• Administrative requirements continue to create challenges for businesses with dual roles.
• While domestic demand for pilots remains relatively stable, the expanding Asian market will increase competition for pilots between airlines.
• More than 15 regional airlines ceased operating in the past three years.
• International opportunities will be presented by strong growth in passenger and cargo movement in the Asia Pacific region.
• Future growth in tourism and trade will require an aviation sector workforce with the right skills.
• World air cargo is expected to double in the next 20 years. The industry’s ground crew workforce is well placed to take on the increasing share of small and light parcels in the Australian freight task.
• Cadet programs for pilots on a broader basis could be used to meet expected increased demands in the region as the Asian market expands.
• Current infrastructure projects include significant airport developments to cater for increased volumes in airfreight.
• A review of training and skills development for ground operation crew to reduce turnover could assist in raising skills levels and longer term commitment.
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RailEmerging skill needs Occupations in
Demand and Skills Shortages
Challenges for the sector Opportunities for the sector
• Workplace Trainers/Assessors withexperience ina simulatedenvironment
• Supervisory staffwith mentoring andleadership skills inrail infrastructure
• Train Driver
• Rail Track Worker/Plant Operator
• Team Leader/Supervisors
• Railway SignalTechnician (Signaling/Overhead WiringTechnician)
• Workplace Trainerand Assessor – railindustry specific
• Rail SignallingEngineers
• Supervisors/ProjectManagers
• Projected increases in the freight task will increasethe demand for train drivers.
• Significant investment is required over the next2-3 years to attract, retain and upskill traindrivers. Retention of skilled drivers can be achallenge during periods of higher demand, withorganisations losing skilled staff to other companiesand industries.
• Shortage of training providers who will providenationally recognised qualifications for Engineeringand Signaling qualifications.
• Remuneration for Training and Assessment rolescan be significantly lower than operations roles andmay be a factor in attracting technical expertise.
• Reliance on labour hire can mask less obvious skillshortages during times of commercial downturn.
• Increased freight task and positive forecasts foragricultural products will continue to strengthendemand for certain occupations.
• Collaborative approaches to analytical andproblem-solving skills around systems andavailable data to increase the efficiency betweenpassenger and freight transport on rail networks.
• Provision of mentoring and leadership training toskilled operators with comprehensive technicalknowledge, enabling workers to develop andassisting employers with retention.
• Female participation rates to be positively targetedfor improvement.
• As automated technology evolves there will bedemand for higher level skills.
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Maritime and PortsEmerging skill needs Occupations in
Demand and Skills Shortages
Challenges for the sector Opportunities for the sector
• Stevedores withautomation skills
• Electro-technicalofficers
• Dredging
• Offshore supplyvessels operation
• Marina operators
• Harbour Master
• Deck Hand/Integrated Rating
• Waterside Worker(Forklift Operator)
• Ship’s Engineer
• Ship’s Pilot(High Risk Licence)
• Vocational EducationTeacher (Firefighting& Survival Trainers)
• Maritime freight transport is slowing down due to arecent decline in mining activity.
• A decline in the Australian maritime skills base inthe past decades (low skill supply) means that anysignificant increase in traffic would be difficult toabsorb by the industry.
• International competition for cheaper seafaringlabour is resulting in displacement of Australiancrews for cheaper crews from other countries.
• There is strong competition for skilled workersbetween ports, both within Australia andinternationally. This often translates into a “transientworkforce”, with recurring skill shortages. Whileregional and remote ports generally experiencemore difficulties in attracting and retaining skilledworkers, than ports in capital cities.
• The Maritime and Ports workforce is one of theoldest in the country, and is ageing at a faster ratethan other industries.
• Some regional ports (particularly in Queensland)are forecasting a strong increase in containertraffic due to commencing local extraction projects,increasing local demand for skilled workers.
• Ports that have been affected by a decrease infreight traffic have extra capacity that could beused to service other segments, particularly for thedomestic transfer of bulk freight and commodities.
• An increasing number of ports are resorting tobuying pilotage services from private operatorsor port clients to cover recurrent skill shortages.There are strong opportunities for contracting andpartnership models to be developed in the Maritimeand Ports industry, with appreciable benefits forports operators.
• Automation is increasing the efficiency of portsand will influence the structure of work and skillrequirements for traffic operations and monitoringoperations.
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TLISC is an independent, not-for-profit, stakeholder focussed organisation delivering innovative, high quality solutions for the Transport and Logistics industry.
Trusted by industry to develop products and services that meet the current and future skills needs of its workforce. The industry encompasses activities in road transport, warehousing, rail, aviation, maritime, logistics and ports.
Investing in our people, building and developing long term relationships across all sectors with employers, peak bodies, governments and working in collaboration with the Vocational Education Training sector to achieve quality outcomes.
Transport & Logistics Industry Skills Council PHONE: 03 9604 7200 EMAIL: [email protected] WEBSITE: tlisc.org.au TWITTER: twitter.com/TLISC
