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Page 1 of 78
Resources Industry Training Council (RITC)
Industry Workforce Development Plan
Downstream Process Manufacturing
Plan Details:
Plan Title: Resources Industry Training Council (RITC) Industry Workforce
Development Plan – Process Manufacturing
Issue Details: Issue 3, 2015
Approval Authority: Chamber of Minerals and Energy of Western Australia (Inc)/RITC
Industry Advisory Board
Submission Authority: Chamber of Minerals and Energy of Western Australia
(Inc)/Resources Industry Training Council
Approval: Ms Sanchia Tolomei (Chair, RITC Industry Advisory Board)
Approval Authority: Chair of Training Council Board of Management
Signature:
Date: 9 September 2015
Endorsement: Department of Training and Workforce Development
Signature:
Date: 9 September 2015
Page 2 of 78
FOREWORD
The Resources Industry Training Council (RITC) is a state government funded partnership
between the Chamber of Minerals and Energy of Western Australia Inc (CME) and the Australian
Petroleum Production and Exploration Association (APPEA). Members of these peak organisations
account for over 95 per cent of mineral and energy production in Western Australia and over 98
per cent of national oil and gas production.
The RITC is funded by the Department of Training and Workforce Development (DTWD) to provide
strategic information and advice on vocational education and training and workforce development
needs of industry in Western Australia. For its stakeholders, the RITC aims to create a forum
where industry leaders, skills development organisations, and other key interest groups and
interested enterprises can collaborate to address workforce development issues as they affect
industry in Western Australia.
Industry coverage of the RITC is diverse, comprising mining and mining exploration, oil and gas
exploration, extraction and production, and a group of industries that can best be described as
comprising process manufacturing. This last group is particularly varied in its composition and
includes industries from paint and cement manufacture, to rubber and plastics manufacture, to
metallic and non-metallic mineral production, to laboratory operations.
Over the last decade Western Australia has benefited from unprecedented growth in activity in the
resources sector, with mining being a major contributor to the Australian economy through export
earnings and capital investment. Recent years have seen a moderation of activity in the mining
industry as it continues to transition from construction to production. Faced with high operating
costs and significantly lower commodity prices the sector is now operating in a cost constrained
environment with producers focusing on organisational restructuring and downsizing operations,
managing costs, production efficiencies and production management to remain globally
competitive against increasing competition from overseas suppliers. This rationalization is seeing
major companies turning towards innovation, technological advancements, automation and data
analytics to address these issues across the value chain to maintain a competitive edge.
Similarly, in light of the recent halving of the price of oil, the oil and gas sector is faced with added
pressure to contain costs and boost productivity as construction winds down and the shift towards
production gathers pace. The oil and gas sector is not a large direct employer. According to a
recent report from Accenture1, the industry employed about 34,200 people nationally in 2014 and
this is expected to decline to around 30,500 by 2020. The industry, however, is known to have a
large employment multiplier. The US Bureau of Economic Analysis2 has estimated the oil and gas
extraction sector employment multiplier to be 6.9 – meaning for every job created in the oil and gas
extraction industry, a further 6.9 jobs are created in the wider economy.
Despite the current margin constrained environment, industry wide efficiency measures and
softening in employment conditions, the resources industry continues to be a major contributor to
growth in Western Australia with $179.3 billion resource projects under construction or committed
and a further $118.4 billion under consideration in the state.
1 Accenture, Ready or Not? Creating a world-leading oil and gas industry in Australia, May 2015
2 http://www.contentfirst.com/multiplier.shtml accessed 2 August 2015
Page 3 of 78
Domestically, our manufacturing sector continues to experience a period of substantial transition
and change. Government policy has moved away from an industry protectionist stance to one
based on supporting manufacturing industries where Australia has a strong competitive advantage
such as advanced manufacturing. This direction, signaled in the Australian Government’s Industry
Innovation and Competitiveness Agenda, presents many challenges and opportunities to the
manufacturing sector and will require a concerted effort to ensure the manufacturing labour force
has the necessary skills based and innovative capability to grow and sustain its competitive
advantage.
The need to develop and maintain a productive workforce in the current climate emphasizes a
continued need to focus on workforce planning to ensure the future health and sustainability of the
RITC industries in Western Australia. In a new competitive world driven by innovation,
technological advancements, automation and digital information it is imperative we develop and
access high quality skills and capabilities to meet the demands of our changing industries. The
shift to operations will bring about sustainable jobs for highly skilled workers in the state,
particularly in professional and higher level VET based occupations and it is vital we better tailor
education and training to increase opportunities for a diversified participation of all in employment
and skills development, particularly in regional Western Australia and in turn remain internationally
competitive amidst a growing economy3. To retain its competitive advantage, workforce planning
must be a collaborated effort between education providers, industry and government with greater
alignment between the national scientific research agenda, specifically the development of
science, technology, engineering and mathematics (STEM) skills and areas of strength in the
Australian economy. Recent commonwealth and state reforms support these aims.
This workforce development plan aims to, in an accessible way, inform those interested in Western
Australia’s mining, oil and gas and process manufacturing industries of the current and projected
activity levels in those industries and highlight factors that will have an impact on workforce
development in future years.
Ms Sanchia Tolomei
Chair of the Resources Industry Training Council Industry Advisory Board
3 CEDA, Australia’s Future Workforce, June 2015
Page 4 of 78
Table of Contents
FOREWORD ............................................................................................................................... 2
OVERVIEW .................................................................................................................................... 6
Issuing Authority .......................................................................................................................... 6
Aim .............................................................................................................................................. 6
Objectives ................................................................................................................................... 6
SECTION 1 EXECUTIVE SUMMARY ............................................................................................. 7
1.1 Introduction ................................................................................................................... 7
1.2 Industry Sectors and Training Package Coverage ......................................................... 7
1.3 The Downstream Process Manufacturing and Laboratory Operations in 2014/15.......... 7
1.4 Workforce Development Drivers .................................................................................... 9
1.5 Fast Facts ................................................................................................................... 10
1.7 Summary of Issues Table ............................................................................................ 12
SECTION 2 METHODOLOGY ...................................................................................................... 14
SECTION 3 INDUSTRY PROFILE................................................................................................ 15
3.1 Overview of the Downstream Process Manufacturing Industry ................................... 15
3.1.1 Downstream Process Manufacturing Industry Analysis ........................................ 15
3.1.2 Industry Trends .................................................................................................... 16
3.1.2.1 Gold and Other Basic Non-Ferrous Metal Manufacturing .......................... 17
3.1.2.2 Alumina Production .................................................................................. 18
3.1.2.3 Industrial Gas Manufacturing .................................................................... 18
3.1.2.4 Petroleum Refining and Petroleum Fuel Manufacturing ............................ 18
3.1.2.5 Explosives Manufacturing ......................................................................... 19
3.1.2.6 Environmental Science Services .............................................................. 19
3.1.2.7 Pesticide Manufacturing ........................................................................... 20
3.1.2.8 Basic Inorganic Chemical Manufacturing .................................................. 20
3.1.2.9 Clay Brick Manufacturing ......................................................................... 20
3.1.2.10 Lubricants and Other Petroleum Product Manufacturing ........................... 21
3.1.2.11 Commodity Price Volatility ........................................................................ 21
3.1.2.12 Residential Construction Activity ............................................................... 21
3.1.2.13 Import Penetration from Asia .................................................................... 22
3.1.3 Labour and Skill Demand ....................................................................................... 22
3.1.3.1 Identify the Workforce ............................................................................... 23
3.1.3.2 Sourcing the Workforce ............................................................................ 25
3.1.3.3 457 Visas.................................................................................................. 26
3.2 Regional Impact ............................................................................................................... 26
3.2.1 Regulatory Requirements ....................................................................................... 27
3.2.1.1 COAG Reform Agenda: Plastics and Chemicals ........................................... 27
3.2.1.2 National Association of Testing Authorities (NATA) – Changes to Construction
Materials Testing (CMT) Accreditation ...................................................................... 27
3.2.1.3 Impact of OSH Harmonisation ...................................................................... 28
3.3 Gender/Age Participation ................................................................................................. 28
3.3.1 Gender Diversity ..................................................................................................... 28
3.3.2 Workforce Age Profile ............................................................................................. 29
3.3.3 Under-represented Groups Participation ................................................................ 31
3.4 Major Challenges and Barriers ......................................................................................... 31
Page 5 of 78
3.4.1 Quality Flexible Training Options and Delivery ....................................................... 31
3.4.2 Relevance of Qualifications and Funding ................................................................ 32
3.4.3 Industry Cost Competitiveness ............................................................................... 32
3.4.4 Accessing a Skilled Workforce ............................................................................... 32
3.4.5 Science, Technology, Engineering and Mathematics (STEM) Skills ....................... 33
3.4.6 Innovation, Research and Development ................................................................. 33
3.4.7 Language, Literacy and Numeracy Skills ................................................................ 34
3.5 New and Emerging Skills ................................................................................................. 34
3.6 Occupations in Demand (ANZSCO Code) ....................................................................... 36
3.7 Workforce Development Opportunities ............................................................................. 41
3.7.1 VET Training Data by Qualification ......................................................................... 42
3.7.2 Pre-Employment ..................................................................................................... 43
3.7.3 Apprenticeships and Traineeships .......................................................................... 46
3.7.4 VETiS ..................................................................................................................... 49
3.7.5 Higher Education Pathways .................................................................................... 51
3.8 Downstream Process Manufacturing Industry Issues ....................................................... 51
3.8.1 Technology and Advanced Manufacturing .............................................................. 51
3.8.2 Skill Development ................................................................................................... 51
3.8.3 Training .................................................................................................................. 51
3.8.4 Government Policy and Research and Development Outcomes............................. 52
3.8.5 Ageing Workforce ................................................................................................... 52
3.8.6 Youth ...................................................................................................................... 52
3.8.7 Gender Diversity ..................................................................................................... 52
3.8.8 Indigenous Australians ........................................................................................... 52
3.8.9 Relevance of ANZSCO for Skilled Occupation Lists ............................................... 53
3.8.10 VET in Schools ..................................................................................................... 53
3.8.11 Language, Literacy and Numeracy Skills .............................................................. 53
SECTION 4 INDUSTRY ISSUES AND STRATEGIES .................................................................. 54
SECTION 5 RECOMMENDED PRIORITY ACTION PLAN ........................................................... 58
SECTION 6 PLAN ADMINISTRATION ......................................................................................... 60
Plan Contact .............................................................................................................................. 60
Review Requirements and Issue History ................................................................................... 60
Distribution List .......................................................................................................................... 60
Consultation for this Issue ......................................................................................................... 60
Communications Plan Summary ............................................................................................... 60
Validation of this Plan ................................................................................................................ 61
SECTION 7 LIST OF TABLES ..................................................................................................... 62
SECTION 8 GLOSSARY .............................................................................................................. 63
Acronyms .................................................................................................................................. 63
SECTION 9 APPENDIX 66
Appendix 1: Key RITC Industry Areas – Projected Economic and Activity Conditions (Australia)66
Appendix 2: Downstream Process Manufacturing in Western Australia ..................................... 69
Appendix 3: Western Australian Downstream Process Manufacturing by Industry Area ............ 70
Appendix 4: Total Downstream Process Manufacturing by Gender ........................................... 73
Appendix 5: Comparison of Downstream Process Manufacturing Workforce with Indigenous
Participation Rates .................................................................................................................... 77
Page 6 of 78
OVERVIEW
Issuing Authority
This plan is issued under contract between the Department of Training and Workforce
Development and the Training Council in accordance with the requirements of Schedule 2 of the
Service Agreement and is maintained by the Training Council.
Aim
The aim of the plan is to outline industry workforce development trends, strategies and actions that
provide high-level advice to the Department to inform future strategic directions and Skilling WA –
A Workforce Development Plan for Western Australia.
Objectives
The objectives of this plan are to provide the Department with:
a A profile for the downstream process manufacturing industry in Western Australia;
b High-level state and national industry data and forward projections in regards to:
I. Economic trends and impacts on workforce planning;
II. Current and future labour market modeling consistent with information provided
for the development of the State Priority Occupation List (SPOL);
III. Regional variations that may affect workforce planning;
IV. Training and education including vocational education and training delivered to
school students (formerly VETiS); and
V. Industry critical aspects that may impact on future planning.
c Identification of issues that impact on state workforce planning and that inform and are
linked to Skilling WA strategies.
These objectives are established so that effective development of workforce planning in regions
and at state level can occur.
Page 7 of 78
SECTION 1 EXECUTIVE SUMMARY
1.1 Introduction
The Resources Industry Training Council (RITC) covers a diverse range of industries ranging from
mining and oil and gas production through to plastics and rubber manufacturing and laboratory
operations. While these industries are experiencing different economic fortunes, they all share
similar issues in terms of ensuring access to a suitably skilled workforce which is necessary for
their continued sustainability.
The manufacturing industry is becoming more sophisticated and advanced in its pursuit of problem
solving innovations and high quality, niche products and services in supply chains to remain
globally competitive and sustainable, particularly in fields such as mining equipment, chemical
products and biotechnology. Although areas of manufacturing are well positioned to improve their
market position amongst high growth and emerging economies, parts of the RITC industry
coverage from the more mature basic chemical and chemical product manufacturing sectors,
polymer product and rubber manufacturing sector and non-metallic mineral product manufacturing
sectors are bearing the effects of more normalised economic conditions, highlighting the close link
between the downstream process manufacturing industries, the transitioning resources sector and
bulk commodities.
1.2 Industry Sectors and Training Package Coverage
Resources Industry Training Council (RITC)
Industry Sectors
(a) Mining
(b) Oil and Gas
(c) Downstream Process Manufacturing
Training Packages
(a) MSA07 - Manufacturing
(b) MSL09 - Laboratory Operations
(c) PMA08 - Chemical, Hydrocarbons and Refining
(d) PMB07 - Plastics, Rubber and Cablemaking
(e) PMC10 - Manufactured Mineral Products
(f) RII - Resources and Infrastructure
To contextualize the RITC industry and training package coverage in Western Australia, Appendix
1 provides an overview of the projected economic and activity conditions for key areas of the RITC
industry coverage and outlines the stark contrast between different industry sectors that was
indicated above.
1.3 The Downstream Process Manufacturing Sector and Laboratory Operations in
2014/15
Manufacturing has a significant footprint in the Australian economy. According to the
Manufacturing Skills Australia Environmental Scan 2015, it produces around $100 billion of output
every year and provided over $101 million in industry value add (IVA) in 2013-14. It is one of
Page 8 of 78
Australia' key industry areas, employing 6 per cent of Western Australia’s workforce4 with almost
83 per cent of jobs nationally being full time5.
Over the past 10 years, employment in Western Australia’s manufacturing sector has experienced
an overall decline of 7 per cent, dropping from 94,800 employees in May 2005 (constituting 9 per
cent of employment) to 87,900 employees in May 2015, reflecting the relatively fragile state of
manufacturing in Western Australia. Along the way, employment peaked in February 2009
(103,300) and 2012 (101,700) but continued its fluctuating downward trend thought to reflect the
sector’s exposure to Western Australia’s resources development sector6.
In contrast, in the last decade, the professional, scientific and testing services that includes
scientific research and scientific testing and analysis services has increased by 63 per cent from
68,400 workers to 111,500 workers which now constitutes 8 per cent of the Western Australian
workforce7. This sector has benefitted from growth in the resources sector and also the health
sector.
The drop in the manufacturing workforce is symptomatic of the issues that have been experienced
by many sectors of Australia’s manufacturing industry in recent times and the transition period
through which that industry is travelling. The CSIRO notes8, while the global chemicals and plastics
industry is growing rapidly, the domestic industry is lagging behind. Since 2007, industry value
added has been stagnant, the number of businesses operating domestically has decreased and
employment in the industry has declined.
Many manufacturing subdivisions in Western Australia continue to suffer from high import
penetration from neighbouring Asian countries, where companies are able to gain a competitive
advantage through lower cost structures. These sub-divisions are usually labour-intensive
operations where specialist skills are not fundamental to the production process and where
finished product transportation does not pose any significant barrier.
The construction markets of China and other Asian countries have been driving the export market,
not only for the raw materials, but also in the demand for value-added processed products and
products in demand for mining services. Although the Chinese property market has cooled, new
construction continues.
Until recently, the rapidly increasing prices for commodities on the international stage have had a
profound impact on the local manufacturing market, especially for small and medium enterprises
(SMEs), which constitute the majority of the manufacturing enterprises in Western Australia9. The
rising price of petroleum and raw materials such as those used in non-metallic mineral product
manufacturing and metal product manufacturing have had a negative impact, forcing smaller
enterprises to absorb increased costs due to limited external demand and competition from
imports. The last 12 months have seen an easing in these cost pressures due to the sharply falling
commodity prices.
Similarly, although the labour market for critical occupational groups in the resources sector has
softened, particularly in the second half of 2014-15, thus lessening the skill shortage impost
experienced during the boom across the RITC industry coverage, a continued focus on workforce
4 ABS, Detailed Labour Force Quarterly, May 2015
5 Manufacturing Skills Australia Environmental Scan 2015
6 ABS, Detailed Labour Force Quarterly, May 2015
7 ABS, Detailed Labour Force Quarterly, May 2015
8 CSIRO/PACIA, Strategic Directions – Towards sustained growth of the Australian chemicals and plastics industry, May
2013. 9 Manufacturing Skills Australia, ABS Small Business Count Data 2010
Page 9 of 78
planning is needed to ensure a sustainable downstream process manufacturing industry in
Western Australia. The manufacturing industry is transitioning into niche, specialized high quality
and globally attractive goods and services.10 While some of the workforce development
implications arising from this transition are yet to be fully comprehended, manufacturing workers of
tomorrow will need to have high levels of science, technology, engineering and mathematics
(STEM) skills, flexibility, resilience and innovation to meet employer and market requirements. As
industry implements new advanced technologies, automation and computer based applications it
will rely more heavily on changing worker skills and capabilities to remain internationally
competitive.
Our changing workforce and skill needs reflect a changing industry and in order for both to evolve it
is vital we have an education and training system capable of developing a flexible and highly
skilled workforce and increasing employment and skills development opportunities for diversified
participation. Enterprises participating in the latest e-scan identified workforce training and
development as the top priority for lifting outcomes, followed by improved leadership and
management, technology and processes11.
1.4 Workforce Development Drivers
Workforce development drivers across the downstream process manufacturing industry and the
professional, scientific and testing services in Western Australia have diverged in recent times.
The core downstream process manufacturing sector has been impacted by economic turbulence
caused by domestic conditions and the increasing dominance of Asian based low-cost producers.
This turbulence is promoting a restructuring of Australia’s manufacturing industry to those areas
where a competitive advantage exists, including highly specialised, low-production run advanced
manufacturing products. In a 2014 study of five industry groups by the Office of the Chief
Economist, 19,000 firms were found to be operating in advanced manufacturing. The bulk of these
were small employing firms with a combined total estimate of 250,000 employees, generating in
excess of $30 billion in output in 2013-14 and export revenue of around $11.2 billion in 2012-1312.
This shift towards areas where a competitive advantage exists across global supply chains relies
heavily on technologically driven inventions and innovations which increasingly rely on a need for
higher skilled and more flexible and innovative workers.
Parts of the professional, scientific and testing services sector, with a resources sector related
exposure, have been expanding substantially in line with increased resources sector activity.
According to IBISWorld13, mining accounted for 37.5 per cent of revenues for the environmental
science services sector in 2014/15. This has driven demand for laboratory services technicians
and occupations related to mineral sample collection. As detailed in the recent e-Scan, a modern
manufacturing industry needs to build its workforce by addressing the following:
Public industry perception to attract new workers
Flexible and highly skilled workforce
Leadership and management capability
Technology and innovation
Productivity, collaboration and research and development outcomes
Business composition
10
Manufacturing Skills Australia, 2014 Environmental Scan Summary, 2014 11
Manufacturing Skills Australia, Environmental Scan 2015 12
Office of the Chief Economist, Australian Industry Report, 2014 13
IBISWorld, Industry Report M6925 – Environmental Science Services in Australia, March 2014
Page 10 of 78
Import competition
Government policy and agenda
Education and training
1.5 Fast Facts
According to the 2011 Census of Population and Housing approximately 27,000 people
were employed in downstream process manufacturing in Western Australia representing
2.5 per cent of total employment. By comparison, the manufacturing sector employed
87,900 workers according to the May 2015 ABS labour force survey.
Employees in downstream process manufacturing are concentrated across the following
industry sub-groups:
o Petroleum and Coal Product Manufacturing
o Basic Chemical and Chemical Product Manufacturing
o Polymer Product and Rubber Product Manufacturing
o Non-Metallic Mineral Product Manufacturing
50% of employees in downstream process manufacturing are employed in:
o Alumina Production
o Scientific Testing and Analysis Services
o Scientific Research Services
o Other Basic Non-Ferrous Metal Manufacturing
o Basic Inorganic Chemical Manufacturing14
Today, manufacturing is Australia’s sixth-largest employer, employing 916,800 workers, or
8 per cent of total employment15. It employs many more indirectly, through outsourcing
related services such as engineering, design, systems integration and marketing. The
industry accounts for 6.6 per cent of Australia’s gross domestic product, 33.5 per cent of
merchandise exports and just under 25 per cent of business expenditure on research and
development16.
Manufacturing produces around $100 billion of output every year, provided $101,586 million
in industry value add (IVA) in 2013-201417.
Across the manufacturing sector, 32 per cent of the workforce is classified as technicians
and tradespersons, 11 per cent as machinery operators and drivers, 8 per cent as
professionals and 13 per cent as managers. This reflects the scientific analysis and testing
emphasis in Western Australia which is driven by the resources and health sectors.
Across the downstream process manufacturing sector, 27.7 per cent of the workforce is
classified as technicians and tradespersons, 13.5 per cent as machinery operators and
14
ABS, 2011 Census 15
ABS Labour Force, May 2015 16
Australian Workforce and Productivity Agency, Manufacturing Workforce Study, October 2013. 17
Manufacturing Skills Australia, 2015 Environmental Scan
Page 11 of 78
drivers, 9.5 per cent as professionals and 14.9 per cent as managers. This reflects the
scientific analysis and testing emphasis in Western Australia which is driven by the
resources and health sectors.
Female workforce participation in these industries is varied, with the average female
workforce participation sitting at 31 per cent.
Industry groups under this broad category typically refine or process raw materials or
feedstocks from the upstream resources sector either into intermediate products for further
processing, or finished products that are sold domestically or exported.
The professional, scientific and testing services sector has a strong exposure to the
resources sector. Western Australia accounts for just over 21 per cent of the national
environmental science services sector and 10 per cent of the national scientific research
services sector according to IBISWorld.
Across this diverse group of industries, key factors affecting manufacturing include:
resources industry activity, volatility in commodity prices, decline in domestic construction
activity, global competition particularly from emerging economies and the Australian dollar.
Australian manufacturing has been in transition for many decades in response to a range of
domestic and global forces. Some of the drivers of change include labour productivity
growth associated with increased mechanisation and use of technology in production; tariff
cuts, which exposed the sector to greater international competition; and changing
consumer preferences towards services. More recently, the weaker Australian dollar and
lower commodity prices have eased some of the cost burden, however not enough to
lessen the pressure on industry from slow productivity growth across the economy, intense
global competition and a focus on sustainable production.
Globalisation and the internationalisation of technology and labour markets have seen
many manufacturing tasks outsourced from industrialised countries to lower cost
economies, especially those in Asia. Many of these emerging economies are gaining
market share not only in traditional manufacturing but increasingly in high-technology
sectors.
The process manufacturing industries in Western Australia have an ageing workforce which
highlights the importance of retaining a more mature workforce and also attracting a
younger workforce.
Page 12 of 78
1.6 Summary of Issues Table
Issue Recommended Priority Action(s) Skilling WA
Strategy
Lead
Agency
Due Date:
Industry has no
confidence in the training
system can produce
consistent outcomes.
Undertake a verification of competence project which will explore
development of an industry guideline for the verification of
competence applicable to the oil and gas and chemical industries.
Explore potential for standardisation of induction requirements for
contractors working on onshore oil and gas and chemical industries
as a means of reducing costs and improving outcomes.
Strategy 3
3.1.1
RITC June 2016
Process Manufacturing
industry access to skilled
workers
Identification of the workforce challenges faced by the state’s
process manufacturing sector and strategies to ensure access a
skilled workforce in the context of national industry policy.
Pilot an approach to address identified in a discreet area where
there is a concentration of process manufacturing industries (eg
Canning Vale/Welshpool).
Approach will involve a determination of workforce skills demand
and supply issues in the pilot area with a view to developing
strategies for implementation.
Strategy 3
3.1.1
RITC 2015/16
Page 13 of 78
Process manufacturing
industries generally have
an older age profile in
their workforce making
them susceptible to a loss
of skills and knowledge
when this component of
the workforce leaves.
Explore options for greater engagement with VET in schools (VETiS)
by the process manufacturing sector as a mechanism for addressing
future workforce skills requirements.
Review VETiS register following VETiS analysis to ensure there is
no impediment to delivery to school students.
Work with providers in the identified region(s) to encourage delivery
options are available for those industries/enterprises wanting to
engage with schools and school students through VETiS programs.
RITC to work with MSA to ensure VETiS pathways are apparent in
the training package development and review process for the
relevant process manufacturing training packages.
Jan-June
2016
Mid 2016
July-Dec
2016
Page 14 of 78
SECTION 2 METHODOLOGY
The Resources Industry Training Council subscribes to an evidenced based planning approach
and uses robust and verifiable primary and secondary data sources in developing the industry
workforce development plan.
Primary Data Sources
RITC social media
The RITC uses this mechanism to provide information and assistance to industry and training
providers operating in the mining, oil and gas and downstream process manufacturing industries in
Western Australia.
These social media channels include:
o Twitter: https://twitter.com/RITCWA
o Facebook: https://www.facebook.com/RITCWA
o Blog: http://ritcwa.blogspot.com.au/
o LinkedIn company page and group
Industry network meetings.
The RITC collaborates with relevant Industry Skills Councils around various events, seminars and
consultations in Western Australia.
Individual enterprise consultations
Independent validations as needed
RITC-commissioned research projects, available via our website: www.ritcwa.com.au
Third-party industry and economic research reports.
Secondary Data Sources
Australian Bureau of Statistics (ABS)
Bureau of Resources and Energy Economics (BREE) – now Department of Industry
National Centre for Vocational Education and Research (NCVER)
CME Diversity Survey 2013
IBISWorld Market Research
Range of industry report.
Page 15 of 78
SECTION 3 INDUSTRY PROFILE
3.1 Overview of the Downstream Process Manufacturing Industry
3.1.1 Downstream Process Manufacturing Industry Analysis
Despite declines in manufacturing’s contribution to national employment and output, the industry
continues to play a vital part in Australia’s economy, directly employing 8 per cent of Australia’s
total employment, accounting for 6.6 per cent of the nation’s GDP18 and a third of merchandise
exports, with almost a quarter of business expenditure allocated to research and development.
Global and domestic forces continue to challenge the industry as traditional manufacturing and
high technology sectors are outsourced to lower cost economies.
International competition has driven the industry to explore competitive strengths and question its
current business models and practices. The future of the industry depends on its ability to produce,
innovate and manage productively19. With recent manufacturing closures and an industry in a state
of flux, strong growth has been emerging in niche, high skilled manufacturing such as professional
and scientific equipment and specialised precision engineering technologies and automation
related manufacturing.
The table in Appendix 2 compares statistical information on a broad range of downstream process
manufacturing industries covered by the RITC. According to this information, in 2014-15 the 10 key
industry subdivisions anticipated collective revenue of $61.7 billion and include:
Gold and Other Basic Non-Ferrous Metal Manufacturing
Alumina Production
Industrial Gas Manufacturing
Petroleum Refining and Petroleum Fuel Manufacturing
Explosive Manufacturing
Environmental Science Services
Pesticide Manufacturing
Basic Inorganic Chemical Manufacturing
Clay Brick Manufacturing
Lubricants and Other Petroleum Product Manufacturing
Less than a third of all industry areas represented in the table have experienced positive growth
nationally in the five years to 2014-15 with explosive manufacturing and basic organic chemical
manufacturing experiencing greatest increases of 10.2 per cent and 6.7 per cent respectively. Over
the same period, eight of the top dozen areas representing greatest activity in Western Australia
shouldered negative growth, most noticeably copper, silver, lead and zinc smelting and refining
(10%), petroleum refining and petroleum fuel manufacturing (8.3%) and basic inorganic chemical
manufacturing (4.8%). Other most affected industry groupings with a lesser level of activity in the
state also include soap and cleaning compound manufacturing (10%), other ceramic product
manufacturing (7%), plastic foam product manufacturing (6.1%), aluminium smelting (5.4%), and
plastic bag and film manufacturing (5%).
Compared to last year, the overall composition of the state’s top 10 industry groups has changed
marginally. However, it is the total revenue across those industries which accounts for an annual
revenue loss of $25.6 billion from $87.3 billion in 2013-14, largely attributed to the transitioning
resources industry from construction to operation and the volatility in commodity prices.
18
Australian Workforce and Productivity Agency, Manufacturing Workforce Study, October 2013. 19
Australian Workforce and Productivity Agency, Manufacturing Workforce Study, April 2014
Page 16 of 78
However, greatest activity does not necessarily correspond with revenue as seen with research
focused, specialised areas such as pharmaceutical product manufacturing and scientific research
services which only represent 6.5 per cent and 10.2 per cent of WA activity with a revenue of 9.2
billion and 4.5 billion respectively for 2014-15. Similarly aluminium smelting and ready-mixed
concrete represents 3.7 per cent and 9.2 per cent of WA activity with revenue of $5.8 billion and
$5.9 billion.
Growth in construction is reflected in the revenue generated by smaller manufacturing industries
with smaller representation in WA like clay brick manufacturing (9th), concrete product
manufacturing (13th), plaster product manufacturing (22nd), paint and coatings (24th), cement and
lime (25th) and ready mix concrete manufacturing (26th), totalling $16.5 billion, of which 56 per cent
is attributed to ready-mixed concrete.20
3.1.2 Industry Trends
For the downstream process manufacturing industries, the growth in mining (including oil and gas)
and exploration had opened up considerable business opportunities in the region. These benefits
can be summarised as suppliers or customers of the sector, with some industry areas such as the
scientific testing and analysis sector providing high level technical mineral assay services to the
resources sector.
Although these industry sub-divisions appear quite diverse, there are several significant issues that
are common. These include:
Reduced mining and exploration activity as the sector moves from construction to
operations;
Volatile commodity prices and energy costs, including petroleum;
Global industrialisation and economic growth;
Productivity through technological advancements and a shift to automation;
Growth in domestic construction activity;
Growing environmental concerns; and
Government initiatives.
From an overarching industry perspective, the process manufacturing industry makes a substantial
contribution to the national economy and society as shown in the below graphic taken from the
Plastics and Chemicals Industry Association’s (PACIA) strategic roadmap document.
20
IBISWorld, Manufacturing Industry Reports, June 2015
Page 17 of 78
Figure 1: Australia’s Plastics and Chemicals Industry
Source: PACIA, Adding Value – The critical, enabling role of the chemicals and plastics industry for Australia’s future,
July 2014
3.1.2.1 Gold and Other Basic Non-Ferrous Metal Manufacturing
Production of nickel and other basic non-ferrous metal manufacturing (such as gold and silica) hold
a 61.3 per cent Western Australian market share output. A great bulk of output is being exported
either in the form of gold bullion, refined nickel and semi-refined nickel matte. These industry areas
are highly susceptible to the volatility in commodity prices.
For gold and nickel the last 5 years has been characterized by fluctuations in industry revenue,
reflecting dramatic shifts in US dollar prices and Australian dollar volatility, increased exports of a
wide range of metals and a decline in domestic manufacturing levels. The industry is currently
going through a renaissance period in Western Australia with activity levels relatively high and
buoyed by global economic volatility and a relatively low Australian dollar.
The main use for nickel is in the manufacture of stainless steel and accounts for about 65 per cent
of nickel consumption worldwide. Export markets are projected to account for more than 80 per
cent of industry revenue in 2014-15, with only a small number of countries making up the main
export markets. Domestic manufacturers and other local markets make up the balance. Industry
revenue is forecast to grow by an annualised 0.9 per cent through 2019-20 to $21.2 billion.
The main product processed by the industry is refined gold. Refined gold volumes are expected to
total 318 tonnes in 2014-15, down from 356 tonnes in 2009-10 due to lower mining volumes and
some pricing declines.
Overall exports accommodate a small number of countries with all but one seeing levels of decline
since 2009-10. In 2014-15, Chinese gold export markets are expected to account for 39.5 per cent
of industry revenue, up from 2.6 per cent in 2009-10, driven by their manufacturing industries,
investment and government holdings.
Page 18 of 78
Gold imports, including scrap gold, are also high as these are refined or reprocessed and often re-
exported. Domestic gold market is estimated to account for 8.5 per cent of industry revenue in
2014-15, up from 6.9 per cent in 2009-10. Growth has been boosted by demand for jewellery
manufacturing and the manufacturing of electronic and electrical goods, as well as gold holdings
for companies, governments and households.
3.1.2.2 Alumina Production
Western Australia produces almost 43 per cent of alumina nationally with Australia being a key
global alumina producer, accounting for about 20 per cent of total world production each year.
Alumina is produced and either used domestically or exported overseas, to be smelted into
aluminium. The Asian Export Markets was our largest export market segment in 2014-15
accounting for 32.2 per cent of industry revenue, followed closely by the Middle East at 30.2 per
cent.
Total exports, amounting to an expected 17.2 million tonnes in 2014-15, should generate $6.6
billion revenue for the year, with the local market for alumina estimated at 1.3 billion, a total
increase of 11.7 per cent. As with nickel, alumina experiences volatility in price tracked against the
Australian dollar, export volumes and manufacturing levels. It is anticipated that despite price
volatility, production gains may see a growth of 0.2 percent through to 2019/20.
3.1.2.3 Industrial Gas Manufacturing
Approximately 30 per cent of industrial gas manufacturing is hosted in Western Australia with the
industry producing organic, inorganic, speciality, medical and refrigerant gases.
The development of new products and technologies, growing environmental concerns and the
diverse range of applications for industrial gases have influenced industry performance over the
five years through 2014-15.
Industry revenue can be captured by three key market segments for 2014-15: mining, minerals and
metal product manufacturing (60%), healthcare (25.5%) and specialised users such as
laboratories, research establishments and various electronics and semiconductor industries
(14.5%). Growth rates have slowed over the past five years with the industry estimated to grow
through 2014-15 to $4 billion impacted by a drop in mining investment.
Volatile energy costs have placed downward pressure on industry profitability, reflecting the
industry's high dependence on fossil fuels for production. In the next five years, industry revenue is
forecast to grow at an annualised 2.2 per cent, bringing revenue up to $4.5 billion due to recent
capacity expansions and the move into a phase of production.
In addition, the ongoing development of new technologies will drive new applications for industrial
gases, as will environmental concerns.
Demand for industrial gases is expected to fluctuate through to 2019-20, aligned with Australia's
resource and manufacturing sectors. It is anticipated that the metal, oil and chemical industries will
increase demand on industrial gases, driven by calls for cleaner burning fuels and the
hydrodesulfurisation of petroleum products.
3.1.2.4 Petroleum Refining and Petroleum Fuel Manufacturing
Petroleum refining is literally the refining of crude oil products to create a saleable commodity,
normally petroleum (42.7%) and diesel (36.2%), which represent a total of 78.9 per cent the refined
products produced nationally. 89.7 per cent of the products are destined for domestic use by
petroleum wholesalers and retailers, with only 10.3 per cent exported to overseas markets.
Page 19 of 78
In Western Australia the manufacturing of petroleum products accounts for 25.6 per cent of
national activity, produced by the state’s only refinery, BP Kwinana refinery, largest in Australia.
The refinery has been upgraded in recent years to produce low-benzene petrol and ultra-low
sulphur fuel, enhancing refinery optimization and reliability, and investment into cleaner fuel
production.
Revenue is expected to decline by 8.3 per cent over the 5 years through 2014-15 as the industry
competes with imported refined fuel products and sophisticated refineries in Asia-Pacific, coupled
with reduced output and mine closures, the volatility of world oil price and exchange rate
movements. In the 2014-15 year alone, industry revenue is expected to fall by 43.4% to $15.0
billion, following dramatic falls in the oil price. Further declines are expected in the years through to
2019-20 to $12.3 billion at an annual rate of 3.8 per cent.
3.1.2.5 Explosives Manufacturing
Explosive manufacturing companies across Australia have reaped the benefits of an active local
resources environment and are closely linked to bulk commodities like coal, iron ore, gold and
copper. Increased construction activity, expansions in mining industries, complex geological
conditions for greater accuracy, efficiency and mine lifespan and strong ammonium nitrate prices
drove record growth over the past 10 years to 2012-13.
The difficulties in transporting these hazardous materials often prohibit manufacturing overseas
and ensure a preference for local facilities and suppliers. Nationally, 39 per cent of industry activity
is directly related to metals mining. However, although industry revenue reached $3.6 billion in
2014-15 compared with $2.3 billion five years earlier, falling commodity prices and a subdued
demand from mining operators focusing on containing costs have slowed industry revenue,
estimated to fall by 2.1 per cent in 2015-16.
3.1.2.6 Environmental Science Services
For this industry sub-group at the national level, 37.5 per cent of revenue is derived from mining
technical services, with meteorological services (10%) and materials testing (7.5%) accounting for
a significant share of industry activity. The steady growth in environmental science services has
been predominantly driven by the boom in the energy and mineral resource markets, with a strong
focus on geotechnical modeling and metallurgical laboratory analysis of ore samples.
Demand for water supply, sewerage and drainage services has aided the growth further, as has
the shift towards greater outsourcing of testing and services. Over the past five years, revenue
rose by an annualised 2.0 per cent to reach $4.9 billion in 2014-15.
Trends in mining exploration expenditure influence demand for geological and geophysical
consulting services. In general, an increase in mining exploration boosts demand for industry
services, leading to revenue growth. Yet, although Western Australia has experienced a fall in
mineral exploration over the last few years, the resource sector’s drive for productivity and output
has continued a strong demand for continued advances in technology and hence associated
testing services.
Similarly, demand for scientific research services are influenced by levels of manufacturing activity,
the need for material and product testing and pollution monitoring. Although recent slowing in the
manufacturing industry has hampered activity, the industry has benefited from continued advances
in technology, which have prompted improvements in testing methods, the communication of
testing results and an expansion in the range of testing services available. According to IBISWorld,
Page 20 of 78
revenue growth is projected to stem partly from greater demand from scientific research services
forecast to rise by 1.3 per cent to reach $4.9 billion in 2014-15.
Growth is expected to reach $5.6 billion in 2019-20 predominantly due to increased demand for a
range of scientific research services including biotechnology and agriculture, a tightening of
pollution control regulations and demand for continued advances in technology. The importance of
scientific research to preserve the sustainability of the Western Australian resources sector is
further supported through recently announced government initiatives.
3.1.2.7 Pesticide Manufacturing
Although pesticide manufacturing in Western Australia represents 19.7 per cent of the nation’s
industry activity, it has experienced a downward trend over the past few years with a forecast worth
of $1 billion in 2014-15.
Some key factors influencing the industry are demands from weather dependent agriculture which
accounts for 75 per cent of pesticide consumption, regulatory framework governing the pesticide
value chain and the resulting costs associated with industry’s changing product portfolio and lower
prices for patent-expired products driven by the growth in generic products.
Industry revenue is forecast to reach $1.1 billion by 2019-20, propped up by the export market
which is expected to contribute 12.3 per cent of industry earnings in 2014-15 and has trended
upwards over the past five years as a percentage of revenue. A drive for a stronger industry will
need alternative pesticides including bio-pesticides and new pest control products developed with
new technology platforms.
3.1.2.8 Basic Inorganic Chemical Manufacturing
This industry is a vital part of the nation's overall chemical sector, providing important intermediate
chemical products used as basic chemicals in various industrial processes and manufactured
products. It makes up 18.5 per cent of activity in Western Australia with revenue affected by mining
and manufacturing levels of activity and international trade due to its market composition: mining
and metal processing industries (30.7%), manufacturing sector (20.5%) and international markets
(48.8%).
The industry is forecast to generate revenue of $2.5 billion in 2014-15 and to grow at an
annualised 1.1% over the next five years as the industry indirectly benefits from continued demand
growth from the mining division, anticipating a revenue total of $2.6 billion in 2019-20.
Revenue may be boosted by increased output from new plants that have recently commenced
production. Higher costs due to feedstock volatility and stricter environmental regulations may
hinder industry prospects in the short to medium term. In 2019-20, industry revenue is forecast to
total $2.6 billion boosted by increased production from new ammonia, sodium cyanide and chlor-
alkali plants.
3.1.2.9 Clay Brick Manufacturing
New residential building construction comprises 70 per cent of annual sales in clay bricks and
pavers produced by the industry. Western Australia comprises 17.7 per cent of clay brick
manufacturing. Trends towards double storey houses and multi-unit apartments place the industry
under pressure from substitute products such as fiber cement and polyurethane cladding. A
projected revenue total of $830 in 2014-15 reflects a 3.8 per cent increase due to a growth in new
housing construction. Anticipated growth in housing and commercial building should increase clay
brick production by an annualised 0.9 per cent with revenue reaching $866 million by 2019-20.
Page 21 of 78
The need to find lower cost housing options to make home ownership more affordable is driving
the exploration of alternative construction materials.
3.1.2.10 Lubricants and Other Petroleum Product Manufacturing
This industry sector produces a wide range of vital lubricant, grease, fluid, oil and bituminous
products used in running of vehicles, machinery and equipment, in the construction of roads and in
general manufacturing.
IBISWorld anticipates 2014-15 revenue of $1.7 billion, down 6.9% from the previous year due to a
drop in base stock prices and a decrease in mining levels partially offset by activity across a range
of transport industries, including road, rail, air and water transport.
Industry revenue is forecast to decrease at an annualised 2.2% over the five years through 2019-
20 to $1.5 billion.
3.1.2.11 Commodity Price Volatility
The downstream process manufacturing industry is strongly affected by changes in commodity
prices, either through higher prices for raw materials and feedstock, or lower prices for their own
products. Both factors have an impact on the bottom line for Western Australian enterprises in this
industry area, many of which are SMEs with already limited resources.
For those industries with mineral products as raw materials, falling commodity prices have a strong
impact on their revenue performance. In Western Australia the impact of petroleum prices on
petroleum refining and chemical manufacture, for example, is profound and until recently has
eroded profit margins, causing enterprises to consider relocation of facilities to countries with
cheaper labour costs.21 The 46.7 per cent drop in the price of crude oil to April 2015 has provided
some relief22 but the question of relocation to low cost economies remains.
The two most significant industry subdivisions in Western Australia, in terms of local industry
share, are nickel refining and alumina production, both of which are directly impacted by
commodity prices. As reported in the latest CME Economic Brief, nickel prices have fallen 26.1 per
cent in the 12 months to April 2015, almost negating the nickel price rebound in 2014, of 30 per
cent following Indonesia’s ban on exports of nickel ores.23
3.1.2.12 Residential Construction Activity
The construction training council estimated that approximately 24,000 construction industry
employees are working on resource industry infrastructure construction projects. Compared with
the estimated 29,000 employed in 2013, this decline in the workforce reflects the transition of the
resources sector from the construction to the operational phase24. As infrastructure projects are
completed and the industry continues its move towards a growing operational need, the population
growth will slow and with it dwelling commencements particularly in resource heavy regions, such
as the Kimberley and Pilbara. The decrease of 11,269 construction industry people in the
February25 quarter demonstrates this shift in activity, heightened by the downward trend of global
commodity prices and restructure within the resources sector as companies focus on improving
productivity and reducing costs. According to the 2015-2025 Western Australian Resources Sector
21
IBISWorld, C2543 Pharmaceutical Product Manufacturing 22
CME, Economic Brief, June 2015 23
CME, Quarterly Economic Brief, June 2015 24
Construction Training Fund, Industry Snapshot, May 2015 25
Construction Training Fund, Industry Snapshot, May 2015
Page 22 of 78
Outlook, the construction based workforce is expected to decline by 17,300 below 2014 levels in
2020 as the operational workforce increases26.
During 2013-14, the housing industry has experienced unprecedented growth in the housing sector
with the number of housing approvals to March 2015 reaching 31,528, with trend building
approvals in Western Australia rising by 6.8 per cent over the year27. Overall activity is expected to
remain relatively high.
For the downstream process manufacturing industry in Western Australia, construction activity has
an impact on demand for their products, coinciding with higher labour and operational costs. So
although annual growth from 20010-2015 in related industry areas mostly show a negative overall
trend, the combined revenue for these in 2014-15 totaled $13.5 billion, as follows:
Clay Brick Manufacturing -3.6 per cent
Concrete product manufacturing -1.5 per cent
Cement and Lime Manufacturing -2.5 per cent
Plaster Product Manufacturing 0.8 per cent
Ready mix concrete manufacturing 1.7 per cent28
3.1.2.13 Import Penetration from Asia
Projected economic and population growth in the Asian region are factors driving potential demand
for products and services.
The structural shift in global competition continues to see emerging-market economies gain
strength, particularly in East Asia which claims much of the outsourced manufacturing work. With
an increasing supply of skilled labour and lower operational and labour costs, overseas enterprises
are able to produce similar products at lower cost to the consumer, further eroding Australia’s
already-tight profit margins such as those affecting the soap and cleaning compound
manufacturing (10% decrease in annual growth 2010-2015) and the manufacture of plastic
injection molded products (4.3% decrease in the same period)29. Similarly some industry players
such as those in plastic foam product manufacturing are indirectly affected by import competition
through import penetration in their major downstream markets (6.1% drop).
A recent report notes as the pressure to lower manufacturing costs continues, Australia needs to
become a substantial contributor to global value chains through niche areas of advanced
manufacturing and value adding, characterised by unique technologies, skills and supply chains
that cannot easily be replicated by lower cost countries30. Remaining competitive with low-cost
destinations will require continued product and service innovation, research and development, a
highly skilled domestic workforce and policy changes to ensure a collaborative, robust and
prosperous economy.
3.1.3 Labour and Skill Demand
According to CEDA’s latest workforce report, in the decade to 2013-14, Australia’s manufacturing
employment decreased by 92,000 jobs31. Declines in employment levels are projected to continue
26
CME, 2015-2025 Western Australian Resources Sector Outlook, 2015 27
Construction Training Fund, Industry Snapshot, May 2015 28
IBISWorld, Industry Reports, 2014 29
IBIS World, C2566 Plastic Injection Moulded Product 30
CEDA, Australia’s future workforce, June 2015 31
CEDA, Australia’s future workforce, June 2015
Page 23 of 78
as industry adjusts further to changes in structural composition driven by technological
advancements, digital disruption and globalization of supply chains.
As the industry continues to transform and move towards lean, competitive, high-end
manufacturing, it will be increasingly dependent on a flexible, adaptable and highly skilled
workforce. The report points out the next wave of the industrial revolution will require life-long
learning, broad competencies and deeper technical skill development with workers needing deep
computer literacy and digital skills to grow their competitive advantage as the global supply of
skilled labour increases.
The challenge is to attract and retain skilled workers, increase the availability and supply of
specialist skills, and improve ongoing skills development and utilization. As completion rates for
science, technology, engineering and mathematics (STEM) degrees grow exponentially throughout
Asia, it is critical we develop and deepen STEM capability to meet deeper technical skill
requirements of the future.
Rapid advances in manufacturing technologies and techniques, increasing market globalisation
and an ageing workforce are other fundamental factors driving a need to develop and retain a
highly skilled and flexible workforce.32 This will require a coordinated effort by industry, the
education and training sector and government33 to ensure Australia’s governing education
regulatory framework and policies help workers develop the required skill sets34.
3.1.3.1 Identify the Workforce
Following the release of the employment data from the 2011 ABS Census of Population and
Housing it is possible to get a detailed overview of the shape of the workforce for the diverse
industry area of downstream process manufacturing, including laboratory operations.
According to the 2011 ABS Census, there were 27,562 people employed in the downstream
process manufacturing industry in Western Australia (approximately 2.5 per cent of Western
Australia’s total employment), with 50.3 per cent employed in the top five industry areas being:
1. Alumina Production (5323 Employed Persons)
2. Scientific Testing and Analysis Services (3517 Employed Persons)
3. Scientific Research Services (2087 Employed Persons)
4. Other Basic Non-Ferrous Metal Manufacturing (1773 Employed Persons)
5. Basic Inorganic Chemical Manufacturing (1175 Employed Persons)
The remaining 49.7 per cent of employed persons were spread across 45 further industry areas.
As such, this group of industries is very varied and presents very different workforce development
challenges. Appendix 3 shows a more detailed analysis of the sector’s workforce profile.
In terms of the share of employment across different occupation groupings, Figure 2 overleaf
indicates the share of employment for all downstream process manufacturing industry areas by
occupation.
1. Technicians and Trades 28 per cent
2. Machinery Operators and Drivers 20 per cent
3. Professionals 17 per cent
32
Manufacturing Skills Australia, www.mskills.com.au, accessed October 2014 33
AWPA, Ibid 34
CEDA, ibid
Page 24 of 78
4. Managers 13 per cent
5. Clerical and Administrative Workers 10 per cent
6. Labourers 9 per cent
7. Sales Workers 2 per cent
Figure 2: Western Australian Downstream Process Manufacturing Workforce by Occupation
(ANZSCO 1 digit) Source: 2011 Census of Population and Housing
In comparison with the mining and oil and gas industries, the occupational mix for the downstream
process manufacturing sector is very different. Professionals have a much higher occupational
share for process manufacturing which is expected given the nature of these industries.
Drilling down on the occupational distribution of the top five employing process manufacturing
sectors shows the following:
13%
17%
28%
0%
10%
2%
20%
9%
1% 0%
0%
WA Downstream Process Manufacturing Workforce by Occupation
Managers
Professionals
Technicians and TradesWorkersCommunity and PersonalService WorkersClerical and AdministrativeWorkersSales Workers
Machinery Operators andDriversLabourers
Inadequately described
Page 25 of 78
Table 1: Western Australian Downstream Process Manufacturing Industry Workforce by
Occupation - Comparison of Downstream Process Manufacturing Industry Sub-divisions Source: 2011 Census of Population and Housing
Ma
na
ge
rs
Pro
fes
sio
na
ls
Te
ch
nic
ian
s a
nd
Tra
de
s W
ork
ers
Co
mm
un
ity a
nd
Pe
rso
nal
Serv
ice
Ws.
Cle
ric
al
an
d A
dm
inis
tra
tiv
e W
ork
ers
Sa
les
Wo
rke
rs
Ma
ch
ine
ry O
pe
rato
rs a
nd
Dri
ve
rs
La
bo
ure
rs
Ina
de
qu
ate
ly d
esc
rib
ed
No
t s
tate
d
No
t a
pp
lica
ble
Total Downstream Process
Manufacturing
3457 4626 7730 113 2715 568 5640 2353 324 34 0
Alumina Production 329
(9.5%)
731
(15.8%)
1888
46 295 4 1571 391 64 5 0
Scientific Testing and Analysis
Services
374
(10.8%)
858
(18.5%)
1505 12 381 16 134 183 46 10 0
Scientific Research Services 280
(8.1%)
1264
(27.3%)
239 9 236 11 12 21 16 0 0
Other Basic Non-Ferrous Metal
Manufacturing
128
(3.7%)
290
(6.3%)
557 20 122 0 588 41 28 0 0
Basic Inorganic Chemical
Manufacturing
143
(4.1%)
219
(4.7%)
421 4 121 4 199 45 17 0 0
The table above shows the occupation profile of the Western Australian downstream process
manufacturing workforce for the five different industry sub-divisions that employ 50 per cent of the
total workforce for process manufacturing.
3.1.3.2 Sourcing the Workforce
Manufacturing in Australia is highly co-dependent on key industries such as mining, agriculture,
services, utilities and transport and further affected by high labour costs and the exchange rate.
More than 60 per cent of manufacturing employment is characterised by small and medium sized
businesses (SMEs) with a large presence in low-medium technology areas. As outlined in the
latest MSA e-scan, around 43 per cent of manufacturing businesses within the MSA scope are sole
traders that have no employees and almost half are small businesses employing between 1 to 19
people35.
With global value chains seeing a shift in labour-intensive activities toward lower cost economies,
in order to create a sustainable and competitive industry, Australia’s manufacturing needs to
35
Manufacturing Skills Australia, Environmental Scan 2015
Page 26 of 78
expand niche areas to produce innovative offerings and increasing productivity and maximize our
strengths in advanced skills and expert knowledge.
As we move toward an ever increasingly automated, robotic environment with a focus on
performance and productivity, design-led innovation and product development, rapid technological
change, changing consumer demand, global competitiveness and supply chains, we will be faced
with a series of challenges.
Companies are faced with an increasing need to assess the operational, strategic and technical
aspects of their business if they are to penetrate global value chains. Resulting high-level technical
and management skills needed in process manufacturing and laboratory operations sectors will
prove difficult to source in traditional labour pools across Western Australia and across the nation.
Already respondents in the latest e-scan have raised this as a key priority, citing a shift towards
higher level technical skills (82%), innovation/design skills (70%), multi skilled, broad-based
capabilities and digital skills (59%) and a need for a flexible workforce with higher level
interpersonal and organisational skills and capable of creative thinking36.
The Australian and state governments recognise the need to attract foreign investment into the
industry and the urgency for skilled, multilayered workers capable of transitioning skills and
applying knowledge. The recent Innovation and Competitiveness Agenda reflects the
commonwealth government’s focus on improving global competitiveness by lowering production
costs, improving skills, delivering more infrastructures, driving entrepreneurship and reducing
regulatory processes. Likewise, the Industry Skills Fund supports growth of specialised skills and
the need for multi-skilling, through to management levels, particularly in the SME sector of the
industry. Both initiatives aim for greater industry collaboration, innovation and research and
development which are critical for sustainable, global competitiveness and growth.
3.1.3.3 457 Visas
When resource sector activity has high, companies in downstream process manufacturing turned
to overseas labour to fill specific high priority skill needs that were unable to be met by local
Australian workers. In 2011-2012 the number of 457 visas granted more than doubled for the
manufacturing industry and the professional, scientific and technical industry groups in Western
Australia. In the current climate, visa requests and visas being granted have decreased
significantly, however as reported in the 2015 e-scan companies turn to 457 visas to address skill
shortages particularly to meet niche and specialized work demands even though the preference is
to build Australian long term workforce capacity and capability and employ locals.
In the past process manufacturing firms have noted historical difficulties in accessing the 457 visa
program due to limitations in the occupational classification system (ANZSCO). According to
AWPA’s manufacturing study, skills shortages exist in a number of trades occupations relevant to
the manufacturing sector, including metal machinists (first class), fitters (regional shortage) and
sheetmetal trades workers.
3.2 Regional Impact
Although a third of manufacturing workers were employed in regional and remote areas of the
country in 2013, the majority of process manufacturing and laboratory operations are traditionally
located in metropolitan hubs such as Kwinana, south of Perth. Although these areas are readily
accessible for residential workers located in the city, alternative arrangements are needed to
attract and retain a skilled workforce to meet the needs of a changing manufacturing industry.
36
Manufacturing Skills Australia, Environmental Scan 2015
Page 27 of 78
3.2.1 Regulatory Requirements
The diverse nature of the downstream process manufacturing industries in WA means that they
operate in different regulatory systems. Below is a short overview of key issues facing certain
industry sub-divisions.
3.2.1.1 COAG Reform Agenda: Plastics and Chemicals
As part of the COAG national reform agenda, one of the areas under scrutiny is regulatory systems
in the chemical and plastics industries37. The Productivity Commission has completed a study into
regulation across these industry areas and has produced some recommendations for improved
activity, to which the Plastics and Chemicals Industries Association (PACIA) has also contributed.
At its October 2014 meeting, COAG agreed to consider changes to the regulatory framework
governing chemicals to improve its efficiency, with the Standing Committee on Chemicals to
recommend a reform pathway to COAG by the end of 2014. The National Industrial Chemicals
Notification and Assessment Scheme (NICNAS) review was aimed at streamlining the assessment
process for industrial chemicals to reduce the regulatory burden on the chemicals sector whilst
maintaining safety standards.
There are three main regulatory issues for these industries are:
1. Dangerous goods regulations;
2. National Industrial Chemicals Notification and Assessment Scheme (NICNAS) plans for
chemical screening; and
3. The NICNAS review.
PACIA has also held regular Regulatory Affairs Network meetings across the country to facilitate
discussions on this topic and endeavour to expedite the reform implementation process. NICNAS
reforms are being progressively implemented and are expected to be completed by 1 September
2018. These reforms are also being implemented on a cost recovery basis from industry.
3.2.1.2 National Association of Testing Authorities (NATA) – Changes to Construction Materials
Testing (CMT) Accreditation
The National Association of Testing Authorities (NATA)38 is recognized as the authority on quality
and independent assurance of technical competence for laboratories and scientific testing facilities
across Australia. Independent assessors are contracted by NATA to undertake regular inspections
and audits of laboratories to ensure that the services rendered meet national and international
standards.
NATA also represents Australia at the global level, through participation in the International
Laboratory Accreditation Cooperation (ILAC), the Asia Pacific Laboratory Accreditation
Cooperation (APLAC) and the OECD Working Group on Good Laboratory Practice.
Recently, NATA has announced that in the construction materials testing area, authorized
signatories, understood to be laboratory technicians and managers accredited by NATA, require
certain qualification levels to retain their NATA-accredited status. Different occupation levels relate
to different VET qualification levels, mapped to the Australian Qualifications Framework (AQF).
At the RITC Laboratory Operations Forum in March 2012, representatives from NATA indicated
that the Australian Qualifications Framework will be increasingly used as a measure in recognising
authorized signatories across all areas of its business. The recent removal of funding for existing
37
http://www.pc.gov.au/__data/assets/pdf_file/0017/82331/chemicals-plastics-regulation.pdf 38
http://www.nata.asn.au/
Page 28 of 78
workers undertaking laboratory operations qualifications may result in a hindrance of workers
undertaking required qualifications to meet the NATA requirements, causing a shortage of required
skills into the future. As highlighted in the 2015 environmental scan, existing workers need access
to training opportunities in order to become multi-skilled, improve manufacturing practice, build
management and leadership capability and refresh trade skills to maintain their currency39.
3.2.1.3 Impact of OSH Harmonisation
For certain hazardous materials, such as explosives, it is likely that the current process to
harmonise workplace safety and health legislation across the different states and territories will
have an impact upon operations. Safe Work Australia has released an explosives regulation in
Australia discussion paper and consultation regulatory impact statement for public comment (as at
August 2015). Safe Work Australia has highlighted significant variation across the states and
territories in the following areas:
Definitional issues regarding explosives;
Licensing arrangements; and
Notification requirements.
These variations have the potential to create complexity for industry and impose administrative and
cost burdens on businesses, particularly those operating across jurisdictions.
3.3 Gender/Age Participation
3.3.1 Gender Diversity
Process manufacturing in particular has been traditionally seen as a male-dominated industry, with
a higher proportion of males than females working in the industry in Western Australia. There is
significant variance in the levels of female participation across the different industry areas that
comprise downstream process manufacturing. The average participation rate for the process
manufacturing group of industries of 21.19 per cent, compared to the Western Australian all-
industry female participation rate of 45.28 per cent40.
The table in Appendix 4 not only indicates the variance in terms of female participation, but also
the concentration of employment in several key areas, such as alumina production and scientific
testing and analysis.
A 2011 report on female participation in the manufacturing industry from the Equal Opportunity for
Women in the Workplace Agency (EOWA) published a female participation rate of 26.8 per cent
compared to an all-industry total of 47.9 per cent41.
In 2011-12 the sector experienced a rapid period of innovation, in response to new industry
demands notably from the resources sector, as well as structural changes due to import
penetration42 from China and other neighbouring countries.
39
Manufacturing Skills Australia, 2015 Environmental Scan 40
ABS, 2011 Census of Population and Housing 41
http://www.eowa.gov.au/Information_Centres/Resource_Centre/EOWA_Publications/Industry_Verticals/2011/Manufactur
ing.pdf 42
Cited as an issue in numerous IBIS World reports on Process Manufacturing subdivisions, including: C2534 Ethylene,
Propylene and other Organic Chemicals, C2543 Pharmaceutical Product Manufacturing, C2610 Glass and Glass
Product Manufacturing and C2623 Ceramic Tile and Pipe Manufacturing
Page 29 of 78
The growth of the composites industry has relied upon high research and development and
innovation, with a strong move towards automation and nanotechnology. More recently, as noted
in the AWPA manufacturing study – April 201443, skills, work patterns, leadership models and
culture might need to change to support an integrated operations approach to optimising the
benefits from technology. The ability of enterprises to offer more flexible working arrangements
could also attract more women to these industries.
The differences in female participation rates could also be linked to the para-professional and
professional occupation ratios of this sector, with a higher proportion of laboratory workers having
a tertiary level qualification (ABS Education and Work, November 2011).
After two years of research, the Committee for Perth has released its findings on the state of
gender equality in Western Australia with findings showing that more work needs to be done.
The Filling the Pool report identifies 31 recommendations to increase and support women’s
workforce participation and progression in the state and narrow the gender pay gap, including
greater job flexibility, better access to childcare, succession plans linked to greater diversity,
targeted training and development activities, sponsorship and mentoring programs, increasing the
number of girls undertaking STEM subject at school, and more meaningful equality targets. They
report on the importance of mentors, particularly female role models, in traditionally male
dominated industries such as manufacturing to provide meaningful advice, inspiration and
opportunity44.
3.3.2 Workforce Age Profile
The age profile of Western Australia’s downstream process manufacturing workforce is shown
below based on the 2011 Census.
Figure 3: Western Australian Downstream Process Manufacturing Workforce Age Profile Source: 2011 ABS Census of Population and Housing
A strong proportion of the process manufacturing workforce is aged 25-54, with a further 7 per cent
43
AWPA, Ibid 44
Committee for Perth, Filling the Pool Report, June 2015
2.47% 7.79%
11.50% 11.70%
12.72% 13.53%
12.98% 11.78%
8.46% 5.36%
1.71%
15-19 years20-24 years25-29 years30-34 years35-39 years40-44 years45-49 years50-54 years55-59 years60-64 years65-69 years
WA Downstream Process Manufacturing Workforce Age Profile
Page 30 of 78
aged 60-69 which indicates an ageing workforce in these industries. In 2012-13, 34.1 per cent of
the manufacturing workforce was aged up to 35 years45.
This issue is made worse within the context of potential retirements, with 27.4 per cent of the
industry workforce being aged between 50 and 69 years of age. As reported in the 2015 MSA
Environmental Scan, ageing workforce and looming retirements continue to be the key challenge
facing the manufacturing industry46. The potential loss of experience and operational knowledge is
considerable and indicates the need for pre-emptive action in terms of ensuring appropriate
transfer of knowledge to younger staff through training and mentoring. According to MSA a
significant focus on skills and training is needed to mitigate the long term risks of skill shortages
and attrition, with the sector reporting a significant gap between the capabilities of older,
experienced workers and the younger cohort in the sector47.
It is critical young people are attracted to the industry to create the next wave of manufacturing
leaders and innovators and maintain a sustainable and prosperous economy. VET could offer an
entry into the sectors, either through VET in Schools programs, or traineeships that would train
young people in the basic skills necessary to enter the industry and build its workforce capacity.
This cohort of potential workers can provide opportunities for technical innovation and up-skilling of
existing workers into more senior or supervisory and management roles. A new set of traineeships
and pilot programs are in the pipeline in collaboration with schools, training providers and industry
to assist young people moving into the industry which should raise industry profile and increase
participation.
While Figure 3 outlines the age profile of these industry areas as a collective, additional analysis
for the top five employers by industry area was undertaken to show the varied age profiles within
the industry (Figure 4).
Figure 4: Western Australian Downstream Process Manufacturing Workforce Age Profile
Source: 2011 Census of Population and Housing
45
AWPA, Ibid 46
Manufacturing Skills Australia, Environmental Scan 2015 47
Manufacturing Skills Australia, Environmental Scan 2015
0.00% 5.00% 10.00% 15.00% 20.00%
15-19 years20-24 years25-29 years30-34 years35-39 years40-44 years45-49 years50-54 years55-59 years60-64 years65-69 years
WA Downstream Process Manufacturing Workforce Age Profile
Basic Inorganic ChemicalProduct Manufacturing
Other Basic Non Ferrous MetalProduct Manufacturing
Scientific Research Services
Scientific Testing and AnalysisServices
Alumina Production
Page 31 of 78
3.3.3 Under-represented Groups Participation
The under-representation of Indigenous Australians in the Western Australian workforce is also
significant, despite recent attempts by government to encourage broader engagement with
Aboriginal people through the Training Together Working Together initiative. The table in Appendix
5 outlines the Indigenous workforce participation rate in the Western Australian downstream
process manufacturing industries, mapped to total employment figures across the industry.
It should be noted the average Indigenous participation rate in the Western Australian downstream
process manufacturing industries is 0.98 per cent. However, additional Census analysis
undertaken by CME indicated that in the 2011 ABS Census of Population and Housing there was a
relatively high proportion of people in Western Australia who did not state whether they were
Indigenous or not in the 2011 Census (5.9%). While this proportion may not seem high it’s more
than double the proportion who identified as being Indigenous (2.5%) in total.48 As such, the low
figure of 1 per cent should be placed within this context of self-identification and broader
methodological issues with the Census.
Various reports have identified a concentration of Indigenous Australians in lower skilled jobs, a
direct result of low participation in post-school education. This was also noted in the Forrest
Review report, Creating Parity, which advocated for a greater focus on improving the educational
attainment of Indigenous Australians which is fundamental to a greater participation of Indigenous
Australians in employment. As the review report states, whichever way you look at this, only
employment will end the disparity and employment is only possible if we remove all impediments to
parity in education49.
Much remains to be done on the issue of progressing Indigenous Australians into higher level job
roles. The use of automation, innovative technologies and an increasing level of activity-generated
data used to improve processes is creating a morphing sector, progressively more reliant on higher
skills.
3.4 Major Challenges and Barriers
3.4.1 Quality Flexible Training Options and Delivery
Persistent concerns remain regarding deficiencies in the quality of training delivery and
consistency of outcomes. According to the 2015 Environmental Scan, flexibility in training options
and delivery are critical to the manufacturing workforce in order to meet the skill priorities of the
sector, particularly in relation to training options for niche and thin markets into emerging and
advanced manufacturing opportunities in some downstream manufacturing areas. The scan has
found enterprises are keen for a system which addresses current and future skill needs, one which
assists with recruitment, workforce planning, career progression, skills recognition, development
and transition … [wanting] predictability, consistency, quality and flexibility, delivered through full
qualifications, skill sets and training on demand50.
Fundamental to raising quality from a delivery standpoint is a recasting of relationships between
industry and RTOs. It is incumbent upon industry to enter into negotiations with RTOs on an
informed basis - to understand their rights and to be clear with RTOs regarding expectations of
performance. It is also necessary for RTOs to understand the industry, its context and the practical
considerations that will determine issues such as delivery and assessment.
48
The Chamber of Minerals and Energy of WA; Statistical Summary, unpublished 49
The Forrest Review, Creating Parity, 2014 50
Manufacturing Skills Australia, Environmental Scan 2015
Page 32 of 78
3.4.2 Relevance of Qualifications and Funding
As the manufacturing environment becomes more sophisticated and technologically savvy to
maintain global competitiveness and currency, innovation is critical as are the skilling needs of the
industry to meet this end and increasingly, this is not aligning with a qualifications paradigm. In
some cases, the jump between units of competence and qualifications is too great with some
qualifications remaining too big for roles in industry. From a workforce development perspective, it
may be more appropriate for workers to have a base qualification (eg, Certificate II) and then
access skill sets as they progress to operate different equipment with a notion of a certain number
of skill sets equating to award of a higher level qualification.
In Western Australia, this is inconsistent with system force to course enrolment processes and
requirements. In addition, Western Australia is currently not reporting skill set activity.
This is compounded by the issue of thin markets in regional Western Australia. The RITC will be
conducting a project to trial an approach to skill sets in a regional setting as a means of increasing
VET activity and engaging industry.
Conversely, enterprises have also voiced their concerns for the removal of funding for existing
workers and the lack of funding for VET Fee Help for Certificate IV as this limits skilling
opportunities for workers in an environment which is calling for greater leadership and
management capability and multi-skilled, adaptable workers capable of problem solving and
innovative thinking51.
3.4.3 Industry Cost Competitiveness
It is not just the mining industry that is experiencing challenges with cost competitiveness. Labour
and input costs are impacting the Western Australian downstream process manufacturing sector
across the board. For the manufacturing industry to become sustainable and improve its global
competitiveness, it needs to focus on increasing efficiencies and productivity, advanced and
emerging sectors and address some of the challenges in terms of capacity, skill development,
access to markets and ability to link with R&D opportunities and other resources52.
3.4.4 Accessing a Skilled Workforce
The downstream process manufacturing workforce across Western Australia continues to
experience challenges in accessing a flexible and highly skilled labour force. The workforce
pressures which had been driven by the resources needs have eased and are now characterised
by technologically driven skills for an increasingly advancing manufacturing industry. As pointed
out in the 2015 MSA e-scan, the changing workforce characteristics have many implications for
workforce development and will need new approaches to attracting and retaining staff across all
levels, improving career path opportunities and provision of a variety of skill development programs
to ensure continual up-skilling opportunities. This will be explored in more detail in a section below
titled New and Emerging Skills.
The RITC will continue to work with employers and training providers to evaluate the extent of the
shortage and promote different strategies to mitigate this, including greater training and workforce
development opportunities, especially for younger Australians, more mature Australians and under-
represented groups such as women and Aboriginal Australians.
51
Manufacturing Skills Australia, Environmental Scan 2015 52
Manufacturing Skills Australia, Environmental Scan 2015
Page 33 of 78
3.4.5 Science, Technology, Engineering and Mathematics (STEM) Skills
Education and training needs to prioritise STEM participation, achievement and capability to meet
industry’s changing skill needs towards higher level technical and critical thinking skills. These
skills are fundamental in shaping future manufacturing and are already embedded in 75 per cent of
the world’s fastest growing occupations53. As outlined in the scan, a recent study has forecast
occupations with a high science and maths field of study are growing at almost double the rate of
jobs with low science and maths skill requirements.
Boosting STEM participation and completion rates will achieve greater innovation, productivity and
application of technical knowledge which in turn will improve Australia’s position against
international competition and growing global education levels. The national STEM agenda places
science at the centre of industry policy and supports a modern, flexible and highly skilled future
workforce, capable to adapt to change and capitalize on opportunities54. It should also have a
positive impact on youth employment outcomes with skills more closely aligned with the needs of
industry.
In 2014, the Technology and Industry Advisory Council (TIAC) released a report addressing the
optimisation of STEM education in Western Australian schools55. Importantly, this work identified
STEM challenges in schools and made recommendations for change. The diagram below,
illustrates the key STEM issues and challenges facing the education system.
Figure 5: Key school education factors limiting the development of a STEM capable
workforce Source: TIAC, Optimising STEM Education in WA Schools, February 2014, p10
3.4.6 Innovation, Research and Development
According to MSA’s latest e-scan, manufacturing accounts for a quarter of total annual business
research and development (R&D) expenditure in Australia yet holds only two per cent of global
R&D. In order for the industry to gain commercial gains from innovative ideas on a global scale, it
needs to collaborate with universities and research bodies for commercialising innovations amidst
a local regulatory environment supporting these pursuits. This is particularly important given
53 Manufacturing Skills Australia, Environmental Scan 2015 54 Manufacturing Skills Australia, Environmental Scan 2015 55
TIAC, Optimising STEM Education in WA Schools, prepared by Edith Cowan Institute for Education Research,
February 2014
Page 34 of 78
Australia’s unique manufacturing composition and number of small to medium sized enterprises
which individually have limited capacity for such collaboration. According to the MSA report, 92 per
cent of Australian business leaders believe they would be more successful at innovation through
partnership and collaboration. The sector also needs to improve its ability to commercialise
innovation, with Australia ranking 116th out of 142 countries for converting research dollars into
innovation outcomes56.
The outlook is optimistic with governments committed to providing the right economic incentives to
enable businesses to grow as seen through the Industry Innovation and Competitiveness Agenda
and the commitment to the establishment of the advanced manufacturing growth centre as a way
to foster innovation, entrepreneurship, commercialisation and address capability of the sector.
3.4.7 Language, Literacy and Numeracy Skills
Low levels of language, literacy and numeracy (LLN) skills are being increasingly recognised as an
issue across Australia. The 2013 Australian Workforce and Productivity Agency (AWPA) National
Workforce Development Strategy noted around 6 million Australians have “less than the minimum
prose literacy skills required to function fully in life and work”57. From an employer’s perspective,
LLN issues can impact upon a worker’s capacity to undertake their job role in a safe and
productive manner, however many workers have unidentified LLN issues which have an ongoing
impact on their work practices and productivity.
3.5 New and Emerging Skills
A new report by the Committee for Economic Development of Australia (CEDA)58 explores
Australia's future workforce, demonstrating how the shift towards technology is growing industry
sophistication and making sectors progressively more reliant on higher skills. Implementation of
technology, automation and data impact the deeper technical skills and capabilities needed to
ensure sustained international competitiveness and growth into the future.
For Australia to have an innovative, flexible, skilled and capable workforce it needs to boost
participation and completion rates in STEM subjects (science, technology, engineering and
mathematics), an issue raised in both MSA 2014 and 2015 environmental scans. As noted in the
MSA 2014 environmental scan:
Furthering development of advanced manufacturing technologies relies on high-
level application of STEM skills, as well as the ability to integrate advances into
manufacturing practice. As these technologies become more widespread, skill
development needs will increase in technology-driven design and operation.
Enterprises also need to continually develop their human capital to ensure
workplace practice maximises productivity and efficiency gains.59
According to the 2015 scan, in order for Australia to be innovative and grow its competitive
advantage it needs a workforce with the capacity to adapt and adopt new skills through education,
particularly given the rapid rise of STEM higher education degrees awarded in South East Asia60.
MSA sees the next wave of the industrial revolution centered around life-long learning amidst niche
areas of advanced manufacturing characterized by unique technologies, skills and supply chains
56
MSA, 2015 Environmental Scan 57
AWPA, National Workforce Development Strategy, March 2013, Pg. 12 58
CEDA, Australia’s Future Workforce, June 2015 59
MSA ibid 60
MSA, Environmental Scan 2015
Page 35 of 78
that cannot be easily replicated by lower cost countries61 as well as greater computer literacy as
the new norm. Leadership and management also play a key role in this equation as do stronger
outcomes for research and development capabilities.
As identified in the 2014 scan62 niche, specialised, high quality globally oriented manufacturing is
an area where Australian can develop a competitive edge. Locally that has been demonstrated
through a servicing of resource project related demand. MSA defines the skill implications for this
as follows:
Manufacturers need high-level technical skills in specialised areas. They need
solid design and creativity skills and ability to market their products and establish
brand identity. Knowledge-intensive products will require access to training in thin
markets and continual upskilling to ensure the latest best practice is applied in
operations. Often these enterprises are micro sized or small, adding further
challenge to achieving training viability for RTOs and enterprises. Micro-
multinationals also need skills in navigating and developing global markets and
ability to perform in the digital economy. Lean and agile production management
capabilities are also critical.63
Customer driven, service orientation and value adding are also themes explored in the MSA
environmental scans. The 2015 scan points to skill priorities which include:
computer proficiency
data analytics and programming
higher-level interpersonal/organisational
creative thinking and problem solving across a range of contexts and applications
logistics, procurement and supply chain management
project management
marketing, sales and industrial networking
61 MSA, Environmental Scan 2015 62
MSA, Manufacturing: It’s in our national interest, 2014 63
MSA, Ibid
Page 36 of 78
3.6 Occupations in Demand (ANZSCO Code)
Submission to SPOL 2015 – Focus List
ANZSCO Occupation Comments
233512 Mechanical
Engineer
In terms if RITC coverage, mechanical engineers are
employed across the mining, oil and gas and
downstream process manufacturing industries. Typically,
mechanical engineers are engaged in large numbers
during the design and initial construction of resources
projects. Despite this demand for mechanical engineers
will continue during the production and maintenance
phases as projects transition from construction over the
short to medium term.
Although WA has one of the highest retention rates for
engineers in the country, only about 60 per cent of
engineers are employed in recognized engineering
occupations, many moving away from practicing directly
in their discipline into senior management positions
particularly in the resources sector. Together with the
breadth of occupational reach and decline in recent
university graduates, these have led to employers
expressing difficulty in recruiting competent, experienced
mechanical engineers across resource sector projects
and turning to migration as a source of skilled
mechanical engineers.
233513 Production or Plant
Engineer
It is likely this occupation will remain in high demand over
the next five years as more projects become operational
across the country in both mining and oil and gas
industries. In a world of rapid technological change, the
need for experienced production engineers is critical as
the mining industry ramps up production, the oil and gas
plants come online and manufacturing employs
engineers across most industry areas for their wide
range of analytical and problem solving skills to propel it
into the next growth area in the Australian economy.
Given the extensive education, specialization and
experience required for employment into these roles,
production and plant engineers will remain in high
demand particularly across onshore and offshore
production and processing operations. As Australia’s
mining and oil and gas industries continue the transition
into production, these roles will become increasingly
critical and reliant on migration to meet demand.
233612 Petroleum Engineer There are shortages for skilled and experienced
petroleum engineers to work in offshore and onshore
operations and with seven LNG plants being
Page 37 of 78
commissioned between 2015 and 2018, demand for
petroleum engineers is expected to remain high.
According to Engineers Australia, in 2013-14 permanent
visas granted petroleum engineers increased by close to
20% and in the absence of local supply meeting demand
(particular in relation to experience) industry will rely
upon skilled migration as a primary mechanism for
meeting its demand. Recent anecdotal industry evidence
suggests petroleum engineer salaries have increased at
a higher rate than other oil and gas professions,
providing evidence of shortages in the industry. Similarly,
the Hays Quarterly Report October – December 2014
forecast Australia to be on the verge of an exceedingly
tight labour market for some highly skilled professionals
in high skill industries, including petroleum engineers,
maintenance and production supervisors with
instrumentation technicians and heavy diesel fitters
particularly sought after in Western Australia.
341111 Electrician (general) As the projects transition into the operations phase
electricians will still be in demand for maintenance
positions, particularly those holding engineering based
electrical qualifications. Given the number of projects
under construction and operation in Australia (8 mega
projects under construction in Australia, valued at more
than $5 billion and 44 projects at the Committed Stage
with a combined value of $228 billion, of which $116
billion is in Western Australia), the significant number of
electricians in training will result in critical shortages in
the period 2015 to 2018. Already enterprises have
expressed difficulty in recruiting experienced electrical
workers, complementing their existing trade
apprenticeship programs. Increasing use of technology
on resources projects will see strong demand for
electrical and instrumentation skills continue into the
medium to long term. It can be expected to intensify in
the longer term.
341112 Electrician (special
class)
Electricians (special class) play a crucial role in large
scale projects, in particular those in the resource
development sector, where they maintain the raft of
electrical infrastructure on site. With the introduction of
new technologies to mitigate operational costs, the skills
of electricians and instrumentation tradespeople for
installation and maintenance purposes will continue to
grow. Enterprises have expressed difficulty in recruiting
experienced electrical/instrumentation workers.
According to AWPA’s Resources Sector Skill Needs
2013 report, electricians comprise 3% of total mining
industry employment. As projects commence operations
Page 38 of 78
(particularly oil and gas projects) demand for special
class electricians is anticipated to remain firm. Given the
number of projects under construction and operation in
Australia the significant number of electricians in training
will result in critical shortages in the period 2015 to 2018.
399211 Chemical Plant
Operator
Chemical plant operators will be in very high demand,
especially in highly technical processing and refining
environments across WA. The numbers of these facilities
are likely to increase considerably in the next few years,
ramping up demand for skilled operators. If the recent
falls in the oil price translate into reductions in energy
input costs for a number of chemical and related
manufacturing sectors, increases in activity may also
drive demand for chemical plant operators.
Consultations with the Kwinana Industries Council (KIC)
has identified that chemical company employers within
the Kwinana heavy industry zone have reported
recruitment difficulties for process plant operators.
Significant and rapid expansion of Australia's LNG sector
has seen skill shortages continue for experienced LNG
process plant operators. The current seven LNG trains
in operation across Australia are expected to increase by
another 14 trains by 2016 as the sector enters further
production. With oil and gas operating companies
reporting international skill shortages for LNG process
operators, it is likely that chemical plant operators may
pursue opportunities in the LNG sector.
399212 Gas or Petroleum
Operator
Operators in the oil and gas industry will be in very high
demand over the next few years, from upstream oil and
gas production operations, to LNG production and
petroleum refining. Highly skilled and experienced
process operators, with knowledge of the oil and gas
industry, have consistently been in short supply and it is
estimated the number of skilled LNG plant operators
required for Australia’s new plants will increase the
current supply of operators at least six fold over the next
3-5 years, exacerbated as the number of LNG
processing facilities and upstream oil and gas production
facilities increases across Australia.
As reported in AWPA’s Resources Sector Skills Needs
2013, Deloitte Access Economics modelling projects
shortages in several professional and technical and trade
occupations as oil and gas operations move into
production capacity between 2015 and 2018, one of
which is gas, petroleum and power generation plant
operators. By 2018 Australia’s installed LNG capacity will
be around 86 million tonnes. LNG plant operators are
Page 39 of 78
highly skilled with a period of around 4-5 years post initial
qualification experience being seen as a minimum before
an LNG operator can work unsupervised.
These shortages are particularly concerning given the
significant investment profile of liquefied natural gas
projects (LNG). Already there is evidence that skill
shortages are affecting the competitiveness of Australian
LNG prospects by contributing to delays and increased
project costs. Wage growth reflects the difficulty in
obtaining suitable candidates for given occupations and
the overall lack of supply. Oil and gas operating
companies indicate operator salaries have been
increasing at a greater rather than CPI and increases
have been well above the vast majority of VET qualified
job roles in the sector.
In addition to the focus list, the following were also submitted within the non-focus list:
Submission to SPOL 2015 – Non Focus List
ANZSCO Occupation Comments
233111 Chemical Engineer Shortages of engineering professionals and chemical
engineers in particular are clear across the three RITC
industry areas. The raft of projects in the pipeline indicate
that the specialist and technical knowledge of chemical
engineers will be in demand across the state, as
evidenced by industry consultation and the considerable
number of job advertisements for this occupation online.
Engineering skill shortages are common in the WA
resources sector across multiple disciplines. The time lag
for graduate engineers to progress to skilled
professionals is also a factor for resource sector
companies.
234211 Chemist There are consistent shortages across RITC industries
for technically competent and experienced chemists, who
are in high demand across the state in the mineral and
hydrocarbons industry and the downstream process
manufacturing industry, with particular emphasis on the
manufacture of organic and inorganic chemicals.
Forecasts for skilled labour across Australia suggests
chemists will long be in high demand by the industry.
Skilled labour is a supplement to this issue in the short
term but in the long term encouraging science as a
career pathway should be encouraged.
311411 Chemistry
Technician
Chemistry and laboratory technicians work closely with
laboratory managers or supervisors to carry out the
Page 40 of 78
specialist testing requirements of the laboratory's clients
fuelled by the demand from WA’s mining industry for
mineral assay laboratories or more generally in forensic,
pathology or food testing laboratories. The ageing
population will see a greater demand for medical testing
and analysis to be performed and this will higher level
laboratory skills.
The current transition from construction to operations
across the resources sector will cause significant
increase in demand for laboratory services associated
with assaying and QA of mineral products. Also, industry
activity in the upstream resource sector, which is a key
source of business for the laboratory operations industry,
is a strong indicator that demand will continue.
An increasing focus on technology (automated sample
analysis) is changing the nature of qualifications
demanded by industry. In automated laboratories, the
bias in qualifications is moving towards higher level VET
qualifications with these people being typically
supervised by a tertiary qualified professional. This is
not reflected well in the SPOL.
511111 Contract
Administrator
As reported at the 2015 AOG conference, some roles
which do not have a standard qualification, such as
contract administrators or contract or procurement
managers, are crucial roles within a project. A 2014
report by Ernst & Young, Five things – Getting the basics
right in procurement, observe that there continues to be
a mismatch in the supply and demand of high quality
procurement professionals in the market and believe that
the market fundamentals will not change in the short
term. These administrators are fundamental enablers of
business strategy for achieving sustainable cost
reductions. In a marketplace with low commodity prices,
new contract and project management strategies are
needed to manage major projects in the resources
industry. Skilled administrators improve productivity and
the bottom line through improvements in workplace
practices which result in operational efficiencies. They
are critical to achieving supply chain optimization. As
reported by Mining Australia companies are faced with
developing solutions to meet reduced operating and
maintenance budget without compromising on quality,
safety and equipment performance. The 8 mega projects
under construction in Australia have significantly
increased the demand for experienced project managers
and administrators. It is now that investment needs to be
made in supporting pathways for project administrators
Page 41 of 78
and managers to ensure that we have necessary stocks
of experience to deliver the next phase of investment in
Western Australia's resources sector.
511112 Program or Project
Administrator
AWPA report and The October 2013 BREE Resources
and Major Projects report contain information that is
relevant to this occupation. According to the BREE
report, of committed investment in 2008, only 34 per cent
of investment was in "mega projects" (projects over $5
billion). By October 2013 this proportion had more than
doubled to 82 per cent. This shift towards mega projects
has significantly increased the demand for experienced
project managers and administrators. It is now that
investment needs to be made in supporting pathways for
project administrators and managers to ensure that we
have necessary stocks of experience to deliver the next
phase of investment in Western Australia's resources
sector.
591116 Warehouse
Administrator
The transition from construction to operations across the
resources sector will alter the skills mix required by the
sector. The production phase will bring increased
operational requirements that will cause an increase in
demand for warehousing facilities and associated
occupations such as warehouse administrators. The
likelihood of a marine supply base being established in
the Kimberley to deal with FLNG projects off Western
Australia will create further regional demand for
warehouse administration occupations.
In addition to these occupations, the following have been identified as being of priority to the
industry:
ANZSCO Occupation Comments
311000 Laboratory
Manager
Laboratory managers work across a wide range of
industries including mining, construction, health,
professional services and education. They work closely
with and supervise chemistry technicians working in
laboratories. The shift of the resources industry moving
into operations, industry activity in the upstream
resources sector, higher skills required in more
automated laboratories and the demands of an ageing
population will continue to drive the need for laboratory
managers across industry groups.
3.7 Workforce Development Opportunities
Each year the RITC undertakes annual strategic project work to address current and emerging
skills and workforce development issues in the Western Australia resources sector.
Page 42 of 78
The automation report involved targeted consultations with Western Australian stakeholders to
evaluate the potential impacts of automated technology on the WA resources sector and the skills
implications for the Western Australian workforce. The outcomes of the automation project in
particular, emphasized the demand for higher level skills in the Western Australian resources
sector. This is in line with the COAG targets for national skill reform, in terms of doubling the
number of higher qualification (diploma and advanced diploma) completions between 2009 and
2020.
For the downstream process manufacturing industries, the growing impact of technology is clear, in
particular for the more specialist industries such as composites manufacturing or polymer product
manufacturing. This has also been highlighted in the MSA 2014 and 2015 environmental scans
and also the MSA Symposium Stimulus – Manufacturing in 2030 the new horizon document. The
outcomes of the RITC automation project identified the impact of automation on skills which in turn
will impact these industry sectors, emerging and niche areas and advanced manufacturing in
general.
There is also a growing need for evidence of competency across RITC industries, especially for
downstream industries that service the upstream resources sector. For example, organisations
manufacturing refractory bricks or monolithic refractory facilities have to provide evidence to the
project owner that their skilled workers have the required competencies to undertake this specialist
work. As such, informal training on the job is now not sufficient and companies are turning to
nationally recognized training to fill the void. In many cases, such occupations are deemed as thin
markets making it difficult to attract RTO interest. This is particularly the case when learning
materials need development and where teaching expertise is not of sufficient depth.
This situation becomes more difficult in terms of on the job training. For some enterprises, “on the
job” would in reality be on the client’s project, and sub-contractors have raised concerns about the
potential impact on tender contracts if some of the skilled workers would be in training at the time
of the project.
3.7.1 VET Training Data by Qualification
Although the process manufacturing and laboratory operations sectors in Western Australia have
been making long-term investments in the skilling of their workforces, changes to government
funding may add to skill shortages in the near future, heightened by the number of older workers
retiring from the industry. The recent constriction of the existing worker trainee list for subsidized
qualifications in laboratory operations and the removal of funding for VET Fee Help for Certificate
IV are yet to determine how these changes will affect this cohort of workers and future skills.
The graphs below, however, point to varied growth patterns. NCVER data illustrates a consistent
decrease in the level of engagement with VET enterprises in laboratory operations since 2012, a
converse growth in VETiS enrolments in chemical, hydrocarbons and oil refining which has more
than tripled in the last 3 years and manufacturing which has increased by 46 per cent64.
It is critical the value of VET in the workplace is promoted to advocate career options into the
industries and to stimulate growth. Although 68 per cent of former apprentices and trainees
remained with their employer after their training had finished65, attempts to deepen employee-
employer engagement and build workforce capacity should be encouraged. Engaging the next
generation to take up manufacturing careers66, increasing computer and STEM proficiency across
64
NCVER VOCSTATS, December 2014 65
NCVER, Apprentice and Trainees Destinations Survey, 2010 66
Manufacturing Skills Australia, 2015 Environmental Scan
Page 43 of 78
all education providers and collaboration with VET stakeholders, deepening knowledge, up-skilling
and cross-skilling workers will help shape a sustainable future and an innovative and globally
competitive industry.
An area where the RITC could add the most value is assisting smaller companies in these sectors,
which form the majority of the market67, to make the most of available funding and training
opportunities.
3.7.2 Pre-Employment
In order to outline pre-employment trends in the downstream process manufacturing industry,
additional analysis of certain institutionally-based training (IBT)68 has been undertaken, specifically
for the MSL09, MSA07, PMA08 and PMB07 training packages.
Pre-employment training programs are often designed as short institutional courses for new
entrants to the sector to give students an insight into the industry and equip them with the basic
underlying skills required to perform entry level work.
MSA has designed two Certificate I programs that are particularly tailored to the entry level worker:
MSA10107 Certificate I in Manufacturing (Pathways) should provide the student with a set
of competencies that collectively open up pathways into employment and/or further study69
MSA10207 Certificate I in Process Manufacturing – intended for entry to the industry and
addresses job outcomes at this level. It has been developed as a common certificate for
use across the three process manufacturing sectors (covered in PMA09, PMB07, PMC10
training packages)70
MSA’s Certificate II in Process Manufacturing (MSA20107) has also been designed to cross over
the three main process manufacturing training packages and is suitable as an entry level
qualification.
The recent commonwealth review of training packages and accredited courses encouraged the
pursuit of higher level qualifications. It is anticipated the withdrawal of government employment
incentives and funding will increase attainment of higher level certificates and diplomas. As seen in
the graphs below students have not been attracted to higher qualifications, with the exception of
MSL and PMA which show a decreasing up-take of these in the last few years.
For the laboratory operations sector, the Certificate II in Sampling and Measurement (MSL20109)
is accepted as a pathway qualification, leading either to employment or further study. This
qualification has been designed to offer entry level training for sampling and measurement skills
applied across a range of industries with various occupational outcomes, ranging from samplers
and testers, to production operators, to field assistants71.
Currently, the Chamber of Commerce and Industry (CCI) is developing a new Class B
apprenticeship pathway to supplement the existing PMA traineeship qualification in process plant
operations to provide opportunities for school leavers without prior industry experience to enter the
oil and gas industry. This qualification is equally relevant to the downstream process manufacturing
sector.
67
ABS, Counts of Australian Business 2009 68
National Centre for Vocational Education Research (NCVER), VOCSTATS DataCube, Apprentice and Trainee Data,
October to December 2014 69
http://training.gov.au/TrainingComponentFiles/MSA07/MSA07_R8.1.pdf 70
http://training.gov.au/TrainingComponentFiles/MSA07/MSA07_R8.1.pdf 71
http://training.gov.au/TrainingComponentFiles/MSA07/MSA07_R8.1.pdf
Page 44 of 78
The charts below indicate the delivery of various RITC training packages in an institutional context,
indicating the proportion of Certificate I and II level programs which are often utilized as pre-
employment programs.
For the MSA07 Certificate I and particularly PMA08 Certificate II programs the charts below
indicate a strong and growing take up by students in Western Australia. The enrolments for the
MSL09 programs have declined since 2011 across all enrolments, with Certificate II attracting
around 40 students compared to an excess of 100 enrolments in 2011.
It is expected that changes to requirements in Western Australia for attainment of the Western
Australian Certificate of Education (WACE) will stimulate demand for process manufacturing
qualifications at the lower qualification levels. Providing students with choice for tertiary and
vocational studies in turn presents schools with opportunities to fully utilize their resources which
should result in a growing number of Certificate II qualifications being undertaken by students in
the coming years, continuing the trend in replacing Certificate I qualifications.
As outlined in the 2015 scan, manufacturing and VET must work together to ensure industry needs
are met with a capable highly skilled workforce to create competitive, higher value operations
capable of thriving in high cost environments72.
Figure 6: RITC IBT VET Enrolments for MSA Training Package Source: Department of Training and Workforce Development, June 2015
72
Manufacturing Skills Australia, 2015 Environmental Scan
0
10
20
30
40
50
60
70
2010 2011 2012 2013 2014
RITC VET Enrolments for MSA Training Package
411 Advanced Diploma
421 Diploma
511 Certificate IV
514 Certificate III
524 Certificate I
Page 45 of 78
Figure 7: RITC IBT VET Enrolments for PMA Training Package
Source: Department of Training and Workforce Development, June 2015
Figure 8: RITC IBT VET Enrolments for PMB Training Package
Source: Department of Training and Workforce Development; June 2015
0
50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014
RITC VET IBT Enrolments for PMA Training Package
411 Advanced Diploma
421 Diploma
511 Certificate IV
514 Certificate III
521 Certificate II
0
1
2
3
4
5
6
7
8
9
2010 2011 2012 2013
RITC VET IBT Enrolments for PMB Training Package
514 Certificate III
521 Certificate II
Page 46 of 78
Figure 9: RITC IBT VET Enrolments for PML Training Package
Source: Department of Training and Workforce Development; June 2015
Figure 10: RITC IBT VET Enrolments for MSL Training Package Source: Department of Training and Workforce Development, June 2015
3.7.3 Apprenticeships and Traineeships
Companies surveyed for the 2015 MSA Environmental Scan report that although there is a strong
commitment to apprenticeships, current take up numbers are not meeting industry need across
manufacturing sectors73 with industry flagging skill shortages into the future, particularly given the
ageing industry workforce. There is also a concern apprentice skill levels are not meeting the
needs of advanced manufacturing.
73
Manufacturing Skills Australia, 2015 Environmental Scan
0
50
100
150
200
250
300
350
2010 2011 2012
RITC VET IBT Enrolments for PML Package
411 Advanced Diploma
421 Diploma
511 Certificate IV
514 Certificate III
521 Certificate II
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014
RITC VET IBT Enrolments for MSL Package
411 Advanced Diploma
421 Diploma
511 Certificate IV
514 Certificate III
521 Certificate II
Page 47 of 78
Training data for apprentices and trainees has been analyzed for the downstream process
manufacturing industries of Western Australia through NCVER74.
This analysis was undertaken for all industry subdivisions identified as part of downstream process
manufacturing to allow easy comparison with ABS Census labour force data.
Figure 11 below highlights the growth in the numbers of apprentices and trainees in these
downstream sectors. As at December 2014 there was little change in the number of apprentices
and trainees in this industry area compared with the same period in 2013, remaining significant
(around 1,600 in each year).
Figure 11: Apprentices and Trainees in Training in Western Australia, Employed in the
Downstream Process Manufacturing Industry (ANZIC 17, 18, 19, 20, 21, 6910 and 6925)
Source: NCVER VOCSTATS; December 2014
Figure 12 overleaf is a pictorial representation of those industry subdivisions employing
apprentices or trainees, and their relative share. As at December 2014, the principal employers of
apprentices and trainees within downstream process manufacturing are:
Scientific testing and analysis sciences
Alumina production
Clay brick manufacturing
Glass and glass product manufacturing
Rigid and semi-rigid polymer product manufacturing
74
NCVER, VOCSTATS, December 2014
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Oct - Dec2009
Oct - Dec2010
Oct - Dec2011
Oct - Dec2012
Oct - Dec2013
Oct - Dec2014
Apprentices and Trainees in Downstream Process Manufacturing WA
Total
Page 48 of 78
Figure 12: Western Australian Downstream Industries Employing Apprentices and Trainees
in Q4 2014 Source: NCVER VOCSTATS, December 2014
As the chart below (Figure 13) indicates, the majority of apprentices and trainees are still employed
within the technicians and trades workers ANZSCO group, as would be expected.
1% 0% 7%
8%
8%
4%
2%
4%
5%
14%
45%
1%
Distribution of Apprentices and Trainees in Downstream Process Manufacturing - Q4
2014
1709 - Other Petroleum and CoalProduct Manufacturing
1841 - Human Pharmaceuticaland Medicinal ProductManufacturing
1912 - Rigid and Semi-RigidPolymer Product Manufacturing
2010 - Glass and Glass ProductManufacturing
2021 - Clay Brick Manufacturing
2034 - Concrete ProductManufacturing
2090 - Other Non-MetallicMineral Product Manufacturing
2110 - Basic Ferrous MetalManufacturing
2122 - Steel Pipe and TubeManufacturing
2131 - Alumina Production
6925 - Scientific Testing andAnalysis Services
6910 - Scientific ResearchServices
Page 49 of 78
Figure 13: Occupational Breakdown for Apprentices and Trainees in Downstream Process
Manufacturing Source: NCVER VOCSTATS, December 2014
3.7.4 VETiS
The RITC promotes different VET in Schools (VETiS) initiatives. However, as the following Figure
14 outlines, VETiS programs currently only form a very small proportion of all institutionally-based
training. The RITC believes there is scope for a greater engagement between schools and sections
of the process manufacturing industries, particularly in light of recent WACE changes with students
given higher education and vocational study options. It is important this group is encouraged to
explore opportunities within the downstream process manufacturing sector to improve student up-
take and mitigate the continued to fall in enrolments.
2% 0%
81%
0%
9%
0% 2% 5%
Occupational Breakdown for Apprentices and Trainees in Downstream Process
Manufacturing - Q1 2014
1 Managers
2 Professionals
3 Technicians and TradesWorkers
4 Community and PersonalService Workers
5 Clerical and AdministrativeWorkers
6 Sales Workers
7 Machinery Operators andDrivers
8 Labourers
Page 50 of 78
Figure 14: RITC IBT Course Enrolments (MSA, MSL, PMA, PMB, PMC, PML)
Source: Department of Training and Workforce Development; VESU; June 2015
Figure 15 illustrates the distribution of VETiS by qualification level across the training package
coverage. The laboratory operations training package is still most dominant, followed by chemical,
hydrocarbons and oil refining, up from 2013, and manufacturing close to doubling since the same
time last year. The growing interest in the PMA training package is not surprising given the growth
in activity in the oil and gas sector.
Figure 15: RITC Course Enrolments VET in Schools by Training Package
(MSA, MSL, PMA, PMB, PMC, PML) Source: Department of Training and Workforce Development; June 2015
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012 2013 2014
RITC IBT Course Enrolments (MSA, MSL, PMA, PMB, PMC, PML)
VET in Schools
Non VET in Schools
0
10
20
30
40
50
60
70
80
90
2010 2011 2012 2013 2014
RITC Course Enrolments for VET in Schools by Training Package
MSA Manufacturing TrainingPackage
MSL Laboratory Operations
PMA Chemical, Hydrocarbonsand Oil Refining
PMB Plastics, Rubber andCablemaking
PMC Manufactured MineralProducts
PML Laboratory Operations
Page 51 of 78
3.7.5 Higher Education Pathways
In the area of higher education, process manufacturing and laboratory operations offer an
interesting comparison.
There is a stark comparison in the take-up of tertiary study between the two divisions, with around
17 per cent of people employed in manufacturing holding a tertiary qualification or above compared
to around 56 per cent of people employed in professional services75.
Commonwealth agenda and changes to policy are the agents of change which will lift higher
education enrolments. With greater advocacy for students to complete science, technology,
engineering and mathematics (STEM) subjects in schools, this will increase the capacity and
capability of students to explore pathways into higher education courses to provide industries with
a skilled workforce for the future and grow Australia’s innovation and competitiveness in a global
marketplace.
3.8 Downstream Process Manufacturing Industry Issues
3.8.1 Technology and Advanced Manufacturing
Advanced manufacturing is a product of a new industrial age. Manufacturing is moving away from
traditional manufacturing business models and becoming more sophisticated, high-tech and
globally minded. The sector is adapting to advances in technology and automation, global
connectivity through computation and a new unprecedented pace of change. For manufacturing to
be sustainable it needs to be globally competitive and work collaboratively to permeate globalized
supply chains particularly in emerging economies targeting niche and high end products.
3.8.2 Skill Development
This shift towards technology is growing industry sophistication and making the sector
progressively more reliant on higher skills. As lower skill roles become impacted by emerging and
evolving technology and increasingly obsolete, new ones emerge requiring higher skills, critical
thinking, problem solving and digital literacy. To gain a competitive advantage and respond to the
challenges of a technical environment, manufacturing needs a flexible and skilled workforce,
integrating leadership and management skills and high level STEM capability and application to
drive innovation, productivity and efficiency gains. As such, greater attention needs to be focused
on the strengthening and development of science, technology, engineering and mathematics
capability.
3.8.3 Training
A flexible, responsive and innovative VET sector to train and up-skill local manufacturing sector
workforce is essential to ensure future industry and economic growth. For the workforce to respond
to the challenges of a more complex environment and a growing demand for higher skills, training
packages, the vocational training provision and delivery of training must be flexible, timely, fit for
purpose, relevant for employers and led by industry needs particularly where niche and thin
markets are concerned. Greater engagement of STEM skills and their application is critical across
education sectors, including VET qualifications.
75
ABS Education and Work 2011
Page 52 of 78
3.8.4 Government Policy and Research and Development Outcomes
It is crucial for Australia to have a regulatory environment which supports areas of competitive
strength, addresses cost pressures, drives skill capacity and supports businesses to expand scope
and access markets. The Australian Government recognizes the importance of advanced
manufacturing as one of the top five priority growth areas and is developing initiatives to improve
manufacturing’s global market position. Under the Industry Innovation and Competitiveness
Agenda, already work is being done to grow mining equipment, technology and services (METS)
and improving collaboration between industry, science and research to ensure Australia is part of
global supply chains.
Further work needs to be done to strengthen research and development opportunities and
outcomes for businesses through increased incentives to innovate, and collaboration between
industry stakeholders and universities. As pointed out in the 2015 Environmental Scan,
government leadership is fundamental to building and attracting local investment and commitment
and expanding manufacturing on a global stage.
The development of the advanced manufacturing growth centre should address issues around
business support and research and development outcomes.
3.8.5 Ageing Workforce
There is an ageing workforce in the downstream process manufacturing industry in Western
Australia. To mitigate the long term risks of skills shortages, attrition and workforce impact and for
the industry and the nation to prosper long term, we need to encourage broader and more diverse
workforce participation and ensure appropriate transfer of knowledge to less experienced staff
through training and mentoring.
3.8.6 Youth
For this sector, ensuring the industry is on the radar of young people making career decisions is
fundamental for the sustainability of this sector in the coming years. With changes to the education
system in Western Australia placing a greater focus on vocational pathways in school, it is timely to
review strategies and mechanisms to determine how more can be done in this area.
3.8.7 Gender Diversity
In recent years there has been low female participation in the Western Australian downstream
process manufacturing workforce. Attracting and retaining more women in the industry is a means
of addressing skills challenges. Australian governments recognise the social and economic
benefits of increasing female workforce participation and including them in the future skills pipeline
with a focus on initiatives to increase the number of girls undertaking STEM subjects at school and
promote and improve rates of women into engineering. The Filling the Pool Report provides many
recommendations to addresses this further76.
3.8.8 Indigenous Australians
It is important we increase the representation of Indigenous Australians in the sector and equip
them with the skills and capabilities to thrive in an environment characterised by innovative
technologies. Fundamental to a greater participation of Indigenous Australians in employment is
the need to improve educational attainment of Indigenous people and this will need further reform
and collaborations of all stakeholders to assist effective future outcomes.
76
Committee for Perth, Filling the Pool Report, June 2015
Page 53 of 78
3.8.9 Relevance of ANZSCO for Skilled Occupation Lists
Use of the ANZSCO system of classification does not accurately reflect innovative and emerging
occupations across RITC industries, especially within process manufacturing and laboratory
operations.
3.8.10 VET in Schools
To ensure that the downstream process manufacturing industries can continue to train and develop
a sustainable workforce in the future, ensuring access to a high quality, flexible VET in Schools
program that meets industry’s needs is important.
3.8.11 Language, Literacy and Numeracy Skills
Low levels of LLN skills in the downstream manufacturing workforce are also an issue that has
been raised with the RITC. To ensure that workforce safety is not compromised and to address
productivity issues, addressing LLN skills should be a priority.
Page 54 of 78
SECTION 4 INDUSTRY ISSUES AND STRATEGIES
Skilling WA: Strategic Goal 1
Increase participation in the workforce particularly among the under-employed and disengaged, mature-aged workers, Aboriginal and Torres
Strait Islander and other under-represented groups.
Issue (from Section 3) Strategy Skilling WA
Priority Action
Greater Female Workforce Participation
The RITC process manufacturing industries show a
wide variance in the participation of women in the
workforce. With 2011 census data showing women
comprise only 21.19 per cent of the process
manufacturing workforce, there is potential to develop
strategies to improve the representation of women
across the process manufacturing industries.
Continue to champion greater female workforce participation
in the downstream process manufacturing industry through
independent consultation and communications channels.
Investigate the potential of a pilot project in the downstream
process manufacturing industry to promote greater
workforce diversity and increased workforce participation for
women and Aboriginal Australians in these smaller specialist
enterprises.
Undertake a more in-depth analysis of the representation of
women across the process manufacturing industries.
1.1.1 – Industry
leadership in
workforce
participation
1.2.6 – Workforce
participation of
under-represented
groups
Page 55 of 78
Skilling WA: Strategic Goal 3
Attract workers with the right skills to the Western Australian workforce and retain them by offering access to rewarding employment and a
diverse and vibrant community and environment to live in.
Issue (from Section 3) Strategy Skilling WA Priority
Action
Ageing Workforce
Process manufacturing industries in Western
Australia generally have an older age workforce
profile making them susceptible to a loss of skills and
knowledge when this component of the workforce
leaves.
Develop information identifying different funding
opportunities and strategies to assist employers with
this workforce challenge and ensure that employers
can plan for this change, and develop strategies that
will allow them to remain attached to the industry in a
training and/or mentoring role to prevent loss of
operational knowledge and experience from the
industry as recommended in the RITC
Apprenticeships report.
3.1.1 – Industry leadership
in attraction and retention
Accessing and Retaining a Skilled Labour Force
The Western Australian RITC industries continue to
experience challenges in accessing and retaining the
appropriately skilled labour required in a timely and
cost-effective manner.
Continue to promote careers in the RITC industries to
young people and more mature people.
Work with industry partners to identify retention tools
such as training, work culture and employee
engagement initiatives to improve industry retention
rates and to undertake desktop research on retention
strategies in practice that can be promoted through
the RITC website and newsletters to industry.
3.1.1 – Industry leadership
in attraction and retention
Page 56 of 78
Skilling WA: Strategic Goal 4
Provide flexible, responsive and innovative education and training which enables people to develop and utilize the skills necessary for them to
realize their potential and contribute to Western Australia’s prosperity.
Issue (from Section 3) Strategy Skilling WA Priority
Action
Quality and Flexibility of Delivery
A flexible, responsive and innovative VET sector is
essential to train and up-skill the local resources
sector workforce with the skills required. In the
coming years the sector’s skill requirements will
adapt following the adoption of greater automation
technology. In a more contestable training market, a
danger exists that providers will not service thin
market areas resulting in parts of industry not having
access to publicly supported vocational education
and training places.
Continue to broker greater industry involvement in
training package development and training delivery.
4.2.1 – Industry leadership
in training
Lack of STEM Focus
A significant number of technical and professional
occupations within the contemporary process
manufacturing sector require individuals that have
well-developed science, technology, engineering and
mathematics (STEM) skills.
Promote science, technology, engineering and
mathematics (STEM) pathways to ensure that VET
and HE initiatives reflect the expertise in demand by
the Western Australian resources sector.
4.2.1 – Industry leadership
in training
Page 57 of 78
Language, Literacy and Numeracy (LLN)
Low levels of LLN skills in the downstream
manufacturing workforce are also an issue that has
been raised with the RITC. To ensure that workforce
safety is not compromised and to address
productivity issues, addressing LLN skills should be
a priority.
Continue to promote training in LLN skills to ensure
that the Western Australian process manufacturing
workforce is able to meet industry demand.
The proposed workforce development project
targeting the process manufacturing industries will
seek to gather intelligence on the scope of LLN
issues.
4.2.1 – Industry leadership
in training
VET in Schools
To ensure that the downstream process
manufacturing industries can continue to train and
develop a sustainable workforce in the future,
ensuring access to a high quality, flexible VET in
Schools program that meets industry’s needs is
important.
Explore opportunities for VETiS programs that
address process manufacturing industry needs
leveraging the previous RITC process manufacturing
project outcomes. This will include engagement with
school VET coordinators, industry, individual schools
and school associations.
4.2.1 – Industry leadership
in training
Page 58 of 78
SECTION 5 RECOMMENDED PRIORITY ACTION PLAN
Skilling WA Strategic Goal 3: Accessing and retaining a skilled labour force.
Strategy from Section 4: Explore opportunities for VETiS programs that address process manufacturing industry needs leveraging the previous RITC
process manufacturing project outcomes. This will include engagement with school VET co-ordinators, industry, individual schools and school
associations.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
Undertake a detailed analysis of VETiS delivery in the process
manufacturing industries and also gauge potential for industry
engagement in VETiS programs. Working with schools in target
areas (identified from those in close proximity to process
manufacturing industry enterprises prepared to be engaged with
VETiS), examine appropriate delivery models for implementation.
This work will be informed by the experiences of the Kwinana
Industries Council in engaging with process manufacturing
industries based in the Kwinana Heavy Industrial Area and also
schools located in the Kwinana community and surrounds.
Gather and analyse detailed system data
across process manufacturing training
packages relating to VETiS.
Consult with KIC and Kwinana community
schools to identify critical success factors
for relevant KIC programs.
Consult with industry to determine sector
and enterprises prepared to engage with
VETiS programs as a means of addressing
workforce development issues.
Identify target schools and engage with
VET coordinators to determine potential for
partnership to be developed.
Explore delivery issues (RTOs,
infrastructure requirements, learning
resources, etc) including VETiS register to
determine appropriate delivery models.
Develop implementation plan for a pilot
program involving industry, schools and
RTOs within funding constraints and
Medium-High 2015/16
Page 59 of 78
execute plan.
Undertake evaluation.
Lead Agency: RITC
Skilling WA Strategic Goal 4:
Strategy from Section 4: Continue to broker greater industry involvement in training package development and training delivery.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
Training packages are a reflection of industry skill need
expressed in units of competence, skill sets and qualifications.
For training packages to remain relevant, industry must remain
engaged in the development and review process.
Work with MSA (and its successor Skills
Service Organisation from 1 January 2016)
to promote stakeholder feedback
mechanisms and encourage industry
representatives to play a role in training
package development.
Provide forums for industry and RTO
representatives to highlight industry
changes and opportunities and discuss any
changes in the industry or VET
environment.
Participate in various industry and training
advisory networks to promote best practice
in training and workforce development.
Support national strategies to address
issues around quality training delivery.
High
September 2016
Lead Agency: RITC
Page 60 of 78
SECTION 6 PLAN ADMINISTRATION
Plan Contact
This plan is maintained by the Manager for the Resources Industry Training Council. Feedback
regarding this plan should be made in writing to:
a Email: [email protected]
b Mail: RITC, Locked Bag N984, Perth, WA 6844
c Fax: (08) 9221 3701
d Office phone number: (08) 9220 8538
Review Requirements and Issue History
Schedule 2 of the Service Agreement requires that this plan is reviewed and updated annually.
This issue entirely supersedes the previous issue of the plan. Superseded issues should be
destroyed, or clearly marked as superseded and removed from general circulation and the Training
Council website.
Issue No. Year Approved Comments/Summary of Main Changes
2 2014 Updated ABS data, training data, industry intelligence, strategies
and priority actions.
3 2015 Updated ABS data, training data, industry intelligence, strategies
and priority actions.
Distribution List
This plan is issued electronically on the Training Council website after it is approved. Print/paper
copies are provided as follows (if applicable).
This IWDP will be issued electronically via the RITC website, www.ritcwa.com.au. It will also be
forwarded through to the RITC Advisory Board.
Consultation for this Issue
The review of this issue of this plan was coordinated by the Manager for the Resources Industry
Training Council. This issue was updated/re-written as part of the annual review process and the
main round of consultation with industry representatives and the Resources Industry Training
Council Advisory Board occurred throughout 2014.
Over this period the committee invited comment from a range of stakeholders, at broad forums
such as the RITC/SkillsDMC Network meetings, as well as independent industry consultation.
Communications Plan Summary
Once the plan is approved, its update will be:
a endorsed by the Resources Industry Training Council Advisory Board
b noted by the Department of Training and Workforce Development
c posted on the Resources Industry Training Council website and promoted through
social media.
Page 61 of 78
Validation of this Plan
Arrangements in this plan will be validated within the annual review cycle through consultation with
the Resources Industry Training Council Advisory Board at the quarterly meetings.
Page 62 of 78
SECTION 7 LIST OF TABLES
This section should be used to provide a list of tables and graphs used within the main body of the
document.
Number Name of Table or Graph
Table 1: Western Australian Downstream Process Manufacturing Industry Workforce by
Occupation - Comparison of Downstream Process Manufacturing Industry Sub-divisions; Source:
2011 Census of Population and Housing. ..................................................................................... 25
Figure 1: Australia’s Plastics and Chemicals Industry; Source: PACIA, Adding Value – The critical,
enabling role of the chemicals and plastics industry for Australia’s future, July 2014. ................... 17
Figure 2: Western Australian Downstream Process Manufacturing Workforce by Occupation
(ANZSCO 1 digit); Source: 2011 Census of Population and Housing. ........................................... 24
Figure 3: Western Australian Downstream Process Manufacturing Workforce Age Profile; Source:
2011 ABS Census of Population and Housing. ............................................................................. 29
Figure 4: Western Australian Downstream Process Manufacturing Workforce Age Profile; Source:
2011 Census of Population and Housing. ..................................................................................... 30
Figure 5: Key school education factors limiting the development of a STEM capable workforce;
Source: TIAC, Optimising STEM Education in WA Schools, February 2014, p10 ......................... 33
Figure 6: RITC IBT VET Enrolments for MSA Training Package; Source: Department of Training
and Workforce Development, June 2015.. .................................................................................... 44
Figure 7: RITC IBT VET Enrolments for PMA Training Package; Source: Department of Training
and Workforce Development, June 2015.. .................................................................................... 45
Figure 8: RITC IBT VET Enrolments for PMB Training Package; Source: Department of Training
and Workforce Development; June 2015. ..................................................................................... 45
Figure 9: RITC IBT VET Enrolments for PML Training Package; Source: Department of Training
and Workforce Development; June 2015.. .................................................................................... 46
Figure 10: RITC IBT VET Enrolments for MSL Training Package; Source: Department of Training
and Workforce Development; June 2015.. .................................................................................... 46
Figure 11: Apprentices and Trainees in Training in Western Australia, Employed in the
Downstream Process Manufacturing Industry (ANZIC 17, 18, 19, 20, 21, 6910 and 6925); Source:
NCVER VOCSTATS; December 2014.. ........................................................................................ 47
Figure 12: Western Australian Downstream Industries Employing Apprentices and Trainees in Q4
2014; Source: NCVER VOCSTATS; December 2014.. ................................................................. 48
Figure 13: Occupational Breakdown for Apprentices and Trainees in Downstream Process
Manufacturing; Source: NCVER VOCSTATS – December 2014. .................................................. 49
Figure 14: RITC IBT Course Enrolments(MSA, MSL, PMA, PMB, PMC, PML); Source: Department
of Training and Workforce Development; VESU; June 2015. ........................................................ 50
Figure 15: RITC Course Enrolments VET in Schools by Training Package (MSA, MSL, PMA, PMB,
PMC, PML); Source: Department of Training and Workforce Development; June 2015. ............... 50
Page 63 of 78
SECTION 8 GLOSSARY
The following terms that are used in this plan are particular to this Training Council.
Acronyms
Please note that all terms are written in full before acronyms are used.
ABS Australian Bureau of Statistics
ACEPT Australian Centre for Energy and Process Training
ADIA Australian Drilling Industry Association
AIP Australian Industry Participation
ANZSCO Australian New Zealand Standard Classification of Occupations
ANZSIC Australian New Zealand Standard Industry Classification
APLAC Asia Pacific Laboratory Accreditation Cooperation
APPEA Australian Petroleum Production and Exploration Association
AQF Australian Qualifications Framework
ASQA Australian Skills Quality Authority
AWDC Aboriginal Workforce Development Centre
AWPA Australian Workforce and Productivity Agency
AWRA Australian Women in Resources Alliance
BREE Bureau of Resources and Energy Economics
CME Chamber of Minerals and Energy of Western Australia
CMT Construction Materials Testing
COAG Council of Australian Governments
CPM Carbon Pricing Mechanism
DEEWR Department of Education, Employment and Workplace Relations
DIAC Department of Immigration and Citizenship
DIDO Drive-In Drive-Out
DIISRTE Department of Industry, Innovation, Science, Research and Tertiary Education
DMP Department of Mines and Petroleum
DSD Department of State Development
DTWD Department of Training and Workforce Development
EAG Energy Apprenticeships Group
EATC Engineering Automotive Training Council
EBT Employment-based training
EIS Exploration Incentive Scheme
Page 64 of 78
EMAs Enterprise Migration Agreements
ENS Employer Nomination Stream
EOWA Equal Opportunity for Women in the Workplace Agency
EUPA Electrical, Utilities and Public Administration Training Council
FID Final Investment Decision
FIFO Fly-in Fly-out
FLNG Floating Liquefied Natural Gas (facility)
GSP Gross State Product
HE Higher Education
IBT Institutionally-based training
ICNL Industry Capability Network Limited
ILAC International Laboratory Accreditation Cooperation
ILP Indigenous Leadership Program
IWDP Industry Workforce Development Plan
LAs Labour Agreements
LNG Liquefied Natural Gas
MCA Minerals Council of Australia
MEA Mining Education Australia
MEP Metallurgical Education Partnership
MGH Minerals Geoscience Honors
MGM Minerals Geoscience Masters
MINAD Minerals Industry National Associate Degree Program
MRRT Minerals Resource Rent Tax
MSA Manufacturing Skills Australia
MTEC Mining Tertiary Education Council
NATA National Association of Testing Authorities
NCVER National Centre for Vocational Education and Research
Nfd not further defined
NICNAS National Industrial Chemicals Notification and Assessment Scheme
NOLA National Occupational Licensing Authority
NOLS National Occupational Licensing System
NOM Net Overseas Migration
NRSET National Resources Sector Employment Taskforce
NSSC National Skills Standards Council
NWS North West Shelf
Page 65 of 78
OEM Original Equipment Manufacturer
OS&H Occupational Safety and Health
PACIA Plastics and Chemicals Industries Association
PwC Pricewaterhouse Coopers
RAP Reconciliation Action Plan
RITC Resources Industry Training Council
RMAs Regional Migration Agreements
RSMS Regional Skilled Migration Scheme
RSPT Resource Super Profits Tax
RTO Registered Training Organisation
SAMP Supplier Access to Major Projects
SIA Safety Institute of Australia
SIA Strategic Industry Audit
SPOL State Priority Occupation List
STP State Training Provider
TAC Training Accreditation Council
VET Vocational Education and Training
VETIS VET in Schools
VOC Verification of Competency
WASMOL Western Australian Skilled Migration Occupation List
WIMWA Women in Mining Western Australia
WIP Work Innovation Program
Page 66 of 78
SECTION 9 APPENDIX
Appendix 1: Key RITC Industry Areas – Projected Economic and Activity Conditions
(Australia) Source: IBISWorld, June 2015
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
B0601 Black Coal Mining
41.0 -4.0% 2.9% 377 5.10% 2.1 19
B0700 Oil and Gas Extraction
41.1 5.8% 15.1% 24 70.00% 28.8 17
B0801 Iron Ore Mining 63.1 7.2% 5.4% 39 97.60% 61.6 38
B0802 Bauxite Mining 2.2 11.7% 2.1% 4 57.90% 1.3 2
B0803 Copper Ore Mining
6.6 1.2% 1.3% 69 18.90% 1.2 13
B0804 Gold Ore Mining 12.3 3.4% 1.4% 623 69.80% 8.6 435
B0805 Mineral Sand Mining
2.5 5.9% 3.4% 143 43.90% 1.1 63
B0806 Nickel Ore Mining
3.7 -3.8% 3.7% 34 71.80% 2.7 24
B0807 Silver-Lead-Zinc Ore Mining
5.0 2.0% 1.8% 39 8.20% 0.4 3
B0809
Manganese and Other Metal Ore Mining
2.6 -0.8% 1.4% 137 55.40% 1.4 76
B0911 Gravel and Sand Quarrying
0.7 0.7% 2.2% 405 7.30% 0.0 30
B0919 Rock, Limestone and Clay Mining
3.5 1.9% 2.1% 785 13.10% 0.5 103
B0991
Diamond and Gemstone Mining
0.5 -9.4% 5.7% 63 87.60% 0.5 55
B0992 Salt and Other Mineral Mining
0.9 -0.7% 2.4% 165 50.90% 0.5 84
B1011 Petroleum Exploration
2.5 -8.0% -0.5% 428 62.40% 1.6 267
B1012 Mineral Exploration
1.8 -6.2% 0.5% 1,242 57.10% 1.0 709
B1090
Other Mining Support Services
6.6 -8.0% 3.0% 1,427 38.00% 2.5 542
C1701
Petroleum Refining and Petroleum Fuel Manufacturing
15.0 -8.3% -3.8% 119 25.60% 3.8 30
C1709
Lubricants and Other Petroleum Product Manufacturing
1.7 -2.2% -2.2% 151 16.80% 0.3 25
C1811 Industrial Gas Manufacturing
4.0 1.3% 2.2% 43 30.10% 1.2 13
C1812
Basic Organic Chemical Manufacturing
1.9 6.7% 1.2% 115 11.50% 0.2 13
Page 67 of 78
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
C1813
Basic Inorganic Chemical Manufacturing
2.5 -4.8% 1.1% 75 18.50% 0.5 14
C1821
Synthetic Resin and Rubber Manufacturing
2.8 -1.9% -0.4% 56 7.10% 0.2 4
C1831 Fertiliser Manufacturing
3.6 -1.5% 0.9% 285 15.90% 0.6 45
C1832 Pesticide Manufacturing
1.0 -1.5% 0.6% 89 19.60% 0.2 17
C1841
Pharmaceutical Product Manufacturing
9.2 -2.7% 1.9% 292 6.50% 0.6 19
C1851
Soap and Cleaning Compound Manufacturing
1.6 -10.0% 0.2% 390 8.10% 0.1 32
C1852
Cosmetics, Perfume and Toiletries Manufacturing
1.0 0.6% 1.8% 490 7.30% 0.1 36
C1892 Explosive Manufacturing
3.6 10.2% 3.7% 51 24.50% 0.9 12
C1911
Plastic Bag and Film Manufacturing
2.1 -5.0% -1.3% 275 3.90% 0.1 11
C1912a
Plastic Blow Moulded Product Manufacturing
1.5 0.4% 1.1% 137 10.80% 0.2 15
C1912b
Plastic Injection Molded Product Manufacturing
2.8 -4.3% -1.5% 900 12.00% 0.3 108
C1913
Plastic Foam Product Manufacturing
0.6 -6.1% -2.3% 136 9.90% 0.1 13
C1915 Adhesive Manufacturing
0.8 -2.0% 1.6% 40 11.90% 0.1 5
C1916
Paint and Coatings Manufacturing
3.0 -3.2% -2.8% 336 9.50% 0.3 32
C1919a
Plastic Extruded Product Manufacturing in Australia
1.8 -0.6% -0.8% 159 12.10% 0.2 19
C1919b
Polyester and Other Plastic Fibre Product Manufacturing
1.1 0.4% -0.7% 245 13.20% 0.1 32
C1920
Natural Rubber Product Manufacturing
0.9 0.2% -1.9% 184 8.90% 0.1 16
C2021 Clay Brick Manufacturing
0.8 -3.6% 0.9% 20 17.70% 0.1 4
C2029
Other Ceramic Product Manufacturing
0.5 -7.0% -0.4% 400 12.30% 0.1 49
Page 68 of 78
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
C2031
Cement and Lime Manufacturing
2.3 -2.5% 1.3% 15 9.50% 0.2 1
C2032 Plaster Product Manufacturing
1.9 0.8% 1.9% 67 10.30% 0.2 7
C2033
Ready-Mixed Concrete Manufacturing
5.9 1.7% 0.2% 240 9.20% 0.5 22
C2034
Concrete Product Manufacturing
2.6 -1.5% 0.3% 825 14.10% 0.4 116
C2090
Glasswool, Stone and Other Non-Metallic Mineral Product Manufacturing
1.8 -3.9% 1.8% 950 13.10% 0.2 124
C2131 Alumina Production
8.0 1.9% 0.2% 9 42.90% 3.4 4
C2132 Aluminium Smelting
5.8 -5.4% -2.1% 54 3.70% 0.2 2
C2133
Copper, Silver, Lead and Zinc Smelting and Refining
3.6 -10.0% -7.5% 51 14.60% 0.5 7
C2139
Gold and Other Basic Non-Ferrous Metal Manufacturing
20.2 -1.2% 0.9% 146 61.30% 12.4 89
M6910
Scientific Research Services
4.5 -0.3% 1.6% 3,065 10.20% 0.5 313
M6925
Environmental Science Services
4.9 2.0% 2.8% 6,130 21.20% 1.0 1,300
Page 69 of 78
Appendix 2: Downstream Process Manufacturing in Western Australia Source: IBISWorld, 12 June 2015
Downstream Process Manufacturing Activity in Western Australia
2014/15; Annual Growth 10-15; Annual Growth 15-20;
ANZSIC Code
Industry Activity in WA (%)
Revenue 14/15 ($bn)
Annual Growth (10 - 15)
Annual Growth (15 - 20)
C2139 Gold and Other Basic Non-Ferrous Metal Manufacturing 61.30% 20.2 -1.2% 0.9%
C2131 Alumina Production 42.90% 8.0 1.9% 0.2%
C1811 Industrial Gas Manufacturing 30.10% 4.0 1.3% 2.2%
C1701 Petroleum Refining and Petroleum Fuel Manufacturing 25.60% 15.0 -8.3% -3.8%
C1892 Explosive Manufacturing 24.50% 3.6 10.2% 3.7%
M6925 Environmental Science Services 21.20% 4.9 2.0% 2.8%
C1832 Pesticide Manufacturing 19.60% 1.0 -1.5% 0.6%
C1813 Basic Inorganic Chemical Manufacturing 18.50% 2.5 -4.8% 1.1%
C2021 Clay Brick Manufacturing 17.70% 0.8 -3.6% 0.9%
C1709 Lubricants and Other Petroleum Product Manufacturing 16.80% 1.7 -2.2% -2.2%
C1831 Fertiliser Manufacturing 15.90% 3.6 -1.5% 0.9%
C2133 Copper, Silver, Lead and Zinc Smelting and Refining 14.60% 3.6 -10.0% -7.5%
C2034 Concrete Product Manufacturing 14.10% 2.6 -1.5% 0.3%
C1919b Polyester and Other Plastic Fibre Product Manufacturing 13.20% 1.1 0.4% -0.7%
C2090 Glasswool, Stone and Other Non-Metallic Mineral Product Manufacturing 13.10% 1.8 -3.9% 1.8%
C2029 Other Ceramic Product Manufacturing 12.30% 0.5 -7.0% -0.4%
C1919a Plastic Extruded Product Manufacturing in Australia 12.10% 1.8 -0.6% -0.8%
C1912b Plastic Injection Molded Product Manufacturing 12.00% 2.8 -4.3% -1.5%
C1915 Adhesive Manufacturing 11.90% 0.8 -2.0% 1.6%
C1812 Basic Organic Chemical Manufacturing 11.50% 1.9 6.7% 1.2%
C1912a Plastic Blow Moulded Product Manufacturing 10.80% 1.5 0.4% 1.1%
C2032 Plaster Product Manufacturing 10.30% 1.9 0.8% 1.9%
M6910 Scientific Research Services 10.20% 4.5 -0.3% 1.6%
C1913 Plastic Foam Product Manufacturing 9.90% 0.6 -6.1% -2.3%
C1916 Paint and Coatings Manufacturing 9.50% 3.0 -3.2% -2.8%
C2031 Cement and Lime Manufacturing 9.50% 2.3 -2.5% 1.3%
C2033 Ready-Mixed Concrete Manufacturing 9.20% 5.9 1.7% 0.2%
C1920 Natural Rubber Product Manufacturing 8.90% 0.9 0.2% -1.9%
C1851 Soap and Cleaning Compound Manufacturing 8.10% 1.6 -10.0% 0.2%
C1852 Cosmetics, Perfume and Toiletries Manufacturing 7.30% 1.0 0.6% 1.8%
C1821 Synthetic Resin and Rubber Manufacturing 7.10% 2.8 -1.9% -0.4%
C1841 Pharmaceutical Product Manufacturing 6.50% 9.2 -2.7% 1.9%
C1911 Plastic Bag and Film Manufacturing 3.90% 2.1 -5.0% -1.3%
C2132 Aluminium Smelting 3.70% 5.8 -5.4% -2.1%
Page 70 of 78
Appendix 3: Western Australian Downstream Process Manufacturing by Industry Area
Source: 2011 Census of Population and Housing
Rank Industry Sub-division
TOTAL
Employed
% Share of
Process
Manufacturing
Employment
% Share of
total WA
employment
1 Alumina Production 5323 19.31 0.48
2 Scientific Testing and Analysis Services 3517 12.76 0.32
3 Scientific Research Services 2087 7.57 0.19
4
Other Basic Non-Ferrous Metal
Manufacturing 1773 6.43 0.16
5 Basic Inorganic Chemical Manufacturing 1175 4.26 0.11
6 Fertiliser Manufacturing 982 3.56 0.09
7
Rigid and Semi-Rigid Polymer Product
Manufacturing 934 3.39 0.08
8 Clay Brick Manufacturing 908 3.29 0.08
9
Other Non-Metallic Mineral Product
Manufacturing 902 3.27 0.08
10
Human Pharmaceutical and Medicinal
Product Manufacturing 811 2.94 0/07
11 Glass and Glass Product Manufacturing 723 2.62 0.07
12 Concrete Product Manufacturing 698 2.53 0.06
13
Petroleum Refining and Petroleum Fuel
Manufacturing 696 2.53 0.06
14 Ready-Mixed Concrete Manufacturing 553 2.01 0.05
15 Basic Non-Ferrous Metal Manufacturing, nfd 495 1.80 0.04
16 Paint and Coatings Manufacturing 494 1.79 0.04
17 Cement and Lime Manufacturing 460 1.67 0.04
18 Explosive Manufacturing 424 1.54 0.04
19 Other Polymer Product Manufacturing 382 1.39 0.03
20
Other Basic Non-Ferrous Metal Product
Manufacturing 369 1.34 0.03
21 Industrial Gas Manufacturing 360 1.31 0.03
22 Polymer Product Manufacturing, nfd 280 1.02 0.03
23
Basic Chemical and Chemical Product
Manufacturing, nfd 271 0.98 0.02
24 Polymer Foam Product Manufacturing 256 0.93 0.02
25 Cleaning Compound Manufacturing 247 0.90 0.02
Page 71 of 78
Rank Industry Sub-division
TOTAL
Employed
% Share of
Process
Manufacturing
Employment
% Share of
total WA
employment
26
Synthetic Resin and Synthetic Rubber
Manufacturing 241 0.87 0.02
27
Non-Metallic Mineral Product Manufacturing,
nfd 218 0.79 0.02
28 Plaster Product Manufacturing 210 0.76 0.02
29
Other Petroleum and Coal Product
Manufacturing 202 0.73 0.02
30 Aluminium Smelting 199 0.72 0.02
31 Tyre Manufacturing 192 0.70 0.02
32 Pesticide Manufacturing 173 0.63 0.02
33 Natural Rubber Product Manufacturing 161 0.58 0.01
34 Other Ceramic Product Manufacturing 159 0.58 0.01
35
Cement, Lime, Plaster and Concrete Product
Manufacturing, nfd 149 0.54 0.01
36
Polymer Film and Sheet Packaging Material
Manufacturing 128 0.46 0.01
37
Cosmetic and Toiletry Preparation
Manufacturing 70 0.25 0.01
38
Polymer Product and Rubber Product
Manufacturing, nfd 67 0.24 0.01
39
Copper, Silver, Lead and Zinc Smelting and
Refining 53 0.19 0.00
40 Basic Organic Chemical Manufacturing 41 0.15 0.00
41 Adhesive Manufacturing 38 0.14 0.00
42
Other Basic Chemical Product Manufacturing
nec 29 0.11 0.00
43 Basic Chemical Manufacturing, nfd 27 0.10 0.00
44
Basic Non-Ferrous Metal Product
Manufacturing, nfd 23 0.08 0.00
45 Ceramic Product Manufacturing, nfd 20 0.07 0.00
46 Non-Ferrous Metal Casting 12 0.04 0.00
47
Veterinary Pharmaceutical and Medicinal
Product Manufacturing 11 0.04 0.00
48 Basic Polymer Manufacturing, nfd 9 0.03 0.00
Page 72 of 78
Rank Industry Sub-division
TOTAL
Employed
% Share of
Process
Manufacturing
Employment
% Share of
total WA
employment
49
Petroleum and Coal Product Manufacturing,
nfd 7 0.03 0.00
50 Other Basic Polymer Manufacturing 3 0.01 0.00
51 Fertiliser and Pesticide Manufacturing, nfd 0 0.00 0.00
52
Pharmaceutical and Medicinal Product
Manufacturing, nfd 0 0.00 0.00
53
Cleaning Compound and Toiletry Preparation
Manufacturing, nfd 0 0.00 0.00
54
Other Basic Chemical Product
Manufacturing, nfd 0 0.00 0.00
55
Photographic Chemical Product
Manufacturing 0 0.00 0.00
Page 73 of 78
Appendix 4: Total Downstream Process Manufacturing by Gender
Source: 2011 Census of Population and Housing
Industry Sector Male Female TOTAL
Female
Participation
Rate
Petroleum Refining
and Petroleum Fuel
Manufacturing 576 120 696 17.24%
Industrial Gas
Manufacturing 297 63 360 17.50%
Petroleum and Coal
Product
Manufacturing, nfd 7 0 7 0.00%
Other Petroleum and
Coal Product
Manufacturing 162 40 202 19.80%
Basic Chemical and
Chemical Product
Manufacturing, nfd 215 56 271 20.66%
Basic Chemical
Manufacturing, nfd 27 0 27 0.00%
Basic Organic
Chemical
Manufacturing 30 12 42 28.57%
Basic Inorganic
Chemical
Manufacturing 955 220 1175 18.72%
Basic Polymer
Manufacturing, nfd 9 0 9 0.00%
Synthetic Resin and
Synthetic Rubber
Manufacturing 205 36 241 14.94%
Other Basic Polymer
Manufacturing 3 0 3 0.00%
Fertiliser and
Pesticide
Manufacturing, nfd 0 0 0 0.00%
Fertiliser
Manufacturing 728 254 982 25.87%
Pesticide
Manufacturing 139 34 173 19.65%
Pharmaceutical and
Medicinal Product
Manufacturing, nfd 0 0 0 0.00%
Page 74 of 78
Industry Sector Male Female TOTAL
Female
Participation
Rate
Human
Pharmaceutical and
Medicinal Product
Manufacturing 404 407 811 50.18%
Veterinary
Pharmaceutical and
Medicinal Product
Manufacturing 6 5 11 45.45%
Cleaning Compound
and Toiletry
Preparation
Manufacturing, nfd 0 0 0 0.00%
Cleaning Compound
Manufacturing 137 110 247 44.53%
Cosmetic and Toiletry
Preparation
Manufacturing 19 51 70 72.86%
Other Basic Chemical
Product
Manufacturing, nfd 0 0 0 0.00%
Photographic
Chemical Product
Manufacturing 0 0 0 0.00%
Explosive
Manufacturing 349 75 424 17.69%
Other Basic Chemical
Product
Manufacturing nec 20 9 29 31.03%
Polymer Product and
Rubber Product
Manufacturing, nfd 53 14 67 20.90%
Polymer Product
Manufacturing, nfd 199 81 280 28.93%
Polymer Film and
Sheet Packaging
Material
Manufacturing 102 26 128 20.31%
Rigid and Semi-Rigid
Polymer Product
Manufacturing 739 195 934 20.88%
Polymer Foam
Product
Manufacturing 208 48 256 18.75%
Tyre Manufacturing 173 19 192 9.90%
Page 75 of 78
Industry Sector Male Female TOTAL
Female
Participation
Rate
Adhesive
Manufacturing 32 6 38 15.79%
Paint and Coatings
Manufacturing 374 120 494 24.29%
Other Polymer
Product
Manufacturing 296 86 382 22.51%
Natural Rubber
Product
Manufacturing 126 35 161 21.74%
Non-Metallic Mineral
Product
Manufacturing, nfd 194 24 218 11.01%
Glass and Glass
Product
Manufacturing 583 140 723 19.36%
Ceramic Product
Manufacturing, nfd 13 7 20 35.00%
Clay Brick
Manufacturing 792 116 908 12.78%
Other Ceramic
Product
Manufacturing 115 44 159 27.67%
Cement, Lime, Plaster
and Concrete Product
Manufacturing, nfd 125 24 149 16.11%
Cement and Lime
Manufacturing 417 43 460 9.35%
Plaster Product
Manufacturing 194 16 210 7.62%
Ready-Mixed
Concrete
Manufacturing 489 64 553 11.57%
Concrete Product
Manufacturing 599 99 698 14.18%
Other Non-Metallic
Mineral Product
Manufacturing 767 135 902 14.97%
Basic Non-Ferrous
Metal Manufacturing,
nfd 436 59 495 11.92%
Alumina Production 4656 667 5323 12.53%
Aluminium Smelting 167 32 199 16.08%
Page 76 of 78
Industry Sector Male Female TOTAL
Female
Participation
Rate
Copper, Silver, Lead
and Zinc Smelting and
Refining 37 16 53 30.19%
Other Basic Non-
Ferrous Metal
Manufacturing 1472 301 1773 16.98%
Basic Non-Ferrous
Metal Product
Manufacturing, nfd 23 0 23 0.00%
Non-Ferrous Metal
Casting 6 6 12 50.00%
Other Basic Non-
Ferrous Metal Product
Manufacturing 302 67 369 18.16%
Scientific Research
Services 1042 1045 2087 50.07%
Scientific Testing and
Analysis Services 2308 1209 3517 34.38%
Total 26083 7013 33096 21.19%
Page 77 of 78
Appendix 5: Comparison of Downstream Process Manufacturing Workforce with Indigenous
Participation Rates Source: 2011 ABS Census of Population and Housing
Industry Sector TOTAL
Employment
Indigenous
Participation
Rate
Petroleum Refining and Petroleum Fuel Manufacturing 696 0.86%
Industrial Gas Manufacturing 360 1.11%
Petroleum and Coal Product Manufacturing, nfd 5 0.00%
Other Petroleum and Coal Product Manufacturing 202 2.97%
Basic Chemical and Chemical Product Manufacturing, nfd 271 0.00%
Basic Chemical Manufacturing, nfd 26 0.00%
Basic Organic Chemical Manufacturing 41 0.00%
Basic Inorganic Chemical Manufacturing 1,175 0.85%
Basic Polymer Manufacturing, nfd 9 0.00%
Synthetic Resin and Synthetic Rubber Manufacturing 242 1.65%
Other Basic Polymer Manufacturing 3 0.00%
Fertiliser and Pesticide Manufacturing, nfd 0 0.00%
Fertiliser Manufacturing 977 0.00%
Pesticide Manufacturing 176 0.00%
Pharmaceutical and Medicinal Product Manufacturing, nfd 0 0.00%
Human Pharmaceutical and Medicinal Product Manufacturing 813 0.00%
Veterinary Pharmaceutical and Medicinal Product Manufacturing 12 0.00%
Cleaning Compound and Toiletry Preparation Manufacturing, nfd 4 0.00%
Cleaning Compound Manufacturing 247 1.21%
Cosmetic and Toiletry Preparation Manufacturing 67 0.00%
Other Basic Chemical Product Manufacturing, nfd 0 0.00%
Photographic Chemical Product Manufacturing 0 0.00%
Explosive Manufacturing 424 0.94%
Other Basic Chemical Product Manufacturing nec 26 0.00%
Polymer Product and Rubber Product Manufacturing, nfd 68 0.00%
Polymer Product Manufacturing, nfd 280 1.07%
Polymer Film and Sheet Packaging Material Manufacturing 128 0.00%
Rigid and Semi-Rigid Polymer Product Manufacturing 936 0.32%
Polymer Foam Product Manufacturing 253 0.00%
Tyre Manufacturing 191 1.57%
Adhesive Manufacturing 37 0.00%
Paint and Coatings Manufacturing 492 0.00%
Other Polymer Product Manufacturing 382 1.05%
Natural Rubber Product Manufacturing 160 3.13%
Non-Metallic Mineral Product Manufacturing, nfd 219 2.28%
Glass and Glass Product Manufacturing 723 1.38%
Ceramic Product Manufacturing, nfd 18 0.00%
Clay Brick Manufacturing 909 1.21%
Other Ceramic Product Manufacturing 160 0.00%
Cement, Lime, Plaster and Concrete Product Manufacturing, nfd 147 2.72%
Page 78 of 78
Industry Sector TOTAL
Employment
Indigenous
Participation
Rate
Cement and Lime Manufacturing 461 1.30%
Plaster Product Manufacturing 209 0.00%
Ready-Mixed Concrete Manufacturing 553 1.27%
Concrete Product Manufacturing 700 1.29%
Other Non-Metallic Mineral Product Manufacturing 905 1.22%
Basic Non-Ferrous Metal Manufacturing, nfd 494 1.42%
Alumina Production 5,323 0.90%
Aluminium Smelting 197 1.52%
Copper, Silver, Lead and Zinc Smelting and Refining 54 0.00%
Other Basic Non-Ferrous Metal Manufacturing 1,773 2.26%
Basic Non-Ferrous Metal Product Manufacturing, nfd 23 0.00%
Non-Ferrous Metal Casting 10 0.00%
Other Basic Non-Ferrous Metal Product Manufacturing 368 1.36%
Scientific Research Services 2,090 1.05%
Scientific Testing and Analysis Services 3,520 0.74%
Total 27,559 0.98%