Manufacturing Skills Australia submission to SOL 2016-17 Page 1 of 19

Skilled Occupations List

Introduction

Skilled Occupations List The Department of Education and Training is currently updating its advice on the Australian Government's Skilled Occupations List (SOL) for 2016-17. We are seeking your input on the occupations/industry sectors your organisation represents or that you belong to as an individual. In particular, we are

seeking evidence of:

• skill demand and supply imbalance,* both nationally and regionally

• medium to long-term demand and supply trends which may impact upon Australia's employment outlook

• formal licensing or registration requirements.

Note: The SOL is concerned only with 'medium to long-term' skills needs rather than immediate skills shortages. As such, the Department of Education and

Training is only seeking to obtain information on longer term trends, rather than immediate shortages and costs. For the purposes of this exercise, 'medium

to long-term' is defined as a period of around two to ten years * Skill demand and supply (im)balance occurs when the quantity of a given skill supplied by the workforce and the quantity demanded by employers

diverge at existing market conditions. Labour market supply and demand for occupational skills are continuously fluctuating. At a certain point in time, there

will be labour market imbalances and accompanying skill imbalances if there is disequilibrium between the demand for and supply of skills.

Privacy All information, including name and address details, contained in submissions will be made available to the public on the Department of Education and Training website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality

statements in emails do not suffice for this purpose. Respondents who would like all or part of their submission to remain in confidence should provide

this information in an email to SOLSubmissions@education.gov.au. Legal requirements, such as those imposed by the Freedom of Information Act 1982,

may affect the confidentiality of your submission.

Manufacturing

Skills Australia

submission to

SOL 2016-17 Page 2 of 19

Details

Applicant Details Given Name *

Jane Surname *

Newton Organisation

Manufacturing Skills Australia

Contact Details Please provide the name, position and contact details of a person within your organisation who is willing to be contacted if any further information or follow-

up is required. Given Name *

Bob Surname *

Paton Position CEO

Contact Number *

02 99555500 Email (receipt will be sent to this address) * Bob.paton@mskills.org.au

Bob.paton@ms

Manufacturing Skills Australia submission to SOL 2016-17 Page 3 of 19

Industry

Type of Industry What are the industry/industries and ANZSCO occupation/s that you or your organisation represents for the purposes of this submission?

* (select all that apply)

All Industries Agriculture, Forestry and Fishing

Mining Manufacturing

Electricity, Gas, Water and Waste Services Construction

Wholesale Trade Retail Trade

Accommodation and Food Services Transport, Postal and Warehousing

Information Media and Telecommunications Financial and Insurance Services

Rental, Hiring and Real Estate Services Professional, Scientific and Technical Services

Administrative and Support Services Public Administration and Safety

Education and Training Health Care and Social Assistance

Arts and Recreation Services Other Services

Manufacturing Skills Australia submission to SOL 2016-17 Page 4 of 19

Occupation

Occupation The three dropdowns below accord with the ABS ANZSCO classification of occupations. Selections are required at the 'Occupation Group' 2-digit level and

at the 'Occupation Unit (4-digit)' level, but can also be made down to the Occupation (6-digit) level depending on the occupation/s to which your submission

relates.

Occupation 1 of 32

Occupation Group *

Specialist Managers

Occupation Unit * Production managers

Occupation *

Production manager (Manufactring)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 2 of 32

Occupation Group *

Specialist Managers

Occupation Unit * Other specialist managers

Occupation *

Specialist managers nec (for LNG processing plants in WA, NT and Qld)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 3 of 32 Occupation Group *

Design, Engineering, Science and Transport Professionals

Occupation Unit * Fashion, Industrial and Jewellery Designers

Occupation *

Industrial designers (especially those with skills and knowledge of advanced manufacturing and additive manufacturing)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 5 of 19

Occupation 4 of 32 Occupation Group *

Design, Engineering, Science and Transport Professionals

Occupation Unit * Fashion, Industrial and Jewellery Designers

Occupation *

Jewellery Designers – especially manufacturing jewellers For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 5 of 32 Occupation Group *

Design, Engineering, Science and Transport Professionals

Occupation Unit * Chemical and Materials Engineers

Occupation *

Materials Engineers – especially those with skills and knowledge of advanced materials such as composites and advanced manufacturing techniques such as additive manufacturing For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 6 of 32 Occupation Group *

Design, Engineering, Science and Transport Professionals

Occupation Unit * Industrial, Mechanical and Production Engineers

Occupation *

All For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 7 of 32 Occupation Group *

Design, Engineering, Science and Transport Professionals

Occupation Unit * Other engineering professionals

Occupation *

Engineering technologist For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 6 of 19

Occupation 8 of 32 Occupation Group *

Engineering, ICT and Science Technicians

Occupation Unit * Electrical Engineering Draftspersons and Technicians

Occupation *

All For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 9 of 32 Occupation Group *

Engineering, ICT and Science Technicians

Occupation Unit * Electronic Engineering Draftspersons and Technicians

Occupation *

All For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 10 of 32 Occupation Group *

Engineering, ICT and Science Technicians

Occupation Unit * Other Building and Engineering Technicians

Occupation *

Metallurgical or Materials Technician (for the resources sector and the advanced manufacturing industry) For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 7 of 19

Occupation 11 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Sheetmetal Trades workers

Occupation * Sheetmetal Trades workers

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 12 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Structural Steel and Welding Trade workers

Occupation * All

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 13 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Aircraft Maintenance Engineers

Occupation * All

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 14 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Metal Fitters and Machinists

Occupation * All

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 8 of 19

Occupation 15 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Precision Metal Trades Workers

Occupation * Locksmith

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 16 of 32 Occupation Group *

Automotive and Engineering Trades workers

Occupation Unit * Precision Metal Trades Workers

Occupation * Watch and clock maker and repairer

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 17 of 32 Occupation Group *

Construction Trades workers

Occupation Unit * Floor finishers

Occupation * Floor finisher

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 18 of 32 Occupation Group *

Construction Trades workers

Occupation Unit * Glaziers

Occupation * Glazier

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 9 of 19

Occupation 19 of 32 Occupation Group *

Electrotechnology and Telecommunications Trades workers

Occupation Unit * Airconditioning and refrigeration mechanics

Occupation * Airconditioning and refrigeration mechanic (especially in regional areas and for the gas processing plants in

WA, NT and Qld)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 20 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Canvas and leather goods makers

Occupation * Canvas goods fabricators (for the Specialised Textiles industry)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 21 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Canvas and leather goods makers

Occupation * Sail maker (for the Specialised Textiles industry)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 22 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Clothing trades workers

Occupation * Apparel cutter

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 10 of 19

Occupation 23 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Clothing trades workers

Occupation * Pattern maker

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 24 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Upholsterers

Occupation * Upholsterer

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 25 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Cabinetmakers

Occupation * Cabinetmaker

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 26 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Wood machinists and other wood trades workers

Occupation * Furniture finisher

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 11 of 19

Occupation 27 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Wood machinists and other wood trades workers

Occupation * Picture framer

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 28 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Wood machinists and other wood trades workers

Occupation * Wood machinist

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 29 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Boat builders and shipwrights

Occupation * Shipwright

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 30 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Chemical, gas, petroleum and power generation plant operators

Occupation * Gas or petroleum plant operator (especially for the gas processing plants in WA, NT and Qld)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Manufacturing Skills Australia submission to SOL 2016-17 Page 12 of 19

Occupation 31 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit * Jewellers

Occupation * Jeweller

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

Occupation 32 of 32 Occupation Group *

Other Technicians and Trades workers

Occupation Unit *

Other Miscellaneous Technicians and Trades workers

Occupation * Plastics technician (especially those with plastics fabrication skills and knowledge for the resources

industry)

For the 2016-17 SOL please indicate advice about your nominated occupation XInclude Exclude Maintain status quo

There are also several emerging and niche occupations which are not identified through the ANZSCO. These include:

tufting mechanic (carpet manufacturing industry)

computer operating designer

additive manufacturing (3D) designers and operators

marine trimmer

specialist textiles fabricator

skilled trade/technical teacher who is up-to-date with the new technology and skills required to operate the technology

Manufacturing Skills Australia submission to SOL 2016-17 Page 13 of 19

Are there any occupations that you represent where there is evidence of imbalances in the demand and supply of skills in the medium to long-term?

Please list them.

The occupations listed above are those occupations represented by MSA where there are imbalances in the demand and

supply of skills in the medium to long term. In some instances, the imbalance exists largely in regional areas, for example

the imbalance in the demand for production managers and gas plant operators is in regional Western Australia, Darwin

(Northern Territory) and regional Queensland in response to LNG processing plants coming on line in those areas. This has

created a surge in demand which the training system lacks the capacity to meet. This is due to a number of factors – larck of

suitable training venues and skilled trainers in those areas, a labour shortage in regional areas, an unwillingness of workers

in metropolitan areas to relocate and a lack of infrastructure (housing, schools, hospitals, etc) to support a growth in

population in these often remote regional areas.

For many of the other occupations listed, the imbalance between supply and demand is due to a number of factors – such as

an ageing workforce resulting in more people leaving the workforce than are being trained, niche and specialised industries

where small numbers make the provision of training unviable leading to a supply side issue, changes in training funding

arrangements at state and territory level resulting in closure or downsizing of training facilities and subsequent retirement of

appropriately skilled training staff. For example, there is only one qualified upholstery teacher still working in the public

training system (TAFE) in Victoria. Also the changes to funding arrangements are increasing the cost of training for the

student, resulting in many choosing not to undertake what they see as expensive courses. Many of the occupations listed in

this submission have long lead time as they are provided under Australian Apprenticeship arrangements and for school

leavers, apprenticeships are unattractive. Therefore we are increasingly faced with a supply issue. For example the licenced

aircraft maintenance engineer is a four year diploma course. In the last four years, nationally there have only been 90 people

commence an apprenticeship and only 39 people completed. MSA has partnered with the University of NSW to conduct an

Australian Research Council research project into the Australian aircraft maintenance, repair and overhaul industry. The

report is currently being finalised, however the report’s findings show that the industry is facing a crisis due to the decrease

in training numbers and also closure of training facilities.

The manufacturing industry is struggling to attract new entrants generally due to a poor image with the public. This is

compounded by media reports that the industry is dying. There is a lack of understanding of the skills that the “new”

manufacturing industry requires – such as critical thinking, skills in industrial design and application. New technologies

such as additive manufacturing and new materials such as composites require workers with higher technical and knowledge

skills. The tertiary education sector is struggling to meet the demands of this “new” manufacturing industry due to lack of

access to the latest technology and appropriately skilled trainers. The industry wants to train its people but is currently

struggling to do so due to a lack of access to appropriate training and the inability to attract new entrants for training.

Including all these occupations on the SOL would both meet the needs of the industry in the medium to long term as well as

providing an opportunity to both widen and deepen Australia’s skills pool by exposing existing workers to new technologies

and new skills and knowledge. It would also improve the image of Australian manufacturing as it competes with more

attractive industries (such as the high paying resources industry) for a decreasing number of new entrants.

Manufacturing Skills Australia submission to SOL 2016-17 Page 14 of 19

Is there evidence of imbalances in the demand for and supply of skills in the medium to long-term in non-metropolitan areas?

Yes No

Please indicate in which part of Australia this imbalance exists. *

As the Industry Skills Council for the manufacturing industry in Australia, MSA engages with stakeholders in

manufacturing and allied industries across the whole of Australia. Therefore the information provided in this submission

aims to address the wide range of issues facing stakeholders around skill needs.

Manufacturing in Australia is on the verge of entering a period of growth after undergoing a significant restructure over

the past decade. The industries that are leading this growth are the niche and specialised, high skilled, technology driven

industries. They service many other industries within in Australia and beginning to develop global recognition for their

innovative and high quality products.

Many are located in regional areas as operating conditions are more favourable in those areas. The major issues that face

enterprises located in regional areas is the supply of appropriately skilled workers. While all are willing to train, many

are inhibited by the costs associated with accessing training providers, the difficulty recruiting labour with the

appropriate foundation skills such as language, literacy and numeracy (LLN), digital literacy, science, technology,

engineering and mathematical skills (STEM) and skills for employment. Changes to training funding arrangements at

state and territory government level is driving regional training providers to cut courses and staff because the courses are

not viable. This is resulting in decreased opportunities for employers in regional areas to access training for their staff.

For regional Australia, the general aviation sector of the aviation industry is facing a severe shortage of appropriately

licenced aircraft maintenance engineers (LAMEs). While the large carriers in metropolitan areas have been consolidating

their workforces, it is too simplistic to say that the retrenched LAMEs can simply transfer to the general aviation sector.

The licence requirements are different as the aircraft are different. LAMEs in this sector need a broader range of skills

than those working on large aircraft and may be required to work on a range of aircraft types from single engine fixed

wing to rotor wing aircraft, propeller powered to jet power and to hold multiple aircraft rating certifications. Many

LAMEs from the large aircraft sector have limited independent problem-solving and critical analysis skills due to lack of

exposure to smaller aircraft and large variation in work types. The sector also has an ageing workforce which is rapidly

approaching retirement. At the same time the industry is facing significant growth over the next five to ten years due to

the ongoing growth in the resources sector (albeit at a slower rate than previously) and increasing growth in the tourism

industry. There is also significant growth projected for the Asia Pacific region generally in the next five to ten years

which will impact on the demand for appropriately licenced aircraft maintenance engineers. This will place even further

pressure on the sector.

Recruitment of apprentices is difficult as school leavers lack the technical skills required to successfully enter the sector

and compounded by the lack of suitable training organisations due to most registered training organisations (RTOs)

opting to focus on supply to the large carriers. Consequently, now that the large carriers are reducing their workforce and

not recruiting apprentices, the RTOs are finding training provision no longer viable. In many instances, they have

minimised or ceased to offer training.

Manufacturing Skills Australia submission to SOL 2016-17 Page 15 of 19

The boat manufacturing industry which has largely moved away from metropolitan areas continues to experience a

serious shortage of shipwright tradesmen. Access to quality training for the new build sector (due to being located in

non-metropolitan areas) is difficult. Many vocational education and training (VET) providers which previously offered

the Certificate III in Marine Craft Construction have withdrawn from provision of this qualification. There are now only

two providers remaining, one in Sydney and the other in southeast Queensland. As result employers in this industry are

relying on migration visas to meet their skill demand.

Carpet retailers and contractors affiliated with the Carpet Institute report an unmet demand for trained floor finishers

nationally and in regional areas. Skill shortages are expected to worsen over the medium to long term because (1) the

installer workforce is ageing rapidly (2) the work is physically demanding and as a result many installers change their

occupation at around 55 years of age (3) a large cohort of the existing floor finisher workforce is expected to leave the

occupation over the next 8 years (4) the number of apprentices who complete the Certificate III in Flooring Technology

is relatively low compared to the numbers of installers who leave the occupation each year, and this ‘skills gap’ is

expected to continue to widen over the medium to long terms.

The attached statistical report on the floor finisher occupation, compiled from ABS Labour Force and NCVER data,

helps to show the magnitude of the skills challenge confronting the Australian (carpet and resilient) floor covering

industry.

The Council for Textiles and Fashion Industries of Australia (TFIA) also supports the information provided by the

Carpet Institute, reporting that the imbalance of demand for and supply of skills will most likely increase in the non-

metro/regional areas over the next five to ten years – especially as cities expand and push growth further out, increasing

the demand for local tradespeople.

The Jewellery Association of Australia reports that the shortage of qualified manufacturing jewellers in regional areas is

resulting in store closures. In particular, South Australia, Western Australia and Tasmania are experiencing supply

shortages. Access to training is increasingly difficult with young people seeking to train as jewellers being required to

move, often to another state so that they can undertake training. This adds significant costs especially as the majority of

training is undertaken through Australian Apprenticeship arrangements.

The demand for skilled cabinetmakers continues to be unmet and is in fact deepening due to the reduction of access to

training. The Northern Territory no longer has any training organisations providing training for apprentices in this trade,

while in Western Australia there is only one RTO with the qualification on scope. In Western Australia, the Furniture

Industry Association of Australia (FIAA) reports that the shortage is critical with only six cabinet making apprentices

commencing in 2014, down from 670 in 2009. However demand remains high in both states due to the resources

industry’s need for cabinetmakers to provide maintenance and repair services. In the Northern Territory there is also

huge demand from kitchen and bathroom installers for cabinetmakers. Also ‘hotspots’ of niche and specialised

manufacturers in this industry are developing outside of metropolitan areas and, while they are keen to take on

apprentices, they are finding it difficult to access training in these areas. South East Queensland and Northern New

South Wales are examples of regional ‘hotspots’ for this occupation. However the nearest RTO with scope is located in

Brisbane and state funding arrangements discourage across border training activity. This means that apprentices need to

be sent away for training. In the Northern Territory, apprentices have to travel interstate, adding considerable cost to the

enterprise.

Manufacturing Skills Australia submission to SOL 2016-17 Page 16 of 19

The Australian Glass and Glazing Association (AGGA) is reporting shortages of qualified glaziers in the following

regions:

Tasmania: across all the State.

Queensland: around Toowoomba, the Gold Coast and North Queensland

South Australia: Victoria Harbour and York Peninsula

New South Wales: Wagga Wagga, New England, Newcastle Tamworth and Albury.

Victoria: Bendigo, Mildura, Gippsland, Hastings, Wodonga, Wangaratta

Western Australia: Geraldton and the Pilbara region

Northern Territory: Alice Springs

The Specialised Textiles Association (STA) reports that a recent survey of their members has identified that there is a

shortage of skilled fabricators and installers for their rapidly growing, niche industry in south east Queensland.

Another trade occupation in which there are skill shortages is the upholstery trade. Information provided by Victoria

(attached) shows that the number of upholstery apprentices commencing training in that state are insufficient to cover

normal wastage. Nationally in 2014 only 21 people completed an upholstery apprenticeship. However the industry is

growing, particularly in the services side of the industry which provides re-covering services. Similar situations exist in

the woodmachining and furniture finishing industries as the service sides of enterprises grow as a result of demand to

rectify faults in imported, low-cost products. Again these are apprenticeship trades, with a 3 – 4 year training period,

and in 2014, only 48 people completed a woodmachining apprenticeship and 19 furniture finishing apprentices

graduated.

Manufacturing Skills Australia submission to SOL 2016-17 Page 17 of 19

Are there any occupations which require formal licensing or registration arrangements in order to practice/perform. * For example:

• Midwives are required to register with the nurses board in their state or territory • Panelbeaters are required to be registered or certified with the state Motor Vehicle Repair Industry Authority

Yes No

Please provide details. *

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While the floor finishing occupation is not a licensed trade, the commercial construction sector requires floor finishers

to be trade qualified; the Australian Consumer Law requires professional services to provide due skill and care and it is

increasingly common for tenders and insurance companies to require floor finishers to be trade qualified. Some states

are requiring flooring installers to hold appropriate building licences for floor finishers working on new builds.

The cabinetmaking occupation is also impacted by differing licensing requirements across states and territories. For

example, New South Wales require cabinetmakers to have completed the Certificate III in Cabinetmaking and also

additional units from the Certificate IV in Furniture Design and Technology to obtain the Kitchen and Bathroom

Installation Licence. In Queensland, kitchen and bathroom installers are required to have completed selected units from

the Certificate IV in Building and Construction (Building) as well as the Certificate III.

The furniture manufacturing industry is being impacted by the need to meet Australia’s strict standards regimes and

manufacturers need to consider these when designing and testing furniture for both the domestic and international

markets, especially in the manufacture of commercial furniture. Increasingly there is a need to accommodate

international standards regimes in the design and manufacture of Australian furniture as the industry seeks to compete in

the global market place. While the requirement to meet Australian and international standards is not a licensing or

registration requirement, it is having an increasing effect on the industry with many small employers declaring “it is all

too hard” and closing their doors.

Three states require licensing for glaziers – Queensland, New South Wales and South Australia. The licensing

requirements vary across the three states. In New South Wales, shade sails installers are required to hold a Shade Sails

Installer’s License. All jewellers are required to be registered and hold professional indemnity insurance.

The Aviation/Aerospace industry is heavily regulated by both the Civil Aviation Safety Authority (CASA) and the

Australian Defence Force with licenced aircraft maintenance engineers (LAMEs) working across both sectors being

required to hold multiple certifications. Certification also varies according to the type of aircraft that the LAME is

working on and in the general aviation (GA) sector, the LAME may be required to hold licenses for a diverse range of

aircraft, especially in regional and remote areas. The delay in the introduction of the new licensing regime for the GA

sector is also compounding skill shortages.

Manufacturing Skills Australia submission to SOL 2016-17 Page 18 of 19

Is it expected that your employment sector will be impacted by any medium to long-term trends which will impact upon demand and/or supply (excluding

costs associated with training, labour hire, and international sponsorship)? Yes No

Please provide evidence (e.g. data source, policy document) which substantiates these claims. *

For example:

• New benchmarks for childcare centres mandate increased staff-to-child ratios and higher qualification standards for childcare workers .

All stakeholders have expressed a strong desire to train their future workforce, however the lack of access to training is

inhibiting their ability to do so. They all see migration as both a temporary solution to the problem as well as an

opportunity to improve the skills base of their respective industries.

A common issue facing all stakeholders in the manufacturing industry is the ageing workforce. According to information

from the Commonwealth Department of Employment, in 2015 the median age of the manufacturing workforce is 42 which

is higher that the median age for all industries. In some industry sectors, the median age is much higher. For example, the

Carpet Institute reports that the workforce is ageing rapidly and due to the physical nature of the work, many installers

leave the industry at around age 55. The Institute predicts that a significant cohort of the existing floor finisher workforce

will leave the industry over the next eight years.

On the supply side of the equation, the number of people undertaking apprenticeships is trending down across all

industries and the changes to state and territory funding arrangement is resulting in many training providers discontinuing

high cost courses such as trade courses. In Western Australia the only training provider for the Certificate III in Flooring

Technology is ‘teaching out’ the qualification and ceasing delivery. According to data provided by the Carpet Institute, the

number of apprenticeship completions over the last five years has been 120, which is insufficient to replace normal

wastage, let alone compensate for the ageing workforce dilemma.

The size of the skills gap across all areas of the furnishing/furniture industries varies according to the level of activity in

residential housing and commercial construction sectors. Currently building activity is particularly strong in New South

Wales and predicted to increase in south east Queensland due to huge Chinese investment in property development in

Brisbane and the upcoming Commonwealth Games on the Gold Coast in 2018. The Australian Timber Flooring

Association (AFTA) says that, based on feedback from the industry and growing positive sentiment and sales volumes, the

industry is on track to experience a 4% skills shortage in the medium to long term.

The supply of a workforce with the appropriate skills is a major issue facing the manufacturing industry. Across all

sectors, the number of RTOs with capacity to train people for the industry is decreasing as many of the courses are

considered not viable for a range of reasons, including lack of state/territory funding, high cost of providing resources for

the training (equipment, access to technology, etc), lack of suitable trainers (with the required technical skills for new

technology especially), small numbers of students, remoteness of student locations. Many of the occupations covered by

MSA have long lead times for training, often up to four years for a trade apprenticeship. Even if there was a huge rise in

the number of courses being offered across Australia and a major jump in the number of students undertaking an

apprenticeship in the next 12 months, the supply – demand gap would remain significant. Employers are keen to take on

apprentices if they can find people who have the necessary entry level skills required and can access appropriate training

for the apprentices that does not involve significant cost and loss of productivity. There is also a shortage of ‘master’

trades people who have the skills to provide the on-the-job training required for apprenticeships. In Victoria, for example,

there is only one upholstery trainer left (based at Holmesglen TAFE) and in Western Australia, the flooring technology

qualifications are being delivered by trainers ‘on loan’ from a Queensland RTO.

Manufacturing Skills Australia submission to SOL 2016-17 Page 19 of 19

Additional Information Please provide any additional information you consider relevant evidence to support your submission. For example, you may know of independent

studies about your occupation that supports your advice to us. See attachments from stakeholders included with this submission:

AGGA Upholstery x 2 JAA Floor finishing and covering x 2 Kitchen and bathroom licensing information FIAA

Please add any document that supports your recommendations.

To support existing enterprises and assist them to compete in a global marketplace, MSA sees a need not only for

experienced trades people to ‘fill the gap’ but also for appropriately qualified trade trainers with knowledge and experience

of using the latest technology and materials increase the depth and breadth of Australia’s skills base.