A C I L
A L L E N
C O N S U L T I N G
DRAFT REPORT TO
DEPARTMENT OF EDUCATION AND EARLY
CHILDHOOD DEVELOPMENT
MARCH 2014
BICYCLE
INDUSTRY
TRAINING IN
VICTORIA
FINAL REPORT
ACIL ALLEN CONSULTING PTY LTD
ABN 68 102 652 148
LEVEL FIFTEEN
127 CREEK STREET
BRISBANE QLD 4000
AUSTRALIA
T+61 7 3009 8700
F+61 7 3009 8799
LEVEL TWO
33 AINSLIE PLACE
CANBERRA ACT 2600
AUSTRALIA
T+61 2 6103 8200
F+61 2 6103 8233
LEVEL NINE
60 COLLINS STREET
MELBOURNE VIC 3000
AUSTRALIA
T+61 3 8650 6000
F+61 3 9654 6363
LEVEL ONE
50 PITT STREET
SYDNEY NSW 2000
AUSTRALIA
T+61 2 8272 5100
F+61 2 9247 2455
SUITE C2 CENTA BUILDING
118 RAILWAY STREET
WEST PERTH WA 6005
AUSTRALIA
T+61 8 9449 9600
F+61 8 9322 3955
ACILALLEN.COM.AU
SUGGESTED CITATION FOR THIS
REPORT
ACIL ALLEN CONSULTING 2014,
BICYCLE INDUSTRY TRAINING IN
VICTORIA, MELBOURNE.
ACIL ALLEN CONSULTING
C o n t e n t s
Executive summary
1 Project overview
vii
1
1.1 Background
1
1.2 Methodology
1
1.3 This report
2
2 Overview of the bicycle retail sector in Victoria
3
2.1 Industry overview
3
2.2 Bicycle retail industry stakeholders
3
2.2.1 Bicycle industry firms
4
2.2.2 Industry associations
8
2.2.3 Consumer bodies
8
2.2.4 Training organisations
8
2.2.5 Government stakeholders
8
2.3 Industry growth and outlook
2.3.1 Recent industry performance
9
9
2.3.2 Industry outlook
11
2.3.3 Industry trends and their impact on skills needs
12
3 Skills needs and current training delivery in the bicycle
industry
3.1 Workforce profile
15
15
3.1.1 Business size
15
3.1.2 Wholesalers
15
3.1.3 Demographics
16
3.1.4 Wages
16
3.1.5 Pathways into the industry
16
3.1.6 Staff turnover and future employment intentions
16
3.1.7 Skills shortages
17
3.2 Skills and training needs
17
3.2.1 Overview
17
3.2.2 Manufacturing / custom building
18
3.2.3 Assembly
18
3.2.4 Retail
19
3.2.5 Fitting
19
ii
ACIL ALLEN CONSULTING
3.2.6 Servicing and repair
19
3.3 Accredited training
20
3.3.1 Overview
20
3.3.2 Training providers
21
3.3.3 National enrolment numbers
21
3.3.4 History of accredited training in Victoria
23
3.3.5 The experience in other states
28
3.3.6 Training costs and viability
29
3.4 Non-accredited training
30
3.4.1 Industry association training
30
3.4.2 Wholesalers
30
3.5 Summary of the issues
32
4 Alternative training options
34
4.1 Summary of challenges for training delivery
34
4.2 Demand side options
35
4.3 Supply side options
37
4.4 Assessment of options
40
4.5 Clusters of options
42
4.6 The role for government
46
4.7 Conclusions
47
5 Recommendations
48
5.1 The prospects for sustainable industry-relevant training
delivery
48
5.2 The recommended model for bicycle industry training delivery
49
5.3 Leadership from demand and supply side partners
50
5.4 A process for inviting and commissioning innovative delivery
51
5.5 Ensuring the financial viability of training
52
5.6 Other actions to be pursued
52
Appendix A
Stakeholders consulted
A-1
Appendix B
Example discussion guide
B-1
Appendix C
Units in the Certificate III
C-1
List of boxes
Box 1
An overview of bicycle qualifications
20
Box 2
Industry driven accreditation – the UK model
36
Box 3
Return on investment in training proposition for employers
37
iii
ACIL ALLEN CONSULTING
List of figures
Figure 1
Employment and businesses in the bicycle retail sector
3
Figure 2
Bicycle industry stakeholders
4
Figure 3
The Victorian retail bicycle industry
5
Figure 4
Revenue streams and the industry value chain
6
Figure 5
Annual bicycle import quantity
9
Figure 6
Bicycle import growth
10
Figure 7
Bicycle and bicycle accessories import value
10
Figure 8
Monthly imports
11
Figure 9
Cycling participation in Victoria.
11
Figure 10
Retail store staff and the industry value chain
15
Figure 11
Skills and training needs
18
Figure 12
Certificate II in Bicycles, enrolments, selected states
22
Figure 13
Certificate III in Bicycles, enrolments, selected states
22
Figure 14
Certificate II and III enrolments in Victoria, by provider
23
Figure 15
Victorian VET course subsidy rate changes, 2012-2013
25
Figure 16
Current subsidy rates
26
Figure 17
Training needs and gaps
33
Figure 18
Demand and supply side issues for the viability of training in the
bicycle industry
35
Figure 19
Assessment of options
41
Figure 20
Effort required and categories of options
42
Figure 21
Cluster 1: Imported industry-run training
44
Figure 22
Cluster 2: VET in schools program in conjunction with industrydriven information to prospective students and partnerships with
employers
45
Figure 23
Cluster 3: Centralised workshop and training facility
46
Figure 24
Factors supporting the prospects for sustainable industryrelevant training delivery
49
List of tables
Table 1
National Certificate II enrolments by provider
21
Table 2
National Certificate III enrolments by provider
21
Table 3
Subsidy changes in Victoria
24
Table 4
Subsidy bands
24
Table 5
Revenue per SCH changes
25
Table 6
Subsidy expenditure based on different subsidy rates
26
Table 7
Subsidy and fees overview
27
Table 8
Potential RTO revenue
27
Table 9
Queensland training subsidies
29
Table 10
Revenue per student per annum
29
Table 11
Annual RTO costs
30
Table 12
Viable student number estimates
30
Table 13
Stakeholder consultation list
A-1
iv
ACIL ALLEN CONSULTING
Acronyms
ABC
Australian Bicycle Council
ABS
Australian Bureau of Statistics
ACT
Association of Cycle Traders (UK)
ANZSCO
Australian and New Zealand Standard Classification of
Occupations
BIA
Bicycle Industries Australia
BTA
Bicycle Training Australia
CPF
Cycling Promotion Fund
GTO
Group Training Organisation
NCVER
National Centre for Vocational Education Research
NMIT
Northern Melbourne Institute of TAFE
RCTA
Retail Cycle Traders Australia
RPL
Recognition of prior learning
RTO
Registered Training Organisation
SCH
Student contact hour
VET
Vocational Education and Training
VETiS
VET in schools
VTG
Victorian Training Guarantee
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
v
ACIL ALLEN CONSULTING
Acknowledgements
The project team would like to thank all those who participated in consultations and the
workshop including employers, employees, industry and consumer associations, and
training providers. All participants were welcoming and generous with their time, and
provided useful and interesting insights into the industry and training options.
The project team would also like to thank the Steering Committee for its time, advice and
support.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
vi
ACIL ALLEN CONSULTING
Executive summary
Project overview
ACIL Allen Consulting has been commissioned by the Department of Education and Early
Childhood Development (DEECD) to examine the delivery of bicycle industry retail, service
and repairs training in Victoria.
The impetus for this project was the decision by Northern Melbourne Institute of TAFE
(NMIT) in February 2013 to cease the delivery of the bicycle industry training certificates II
and III as NMIT found that the reduction in the subsidy rate for the two courses (as part of
the Victorian Government’s Refocusing Vocational Training in Victoria reforms) made its
delivery of the training uneconomical. Training was delivered under an auspicing
arrangement with Bicycle Training Australia (BTA).
The NMIT decision means accredited bicycle training is no longer offered in Melbourne.
There are three training organisations in regional Victoria offering the bicycle certificates
with relatively low enrolment levels.
Project methodology
The project methodology had three parts. The first stage involved constructing a
contemporary profile of the bicycle industry through a desktop review. The second stage
developed a detailed history of the delivery of bicycle training in Victoria, including the
underlying drivers of recent patterns in training delivery. This involved data analysis and
consultations with employers, industry associations, training providers and learners in
Victoria and other states.
In the final stage, and based on the desktop analysis and consultations, training delivery
options were developed, including both on the demand and supply side. The options were
then tested at a workshop attended by representatives from industry, training providers and
Auto Skills Australia, and at a meeting of the Project Steering Committee. Feedback from
these forums was used to revise the options and inform the implementation
recommendations contained in this report.
Industry skills needs and current training
Broadly speaking, the bicycle retail workforce falls into two categories – bicycle mechanics
and retail staff. The industry has a variety of skills and training needs, as mapped relative to
the industry’s value chain in Figure ES 1.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
vii
ACIL ALLEN CONSULTING
Figure ES 1
Skills and training needs
Source: ACIL Allen Consulting
Accredited training
There are currently two accredited training courses for the bicycle industry:
 Certificate II in Bicycle Mechanical Technology (AUR20312)
 Certificate III in Bicycle Workshop Operations (AUR30212)
The Certificate II and III qualifications do not enjoy widespread industry recognition and only
a small proportion of bicycle mechanics are estimated to have completed accredited
training.
Enrolments in accredited bicycle mechanics training in Victoria have increased in recent
years, due to the introduction of the Victorian Training Guarantee and the delivery of training
by Bicycle Training Australia under the auspices of NMIT. Despite these increases, learner
numbers were still relatively low, and training was difficult to deliver economically.
From 2013, as part of the Refocusing Vocational Training in Victoria reforms, the subsidy
rate for the bicycle industry Certificate II and Certificate III were reduced from $11.48 and
$10.95 (for a large TAFE) to $7.00 and $6.50 respectively.
After the subsidy change was announced in 2012, NMIT revised its revenue sharing
agreement with BTA. The revised offer was considered by BTA to be too low a price to
deliver the training and so the auspicing arrangement ended.
Consultations for this project included RTOs in other states delivering accredited bicycle
industry training. While there are differences between states, RTOs in WA and Queensland
also struggle with low enrolment numbers and associated costs, despite subsidy rates
higher than the current Victorian rate.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
viii
ACIL ALLEN CONSULTING
Non-accredited training
There is significant variety in the non-accredited training provided in the bicycle industry. In
addition to the non-accredited training provided by BTA, wholesalers and retailers provide a
variety of training.
Vendor provided training in the bicycle industry in Australia is relatively broad and is
generally available to all retailers stocking the relevant vendors’ products. Retailers
sometimes have to pay to attend the training. The vast majority of mechanics training
provided by wholesalers presumes a reasonably high level of mechanical ability and
experience.
Issues for the viability of training
There are a variety of skills needs in the industry corresponding to the industry’s value
chain. Similarly there is a variety of on-the-job training and wholesaler training that aims to
meet these skills needs. Some training needs are met by non-accredited and informal
training, with the more technical training is carried out by vendors.
There are key training gaps in retail and sales, and in introductory to intermediate
mechanics training. Training is needed at the more basic level, particularly for those starting
out in the industry.
While the bicycle industry enjoys many factors that would potentially ensure sustainable
industry-relevant training, the lack of training uptake and delivery to-date means that there
are challenges for training delivery on both the demand and supply sides (Figure ES 2). In
concert, these issues pose a significant challenge for the reestablishment of accredited
training for the bicycle industry in Victoria.
Figure ES 2
Issues for the viability of training in the bicycle industry
Source: ACIL Allen Consulting, Advance TAFE 2013.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
ix
ACIL ALLEN CONSULTING
Alternative training options
Given the issues on both the demand and supply sides, this report presents options that
address on both sides that could be implemented to establish and secure sustainable highquality training delivery for the bicycle industry.
Demand side options
Vendor-driven training – Vendors could see benefits in collaborating to adopt industry
wide standards for bike assemblers and mechanics as has happened in other highly
competitive sectors such as information technology and finance. This could facilitate greater
growth in the industry, promote the industry’s reputation for product quality and safety, and
reduce the costs associated with avoidable warranty claims and after sales service.
Consumer-driven training – Large bicycle user groups such as Bicycle Network could play
a role in driving higher and more consistent skills amongst bicycle assemblers and
mechanics through a concerted campaign to inform consumers of the variability in the skills
of assemblers and mechanics in the marketplace and the impact that assemblers and
mechanics can have on the performance and safety of bicycles. Consumer groups may go a
step further and put in place a voluntary system of identifying bike shops that have qualified
mechanics.
Industry-certified training tends to be the most common approach to certification and
ensuring consistency of skills and competency within an industry. Industry-driven training
requires the presence of a well-established and widely recognised industry group with a
critical mass of membership, typically in the early days of the emergence of an industry.
Given the decline of the Retail Cycle Traders Australia (RCTA), the industry’s ability to
promote and drive industry standard training will depend on the influence and reach of the
new association that takes its place.
Better public promotion of training – In many industries, training can be driven simply
through better public promotion of training. Public promotion of training is most effective
when appropriately targeted at those cohorts most interested in a career in the sector. In the
case of the bicycle industry, opportunities for targeted public promotion would include
through cycling magazines, club networks, major races and cycling events, and careers
expos.
Highlight potential returns on investment in training to employers – In discussions with
industry, two significant areas for improved information were identified: information on the
potential revenue streams from servicing and repairs and information on the impact of highly
competent and efficient staff on the potential revenue from both retail and repairs.
Supply side options
Development of VET in schools (VETiS) pathways delivery represents an ideal pathway
into the industry given the high interest of young people in the bicycle industry broadly.
VETiS delivery will be attractive to employers by making available a larger number of
prospective young mechanics and retail workers who have a practical understanding of
parts and technology, and who are not just interested in the sector but who have the
potential to be immediately productive.
Development of an intensive industry entry course – Similar to VETiS delivery, an
intensive entry course into the industry will be attractive to employers by making available a
larger number of immediately productive mechanics, including career changers and new
entrants. This would be largely consistent with the model adopted in the USA.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
x
ACIL ALLEN CONSULTING
Partner an international training organisation – Under any of the supply side options
discussed, there is the potential to partner with an overseas organisation, in particular the
UK Association of Cycle Traders (ACT) and UBI, Barnett or Park Tools in the USA.
Partnering with a recognised international training provider could provide the catalyst
required to change the culture of training in the industry.
Training/workshop model – There may be scope for a business to combine a workshop
carrying out repairs and assembly, with a training program. This would provide learners with
practical training and the business with two sources of revenue. Such a workshop, with a
large stock of mechanics, could help retailers deal with peaks in demand for bicycle
assembly and services and repairs by hiring out mechanics or receiving bicycles that need
assembly or servicing.
Group training scheme – The group training model involves a group training organisation
employing apprentices and trainees and places them with a host employer where they
undertake their on-the-job training. The group training model would reduce the risk to bicycle
industry employers of taking on a trainee and offer additional support to learners.
Further develop and adopt online teaching tools – The development of online teaching
resources for the accredited bicycle training qualification would potentially assist in lowering
the cost of training to the industry. The industry could work with Advance TAFE to bring
these units to fruition, in exchange for ensuring that those units developed are more widely
available to other training providers.
Improve the training package – Consultations with training providers and industry indicate
that several units are too prescriptive, leading to the teaching of skills that are not widely
needed in the industry. Stakeholders are also concerned that some of the assessment
requirements are overly onerous, leading to higher training costs and learner
disillusionment. The industry could work with Auto Skills Australia to modify units and
assessment requirements as part of the continuous improvement of the training package.
In the Certificate II qualification, there are core units which contain the word ‘automotive’ in
the title and description. This results in training requirements that are neither relevant nor
reasonable for the qualifications in Bicycle Mechanical Technology. In the promotion of
these qualifications, the inclusion of automotive units undermines the relevance and
applicability of the qualification as a whole in the eyes of employers.
Reduce length of accredited training – At present the Certificate III in Bicycle Mechanical
Technology is delivered as a 2 year traineeship. The Certificate II in Bicycle Mechanical
Technology is often delivered as a 1 year traineeship or sometimes as part of a VET in
schools program. Any possible reductions in the course length without compromising quality
or outcomes would increase the attractiveness of the course from the perspective of the
employers and the students.
Increase delivery of RPL – In other states, the delivery of recognition of prior learning has
served to improve the viability of supply by providing an additional source of training income
(alongside fee-for-service training delivery). In addition, RPL has the effect of quickly
promoting accredited training in the industry by increasing the prevalence and general
recognition on the qualification.
Change the ANZSCO classification of mechanics – The industry argues the current
classification does not reflect the skill level needed to be a bicycle mechanic. Any changes
to the classification of bicycle mechanics would likely need to wait for the next ANZSCO
review.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
xi
ACIL ALLEN CONSULTING
Re-examine subsidy rates – The subsidy rate does not appear to be the primary issue
associated with the long-term lack of popularity or recognition of accredited training in the
bicycle industry. That being said, the reduction in the subsidy rate precipitated the
withdrawal of the remaining Melbourne-based RTO and will make re-establishing supply
more difficult. The subsidy rate could be re-examined according to the Government's public
value test, particularly in light of the recent growth of the bicycle industry and the potential
for continued job growth.
Assessment of options
Figure ES 3 illustrates how the various options fall into four categories:
 Big bets have a high expected impact but a low likelihood of success, and typically
required significant effort – these options are generally promising but uncertain in nature;
 Investments have a high impact as well as a higher likelihood of success but also require
significant effort – these options are well worth pursuing but will require a degree of
sustained effort before they come to fruition;
 Fast results are characterised by a high likelihood of success but relatively low expected
impact on long-term training delivery in the industry – given that most of these require
relatively low effort, the five actions in this bottom right quadrant should be pursued
regardless of whichever other options are contemplated; and
 False hopes are generally expected to have a low impact and a low likelihood of longterm success in terms of stimulating and delivering long-term sustainable industryrelevant training for the bicycle industry and should not represent a key part of any
strategy going forward.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
xii
ACIL ALLEN CONSULTING
Figure ES 3
Categorisation of options
Source: ACIL Allen Consulting
Recommendations
Given the wide array of options available, it is important the bicycle industry develops an
appropriate mechanism to pursue a wide range of options on both the demand and supply
sides, including ongoing government facilitation, and a process for inviting and
commissioning innovative delivery.
Recommendation 1
The recommended model for bicycle training delivery should comprise:
1. strong entry qualification pathways into entry level positions in the bicycle industry
through VET in Schools (VETiS) delivery and an intensive training course; and
2. subsequent pathways into industry-recognised higher skill levels as embodied in the
Certificate II and Certificate III traineeship qualifications, potentially based on an
international training program.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
xiii
ACIL ALLEN CONSULTING
Recommendation 2
Building on the current project steering group, that the industry establishes a reference
group to explore, assess and take forward the range of demand and supply side options for
revitalising training delivery for the bicycle industry. Membership of the body could include:
 Leading consumer organisations such as Bicycle Network;
 Local Learning and Employment Networks;
 Relevant government agencies; and
 Past or prospective RTOs – although these RTOs would have to be excluded from the
process to select the preferred training model.
Recommendation 3
That the industry reference group run an Expression of Interest process to develop, assess
and commission the most sustainable approach to delivering the recommended model of
bicycle training delivery.
Recommendation 4
That the industry reference group continue to assess the balance of government, industry
and private contributions to ensure that a viable and preferred model of training is able to be
implemented.
Recommendation 5
That the industry reference group pursue the range of actions that will lead to short-term
results in particular:
 Continue to work with Advance TAFE in the development of online units on the grounds
that online units will be widely available to other RTOs and/or industry members
 Pursue the reclassification of the skill level of bicycle mechanics under ANZSCO
 Develop an evidence base to demonstrate the benefits of more highly skilled and
qualified mechanics to bike shops
Recommendation 6
Industry to work closely with Auto Skills Australia to improve the design of the training
package, specifically:
 Reduce the skill level required under in the Certificate II to allow delivery of the
qualification to school students as part of VET in schools
 Introduce a pathway or industry entry qualification in the form of a Certificate I targeted
at bicycle assembly and basic maintenance and servicing
 Amending relevant units currently designed for automotive workshops to cater more
appropriately to bicycle workshops
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
xiv
ACIL ALLEN CONSULTING
1
Project overview
1.1
Background
ACIL Allen Consulting has been commissioned by the Department of Education and Early
Childhood Development (DEECD) to examine the delivery of bicycle industry retail, service
and repairs training in Victoria.
The impetus for this project was the decision by Northern Melbourne Institute of TAFE
(NMIT) in February 2013 to cease the delivery of the bicycle industry training certificates II
and III as NMIT found that the reduction in the subsidy rate for the two courses (as part of
the Victorian Government’s Refocusing Vocational Training in Victoria reforms) made its
delivery of the training uneconomical. Training was delivered under an auspicing
arrangement with Bicycle Training Australia (BTA).
The NMIT decision means accredited bicycle training is no longer offered in Melbourne.
There are three training organisations in regional Victoria offering the bicycle certificates
with relatively low enrolment levels.
Training for the bicycle industry is important as the industry continues to grow through
increased participation in cycling in Victoria. Governments at all levels are also supporting
this growth in cycling for health, to reduce traffic congestion and environmental reasons. Yet
many in the industry are concerned there is a shortage of bicycle mechanics and properly
trained retail staff.
This report examines the current and likely future needs of stakeholders for bicycle industry
retail, service and repairs training. This involves examining the roles employers, training
providers, learners, industry associations and the Victorian Government can play in future
bicycle industry training and provides recommendations as the basis of future actions.
1.2
Methodology
A Project Steering Committee was formed as a reference point for this project. The
Committee consisted of Departmental officials, members of the bicycle industry association,
employers within the bicycle industry, and training providers. The Project Steering
Committee met regularly with the project team to provide guidance on the project.
This project employed a three part methodology which was developed in discussions with
DEECD and the Project Steering Committee.
The first stage involved constructing a contemporary profile of the bicycle industry through a
desktop review. The profile includes employers, the workforce, industry history and outlook,
and key stakeholders.
The second stage developed a detailed history of the delivery of bicycle training in Victoria,
including the underlying drivers of recent patterns in training delivery. This involved analysis
of training data from the National Centre for Vocational Education Research (NCVER) and
DEECD at the state and provider level.
The project then undertook an extensive round of consultation with employers, industry
associations, training providers and learners in Victoria and other states. The consultations
indicated the likely demand for bicycle-related training, and provided stakeholder views on
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
1
ACIL ALLEN CONSULTING
the viability, content and delivery of options for training. A full list of the stakeholders
consulted is at Appendix A and the discussion guide used in the consultations is at
Appendix B.
In the final stage, and based on the desktop analysis and consultations, training delivery
options were developed, including both on the demand and supply side. The manner in
which these training options could be clustered to increase the chances of success was also
examined.
The options and the clusters were then tested at a workshop attended by representatives
from industry, training providers and Auto Skills Australia, and at a meeting of the Project
Steering Committee. Feedback from these forums was used to revise the options and inform
the implementation recommendations contained in this report.
1.3
This report
The remainder of this report is structured as follows:
 Chapter 2 provides an overview of the bicycle retail sector in Victoria;
 Chapter 3 examines the skills needs of the industry and the supply of bicycle industry
retail, service and repairs training to date;
 Chapter 4 sets out supply and demand side options for future industry training ; and
 Chapter 5 details recommendations to implement these training options.
Additional information is documented in the appendices.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
2
ACIL ALLEN CONSULTING
2
Overview of the bicycle retail
sector in Victoria
2.1
Industry overview
The bicycle industry in Australia is made up of retailers, importers, manufacturers and
wholesalers. It is estimated that in 2011-12 financial year, the industry employed around
10,000 people (BIA, CPF & RCTA 2012).
There are around 925 specialist retail stores, up from 850 three years ago. More than a
quarter of these stores are located in Victoria (Figure 1). In addition to these specialist
retailers, large chain stores and sporting goods stores also sell bicycles and accessories.
Figure 1
Employment and businesses in the bicycle retail sector
1800
300
1500
250
Employment (LHS)
1200
No. of businesses (RHS)
200
900
150
600
100
300
50
0
0
Vic
NSW
Qld
WA
SA
Tas
ACT
NT
Source: Auto Skills Australia 2013
Most specialist retailers employ bicycle mechanics to assemble bicycles and to repair or
maintain bicycles. While there is accredited training for bicycle mechanics, most bicycle
mechanics do not possess a relevant qualification (Auto Skills Australia 2013).
2.2
Bicycle retail industry stakeholders
There are two major firm types within the bicycle industry – retailers and wholesalers. The
industry also has a number of industry groups and associated consumer groups. In addition,
there are a number of relevant government bodies with an interest in the bicycle industry.
These stakeholders and their relationships are set out in Figure 2 and are detailed below.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
3
ACIL ALLEN CONSULTING
Figure 2
Bicycle industry stakeholders
Source: ACIL Allen Consulting
2.2.1
Bicycle industry firms
The relationship between retailers and wholesalers in the bicycle industry has a significant
effect on the way the industry operates. It also influences the training needs of the industry
and the way in which some training is provided, as discussed in Chapter 3.
Retailers
In the retail bicycle sector, the value chain consists of six business activities:
 Manufacturing / custom building. A small number of independent retailers make bicycles
according to individual consumer specifications. This can often involve welding and
spray painting.
 Assembly. The vast majority of bicycles sold by retailers are delivered to the store in a
box, partially assembled with retailers finishing the assembly of the bicycle. Some
discount department stores do not assemble bicycles, preferring to sell bicycles still in
their box.
 Retail. Most retailers in the industry sell both bicycles and bicycle accessories. There are
a small number of repair shops which only sell bicycle accessories.
 Fitting. Both independent retailers and many large bicycle chains offer bicycle fitting
services to customers
 Service. Most bicycle shops, outside of the discount department stores, offer bicycle
servicing which normally involves lubricating the chain, adjusting the wheels, brakes and
gears and changing tyre and tubes.
 Repair. Repair services are sometimes more complex than bicycle servicing and require
diagnosis and parts replacement.
Figure 3 provides an overview of the retail bicycle industry according to this value chain,
based on the average bicycle sale value of each industry segment.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
4
ACIL ALLEN CONSULTING
Figure 3
The Victorian retail bicycle industry
Source: ACIL Allen Consulting
As Figure 3 sets out, there are five major market segments in the bicycle retail sector:
 Discount department stores. Stores such as Target and Big W sell relatively cheap
bicycles, normally still in their box requiring customer assembly. Children’s bicycles are a
large segment of bicycle sales from these stores.
 Large bicycle chains. The large chains fall into two categories – shared corporate
ownership, whereby one business owns all of the chain stories, or franchises, whereby
only a small number of stores are owned by the head business with the rest owned and
operated by franchisees.
 Independent retailers. The majority (around 80 per cent) of bicycle stores are
independent retailers and there is significant variety within this group. Some stores have
exclusive arrangements with one wholesaler, others with only a few wholesalers, while
some stock a wide variety of bicycle brands. Independent retailers can further be
disaggregated into three groups:
 Traditional retailers – offer services from assembly to repair and may have
semi-exclusive arrangements with a wholesaler. These retailers are likely to stock a
large number and type of bicycles, and generate a large portion of their revenue from
bicycle sales.
 Retail and repairs focus – these retailers stock a smaller number of bicycles (often as
part of an exclusive arrangement with a bicycle wholesaler) and see the servicing
and repair side of the business as more important that do traditional retailers.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
5
ACIL ALLEN CONSULTING
 Custom builders – sell custom built bicycles to passionate and discerning customers.
Stock levels in these retailers are likely to be very low, and servicing and repairs an
important part of the revenue mix.
 Electric bicycle shops. While the number of stores in this segment is small it is an
emerging segment of the industry. Recent regulatory changes allowing higher powered
electric bicycles and popularity among older consumers have contributed to this growth.
 Repair shops. Often located in the inner city, particularly on popular bicycle routes, these
shops specialise in bicycle repairs, while also selling accessories.
Retail business models
Bicycle shops generally have three revenue streams – bicycle sales, accessories sales and
repairs and services. The relative importance of these revenue streams to different bicycle
industry segments, and their relationship to industry’s value chain, are set out in Figure 4.
Figure 4
Revenue streams and the industry value chain
Traditional retailer*
Manufacturing /
custom building
Repair shop*
Retail and repairs*
Bicycle sales
Bicycle sales
Value chain
Assembly
Retail
Accessories
sales
Accessories
sales
Accessories
sales
Fitting
Service
Repair
Repairs
and
services
Repairs and services
Repairs and
services
*Size of bubble represents the relative importance of each revenue stream
Note: Revenue shares are approximations and are based on consultations and the 2013 BIA survey of the bicycle retail sector.
Source: ACIL Allen Consulting and BIA 2013a.
As Figure 4 shows there is significant variation in the average size of each revenue stream
between bicycle industry segments. As noted above, in traditional retailers bicycle sales are
the most significant sources of revenue, with repairs and servicing playing a less important
role in the business. Conversely, in repair shops the majority of revenue comes from repairs
and servicing with the remaining revenue derived from accessories sales. In those stores
with a retail and repairs focus, there is a more even balance between the three sources of
revenue.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
6
ACIL ALLEN CONSULTING
Bicycle sales
Bicycle sales face limited competition from the internet, although a few retailers argue some
bicycle enthusiasts are increasingly looking to purchase bicycles from overseas online
stores.
Most bicycles are sold fully assembled. Bicycles arrive at retail outlets partially assembled in
their box, with employees completing the assembly.
Most retailers provide at least basic fitting services, ensuring the customer’s bicycle is the
right size and that the seat is adjusted correctly. A small number of retailers employ bicycle
fitting technology, normally an adjustable stationary bicycle with diagnostic equipment.
Accessories sales
Accessories sales revenue stream faces significant competition from online shopping as
bicycle accessories are often light weight and thus cheap to ship, and large online retailers
can offer an extensive range of products, often at lower prices to those found in Australia
retail stores.
Repairs and services
Repairs and services face no online competition and so can be expected to grow in
importance for the industry as accessories sales, and to a certain extent bicycle sales, move
online.
Conscious of competition from online sales and identifying it as a complementary service,
some independent bicycle retailers have branched out, co-locating cafes within their retail
stores. Some retailers also offer bicycle mechanics training to consumers focusing on basic
bicycle servicing.
Wholesalers
Wholesalers (or vendors) play an important role in the sector. A relatively small number of
bicycle wholesalers supply the industry in Australia, providing stock to retailers under
exclusive or semi-exclusive arrangements. The largest wholesalers in Australia are Giant,
Trek, Specialized, Avanti, Pinarello and Apollo.
Some more upmarket bicycle wholesalers, such as Specialized and Trek, provide significant
support to associated retailers and are more likely to establish exclusive relationships with
retailers. Support includes fitting equipment, business and mechanics training and sales
support. Other bicycle wholesalers, normally under semi-exclusive arrangements, provide
stock to retailers and offer limited support in the form of sales and mechanics
troubleshooting.
In addition to the bicycle wholesalers, there are a smaller number of large bicycle
component and accessories vendors such as Shimano, SRAM, Campagnolo and FOX.
These companies sell components to bicycle wholesalers as inputs into the bicycle
manufacturing process, and parts and accessories to retail stores. Component wholesalers
provide support to retail stores in the form of mechanics training and troubleshooting. The
more high-end wholesalers of technical components also receive parts from retail stores to
be repaired.
The training offered by bicycle and component wholesalers is discussed in further detail in
the following chapter.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
7
ACIL ALLEN CONSULTING
2.2.2
Industry associations
Bicycle wholesalers are represented by Bicycle Industries Australia (BIA) – around
10 per cent of wholesalers in Australia are members. BIA provides industry research,
networking events and lobbies government on areas such as electric bicycles regulation, the
GST low value import threshold, the design and enforcement of Australian bicycle standards
and training for industry.
The Cycling Promotion Fund (CPF) was established in 2000 and operates under BIA. The
CPF aims to promote cycling and influence policymakers to make Australia more bicyclefriendly. It is funded by around 15 wholesalers and retailers.
Until late 2013, independent bicycle shops were represented by the Retail Cycle Traders
Australia (RCTA). In October 2013, the members of RCTA began proceedings to close the
organisation due to lack of interest from the industry. It is possible that some RCTA services
will be delivered by BIA in the future.
2.2.3
Consumer bodies
Bicycle Network is the leading bicycle consumer body in Australia with around 47,000
members and approximately 60 permanent staff. The organisation is based in Melbourne
and has been operating for 35 years, originally under the name Bicycle Victoria.
Bicycle Network is a not-for-profit organisation which advocates for cyclists and aims to
increase cycling participation. In addition to consumer advocacy, the organisation manages
a range of rider services and organises major events such as the Great Victorian Bike Ride.
The Amy Gillett Foundation is a not-for-profit organisation focused on reducing the incidence
of death and injury of bike riders. It was established in 2006 and works with government and
runs public education campaigns to improve bicycle safety.
2.2.4
Training organisations
As discussed in more detail below, there are a number of training organisations providing
training to the bicycle industry in Victoria. These include registered training organisations
such as Advanced TAFE, and other providers such as BTA.
2.2.5
Government stakeholders
All levels of government have an interest and an impact on the bicycle industry. In 1999 the
Commonwealth Government established the Australian Bicycle Council (ABC) to implement
the five-yearly Australian National Cycling Strategy. The 2012-2016 strategy sets out the
ABC’s plans to work with state and local governments on bicycle infrastructure, promotion,
research and safety.
The Victorian state government also has a cycling strategy – Cycling into the Future
2013-23 – which sets out priorities and processes for bicycle infrastructure, promotion
research and safety improvements. The strategy is complemented by other Victorian
Government planning including:
 Victoria's Road Safety Strategy
 The Victorian Public Health and Wellbeing Plan 2011-15
 Cycle Tourism Action Plan 2011-15
 The Victorian Trails Strategy
The Department of Transport is the state government department responsible for cycling
policy and funds cycling paths, bike cages and hoops, education and awareness campaigns
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
8
ACIL ALLEN CONSULTING
and cycling events. The Victorian Government had also established the Victorian Bicycle
Advisory Council which provides VicRoads strategic policy and program advice on cycling
issues.
Local councils are also important stakeholders in the industry as they fund bicycle-related
programs including infrastructure, sporting and recreational facilities and education
campaigns.
2.3
Industry growth and outlook
2.3.1
Recent industry performance
Bicycle industry sales are estimated at around $1.1 billion annually (BIA, CPF & RCTA
2012). Almost all bicycles sold in Australia are imported and the number of bicycles
imported has increased significantly over the last 15 years from 500,000 in 1998 to 1.4
million in 2012. Imports peaked in 2007, before falling at the time of the global financial crisis
and recovering slightly since (Figure 5).
Figure 5
Annual bicycle import quantity
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
Annual bicycle imports
400,000
200,000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: ABS
Import growth has been volatile over the last decade and half (Figure 6). Such volatility is
likely influenced by general economic conditions, such as the economic uncertainty in 2008
and 2009, the exchange rate, and more industry specific factors that drive the domestic
demand for bicycles such as success by professional Australian cyclists.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
9
ACIL ALLEN CONSULTING
Figure 6
Bicycle import growth
60%
50%
Annual bicycle
import growth
40%
30%
20%
10%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-10%
-20%
Source: ABS
The value of bicycle imports has grown more steadily, as has imports of bicycle accessories
such as tyres, tyre tubes and bicycle lights (Figure 7).
Figure 7
$12
$10
$8
Bicycle and bicycle accessories import value
Million, A$
Million, A$
Tyres (LHS)
Tubes (LHS)
Lights (LHS)
Bicycles (RHS)
$240
$200
$160
$6
$120
$4
$80
$2
$40
$0
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Note: Data converted from US dollars at annual average market exchange rates.
Source: WTO COMTRADE database.
Import growth and volatility reflect stakeholder feedback gathered through this project.
Retailers report that while the industry has been expanding strongly with significant growth
in retail outlets, there is considerable churn with retailers regularly going out of business.
Industry sales are very seasonal with more sales taking place in the final quarter of each
year in the lead up to summer and Christmas (Figure 8).
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
10
ACIL ALLEN CONSULTING
Figure 8
Monthly imports
200,000
180,000
4 year band
160,000
4 year average
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Source: ABS
2.3.2
Industry outlook
The outlook for the Victorian bicycle retail industry is generally strong. Cycling is an
increasingly popular physical activity and means of transport. In addition, governments at all
level (as detailed above) are keen to see further cycling growth and are increasingly
investing in cycling infrastructure.
There has been a significant increase in the number of Victorians cycling regular from
around 460,000 in 2001 to 600,000 in 2011 (Figure 9).
Figure 9
Cycling participation in Victoria.
650,000
600,000
550,000
Victorian cycling
participation rate
500,000
450,000
400,000
350,000
300,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Victorian Department of Transport 2013
Across Australia, cycling is now the third most popular physical activity, behind
aerobics/gym/fitness and swimming and ahead of running, golf and tennis (ABS 2012). The
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
11
ACIL ALLEN CONSULTING
large membership base of Bicycle Network and ridership in other developed countries also
bode well for the Victorian industry.
2.3.3
Industry trends and their impact on skills needs
There are a number of trends likely to impact the bicycle industry into the future. These
trends will also influence future demand for skills and training in the industry.
Changes to consumer preferences
Australians are buying more expensive bicycles due to increased interest in cycling, rising
incomes and the higher Australian dollar. This is likely to have increased industry revenue
and lead to the growth in specialist retailers of almost 15 per cent in the three years to
2011-12.
With more bicycles being sold, it is also likely that the demand for bicycle maintenance and
custom bicycle construction has also increased. More expensive bicycles are often more
complex and require additional, or higher cost, maintenance and repairs.
Online competition
Concurrently, and as noted above, the bicycle industry faces increased competition from
online retailers. BIA estimates that online sales account for 7 to 16 per cent of the value of
sales of bicycles and associated accessories in Australia (van Schaik 2013). Consumers
identify price, convenience and a greater product range as reasons for shopping online
(Halfpenny 2013).
The industry is increasingly embracing the internet – more than three quarters of Australian
bicycle stores have an online presence, and 40 per cent have an online sales capacity (BIA
2013a).
Increased online competition puts a premium on retail stores offering consumers an
experience they cannot get online. Retail skills of staff are particularly important in advising
consumers on bicycle options and features, as are skills in fitting bicycle for customers.
The impact of online shopping on demand for bicycle mechanics is not clear. Online
shopping could disrupt the relationship between a customer and retailer that may develop
when a customer buys a bicycle from a local retailer and then has the bicycle serviced at the
same retailer for the life of the bicycle.
Conversely, consumers purchasing parts and accessories online may still need assistance
fitting these to their bicycles. Consultations with retailers carried out for this project indicated
that some consumers are requesting mechanics use accessories and parts bought online.
Maintenance
Demand for bicycle mechanics is also influenced by the propensity of bicycle owners to
carry out their own maintenance and repairs. In Victoria, a number of specialist bicycle
retailers and organisations such as BTA offer non-accredited training in bicycle maintenance
and repairs aimed at bicycle owners.
Increased internet usage may increase the proportion of bicycle owners servicing their own
bicycles. Dedicated webpages and tutorial videos mean owners have greater access to the
information needed to carry out their own maintenance.
A potential countervailing force to increased owner maintenance aided by increased internet
usage is rising consumer wealth. This could see owners value their time more highly and
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
12
ACIL ALLEN CONSULTING
thus be in more of a position to pay someone else to carry out the required bicycle
maintenance.
Retailers consulted for this project were not concerned about demand for services and
repairs being undermined by an increase in consumers carrying out their own maintenance.
Safety
Safety is an important issue for cyclists and the bicycle industry, but there is a lack of
evidence than mechanical failure is a large contributor to bicycle accidents and injuries.
Monash Alfred Cyclist Crash Study surveyed 159 people who were patients at emergency
departments due to injuries sustained from crashes while riding a bicycle. The leading
causes of bicycle accidents were hitting or being hit by a car or another bicycle, striking an
object on a carriageway (including tram tracks, potholes, grates and tree branches), and
striking the opened doors of parked cars. Nine cyclists (6 per cent) crashed as a result of a
bicycle malfunction, most commonly a dropped or broken chain (Biegler 2012).
Other research does not identify mechanical failure as a contributor to bicycle crashes. And
there is no evidence that poor assembly of bicycles or poor servicing and repairs is a
contributor to bicycle accidents.
According to consumer organisations such as the Amy Gillett Foundation, retailers can
contribute to improving cyclists’ safety through educating consumers on the importance of
lights and reflectors and safe riding techniques at the time of purchase.
Changes to bicycle technology
Bicycle technology has progressed significantly in recent years, and it appears likely to
continue to improve. Electronic gears, hydraulic brakes and complex suspension systems
are becoming more common as prices for these technologies fall and consumers become
more discerning.
The increased popularity of power-assisted bicycles is also impacting the bicycle industry.
There are two types of power-assisted bicycles currently on the market:
 Pedelec – which has a motor which is only activated while pedalling; and
 E-Bike – which has a motor activated by a handlebar throttle making it possible to cycle
without pedalling.
In September 2012, the Victorian Government adopted the new Australian design rules and
road laws on power-assisted pedal bicycles meaning bicycles up to 250 watts can now be
used without being registered. This is likely to lead to greater use of power-assisted
bicycles.
The impact of technological change on the bicycle industry has been varied. It has
undoubtedly added to the complexity of bicycle mechanics’ work and therefore increased
the value of highly skilled mechanics. Retail staff with up-to-date product knowledge are also
becoming more valuable.
Conversely, some technological advancements have reduced the maintenance needs of
some bicycles (for example hub gears need little maintenance as the gears are protected
from the elements). While some recent technology is so advanced it requires specific
equipment to repair, and so must be send back to the wholesaler for maintenance rather
than being worked on in a retail outlet.
Electric bicycles have helped older Australians who may have stopped cycling to continue to
ride, thus expanding the bicycle market. While the increased use of power-assisted bicycles
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
13
ACIL ALLEN CONSULTING
could lead to greater demand for professional servicing and repair as such bicycles are
more complex, consultations indicate that that the electric components of power-assisted
bicycles have a long life and when mechanical failure occurs the electric components are
normally just replaced.
On net, however, recent and continued technological advancement in bicycle components is
likely to require increased mechanical and retails skills in the bicycle industry in order to
provide high quality advice and maintenance services.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
14
ACIL ALLEN CONSULTING
3
Skills needs and current training
delivery in the bicycle industry
3.1
Workforce profile
Broadly speaking, the bicycle retail workforce falls into two categories – bicycle mechanics
and retail staff. As set out in Figure 10, there is considerable overlap in tasks that these two
categories of employees carry out.
Figure 10 Retail store staff and the industry value chain
Source: ACIL Allen Consulting
3.1.1
Business size
In the larger stores there is less overlap between the two categories of employees and more
specialisation with retail staff working solely on fitting and retail and bicycle mechanics
concentrating on tasks in the workshop. The larger retail outlets will employ a number of
retail staff, often a mix of full- and part-time, and one or two mechanics.
Smaller, owner/operator businesses are likely to have less staff – often the owner, their
partner and one retail worker or mechanic. As a result, there is likely to be less
specialisation with mechanics expected to perform fitting and retail tasks, in addition to their
workshop responsibilities.
3.1.2
Wholesalers
While they do not employ retail staff, it is estimated that 40 per cent of wholesalers employ
bicycle mechanics. Mechanics working for wholesalers can have a number of roles including
providing training to retail mechanics, repairing bicycles or parts when retail stockists do not
have the necessary skills or tools, and providing troubleshooting advice, often over the
phone, to retail mechanics.
Mechanics in the wholesaler sector normally have experience as mechanics in the retail
sector.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
15
ACIL ALLEN CONSULTING
3.1.3
Demographics
Consistent with the general retail sector, employees in the retail bicycle industry are likely to
be younger than the general workforce. The BIA (2013b) estimates the average age of
bicycle mechanics is between 25 and 30 years old. The vast majority of employees and
employers in the industry are men.
3.1.4
Wages
Minimum wages for retail employees are governed by the General Retail Industry Award
2010. The Award base rate depends on a variety of factors including the age of the
employee, whether they are full-time, part-time or casual, the state or territory they are
working in and the relevant pre-modern award. For example, for full time adult employees in
the bicycle industry (under the pre-modern Victorian Shops Interim Award 2000) the base
rate of hourly pay in Victoria is $17.98, or around $35,000 a year.
The BIA’s survey of retailers indicates most mechanics earn between $20.00 and $25.00
per hour. These figures are supported by retailers consulted as part of this project – annual
wages for mechanics begin at around $40,000 and generally rise to about $55,000. There is
little scope for wage progression past this level, apart from owning and operating a retail
outlet or a specialist bicycle workshop.
3.1.5
Pathways into the industry
Interest in cycling and bicycles is an important motivation for retail workers and mechanics
in the bicycle industry.
The pathway into the sector for retail workers is much the same as other parts of the retail
sector, although employers do look for a passion for and knowledge of bicycles, in addition
to general retail skills and experience. As noted in section 2.3.1, bicycle sales are seasonal
with the majority of bicycles sold in the lead up to summer and Christmas. As a result,
younger employees are often employed on a casual basis around this peak sales time.
Pathways for potential bicycle mechanics are more complex. Often a young person with an
interest in bicycles finds a casual job in the retail and/or assembly operations of a bicycle
retailer. After showing aptitude with assembly tasks, the employee begins to carry out basic
repairs (such as tyre changes) to support the retailer’s mechanic. Experience in basic
repairs and self-teaching outside of work hours then leads to a full-time mechanic position.
Other pathways include qualified tradespeople (such as motor mechanics) looking for a
career change or ex-professional cyclists. In these cases, the mechanic will often establish a
small retail outlet in which they will carry out most of the repairs and services.
There is also a traineeship model which provides a pathway into the industry through a
structured program of accredited on- and off-the-job training (as discussed further below).
However there is a low level of uptake of this model, and consultations indicate many
retailers are unaware of its existence.
3.1.6
Staff turnover and future employment intentions
Due to characteristics highlighted above, such as limited wage progression and a younger
workforce, staff turnover is relatively high in the bicycle retail industry. Employers report
struggling to retain employees and that poaching of mechanics takes place.
As noted, some employees, particularly mechanics, intend to go on to establish their own
bicycle business – either a retail outlet or a specialist workshop. There is also scope for
retail employees to move into the wholesale sector.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
16
ACIL ALLEN CONSULTING
Many employees, however, see their work in the bicycle industry as enjoyable and
challenging but relatively short-term. They may be interested in working in the industry while
studying or in their 20s, but look for other opportunities for career progression as they get
older. This is reflected in the younger age profile of the workforce.
3.1.7
Skills shortages
Auto Skills Australia (2013), based on industry surveys, contends that bicycle mechanics are
in severe shortage, particularly Victoria and NSW. Auto Skills Australia estimates there is a
nation-wide shortage of approximately 1000 bicycle mechanics in 2012-13.
The BIA’s survey of retailers indicates that half of stores surveyed advertised for a bicycle
mechanic in 2012, with half of these stores unable to find a suitable candidate to employ.
Consultations support these findings with a number of retailers reporting difficulty finding
skilled bicycle mechanics. There was, however, also a lack of interest in investing in a
potentially promising mechanic through on-the-job training or a traineeship. This issue is
discussed further in section 4.2.
In order to combat what it sees as a lack of suitably skilled mechanics, the industry has used
the recent changes to the Certificate II and III to further promote mechanic training. A
website has been developed (bicyclemechanics.com.au) which includes information on
careers and training.
Bicycle retailers have also endeavoured to better define career paths in the industry
demonstrating the link between bicycle mechanics and business ownership, and the degree
to which skills can be transferred to other occupations.
3.2
Skills and training needs
3.2.1
Overview
The bicycle industry has a variety of skills and training needs, as mapped relative to the
industry’s value chain in Figure 11.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
17
ACIL ALLEN CONSULTING
Figure 11 Skills and training needs
Source: ACIL Allen Consulting
3.2.2
Manufacturing / custom building
As noted in section 2.2.1, a small number of retailers offer custom bicycle building services.
These retailers will work with customers to design a unique bicycle that meets the technical
and appearance requirements of the customer. The skills needed for this part of the value
chain centre on design, welding and spray painting.
Accredited training is available for these areas in the form of a group of a small number of
units called a skill set. For example, learners can undertake the Advanced Body Repair
Welding Skill Set which includes the units ‘Apply heat-induction processes’, ‘Carry out gas
metal arc welding procedures’ and ‘Carry out spot welding procedures’. Some RTOs also
provide non-accredited welding training such as Victoria University’s ‘Welding for Beginners’
which involves 28 hours of tuition for $560.
Similarly, in the case of spray painting, learners can undertake accredited training in the
single unit of competency ‘Apply paint by spray’ at a number of RTOs in Melbourne and
regional Victoria.
3.2.3
Assembly
Assembly skills are needed to build bicycles from their box for display and sale. The level of
technical skill needed to assemble a bicycle is much lower than for servicing and repairs as
the bicycle comes partially assembled in the box. Consultations with bicycle retailers
indicate that assembling a bicycle out of its box can take from 20 minutes to one hour,
depending on the skills and experience of the assembler and the level of additional
calibration and adjustment carried out.
The technical skills needed to assemble a bicycle are normally taught on-the-job in the
bicycle industry. In many cases the bicycle assembler will also be the retail store’s bicycle
mechanic. Where the assembler is employed solely for the role or is normally a retail
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
18
ACIL ALLEN CONSULTING
employee and is relatively inexperienced, the bicycle mechanic will often carry out quality
assurance to ensure the bicycle is in a suitable condition.
3.2.4
Retail
Retail skills in the bicycle industry include generic retail skills such as interpersonal skills
and transacting purchases, and more industry-specific skills such as product knowledge and
bicycle advice. Retail skills are becoming more important as stores seek to provide
consumers an experience they cannot get online.
There are a number of accredited courses that provide retail training including Certificate I, II
and III in Retail. Consultations with industry did not reveal any interest in these generic retail
courses.
The bicycle industry Certificate II and III also include retail units such as ‘Establish relations
with customers’ and ‘Work in a retail bicycle environment’.
Retail training for bicycle retail employees is provided by bicycle wholesalers, and, to a
lesser extent, component wholesalers. Bicycle wholesalers often provide training on
customer relations and sales, in addition to training on their own products to so that retail
employees can advise customers on the features and uses of the most recent technology.
Component wholesalers provide training on their products.
3.2.5
Fitting
Bicycle fitting practices vary from store to store. A small number of retailers employ bicycle
fitting technology, normally an adjustable stationary bicycle with diagnostic equipment. In
these cases, training is provided by the bicycle wholesaler, which has normally designed the
diagnostic equipment.
Most retailers, however, provide fitting services based on conversations with the consumer
and basic information such as consumer height and preferences. This is not a particularly
technical skill and training for fitting often takes place on-the-job. Some high-end bicycle
wholesalers, such as Specialized, offer training on fitting.
3.2.6
Servicing and repair
Along with custom bicycle building, servicing and repair are the most technical segments of
the bicycle industry value chain. Most retail outlets have a dedicated bicycle mechanic to
carry out service and repairs.
The skills needed for servicing and repair can vary considerably from relatively basic skills
such as replacing a punctured tube or lubricating a bicycle chain, to servicing or repairing
more complex components such as hydraulic suspension or electronic brakes. Some bicycle
components are so complex or require such specific tools that they are normally sent to the
wholesaler for repair or servicing.
Broadly, training needs for servicing and repair fall into two categories: introductory for those
with limited experience but interested in a career as a bicycle mechanic; and training in
more technical, often brand-specific components.
The latter is relatively well served by bicycle and component wholesaler training, provided to
retail store employees where the store has an exclusive or semi-exclusive arrangement with
the wholesaler. This training can focus on a particular brand of bicycle or component, and
normally presumes an intermediate level of bicycle mechanics skill and experience.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
19
ACIL ALLEN CONSULTING
The former, training for bicycle mechanics new to the occupation, has generally been the
purview of accredited training, which is discussed in the following section.
3.3
Accredited training
3.3.1
Overview
There are currently two accredited training courses for the bicycle industry:
 Certificate II in Bicycle Mechanical Technology (AUR20312)
 Certificate III in Bicycle Workshop Operations (AUR30212)
An overview of these courses is provided in Box 1. Both courses are in their first year of
operation having replaced the Certificate II in Bicycles and Certificate III in Bicycles courses
respectively.
Box 1
An overview of bicycle qualifications
Certificate II in Bicycle Mechanical Technology
This qualification covers the skills and knowledge required to perform a range of routine assembly
and servicing tasks within the bicycle industry. It is suitable for entry into the bicycle retail, service and
repair sector. The Certificate II requires 16 units of competency – 8 core units and 8 electives.
The Certificate II in Bicycle Mechanical Technology is intended to prepare new employees or develop
existing workers who are performing bicycle service tasks in the bicycle industry.
Job roles related to this qualification include:
 bicycle assembler
 bicycle service technician
 assistant mechanic
 bicycle sales assistant.
Certificate III in Bicycle Workshop Operations
This qualification covers the skills and knowledge required to perform a broad range of mechanical
tasks on a variety of bicycles in the bicycle retail, service and repair sector. The Certificate III requires
28 units of competency – 16 core units and 12 electives.
The Certificate III in Bicycle Workshop Operations is intended to prepare new employees or
recognise and develop existing workers performing mechanical work in the bicycle retail, service and
repair industry. The work may also include tasks related to the operation of the business, retail sales
and/or the supervision of others.
Employment outcomes targeted by this qualification include:
 bicycle repair technicians
 bicycle mechanics
Source: training.gov.au
In this recent refresh by the Auto Skills Australia Industry Skills Council, there were no
changes to the employability skills required as determined in consultation with the bicycle
retail, service and repair sector. However, the structure of the qualification changed with an
increase in the number of core units to include more basic literacy, numeracy and technical
skills. In addition, a number of contemporary skills sets were added to the list of possible
electives at the Certificate III level (see below).
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
20
ACIL ALLEN CONSULTING
3.3.2
Training providers
As set out in Table 1 and Table 2, there were nine RTOs providing bicycle qualifications in
2012 in Australia, with 143 learners enrolled in the Certificate II and 129 enrolled in the
Certificate III. Most training providers had very low enrolment levels and three providers
ceased bicycle training between 2011 and 2012.
Table 1
National Certificate II enrolments by provider
State
2011
2012
Proportion of total
enrolments (2012)
Northern Melbourne Institute of TAFE
Vic
90
102
71%
Bacchus Marsh Community College
Inc
Vic
19
15
10%
CY O'Connor Institute
WA
12
7
5%
Quality Automotive Training
SA
2
5
3%
SkillsTech Australia
Qld
16
4
3%
South West Institute of TAFE
Vic
4
4
3%
Motor Traders Association of NSW
NSW
5
3
2%
TAFE NSW
NSW
3
3
2%
Advance TAFE
Vic
14
0
0%
Gordon Institute of TAFE
Vic
1
0
0%
166
143
Total
Note: Covers AUR20311 - Certificate II in Bicycles and AUR20305 - Certificate II in Bicycles
Source: ACIL Allen Consulting analysis of NCVER data
Table 2
National Certificate III enrolments by provider
State
2011
2012
Proportion of total
enrolments (2012)
SkillsTech Australia
Qld
87
66
51%
Northern Melbourne Institute of TAFE
Vic
42
39
30%
Motor Traders Association of NSW
NSW
17
13
10%
TAFE NSW
NSW
5
7
5%
Advance TAFE
Vic
2
3
2%
Quality Automotive Training
SA
1
1
1%
Gordon Institute of TAFE
Vic
1
0
0%
South West Institute of TAFE
Vic
2
0
0%
The Skills Institute
Tas
1
0
0%
Tropical North Qld Institute Of TAFE
Qld
1
0
0%
159
129
Provider
Total
Note: Covers AUR30211 - Certificate III in Bicycles, AUR30205 - Certificate III in Bicycles
Source: ACIL Allen Consulting analysis of NCVER data
3.3.3
National enrolment numbers
Enrolments in accredited bicycle mechanics training in Victoria have increased in recent
years. This trend is most clearly in the Certificate II courses which saw a massive increase
in enrolments (Figure 12).
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
21
ACIL ALLEN CONSULTING
Figure 12 Certificate II in Bicycles, enrolments, selected states
140
New South Wales
120
Victoria
100
Queensland
Western Australia
80
60
40
20
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Notes: Covers three courses: AUR20305 - Certificate II in Bicycles, AUR20311 - Certificate II in
Bicycles, and AUR23099 - Certificate II in Bicycles (Services).
Selected states: ACT had zero commencements over the period, Tasmania five, SA 17 and NT 19.
Source: VOCSTATS
Certificate III enrolments have also increased in Victoria, but this increase has been more in
line with enrolments in other states. In Victoria, Certificate III enrolments increased between
2006 and 2010, before falling slightly to 2012 (Figure 13). The state with the highest number
of Certificate III enrolments is Queensland, although there has been a significant decrease
in this state since 2010.
Figure 13 Certificate III in Bicycles, enrolments, selected states
120
New South Wales
100
Victoria
Queensland
80
South Australia
60
40
20
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Notes: Covers three courses: AUR30211 - Certificate III in Bicycles, AUR31999 - Certificate III in
Bicycles (Mechanics), and AUR32099 - Certificate III in Bicycles (Sales).
Selected states: ACT and WA had zero commencements over the period, Tasmania 11, and NT 13.
Source: VOCSTATS
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
22
ACIL ALLEN CONSULTING
3.3.4
History of accredited training in Victoria
As late of the 1960s, Victoria has a strong bicycle manufacturing sector (led by Malvern Star
and retailers making their own bicycle frames), supported by relevant training. There are still
a number of people in the industry who were trained at this time as mechanical apprentices,
at Malvern Star in particular.
In the early 1990s mechanical training was downgraded from an apprenticeship to a
traineeship, impacting the level of Commonwealth and state government support. Around
the turn of the century, Kangan Batman TAFE established a bicycle mechanics course in
Melbourne which gained little currency with the industry.
More recently, over the period 2008-2012, there were seven providers of accredited bicycle
training in Victoria. The majority of these providers had very low enrolment numbers, with no
provider’s annual enrolments rising above 20, aside from NMIT (Figure 14).
Figure 14 Certificate II and III enrolments in Victoria, by provider
Certicate II enrolments
120
Certicate III enrolments
100
80
60
40
20
0
2008
2009
NMIT
South West TAFE
2010
2011
Advance TAFE
Echuca College
2012
2008
2009
Bacchus Marsh College
University of Ballarat
2010
2011
2012
Gordon TAFE
Note: Covers AUR20305 - Certificate II in Bicycles, AUR20311 - Certificate II in Bicycles, and AUR23099 - Certificate II in Bicycles
(Services); and AUR30211 - Certificate III in Bicycles, and AUR31999 - Certificate III in Bicycles (Mechanics).
Source: DEECD
As shown in Figure 14, the vast majority of the increase in enrolments from 2009 occurred
at NMIT, with some increase at Bacchus Marsh Community College with Certificate II
enrolments. There are a number of factors which combined to lead to these enrolment
increases.
Importantly, the Victorian Training Guarantee (VTG) was introduced in 2009. The VTG
uncapped the number of training places providers could offer in each course and assured a
government subsidised training place to all Victorians contingent on a number of criteria.
The VTG led to significant growth in enrolments across the VET sector, and likely
contributed to the increase in bicycle training.
The VTG subsidy rates for the bicycle courses were at the higher end – for a large TAFE the
rate was $11.48 per student contact hour (SCH) for the Certificate II and $10.95 for the
Certificate III. These rates were similar to those for automotive courses and trades such as
carpentry.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
23
ACIL ALLEN CONSULTING
Significantly, BTA began delivering training in 2009 under an auspicing arrangement with
NMIT. While NMIT previously delivered the training in-house, in some cases with the same
trainers, the establishment of BTA appears to have led to a more concerted effort to
promote the two bicycle industry courses, particularly with VET in Schools.
BTA was a relatively small operation, relying mainly on the efforts of its three person
management team, and in particular its joint director / head trainer. The management team
took on considerable risk to establish BTA and were motivated by a dedication to the bicycle
mechanic vocation.
Finally, consultations indicate that shortly after the introduction of the VTG, two large bicycle
chains began enrolling their mechanics in accredited training due to concerns about liability
issues. According to stakeholders, consumers of the two chains purchased bicycles that
suffered mechanical failure due to poor assembly. To reduce the chance of this occurring in
the future and to better protect the two chains against insurance claims, accredited training
was sought.
Subsidy rate changes
From 2013, as part of the Refocusing Vocational Training in Victoria reforms, the subsidy
rate for the bicycle industry Certificate II and Certificate III were reduced from $11.48 and
$10.95 (for a large TAFE) to $7.00 and $6.50 respectively. While before 2013 subsidy rates
differed based on the type of training providers, under the Refocusing Vocational Training in
Victoria reforms all providers receive the same subsidy rate (Table 3).
Table 3
Subsidy changes in Victoria
2012 subsidy
New subsidy
Qualification
Small TAFE
Large TAFE
Non-TAFE
All RTOs
Band
Certificate II
$11.97
$11.48
$10.01
$6.50
C
Certificate III
$11.26
$10.95
$10.01
$7.00
C
Source: DEECD
In Victoria, the subsidy rate is determined by two factors: the benchmark hourly rate for the
level of qualification and a weighting for the course:
1. The Victorian Government sets higher benchmark hourly rates for foundation and
apprenticeship qualifications, and lower rates for diplomas and above and to lower-level
certificates where direct vocational benefit is lower.
2. The weighting for each course is set based on ‘its value to the economy (in terms of
jobs or productivity) and the extent to which government investment is required to
stimulate delivery of, and participation in, this training to meet industry needs’ (Victorian
Government 2012b).
The bicycle industry certificates sit in subsidy Band C (Table 4).
Table 4
Subsidy bands
Subsidy band
Subsidy range per hour of training delivery
Band A
Greater than $10.00
Band B
$7.50-$10.00
Band C
$5.00-$7.00
Band D
$2.00-$4.50
Band E
Less than $2
Source: Victorian Government 2012b
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
24
ACIL ALLEN CONSULTING
While the subsidy rates for the Certificate II and Certificate III have fallen 43 per cent and
36 per cent (based on the 2012 subsidy rates for a Large TAFE), due to the fact RTOs
charge fees for these courses, revenue per SCH has only fallen 33 per cent and 26 per cent
respectively (Table 5).
Table 5
Revenue per SCH changes
Subsidy rate
Revenue per SCH
2012
New
Change
Student
fees
Certificate II
$11.48
$6.50
-43%
$3.50
$14.98
$10.00
-33%
Certificate III
$10.95
$7.00
-36%
$4.00
$14.95
$11.00
-26%
Qualification
2012
New
Change
Note: 2012 subsidy rate is for a Large TAFE. Student fee per SCH is based on fees charged by
Advance TAFE.
Source: ACIL Allen Consulting, Advance TAFE 2013, DEECD.
To put the subsidy rate change in context, 17 per cent of courses received a larger subsidy
cut as a proportion of the previous large TAFE rate than the bicycle Certificate II. 22 per cent
of courses received a larger subsidy cut than the bicycle Certificate III. Figure 15 shows the
frequency of subsidy rate changes for all VET courses in Victoria. The average subsidy
change across the VET sector was -23 per cent (both median and mean).
Figure 15 Victorian VET course subsidy rate changes, 2012-2013
Number of courses
250
200
150
Bicycle
Cert III
Bicycle
Cert II
100
50
-85%
-80%
-75%
-70%
-65%
-60%
-55%
-50%
-45%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
0
Note: 1718 courses. Percentage change between the subsidy rate for a large TAFE in 2012, and the
subsidy rate in 2013 for all RTOs. Each column is the count of courses in the five percentage point band
including and below the x axis label. The one course that received a 70 per cent subsidy increase is not
displayed for formatting reasons.
Source: ACIL Allen Consulting analysis of DEECD 2012, DEECD 2013.
While the bicycle industry certificates saw large subsidy falls, the current subsidy rate for the
two courses is around the average for all courses in Victoria (both median ($7.00) and mean
($6.76)). Figure 16 shows the number of courses receiving each subsidy rate in Victoria.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
25
ACIL ALLEN CONSULTING
Figure 16 Current subsidy rates
Number of courses
350
300
Bicycle
Cert II
250
Bicycle
Cert III
200
150
100
50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
$8.50
$9.00
$9.50
$10.00
$10.50
$11.00
$11.50
$12.00
$12.50
0
Note: 2080 courses.
Source: ACIL Allen Consulting analysis of DEECD 2013.
The rationale for the 2013 subsidy changes was to improve targeting of VET course
subsidies and reduce the projected rate of growth in VET sector subsidies. The introduction
of the Victorian Training Guarantee saw a much greater than anticipated number of VET
enrolments, and thus government subsidy expenditure significantly exceeded budget
forecasts. For example, when the VTG was introduced in 2008-09, the government forecast
2011-12 subsidy expenditure to be around $900 million; the actual expenditure was around
$1.3 billion (Peake 2012).
Based on 2012 enrolments, the reduction in the bicycle training subsidy rates would lead to
42 per cent or around $120,000 less government expenditure annually (Table 6).
Table 6
Subsidy expenditure based on different subsidy rates
Subsidy expenditure
Qualification
2012 Enrolments
Difference
2012 subsidy rate
Certificate II
116
$213,069
New subsidy rate
$120,640
-$92,429
Certificate III
41
$71,832
$45,920
-$25,912
Total
157
$284,901
$166,560
-$118,341
Note: Enrolments based on actual 2012 figures. Expenditure based on an annual 320 hours of study.
Source: ACIL Allen Consulting analysis of DEECD data.
NMIT and BTA
Under the auspicing arrangement between NMIT and BTA, BTA received $5.50 per SCH
(regardless of the certificate). NMIT provided facilities for the training at its Fairfield campus
and equipment, and covered the cost of utilities. NMIT also took responsibility for all
administration of the courses and student marking. For this, NMIT received $5.98 per SCH
for Certificate II learners and $5.45 for Certificate III learners, in addition to $3.00-$4.00 per
SCH in student fees and $200-$300 in amenities and materials fees.
After the subsidy change was announced in 2012, NMIT revised the revenue sharing
agreement and offered BTA $3.50 per SCH. BTA considered this too low a price to deliver
the training and so the auspicing arrangement ended.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
26
ACIL ALLEN CONSULTING
Advance TAFE and BTA
In September 2013, Advance TAFE and BTA established an auspicing arrangement for the
delivery of the Certificate II and III. Advance TAFE, in addition to having the training on
scope and maintaining a low level of on-the-job delivery, had been developing an online tool
to aid the delivery the Certificate II and III. Without the online tool, Advance TAFE may not
have been interested in a partnership with BTA.
The online tool provides content and assessment for some units, and aids with
administration of the course, marking across all units and identifying skills gaps. As a result,
it reduces the amount of face-to-face training required and administration, and therefore
reduces the cost of training delivery. The online tool was developed in part with a grant from
the Victorian VET Development Centre.
Under the auspicing arrangement with Advance TAFE, BTA began delivering the
Certificate II in late 2013 and planned to deliver the Certificate III in 2014. The training took
place in workshop space provided rent-free by Alta Bicycle Share (the firm that operates the
Melbourne Bike Share scheme); BTA pays the utility costs. The subsidy rate and student
fees for the two Certificate courses are set out in Table 7.
Table 7
Subsidy and fees overview
Qualification
Government
subsidy per
SCH
Student fee
per SCH
Number of
SCHs
Materials fees
Total student
cost
Certificate II
$6.50
$4.00
250 - 390
hours
$40
$1,040 $1,600
Certificate III
$7.00
$3.50
535 - 745
hours
$60
$1,933 $2,668
Note: Student fee per SCH and material fees are based on fees charged by Advance TAFE.
Source: Advance TAFE 2013, DEECD
In December 2013, BTA announced that it would withdraw from its agreement with
Advanced TAFE. BTA reported that it was uneconomical to deliver the training, in
particularly the associated administrative and compliance tasks, at the rate of funding
provided by Advance TAFE.
While it is not clear exactly what the revenue sharing arrangement between Advance TAFE
and BTA was, Table 8 sets out the overall revenue likely to be available to Advance TAFE,
presuming around 30-40 student enrolments annually.
Table 8
Potential RTO revenue
Qualification
Certificate II and
III
RTO revenue per
SCH
Minimum viable
student numbers
Minimum viable
SCHs
Total RTO
revenue
$10.50
30-40
~15,000
$157,500
Note: Student fee per SCH is based on fees charged by Advance TAFE
Source: Advance TAFE, DEECD
Other BTA undertakings
In early 2013, BTA began exploring the option of becoming a registered training
organisation. This would have removed the need to auspice under an RTO and to share the
government subsidy funding. BTA were initially unsuccessful at meeting the requirements
for RTO-status and decided that significant further, and ongoing, investment would be
needed to become an RTO – resources BTA did not have.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
27
ACIL ALLEN CONSULTING
In addition to its delivery of accredited training in partnership with NMIT, BTA has offered a
number of different non-accredited courses:
 Introduction to Accredited Bicycle Mechanics. The course runs for 33 hours over 11
weeks and costs $550. Credit towards the accredited certificates was available under
the NMIT auspicing arrangement.
 Bicycle Assemblers Course. A three day training program offered in partnership with the
RCTA, generally in September. The course is based on three nationally accredited
competencies, and so under the NMIT auspicing arrangement provided credit for the
Certificate II and III. The course also involves a number of days of work experience. It
costs $100.
 Short courses aimed at bicycle users. BTA offers three types of courses aimed at
cyclists each around 15 hours long for between $79 and $399.
In 2013, BTA received a Social Enterprise Start Up grant from the City of Melbourne to
support vocational education for disengaged learners. In late 2013, with the assistance of
the grant BTA delivered a four week basic bike servicing program for two groups of students
from Kensington Community School.
3.3.5
The experience in other states
Consultations for this project included RTOs in other states delivering accredited bicycle
industry training. While there are differences between states, RTOs in WA and Queensland
also struggle with low enrolment numbers and associated costs.
CY O’Connor (WA)
CY O’Connor, a public RTO with four campuses – the main campus is located 100km east
of Perth. It offers courses in Business, Children’s Services, Aged Care, Disability Services,
Education Support, Retail, Security, Agriculture, Agribusiness and Wool Handling.
In 2012, CY O’Connor was the largest provider of Certificate II bicycle training outside of
Victoria. The RTO does not deliver bicycle industry training at the Certificate III level, but
does carry out recognition of prior learning (RPL) for the Certificate III.
Certificate II enrolments average 10 learners per year and all training is delivered under a
traineeship model and thus in the workplace, by a trainer who visits each learner about twice
a year.
The Certificate II is funded by the Western Australian Government at similar rate to the
pre-2013 Victorian rate. The cost of travel is cross-subsidised by the need to travel to deliver
other courses such as forklift and automotive air conditioning training – around 20 per cent
of the trainer’s time is spent on teaching the bicycle course. Despite the disbursement of the
travel costs across a number of courses, the delivery of the Certificate II is just breaking
even.
CY O’Connor reports that the WA Government subsidy rate for the Certificate II is around
$12.00 per student contact hour. This rate may change in the near future due to VET
reforms due to be implemented in WA.
SkillsTech Australia (QLD)
SkillsTech Australia is a large public RTO located in Brisbane. It delivers training to more
than 20,000 learners annually across automotive, building and construction,
electrotechnology, manufacturing and engineering, sustainable technologies and water,
mining, gas and resources.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
28
ACIL ALLEN CONSULTING
SkillsTech is the largest provider of Certificate III bicycle training in Australia with 87 and 66
students enrolled in 2011 and 2012 respectively. The training is delivered as part of a four
year apprenticeship, in contrast to the Certificate III in Victoria which is a two year
traineeship. Training at SkillsTech involves block release, online automotive units and
projects. The RTO recently commenced training delivery to a large bike franchise – this
training is delivered on-site to six learners.
The Certificate III is funded at a similar rate as to the pre-2013 Victorian subsidy, although
this could change with VET reform in Queensland. The provision of the Certificate III is also
supported by revenue from cyclist classes and RPL (15 to 20 students per year).
SkillsTech has explored interstate delivery of the Certificate III, but decided it was not
feasible as it is difficult for RTOs to access subsidy funding outside of their home state.
In Queensland, the Government subsidies training on a per certificate basis, not per student
contact hour (as is the case in Victoria). For the Certificate II this subsidy is $3,600 and for
the Certificate III it is $8,310. The effective rate of subsidy per student contact hour varies
depending on the number of hours students undertake, as set out in Table 9.
Table 9
Queensland training subsidies
Qualification
Total subsidy
Subsidy per student contact hour
Lower bound
contact hours
Median contact
hours
Upper bound
contact hours
Certificate II
$3,600
$14.40
$11.25
$9.23
Certificate III
$8,310
$15.53
$12.98
$11.15
Source: Queensland Government 2012.
3.3.6
Training costs and viability
This section sets out a simplified estimate of the revenue and costs faced by training
organisations delivering the bicycle industry qualifications in Victoria under the 2012 subsidy
and the new subsidy rates.
Table 10 details the annual revenue per student a training organisation could receive for
delivering the two qualifications.
Table 10
Revenue per student per annum
Qualification
Hours
per
annum
Subsidy
rate
Student
fees
Revenue
per SCH
Materials
fees
Revenue
per
student
2012
subsidy
Certificate II
320
$11.45
$4.00
$15.45
$40
$4,984
Certificate III
320
$10.95
$3.50
$14.45
$40
$4,664
New
subsidy
Certificate II
320
$6.50
$4.00
$10.50
$40
$3,400
Certificate III
320
$7.00
$3.50
$10.50
$40
$3,400
Note: 2012 subsidy rate is for a Large TAFE. Student fee per SCH and material fees are based on fees
charged by Advance TAFE. Hours per annum are derived by taking the median of estimated hours for
the two courses provided by RTOs.
Source: Advance TAFE 2013, DEECD.
Table 11 estimates annual RTO costs in delivering the Certificate II and III, based on a
TAFE model of costs.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
29
ACIL ALLEN CONSULTING
Table 11
Annual RTO costs
RTO costs
Trainer costs
Administration &
other overheads
Return on
investment
Total
$115,000
$46,000
$7,475
$168,475
Note: ‘Trainer costs’ are estimated based on consultations with RTOs. ‘Administration & other
overheads’ includes administration, materials and maintenance, rent and corporate contributions. Based
on discussions with RTOs, this is estimated at 40 per cent of ‘Trainer costs’. Most RTOs look for a
return on their business activities – based on discussions with RTOs, this is estimated at 6.5 per cent of
‘Trainer costs’.
Source: ACIL Allen Consulting.
Finally, Table 12 combines the costs and per student revenue to derive the minimum
number of students that an RTO would have to enrol in order to break even on the provision
of the bicycle industry courses. The changes in the subsidy rate have increased the break
even number of students from around 36 to approximately 50.
Table 12
Viable student number estimates
Costs
Revenue per student
Break even student
numbers
2012 subsidy
$168,475
$4,664
36
New subsidy
$168,475
$3,400
50
Note: Break even student numbers derived by dividing costs by revenue per student.
Source: ACIL Allen Consulting.
3.4
Non-accredited training
There is significant variety in the non-accredited training provided in the bicycle industry. In
addition to the non-accredited training provided by BTA detailed above, wholesalers provide
a variety of training, and the RCTA used to organise informal talks.
3.4.1
Industry association training
The RCTA used to organise the Torqueing Bikes Seminar Series which saw seven seminars
across 2010-2012, each delivered by a different technical expert on areas such as wheel
building and suspension.
Currently there is no training provided by industry associations.
3.4.2
Wholesalers
Vendor provided training in the bicycle industry in Australia is relatively broad and is
generally available to all retailers stocking the relevant vendors’ products. Retailers
sometimes have to pay to attend the training.
Wholesalers approach to training can be summarised as follows:
 Mid-range to upper-range bicycle wholesalers provide brand specific business training,
but only some offer mechanical training
 Mid-range to upper-range component wholesalers provide mechanical training on their
components
 Lower range wholesalers generally do not provide training
The vast majority of mechanics training provided by wholesalers presumes a reasonably
high level of mechanical ability and experience. An overview of different wholesaler training
is provided below. Wholesalers are generally unwilling to speak publically about the training
they offer and so the below should not be considered comprehensive.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
30
ACIL ALLEN CONSULTING
Bicycle wholesaler-provided training
Specialized
Specialized is an American high-end bicycle wholesaler with exclusive or semi-exclusive
arrangements with around 70 retailers in Australia. Specialized provides training in retail
sales, merchandising, bicycle fitting and bicycle mechanics. Training is only available to
retailers and their staff.
Significant retailing and merchandising training is delivered online with flash instructional
content which includes product specifications, video segments, and instructional
presentations on key technologies.
Specialized offers two mechanics courses at its large modern workshop in Melbourne. The
more basic course is more popular and takes learners through how to service and repair
Specialized bicycles. The advanced course covers brakes and suspension servicing in
greater detail. Specialized also delivers fitting training to retailers so they can use the
Specialized fitting process.
The Specialized mechanics courses run for a week and cost $800-$1600. Retailers normally
pay this fee so their mechanics can attend the training.
Trek
Trek is a large, American high-end bicycle wholesaler with exclusive or semi-exclusive
agreements with around 140 retailers in Australia. Trek provides business and retail training
but no mechanical training.
TREK School is an online training delivery system focusing on retail and managerial training
courses, including stock management and finance. The site also provides technical
specifications and instructional diagrams for Trek products.
Every year, Trek invites all of its retailers to Canberra for the four-day Trek World where
they can listen to presentations on store management and inspect new products.
Component wholesaler-provided training
Campagnolo
Campagnolo is an Italian high-end bicycle components wholesaler.
Campagnolo runs a five hour technical course for bicycle mechanics to attend, instructing on
installation, diagnostics and repair on the gear systems. Once a mechanic has completed
the training, their store receives a Campagnolo Pro-Shop certification, to be displayed in
store, designed to demonstrate to the customer a high level of service expertise.
The pro-shop insignia also indicates that the retailer is ‘in close contact with Campagnolo
through training courses, technical updates, communications and information on the new
products and their proper maintenance.’ The window sticker has an annual stamp showing
current validity. In Australia, 35 retailers are currently considered Pro-Shops by
Campagnolo.
Shimano
Shimano is a Japanese wholesaler of bicycle components, fishing tackle, and rowing
equipment. There is limited information available on Shimano training in Australia.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
31
ACIL ALLEN CONSULTING
In the US, Shimano run an S-TEC (Shimano Technology Education & Certification)
program, which provides a comprehensive training and certification program designed for
bicycle mechanics. The S-TEC also has an online element, focusing on sales and service
employees to build retail knowledge and competence in brand promotion. Training modules
take between 30 to 50 minutes, and require the employee to complete a quiz upon
completion.
Employees who complete the entire program of training available are given the respective
titles of ‘Shimano Product Expert’ or ‘Shimano Master Mechanic’, which is specific to the
individual, not the store. Stores are listed as have ‘Shimano certified staff’ (Formosa 2011).
SRAM
SRAM is an American bicycle components wholesaler. SRAM operate a purpose built
training facility in Dandenong, where they offer a three day course to bicycle mechanics on
technical repairs and maintenance to SRAM products.
SRAM operates a similar facility, the SRAM Technical University, in Colorado Springs,
Colorado. The university provides a four day training program including repair, maintenance,
installation and tuning of a range of SRAM products designed for independent bicycle
dealers to send mechanics for product specific training.
3.5
Summary of the issues
This chapter has discussed industry skills needs and the current bicycle industry training
landscape in Victoria. There are a variety of skills needs in the industry corresponding to the
industry’s value chain. Similarly there is a variety of on-the-job training and wholesaler
training that aims to meet these skills needs. Some training needs are met by
non-accredited and informal training, with the more technical training is carried out by
vendors.
But as set out in Figure 17 there are key training gaps in retail and sales, and in introductory
to intermediate mechanics training. Training is needed at the more basic level, particularly
for those starting out in the industry.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
32
ACIL ALLEN CONSULTING
Figure 17 Training needs and gaps
Source: ACIL Allen Consulting
This training gap comes about due to both the supply and demand sides of the equation.
And any policy response or industry approach must address both the lack of demand for
training from employers and potential learners, and the lack of supply from registered and
other training organisations.
Despite these issues, there are the building blocks and opportunities for relevant and
successful training when compared to other industries. The factors supporting the prospects
for sustainable training and alternative training options are discussed in the next chapter.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
33
ACIL ALLEN CONSULTING
4
Alternative training options
4.1
Summary of challenges for training delivery
While the bicycle industry enjoys many factors that would potentially ensure sustainable
industry-relevant training, the lack of training uptake and delivery to-date means that there
are challenges for training delivery on both the demand and supply sides. The challenges
faced by the bicycle industry in securing sustainable high-quality training that meets industry
needs are listed in Figure 18 below.
On the demand side, employers are yet to embrace accredited training as a standard
requirement for entry into the industry; the traineeship pathway is not well understood, in
large part because few employers themselves have had the personal experience of entering
the industry through that pathway. The Certificate II and III qualifications do not enjoy
widespread industry recognition and similarly employers have mixed views on the value of
investing in training.
The lack of employer recognition of training leads directly to a lack of student demand for
training. The wages of a bicycle mechanic are relatively low although there are reports of
highly competent and efficient mechanics that are enjoying well above average rates of pay.
In any case, training is not a factor in increased wage rates and for young people seeking to
enter the labour market, the out of pocket costs may appear high relative to the short term
returns.
Under current arrangements on the supply side, efficient delivery currently requires bicycle
training to be delivered as an adjunct to automotive training centres or similar trade facilities.
Trainers who are delivering bicycle training cannot do so exclusively and need to also be
providing automotive training or similar programs to defray costs unless a provider was able
to generate significant numbers for accredited and fee for service short courses as a
specialised provider. The costs of workplace delivery models are prohibitive given the
dispersed nature of the industry and the small average firm size.
Government revenue from bicycle training had previously been comparable to the subsidies
for automotive courses but recent reductions in Victoria have made the delivery of bicycle
training less attractive and certainly less viable at small scale, limiting potential entry to the
market by new providers or the existing specialist provider becoming an RTO.
Furthermore, the cessation of training creates the non-trivial problem for any future RTO in
that it will have to re-establish the pipeline of students while carrying the upfront and fixed
costs associated with the introduction of a new training program.
Given the issues on both the demand and supply sides, the following sections identify the
options on both sides that could be implemented to establish and secure sustainable
high-quality training delivery for the bicycle industry.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
34
ACIL ALLEN CONSULTING
Figure 18 Demand and supply side issues for the viability of training in the
bicycle industry
Source: ACIL Allen Consulting, Advance TAFE 2013.
4.2
Demand side options
Vendor-driven training
Vendor-driven training is exemplified by Automotive Manufacturing Technical Education
Collaborative (AMTEC), a collaboration between automotive companies and technical and
community colleges in the USA. Even in highly competitive markets, it is possible for major
vendors/manufacturers to collaborate to ensure clear pathways into industry and consistent
high quality training that is relevant across the industry. In the bicycle industry, inconsistent
mechanic skills imposes a high cost on vendors through excessive/unwarranted after sales
service which would otherwise be rectified by more competent assemblers and bike shop
mechanics.
While many vendors (particularly high-end brands) see vendor-provided training as a
competitive advantage in competing with other brands, none of the vendors offer basic
mechanic or assembly training. Similarly basic mechanic and assembly competency is a
requirement to become a retailer/stockist of any particular brands.
Vendors could see benefits in collaborating to adopt industry wide standards for bike
assemblers and mechanics as has happened in other highly competitive sectors such as
information technology and finance. This could facilitate greater growth in the industry,
promote the industry’s reputation for product quality and safety, and reduce the costs
associated with avoidable warranty claims and after sales service.
Consumer-driven training
At present, a large proportion of consumers generally do not demand or expect a high level
of skill or competency amongst assemblers or bicycle mechanic. As such, the competency
of staff is dictated by the standards of the shop owner, rather than the consumer.
Large bicycle user groups such as Bicycle Network could play a role in driving higher and
more consistent skills amongst bicycle assemblers and mechanics through a concerted
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
35
ACIL ALLEN CONSULTING
campaign to inform consumers of the variability in the skills of assemblers and mechanics in
the marketplace and the impact that assemblers and mechanics can have on the
performance and safety of bicycles. Consumer groups may go a step further and put in
place a voluntary system of identifying bike shops that have qualified mechanics.
Industry-certified training
Industry-certified training tends to be the most common approach to certification and
ensuring consistency of skills and competency within an industry. Examples include the
Victorian Automobile Chamber of Commerce Licensed Motor Car Traders and approved
mechanics.
Industry-driven training requires the presence of a well-established and widely recognised
industry group with a critical mass of membership, typically in the early days of the
emergence of an industry. For example, the Clean Energy Council established the
accredited solar panel installer program at the time when solar panels were starting to be
rolled out en masse with the support of government policies, and falling PV panel prices.
Given the decline of the RCTA, the industry’s ability to promote and drive industry standard
training will depend on the influence and reach of the new association that takes its place.
Box 2
Industry driven accreditation – the UK model
Bicycle industry training in the UK is overseen by Cytech, the recognised training and accredited
scheme for bicycle mechanics and outdoor pursuits retail staff in the UK. Cytech is owned by the
Association of Cycle Traders (ACT) representing the UK Cycle Industry. The ACT is one of the UK’s
largest cycling organisations.
The Cytech training platform was developed over 20 years ago to create a national leading ‘brand’ of
cycling training across mechanical and retail training. Industry remains closely involved in training
development, management and promotion through the ACT, which creates desirable training
packages representing industry needs. Cytech reports that leading UK bicycle distributors require
technical staff to undertake Cytech training.
Training is available in both the technical and retail elements of the bicycle industry. Training is
delivered by ATG Training and PJCS Cycle Training. As these providers are the only two to have
technical training contracts with ACT, they are the only bodies capable of granting Cytech
qualifications to bicycle mechanics. Under this training delivery model Cytech has delivered 6,000
technical courses to 3,500 students. Over 2,000 Cytech qualified staff are actively employed in the
UK bicycle industry. Cytech qualifications are Government QFC registered on the UK Office of
Qualifications and Examinations Regulation’s Registered of Regulated Qualifications.
Employers who employ staff with Cytech training are listed on the cycling experts website as ‘Cytech
Accredited Shops’, which is designed to add weight to the value of the training by giving customers
confidence in the advice and services they obtain from Cytech qualified personnel. The retail training
qualification is recognised in the same way, with staff and their employer listed on the Cytech Retail
Directory, provided that the store is a full member of the ACT.
Source: Cytech 2013
Better public promotion of training
In many industries, training can be driven simply through better public promotion of training.
Such public promotion may be undertaken by government or government agencies,
industry, major employers, employment agencies, or training providers.
Public promotion of training is most effective when appropriately targeted at those cohorts
most interested in a career in the sector. In the case of the bicycle industry, opportunities for
targeted public promotion would include through cycling magazines, club networks, major
races and cycling events, and careers expos.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
36
ACIL ALLEN CONSULTING
Consistent with the promotion of careers in other industries, such information should cover
pathways into the bicycle industry, immediate employment opportunities and longer-term
career prospects including pathways into other industries or occupations.
Highlight potential ROIT to employers
For those industries where training is a high value proposition to employers who simply lack
information on the likely returns on investment in training (ROIT), this may be addressed
through the public promotion of training benefits to employers. As in the case of better public
promotion of training, government or government agencies, industry, major employers,
employment agencies, or training providers could play a role in highlighting the potential
ROIT to bike shop owners and operators.
In the discussions with industry, two significant areas for improved information were
identified:
3. Information on the potential revenue streams from servicing and repairs – in a market
facing increased online retail competition, it would appear that many bike-shops have
not been able to increase their revenue streams from servicing and repairs.
4. Information on the benchmark performance of bicycle assemblers and mechanics, and
the impact of highly competent and efficient staff on the potential revenue from both
retail and repairs.
An overview of how potential ROIT could be highlighted to employers is provided in Box 3.
Box 3
Return on investment in training proposition for employers
The ROIT proposition for employers in the bicycle industry should focus on gains that can be
expected in: quality and efficiency.
Training can be expected to improve the quality of mechanics’ work assembling and servicing and
repairing bicycles. Improved quality in workmanship could lead to a better cycling experience for
customers and thus repeat business.
Training could also be expected to improve the efficiency of training recipients. Consultations indicate
a wide range of efficiency levels – for example bicycle assembly can take 20 to 60 minutes
depending on the skills of the assembler. Increasing the speed at which bicycle are assembled and
serviced and repaired would contribute positively to retailer profitability.
The ROIT of employing a trainee undertaking the Certificate III in the bicycle industry should also
emphasis the incentive payments available to employers (i.e. a $1,500 commencement incentive for
a full-time trainee that is a new worker and a $2,500 completion incentive). The minimum wage for
trainees is also quite low (for example, $9.16 in the first year of the traineeship for a 18 year old
school leaver who has completed Year 12), further increases the chances of employers receiving a
positive return on their training investment.
Source: ACIL Allen Consulting.
4.3
Supply side options
Development of VET in schools pathways
VET in schools (VETiS) delivery represents an ideal pathway into the industry given the high
interest of young people in the bicycle industry broadly. The delivery of VETiS is more likely
to be successful if it is taken up by clusters of schools that are already offering such
programs and if those schools have trade training infrastructure following the significant
recent investments in trade training colleges (TTCs). VETiS delivery will be attractive to
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
37
ACIL ALLEN CONSULTING
employers by making available a larger number of prospective young mechanics and retail
workers who have a practical understanding of parts and technology, and who are not just
interested in the sector but who have the potential to be immediately productive.
Development of an intensive industry entry course
Similar to VETIS delivery, an intensive entry course into the industry will be attractive to
employers by making available a larger number of immediately productive mechanics,
including career changers and new entrants. This would be largely consistent with the model
adopted in the USA. The development of an intensive entry course would seek to address
the gap in training for mechanics who can competently and efficiently undertake bicycle
assembly and routine servicing. The entry level course would be delivered in short
timeframe at relatively low cost paid for by those seeking entry into the industry, and could
include units from the Certificate II qualification. This would allow the course to be an entry
pathway into the Certificate II and III qualifications, while reducing high costs to employers of
taking on trainees without any prior training or experience.
Partner with an international training organisation
Under any of the supply side options discussed, there is the potential to partner with an
overseas organisation, in particular the UK Association of Cycle Traders (ACT) and UBI,
Barnett or Park Tools in the USA. Partnering with a recognised international training
provider could provide the catalyst required to change the culture of training in the industry.
It is understood that the ACT, operators of the successful Cytech model in the UK have
previously offered its support to the RCTA. BikeNow in South Melbourne is one of just three
Australian locations for Park Tool School.
Training/workshop model
There may be scope for a business to combine a workshop carrying out repairs and
assembly, with a training program. This would provide learners with practical training and
the business with two sources of revenue.
Such a workshop, with a large stock of mechanics, could help retailers deal with peaks in
demand for bicycle assembly and services and repairs by hiring out mechanics or receiving
bicycles that need assembly or servicing.
Group training scheme
The group training model involves a group training organisation (GTO) employing
apprentices and trainees and places them with a host employer where they undertake their
on-the-job training. The GTO deals with the administrative side of the
apprenticeship/traineeship system, relieving host employers of this burden.
The group training model would reduce the risk to bicycle industry employers of taking on a
trainee. GTOs carry out screening of potential trainees and attempt to pair well suited
trainees and employers. If the employer decides the trainee is not suited to their workplace
or no longer has enough work for the trainee, the trainee returns to the GTO to be placed
with another employer.
Further develop and adopt online teaching tools
The development of online teaching resources for the accredited bicycle training
qualification would potentially assist in lowering the cost of training to the industry. The
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
38
ACIL ALLEN CONSULTING
industry could work with Advance TAFE to bring these units to fruition, in exchange for
ensuring that those units developed are more widely available to other training providers.
Improve the training package
Consultations with training providers and industry indicate that several units are too
prescriptive, leading to the teaching of skills that are not widely needed in the industry.
Stakeholders are also concerned that some of the assessment requirements are overly
onerous, leading to higher training costs and learner disillusionment.
The industry could work with Auto Skills Australia to modify units and assessment
requirements as part of the continuous improvement of the training package.
Address the title in units
In the Certificate II qualification, there are currently 4 core units and 1 elective unit in the
current training package which contain the word ‘automotive’ in the title and description, for
example AURASA2002 Apply safe working practices in an automotive workplace and
AURAE2002 Apply environmental and sustainability best practice in an automotive
workplace . This is both unnecessary and untenable:
 In both the delivery and assessment of the qualification, these units of competency
require “access to an automotive workplace or simulated environment that accurately
reflects automotive workshop working conditions”. Such requirements are neither
relevant nor reasonable for the qualifications in Bicycle Mechanical Technology.
 In the promotion of these qualifications, the inclusion of automotive units undermines the
relevance and applicability of the qualification as a whole in the eyes of employers. Even
though the qualification has undergone a number of updates and the units appear to be
highly value by those consulted, the inclusion go these units detracts from the
marketability and credibility of the qualification.
Reduce length of accredited training
At present the Certificate III in Bicycle Mechanical Technology is delivered as a 2 year
traineeship. The Certificate II in Bicycle Mechanical Technology is often delivered as a
1 year traineeship or sometimes as part of a VET in schools program. Any possible
reductions in the course length without compromising quality or outcomes would increase
the attractiveness of the course from the perspective of the employers and the students.
Increase delivery of RPL
In other states, the delivery of recognition of prior learning has served to improve the viability
of supply by providing an additional source of training income (alongside fee-for-service
training delivery). In addition, RPL has the effect of quickly promoting accredited training in
the industry by increasing the prevalence and general recognition on the qualification.
Change the ANZSCO classification of mechanics
The Australian and New Zealand Standard Classification of Occupations (ANZSCO) places
‘Bicycle Mechanics’ in the Unit Group ‘8999 Other Miscellaneous Labourers’. The other
occupations in this category are: Car Park Attendants, Crossing Supervisors, Electrical or
Telecommunications Trades Assistants, Leaflet or Newspaper Deliverers, Mechanic's
Assistants, Railways Assistants, Sign Erectors, Ticket Collectors or Ushers, Trolley
Collectors and Road Traffic Controllers. The indicative skill level for this occupation group is
Certificate I or compulsory secondary education.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
39
ACIL ALLEN CONSULTING
The industry argues that this classification does not reflect the skill level needed to be a
bicycle mechanic, and that this may impact government policy in the area.
The ANZSCO classifications were introduced in 2006 and reviewed by the Australian
Bureau of Statistics and Statistics New Zealand in 2009 and 2013. Any changes to the
classification of bicycle mechanics would likely need to wait for the next ANZSCO review.
Changes to the ANZSCO classification would have a minimal impact on the provision of
training.
Re-examine subsidy rates
The subsidy rate does not appear to be the primary issue associated with the long-term lack
of popularity or recognition of accredited training in the bicycle industry. In other states
where the subsidy rate remains at the level it was in Victoria pre-2013, providers still
struggle to deliver the qualifications in an economically viable way due to low student
numbers.
That being said, and while there are a range of factors discussed in this report which have
meant that bicycle industry training has not been sustainable, the reduction in the subsidy
rate precipitated the withdrawal of the remaining Melbourne-based RTO and will make
re-establishing supply more difficult.
Stakeholders consulted as part of this project pointed to a discrepancy between the growth
of the industry and the reduction in the subsidy rate. Industry stakeholders also expressed
their frustration that the funding for the facilitation, analysis and other possible measures to
address the cessation of bicycle industry training in Victoria could have been directed
towards maintaining the previous rate of training subsidy. Some stakeholders argued that
without the reinstatement of the old subsidy rate, there would be a lack of supply of
accredited bicycle industry training.
The subsidy rate could be re-examined according to the Government's public value test,
particularly in light of the recent growth of the bicycle industry and the potential for continued
job growth.
Increase training fees
The financial attractiveness of training provision to RTOs is influenced by both the subsidy
rate and the course fees RTOs charge (among other factors). As a result, an option to
increase the supply of training is through greater student or industry contribution to the cost
of training.
As noted above, RTOs currently charge fees of $1,000-$1,500 for the Certificate II and
$1,900-$2,700 for the Certificate III. Consultations with industry and RTOs indicated that
higher fees would likely reduce training demand significantly thus impacting the feasibility of
training provision. In order to return per student revenue to what it would have been under
the old subsidy rate, RTOs would have to raise student fees by $1,000-$3,000, depending
on the Certificate.
4.4
Assessment of options
The demand and supply options listed above can be assessed on two dimensions.
 First, the likelihood of success would need to take into account the historical experience
with a given option, the extent to which the necessary actors are likely to commit to a
given course of action, and potential risks and barriers to success.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
40
ACIL ALLEN CONSULTING
 Second, the expected impact of the option on the long-term delivery would be based
primarily on an assessment of the appeal to employers or the effectiveness of the option
in driving training uptake.
The following figure illustrates a qualitative assessment of the relative merits of the various
options discussed in the preceding sections against these two dimensions.
Figure 19 Assessment of options
Source: ACIL Allen Consulting
In addition, the relative level of effort required to realise the potential options may also be
considered as depicted in Figure 20 below. Some options such as vendor, consumer or
industry driven training, or the development of VETiS and intensive short course pathways
into the industry may require a relatively high level of effort whereas better public promotion
of careers in the industry or the potential ROIT to bike shop owners may be more easily
implemented at relatively low cost.
Figure 20 illustrates how the various options fall into four categories:
 Big bets have a high expected impact but a low likelihood of success, and typically
required significant effort – these options are generally promising but uncertain in nature;
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
41
ACIL ALLEN CONSULTING
 Investments have a high impact as well as a higher likelihood of success but also require
significant effort – these options are well worth pursuing but will require a degree of
sustained effort before they come to fruition;
 Fast results are characterised by a high likelihood of success but relatively low expected
impact on long-term training delivery in the industry – given that most of these require
relatively low effort, the five actions in this bottom right quadrant should be pursued
regardless of whichever other options are contemplated; and
 False hopes are generally expected to have a low impact and a low likelihood of longterm success in terms of stimulating and delivering long-term sustainable industryrelevant training for the bicycle industry and should not represent a key part of any
strategy going forward.
Figure 20 Effort required and categories of options
Source: ACIL Allen Consulting
4.5
Clusters of options
As discussed in the previous section, the five options in the Fast results category which
should be pursued regardless of which other options are contemplated comprise two
demand side measures and three supply side measures namely:
1. Better public promotion of training;
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
42
ACIL ALLEN CONSULTING
2. Highlight potential ROIT to employers;
3. Reduce length of accredited training;
4. Develop and adopt online teaching tools; and
5. Improve the training package and address the misnomer of the automotive units.
In addition, three clusters of options have been identified which may be both more effective
and more likely to succeed if several options are jointly implemented. These are:
 Cluster 1: Imported industry-run training;
 Cluster 2: VET in schools program in conjunction with industry-driven information to
prospective students and partnerships with employers; and
 Cluster 3: Centralised workshop and training facility including group training.
Under each of these options there may be a case for additional government support in the
first instance given the high degree of facilitation that may be required – this is discussed in
detail in the following section.
Cluster 1: Imported industry-run training
An imported overseas program has the potential to attract a larger number of independent
bicycle owner-operators to invest in training and is also more likely to be attractive to
employees. However, there may be difficulties associated with importing the brand of
training products – UBI, Barnetts, Park Tools or Cytec – to Australia by an independent
bicycle shop or training provider. An industry run organisation is more likely to be successful
in forging such a partnership, particularly since the operators of Cytec in the UK – the
Association of Cycle Traders – has already offered its assistance to the RCTA in the recent
past.
Employer support for such a program would be bolstered by a campaign to communicate
the benefits and ROIT of such a course.
This approach has clear potential to be established as the industry’s pathway or passport
qualification into the industry. There is a higher likelihood that aspiring young people looking
to work in the bicycle industry will invest the cost of the course in order to gain entry into the
sector.
In the first instance, the training program may take the form of a short intensive course
targeted those seeking to commence in the industry. Key skills would include bicycle
assembly, basic serving, and retail and customer service skills. The success of this model is
premised on the potential demand for short intensive courses for bicycle mechanics that
would be funded by individuals and employers on a fee-for-service basis.
Over time, the international qualification could be aligned with the Australian Training
Package qualification. This would be an involved process but would allow teaching of the
qualification to receive government support.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
43
ACIL ALLEN CONSULTING
Figure 21 Cluster 1: Imported industry-run training
Source: ACIL Allen Consulting
Cluster 2: VET in schools program in conjunction with industry-driven
information to prospective students and partnerships with employers
This cluster recognises the potential for a comprehensive approach to training in partnership
with industry. As part of this cluster, innovative training partnerships and delivery models
would be identified with an aim to stimulate market entry from RTOs operating in similar
areas such as automotive repair.
In order for such a process to be successful, potential RTOs would have to be approached
with sufficient incentives to participate and subsequently invest in their proposed approach.
Incentives may include:
 financial incentives in the form of pilot grants or seed funding from industry and/or
government;
 partial or full exclusivity in partnering with key industry and consumer organisations
and/or;
 additional support through the public promotion of training.
This approach would seek to build clear pathways into the industry including through VETiS
programs and short training courses. In partnering with industry, the participating RTOs may
seek to secure pathways into employment as well as the potential articulation into
traineeships for the full Certificate II and III qualifications.
This cluster would most likely operate in conjunction with a Trade Training Centre. In some
regions the Local Learning and Employment Networks will be well-placed to support the
development of industry-school-RTO partnerships.
This model may be trialled initially at a regional level, in partnership with local bicycle stores
and a VETiS cluster. Funding for such VETiS would be on the basis of current policy which
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
44
ACIL ALLEN CONSULTING
allocates funding from the Student Resource Package and VET funding to support delivery
with no out-of-pocket costs to the student.
While this cluster does not directly address the long term need for a more highly skilled
workforce, the ‘push’ effect of larger numbers of young people entering the industry may be
sufficient to:
 generate both the immediate workforce of assemblers, junior mechanics and workshop
assistants;
 as well as the long-term pipeline of more experienced mechanics that will be developed
through on-the-job learning, traineeships, and vendor-based non-accredited training.
Figure 22 Cluster 2: VET in schools program in conjunction with industrydriven information to prospective students and partnerships with
employers
Source: ACIL Allen Consulting
Cluster 3: Centralised workshop and training facility including group
training
This cluster would see the combination of a bicycle mechanics workshop and training
delivery. This could prove viable by providing the workshop business with two streams of
revenue – from services and repairs, and from training. It would also provide practical
training with current technology by supplying a steady stream of bicycles on which training in
servicing and repairs can be undertaken.
This approach is more likely to succeed where an existing workshop owner/operator is a
partner. The workshop would need to become an RTO, or more feasibly, partner with an
RTO.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
45
ACIL ALLEN CONSULTING
This is the model used in many other areas such as hospitality and hairdressing where there
is a capacity for trainees to deliver services to the public having achieved a minimum level of
qualification attainment.
The workshop/training model would work well when combined with a group training scheme.
The workshop, as a GTO, could employ trainees and place them with retailers to undertake
on-the-job training. Retailers would pay the workshop for the trainees, thus generating
further income for the workshop. As a training organisation and GTO with strong links to the
industry, the workshop would also be well placed to offer RPL to existing bicycle mechanics.
Additional dimensions to this model could include the provision of qualified mechanics to
bike shops on a contracted basis. Alternatively, a workshop of sufficient scale may work with
a network of bike shops in the region that will deliver bicycles for servicing to a centralised
workshop.
Figure 23 Cluster 3: Centralised workshop and training facility
Source: ACIL Allen Consulting
4.6
The role for government
Most of the demand and supply side options discussed in Sections 4.2 and 4.3 could be
pursued independently by industry organisations, consumer organisations or RTOs, but as
the clusters of options discussed in Section 4.5 has identified, there are synergies that can
arise from pursuing multiple options in concert.
In order for these cluster approaches to be viable some level of government intervention
may be required to overcome potential market failures which may see few or none of these
cluster approaches being pursued.
First, there will be information asymmetries between the vendors, industry, consumers and
RTOs and training providers. These information asymmetries will make it difficult for various
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
46
ACIL ALLEN CONSULTING
parties to collaborate effectively, and will be particularly discouraging to new entrants that
may be able to offer innovative solutions. Government has a role in ensuring that all parties
have access to a common body of knowledge, including much of the analysis embodied in
this report. It is worth noting that government participation in the process of assessing
market issues and identifying options for sustainable training goes some way towards
identifying the importance of the issue and the gap in the training market to RTOs.
Second, there are likely to be significant spillovers from collaboration; the benefits of
collaboration will not be fully captured by the collaborating parties and it is likely that other
external parties will also benefit. For example, investments made by a membership based
organisation to develop training options and pathways for the industry will be of benefit to
members but also spillover to non-members. As a result, such collaboration will less than is
optimal, and possibly not at all. Government therefore has a role in either incentivising or
facilitating such collaboration, or partially compensating successful collaborators for their
investment.
Third, there are issues arising from potential first-mover disadvantage: any one RTO that
makes the up-front investment to generate interest in training and to create a viable market
for bicycle training may be unable to recoup that investment if competitors subsequently
enter the market and capture the benefits having not borne any of the costs. RTOs will
therefore be reluctant to make such investments. Some of the first-mover disadvantage may
be ameliorated by the exclusive promotion of training by the investing RTO by the industry
and other organisations (although this would require a high degree of collaboration).
Government may therefore have a role to play in providing RTOs with a degree of market
exclusivity in terms of their position in the market for a limited period of time. Alternatively,
government could participate in an EOI type process and offer a “prize” in the form of a pilot
grant or seed funding for innovative first movers seeking to enter and to establish the
market.
4.7
Conclusions
Given the wide array of options available, it is important the bicycle industry develops an
appropriate mechanism to pursue a wide range of options on both the demand and supply
sides. Based on the assessments above, the final chapter presents the recommended
model for bicycle industry training delivery in Victoria, and the range of additional actions to
be pursued. In particular, the following chapter recommends an appropriate mechanism for
industry leadership to support such a model, including ongoing government facilitation, and
a process for inviting and commissioning innovative delivery.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
47
ACIL ALLEN CONSULTING
5
Recommendations
5.1
The prospects for sustainable industry-relevant
training delivery
The previous chapters have identified both the skills needs of the bicycle industry as well as
the range of demand and supply options which have the potential to ensure sustainable
industry-relevant training delivery.
It is important to recognise that despite the issues and challenges associated with training
delivery discussed in the preceding chapters, the prospects for sustainable industry-relevant
training delivery in the bicycle industry in Victoria are strong. Figure 24 below summarises
the factors supporting training delivery in the bicycle industry, which would make it the envy
of many other niche or declining industries faced with similar gaps in training supply.
The bicycle industry is growing, and it enjoys a positive image of being populated by
individuals passionate about bicycles and cycling. The work of bicycle mechanic is easy to
comprehend, primarily because bicycles are common everyday household items to which
most people have considerable exposure from a young age.
While the technology continues to advance, the fundamental physics of bicycles have
remained unchanged, and for the most part comprise accessible and observable
mechanical parts. This makes the role of bicycle mechanics relatively easy to comprehend,
which in turn can be problematic in perpetuating the impression that it is a low skilled role.
There are few barriers to training delivery and in particular, amongst the mechanical trades,
the capital requirements are relatively low.
The industry benefits from the active growth of a highly visible and increasingly popular
sport, with numerous high profile races and events held throughout the year in Australia and
internationally. This in part would explain the relatively high levels of interest from young
people seeking to enter the industry.
Given these factors, there is the potential demand for training if the training standards and
qualifications are adopted by the industry and pathways into training can be established.
The following sections outline recommended steps towards:
 The recommended model for bicycle industry training delivery – which would establish a
pool of initially trained and engaged people from VET in schools or an intensive training
program, leading into a traineeship and finishing at a Certificate III level, which may also
be based on an international program;
 The leadership from demand and supply side partners – which will be required to
support such a model, including ongoing government facilitation;
 A process for inviting and commissioning innovative delivery – through an Expression of
Interest process to elicit potential interest and secure investment and delivery by suitable
Registered Training Organisations;
 Ensuring the financial viability of training – to enable both the short-term
recommencement of accredited training delivery and long-term sustainability of training
supply; and
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
48
ACIL ALLEN CONSULTING
 The range of other actions to be pursued as identified in the previous chapter which
have the potential to lead to short term results and also support longer-term outcomes.
Figure 24 Factors supporting the prospects for sustainable industry-relevant
training delivery
Source: ACIL Allen Consulting
5.2
The recommended model for bicycle industry
training delivery
There appears to be strong interest from young people to work in the bicycle industry,
particular upper secondary students and school leavers. At the same time there is a
shortage of skilled and well-rounded bicycle mechanics in the industry that are able to
assemble, service and repair increasingly complex bicycles while also being able to provide
a high level of customer and retail service.
At present there is no recognised pathway into the industry and no pathway for the more
limited number of candidates who may want to become highly skilled mechanics. Despite
the strong interest, the absence of such pathways is a constraint on the number of workers
flowing into the industry. The creation of such pathways will require the bicycle industry as a
whole to more proactively adopt and promote the training standards and qualifications.
As identified in the previous chapter a range of options pursued in concert has the potential
to have a significant impact on the availability of trained bicycle mechanics in the future.
There is a strong case for a clear pathway for school students, school leavers and other
interested individuals to develop the necessary skills to be immediately productive in a
bicycle shop – in a role focussed on bicycle assembly, basic servicing and the fitting of
equipment, retail operations and customer service.
A clear pathway into the industry will provide a steadier pipeline of employees who are in a
position to develop more technical skills over time through the Certificate II in Bicycle
Mechanical Technology and the Certificate III in Bicycle Workshop Operations if they are so
inclined.
In summary, the recommended model for bicycle industry training delivery should comprise:
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
49
ACIL ALLEN CONSULTING
1. strong entry qualification pathways into entry level positions in the bicycle industry – The
two key opportunities for entry pathways identified in Chapter 4 are through VET in
Schools (VETiS) delivery and an intensive training course; and
2. subsequent pathways into higher skill levels as embodied in the Certificate II and
Certificate III qualifications – as identified in Chapter 4, the delivery of industry-endorsed
higher skill levels could adopt the characteristics of group training schemes, and models
of training coupled with larger scale workshop operations.
The entry pathways are likely to be of interest to many young people however the overall
success of the entry pathways will hinge on the quality and recognition of the subsequent
pathways into higher level qualifications. As such the pathways into a traineeship and
attainment of an accredited qualification at the Certificate III level, which could itself be
based on an international program, will be critical.
At present, the level of training demand in Victoria cannot support more than one or two
substantial training providers and it is likely that the RTO delivering the Cert II and III
accredited qualifications will also be attracted to and well placed to deliver any VETiS
programs.
Recommendation 1
The recommended model for bicycle training delivery should comprise:
1. strong entry qualification pathways into entry level positions in the bicycle industry through VET in
Schools (VETiS) delivery and an intensive training course; and
2. subsequent pathways into industry-recognised higher skill levels as embodied in the Certificate II
and Certificate III traineeship qualifications, potentially based on an international training program.
5.3
Leadership from demand and supply side
partners
The range of individual demand and supply options, and clusters of options identified in the
previous chapter are not mutually exclusive and many could be pursued concurrently
according to the level of interest, commitment and support of the various parties.
Given the wide range of options – including potential options and partnerships that may not
have been identified as part of this project – it is critical that the industry establishes an
appropriate body or reference group to explore, assess and take forward the options for
training delivery. For example, the assessments of expected impact, likelihood of success
and effort required may be refined over time and additional clusters of options may be
identified as prospective models.
The existing steering committee for this project provides the ideal starting point for an
industry training group that can refine and finalise the elements of preferred training model.
In addition, establishing, promoting and delivering the preferred model may be achieved with
a range of other potential partners including interstate providers, overseas providers, other
Victorian RTOs, Bicycle Network, and Local Learning Employment Networks. The active
participation of relevant government agencies, in particular the ongoing support of the
Market Facilitation Unit, would provide valuable expertise and weight to the exercise. To
date, the existing steering committee has drawn heavily on the knowledge and expertise of
the existing providers, in particular Bicycle Training Australia, as well as other interested
RTOs. This depth of experience and expertise should be retained however the industry will
also have to develop a governance structure which balances the need for such training
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
50
ACIL ALLEN CONSULTING
delivery expertise with the need to ensure an objective assessment of options and models.
To avoid obvious conflicts of interest, an appropriate process should exclude RTOs or
would-be RTOs from the final decision making process to select the preferred training
model.
Recommendation 2
Building on the current project steering group, that the industry establishes a reference group to
explore, assess and take forward the range of demand and supply side options for revitalising training
delivery for the bicycle industry. Membership of the body could include:
 Leading consumer organisations such as Bicycle Network;
 Local Learning and Employment Networks;
 Relevant government agencies; and
 Past or prospective RTOs – although these RTOs would have to be excluded from the process to
select the preferred training model.
5.4
A process for inviting and commissioning
innovative delivery
To stimulate the demand for training and for training delivery the industry reference group
should run an Expression of Interest (EOI) process to develop, assess and commission the
most sustainable approach to delivering the recommended bicycle training delivery model
describe above in Section 5.2.
The parameters for the EOI stage should describe the characteristics of the desired
outcome, including:
 High quality and industry-recognised training delivery;
 Improved training recognition and industry demand;
 Pathways into entry level qualifications through VET in Schools (VETiS) delivery and an
intensive training course;
 subsequent pathways into higher skill levels as embodied in the Certificate II and
Certificate III qualifications; and
 Partnerships with a variety of bodies which leverage networks and influence, and
opportunities for more cost effective training delivery.
In pursuing any of the models of training delivery outlined in Chapter 4, the industry
reference group should not preclude variations and innovations that could see increased
demand for training, reduced delivery costs or improved revenue streams.
It is possible that the EOI process will lead to pilot programs that are centred on:
 a specific geographic region comprising providers, schools, Trade Training Centres and
bike shops in an area in partnership with a concentration of local bike shops; or
 cooperation between a number of vendor, chains stores and/or large employers.
Approaches to delivery that are able to leverage a range of private, industry and government
funding sources should be encouraged.
The EOI should provide interested parties with complete information on the background to
the industry and the historical profile of training delivery, the challenges with training delivery
to-date as identified in this report, and possible ideas for demand and supply side options
and clusters of options discussed in Chapter 4.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
51
ACIL ALLEN CONSULTING
Recommendation 3
That the industry reference group run an Expression of Interest process to develop, assess and
commission the most sustainable approach to delivering the recommended model of bicycle training
delivery.
5.5
Ensuring the financial viability of training
To provide sufficient incentives to potential training providers, the industry should make
clear the advantages that would be conferred on the preferred provider. This could include:
 The commitment and support of the industry organisation in the development, design
and promotion of any training program;
 The exclusive status of being the provider(s) of choice for the Victorian bicycle industry;
 The opportunity to promote bicycle training as well as other accredited, fee-for-service
programs and short courses through the industry association and other organisations;
and
 The potential to expand the program of training delivery to other states.
In addition, the industry reference group may be able to secure other incentives such as
financial or in-kind support from vendors, industry members, philanthropists and the
Victorian government.
Many of these benefits could contribute to a steady and commercially viable level of
enrolments. However, it is important to note that at the current subsidy rate, the delivery of
the Certificate II and Certificate III qualifications will require very high levels of enrolments by
historical standards to be viable. Furthermore, it will take time for a new provider to ramp up
delivery to sustainable levels. At present, the subsidy level has not been sufficient to
maintain training delivery and is also unlikely to attract other RTOs into the market. The
balance between government subsidies, industry contributions, and private out-of-pocket
contributions, alongside the potential incentives described above, should therefore continue
to be assessed to ensure that a viable future model of training delivery can be implemented.
For VETiS delivery, schools would need to allocate an appropriate proportion of funding
received through the Student Resource Package funding and VETiS funding, in line with
government policy.
Recommendation 4
That the industry reference group should continue to assess the balance of government, industry and
private contributions to ensure that a viable and preferred model of training is able to be
implemented.
5.6
Other actions to be pursued
The previous chapter identified a range of actions that have the potential to lead to
short-term results and also support longer-term outcomes. These actions include:
 continuing to work with Advance TAFE in the development of online units on the grounds
that online units will be widely available to other RTOs and/or industry members;
 pursuing the reclassification of the skill level of bicycle mechanics under ANZSCO; and
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
52
ACIL ALLEN CONSULTING
 develop an evidence base to demonstrate the benefits of more highly skilled and
qualified mechanics to bike shops.
These actions should be concurrently pursued as moderate priorities for the industry.
Recommendation 5
That the industry reference group pursue the range of actions that will lead to short-term results in
particular:
 Continue to work with Advance TAFE in the development of online units on the grounds that
online units will be widely available to other RTOs and/or industry members
 Pursue the reclassification of the skill level of bicycle mechanics under ANZSCO
 Develop an evidence base to demonstrate the benefits of more highly skilled and qualified
mechanics to bike shops
Of greater importance is the work that needs to be undertaken in collaboration with Auto
Skills Australia to:
 Reduce the skill level required under the Certificate II to allow delivery of the qualification
to school students as part of VET in schools;
 Introduce a pathway or industry entry qualification in the form of a Certificate I targeted
at bicycle assembly and basic maintenance and servicing; and
 Amending relevant units currently designed for automotive workshops to cater more
appropriately to bicycle workshops.
In addition, in the event that an international course or qualification is imported to Australia,
the industry reference group would need to work with Auto Skills Australia to ensure that it is
aligned with the Australian Training Package qualification (and vice versa) so that the
imported training is eligible for government subsidies.
Recommendation 6
Industry to work closely with Auto Skills Australia to improve the design of the training package,
specifically:
 Reduce the skill level required under in the Certificate II to allow delivery of the qualification to
school students as part of VET in schools
 Introduce a pathway or industry entry qualification in the form of a Certificate I targeted at bicycle
assembly and basic maintenance and servicing
 Amending relevant units currently designed for automotive workshops to cater more appropriately
to bicycle workshops
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
53
ACIL ALLEN CONSULTING
References
Advance TAFE 2013, ‘2013 Fees and Charges’, available:
http://www.advancetafe.edu.au/pages/courses/fees_and_charges.htm, accessed 22
November 2013.
Australian Bicycle Council 2011, Implementation Report 2011, Austroads, Sydney.
Australian Bureau of Statistics (ABS) 2012a, 1220.0 - ANZSCO - Australian and New
Zealand Standard Classification of Occupations, 2013, Version 1.2, Canberra.
Australian Bureau of Statistics (ABS) 2012b, 5439.0 - International Merchandise Imports,
Canberra.
Australian Bureau of Statistics (ABS) 2012c, Sport and Recreation: A Statistical Overview,
Canberra.
Auto Skills Australia 2013, Automotive Environmental Scan 2013, Melbourne.
Bicycle Industries Australia (BIA) 2011, Submission to the Productivity Commission on the
Economic Structure and Performance of the Australian Retail Industry, Melbourne.
Bicycle Industries Australia (BIA) 2013a, Annual Retail Survey Outcomes 2013, Melbourne.
Bicycle Industries Australia (BIA) 2013b, Australian Online Cycling Marketplace Report
2013, Melbourne.
Bicycle Industries Australia (BIA), Cycling Promotion Fund (CPF) and the Retail Cycle
Traders Australia (RCTA) 2012, The Bicycle Industry in Australia 2011/12, Melbourne.
Bicycle Industries Australia 2011, Submission to the Productivity Commission on the
Economic Structure and Performance of the Australian Retail Industry, Melbourne.
Biegler P, Newstead S, Johnson M, Taylor J, Mitra B, Bullen S 2012, MACCS Monash
Alfred Cyclist Crash Study, Report No. 311, available:
http://monash.edu/miri/research/reports/muarc311.pdf
Commonwealth of Australia 2013, AUR30211 - Certificate III in Bicycles (superseded, 21
June 2011 – 16 January 2013).
Commonwealth of Australia 2013, AUR30212 - Certificate III in Bicycle Workshop
Operations (current, 17 January 2013).
Commonwealth of Australia 2013, AUR20311 - Certificate II in Bicycles (superseded, 21
June 2011 – 16 January 2013).
Commonwealth of Australia 2013, AUR20312 - Certificate II in Bicycle Mechanical
Technology (current, 17 January 2013).
DEECD 2012, Funded Courses Report for Course Commencements to 30 June 2012,
Melbourne.
DEECD 2013, 2014 Funded courses report as at 15 November 2013, Melbourne.
Formosa, N 2011, ‘Shimano Launches New Online Training Site’, Bicycle Retailer, available:
http://www.bicycleretailer.com/north-america/2011/06/15/shimano-launches-new-onlinetraining-site#.UwGnQ4XNkmF
Halfpenny, D 2013, ‘Aussie cyclists want it all! Cost + Convenience = Sales’, Bicycles
Network Australia, Sydney.
IBISWorld 2013, Industry Report: Sport and Camping Equipment Retailing in Australia,
Melbourne.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
54
ACIL ALLEN CONSULTING
Queensland Government 2012, Queensland 2012-13 User Choice Price List, Brisbane.
Peake, K 2012, Refocusing VET in Victoria, Welcome Address to VTA State Conference,
DEECD, Melbourne.
Pucher, J, Garrard, J & Greaves, S 2010, ‘Cycling Down Under: A Comparative Analysis of
Bicycling Trends and Policies in Sydney and Melbourne’, Journal of Transport Geography,
Vol. 18.
van Schaik, J W 2013, ‘Australian Bike Market Valued at 760 Million Euro’, Bike Europe,
The Netherlands.
Victorian Department of Transport 2013, Victorian Transport Statistics Portal, Melbourne.
Victorian Government 2012a, Refocusing vocational training – government subsidies,
Melbourne.
Victorian Government 2012b, Cycling into the Future 2013–23, Victorian Government,
Melbourne.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
55
ACIL ALLEN CONSULTING
Appendix A
Stakeholders consulted
Table 13
Stakeholder consultation list
Organisation
Name
Role/title
Sean Millard
Workshop Trainer
David Smith
Workshop mechanic
Bill Gordin
CEO
Beverly Lucas
Operations Manager
Michael O'Brien
Operations Manager
Sam Monardo
Managing Director for
Specialized Australasia
Cecil Walker Cycles
Anthony Cramer
Owner/manager
Abbotsford Cycles
Peter Moore
Owner/manager
Commuter Cycles
Huw Vellacot
Owner/manager
E Bike Central
Scott Dickason
Director – sales and marketing
99 Bikes
Lizzi Clements
Training manager
Pony Bikes
Sasha Strickland
Owner/manager
Shepparton Bike Hub
Trevor Morris
Owner/manager
Shaw Cycles
Dennis Shaw
Owner/manager
Cyclescape
Matt Britton
Owner/manager
Fred Vanderslick
Manager, Trades & Work
Safety
Shaun Tomlinson
Trainer, Trades & Work Safety
Greg Hallihan
Manager/trainer
Robyn Alexander
Director
Phillip Watts
Director
Phil Trip
Manager
Chris Naylor
Business Manager, Metal
Fabrication and Boilermaking
Syd Woodvine
Trainer, Automotive
Bicycle Industries Australia (BIA)
Peter Bourke
General Manager
Retail Cycle Traders Australia
(RCTA)
Graham Bradshaw
Employers
Super Retail Group
Bike Force
Cannondale
Specialised
Training providers
Advance TAFE
Bicycle Training Australia (BTA)
NMIT
SkillsTech Australia
CY O'Connor
Industry and consumer associations
Bicycle Network Victoria (BNV)
Cycling Australia (CA) Victoria
Former Executive Officer
Craig Richards
CEO
Iain Treloar
Associate Editor, Ride On
Mark Drehlich
Development Manager
Geoff Gwilym
CEO
Peter Miller
General Manager
Vince Panozzo
Training Package Specialist
Steve Bletsos
Research Analyst
Brad Lawlor
Mechanic
Marilyn Johnson
Research Fellow with the
Institute of Transport Studies
Research and Policy Manager
at the Amy Gillett Foundation
Others
Auto Skills Australia
VeloTech Services
Monash University / Amy Gillett
Foundation
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
A-1
ACIL ALLEN CONSULTING
Appendix B
Example discussion guide
Four different discussion guides were developed for consultations – one for each
stakeholder group:
 Employers
 Training organisations
 Industry associations
 Consumer associations
The discussion guides were similar, but with different questions. The employer discussion
guide is below.
Bicycle Industry Training Project
Discussion Guide
1. Overview
ACIL Allen Consulting has been commissioned by the Department of Education and Early
Childhood Development (DEECD) to examine bicycle industry retail, service and repairs
training in Victoria.
This project will examine the supply and demand of bicycle industry retail, service and
repairs training in Victoria. The final project report will form a basis for stakeholders to
facilitate and support the delivery training in the bicycle industry.
In order to fully explore the bicycle industry training market, the project includes
consultations with employers, industry representatives, training providers and user
associations across metropolitan and regional Victoria.
ACIL Allen Consulting would like to explore the following areas with stakeholders:
 the business and employment outlook for the bicycle industry;
 the current and likely future needs of stakeholders for bicycle industry retail, service and
repairs training; and
 any problems the current training delivery model may have in meeting these needs, both
in delivery method and in content (to aid this discussion, the units for the Certificate III in
Bicycle Workshop Operations are listed at Appendix A).
This guide provides a brief explanation of the project and questions to guide these
discussions.
2. Background
There are two accredited training courses for bicycle retail, service and repairs in Australia:
 Certificate II in Bicycle Mechanical Technology.
 Certificate III in Bicycle Workshop Operations.
Prior to 2013, NMIT delivered the vast majority of accredited bicycle industry training in
Victoria and was the only training provider in Melbourne.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
B-1
ACIL ALLEN CONSULTING
In early 2013, NMIT announced it would no longer deliver the Certificate II and III. NMIT said
the decision to cease training was a result of Victorian Government funding changes that
made it uneconomic to offer the training.
This leaves Advance TAFE (located in East Gippsland) as the only provider of bicycle retail,
service and repairs training in Victoria. While Advance TAFE and Bicycle Training Australia
(BTA) have recently announced an MOU that could allow parts of the Certificate II and III to
be delivered jointly at BTA premises in Melbourne, it is not yet clear whether such an
arrangement will meet industry needs.
3. Key areas of interest and questions for discussion
Bicycle industry context
 How has the bicycle retail industry changed over the past 10 years?
 Do you have trouble finding suitably skilled staff?
 What kind of training is needed to satisfy the skill needs of your business?
 In the bicycle industry, is there a clear pathway from training into employment?
Accredited training
 Have your employees enrolled in and/or completed accredited training?
 Is current accredited training well suited to your business needs?
 Are there issues or concerns regarding the relevance or currency of the content in the
current training package?
 Has the updated training package improved the relevance of the bicycle qualifications?
 Has the delivery of accredited training been of a high quality?
 Is the method of training delivery suitable (e.g. block release, online classes)?
 Are the training facilities appropriate?
Other training
 Have your employees enrolled in and/or completed non-accredited formal training?
 Did this training suit the needs of your business?
 What kind of on-the-job training does your business provide to staff? Does the training
cover bicycle mechanics and/or extend to other roles within the business (e.g. business
administration, sales or customer service)?
Future training
 What would be your view of a model based on extensive training on the work site?
 Would there be demand for training in qualifications and skill sets other than the
Certificate II and III noted above?
 Is cost a significant factor in the training you offer employees? Do you have any specific
expectations about an acceptable cost for training related to bicycle retail, service and
repairs training?
 Do you have any suggestions regarding a viable training model that will meet industry
needs?
 What role could government and/or industry associations play?
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
B-2
ACIL ALLEN CONSULTING
Appendix C
Units in the Certificate III
In the stakeholder consultations, participants were shown the units from the Certificate III in
Bicycle Workshop Operations to elicit feedback on the value of each part of the course. The
units are listed below.
Unit
Elective/
Core
Of no value
Of little value
Of some
value
Of high value
Of very high
value
1
Establish relations with customers
Elective
□
□
□
□
□
2
Apply environmental and sustainability
best practice in an automotive
workplace
Core
□
□
□
□
□
3
Use numbers in an automotive
workplace
Elective
□
□
□
□
□
4
Read in an automotive workplace
Elective
□
□
□
□
□
5
Communicate effectively in an
automotive workplace
Elective
□
□
□
□
□
6
Solve routine problems in an
automotive workplace
Elective
□
□
□
□
□
7
Write routine texts in an automotive
workplace
Elective
□
□
□
□
□
8
Adapt work processes to new
technologies
Elective
□
□
□
□
□
9
Work effectively with others
Elective
□
□
□
□
□
10
Communicate business information
Elective
□
□
□
□
□
11
Contribute to quality work outcomes
Elective
□
□
□
□
□
12
Inspect technical quality of work
Elective
□
□
□
□
□
13
Maintain quality systems
Elective
□
□
□
□
□
14
Apply safe working practices in an
automotive workplace
Core
□
□
□
□
□
15
Work in a retail bicycle environment
Core
□
□
□
□
□
16
Select and adjust bicycle to fit rider
Elective
□
□
□
□
□
17
Conduct cycling proficiency training
Elective
□
□
□
□
□
18
Assemble bicycles
Elective
□
□
□
□
□
19
Assemble box bicycles for retail sale
Core
□
□
□
□
□
20
Restore bicycles
Elective
□
□
□
□
□
21
Identify and select components for
custom bicycles
Elective
□
□
□
□
□
22
Provide mechanical support to cycling
events
Elective
□
□
□
□
□
23
Service and repair bicycle mechanical
braking systems
Core
□
□
□
□
□
No.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
C-1
ACIL ALLEN CONSULTING
Unit
Elective/
Core
Of no value
Of little value
Of some
value
Of high value
Of very high
value
24
Service bicycle hydraulic braking
systems
Core
□
□
□
□
□
25
Repair bicycle hydraulic braking
systems
Core
□
□
□
□
□
26
Service bicycle steering systems
Core
□
□
□
□
□
27
Service bicycle suspension systems
Core
□
□
□
□
□
28
Repair and overhaul bicycle steering
systems
Core
□
□
□
□
□
29
Repair and overhaul bicycle
suspension systems
Elective
□
□
□
□
□
30
Remove, repair and fit bicycle tyres
Elective
□
□
□
□
□
31
Service bicycle wheels and hubs
Core
□
□
□
□
□
32
Design and build bicycle wheels
Core
□
□
□
□
□
33
Repair and overhaul bicycle wheels
and hubs
Core
□
□
□
□
□
34
Use and maintain specialised bicycle
repair tools
Elective
□
□
□
□
□
35
Service bicycle drivetrain systems
Core
□
□
□
□
□
36
Repair bicycle drivetrain systems
Core
□
□
□
□
□
37
Service electric power assist bicycles
Elective
□
□
□
□
□
38
Fit and adjust bicycle accessories
Core
□
□
□
□
□
39
Service and repair bicycle frames
Elective
□
□
□
□
□
40
Design and build bicycle frames
Elective
□
□
□
□
□
41
Assess carbon fibre frames for repair
Elective
□
□
□
□
□
42
Process customer complaints
Elective
□
□
□
□
□
43
Present stock and sales area
Elective
□
□
□
□
□
44
Apply sales procedures
Elective
□
□
□
□
□
45
Sell products
Elective
□
□
□
□
□
46
Promote products and services
Elective
□
□
□
□
□
47
Carry out diagnostic procedures
Elective
□
□
□
□
□
48
Use and maintain measuring
equipment in an automotive workplace
Elective
□
□
□
□
□
49
Use and maintain workplace tools and
equipment
Elective
□
□
□
□
□
50
Carry out soft soldering techniques
Elective
□
□
□
□
□
51
Carry out manual metal arc welding
procedures
Core
□
□
□
□
□
No.
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
C-2
ACIL ALLEN CONSULTING
Unit
Elective/
Core
Of no value
Of little value
Of some
value
Of high value
Of very high
value
52
Carry out brazing procedures
Elective
□
□
□
□
□
53
Carry out gas metal arc welding
procedures
Elective
□
□
□
□
□
54
Carry out gas tungsten arc welding
procedures
Elective
□
□
□
□
□
55
Carry out oxy acetylene welding,
thermal cutting and thermal heating
procedures
Elective
□
□
□
□
□
56
Organise and complete daily work
activities
Elective
□
□
□
□
□
57
Organise personal work priorities and
development
Elective
□
□
□
□
□
58
Use power tools/hand held operations
Elective
□
□
□
□
□
59
Perform stock control procedures
Elective
□
□
□
□
□
60
Maintain and order stock
Elective
□
□
□
□
□
61
Provide work skill instruction
Elective
□
□
□
□
□
62
Receive and store stock
Elective
□
□
□
□
□
No.
Source: training.gov.au
BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT
C-3