The Hume Workforce Development Committee Hume Regional Development Australia Transport & Logistics Labour Market Snapshot Workforce Planning Australia | December 2012 © Workforce Planning Australia - www.workforceplanning.com.au Transport & Logistics Industry The Transport and Logistics industry encompasses the organisations that carry out “the movement of goods and people from an origin to a destination.” The Transport & Logistics Industry Skills Council breaks the industry down into 6 key sectors: Logistics & Warehousing Road Transport Ports Transport & Logistics Maritime Aviation Rail Source: Transport & Logistics Industry Skills Council, Environmental Scan 2011 2| National Industry Overview Industry Employment The Transport & Logistics industry is the 9th largest industry in Australia employing 573,845 people (5.1% of the total workforce) accross the six sectors. Industry Employment Level February 2012 Source: ABS Labour Force Survey, February 2012 data. 4| Historical Employment Growth • Over the last decade, employment in the industry has shown growth with an average annual growth rate of 2.3 per cent. • Employment experienced a decline in 2010 which in part is attributable to the outbreak of the Global Financial Crisis. Employment Level ('000) - February 1992 to February 2010 Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data) 5| Employment variability • While long term job growth in the industry has been strong, annual employment changes have historically been variable. • The industry is highly cyclical and activity in the wider economy translates to the industry as movements in both raw materials and consumer goods contract or expand. Employment Level (line RHS) and Annual Change ('000) - year to February 2010 Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data) 6| Projected Employment Growth • Employment declined by 6.8% in 2010 (partly attributable to the GFC) • Over the period 2010-15 employment is projected to grow at 2.2% (DEEWR forecast 2.3%) which is comparatively stronger to an all industries projection of 1.8%. • Forecast employment growth (2010-15) will equate to around 67,000 new jobs) Projected Employment Growth (% pa) - to February 2010 (and 5 years to 2014-15 (projected) Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data); DEEWR projections to 2014-15 7| Main employing occupations • Truck Drivers dominate employment in the industry. Other common occupations for employees include Couriers and Postal Deliverers, Automobile Drivers, Bus and Coach Drivers, and Store persons. Figure 21: Top 20 Employing Occupations (‘000) - 2009 Source: ABS Labour Force Survey cat. no. 6291.0.55.003 (DEEWR trend data, four quarter average) 8| Workforce Development Challenges There are several workforce development challenges facing the Transport and Logistics Industry. New & Emerging Technologies A cleaner environment Workforce demographics Competition for workers Regulatory reform Growth Diversity Transport & Logistics Source: Transport & Logistics Industry Skills Council, Environmental Scan 2011 9| Vocational Education & Training reform Workforce Development Challenges Diversity ― The industry is characterised by immense diversity in occupations, workforce development needs, business types and sizes, and locations. Growth ― The industry is expected to show strong growth over the next 20 years, challenging its capacity to attract, retain and develop workers. Workforce Demographics ― The industry is faced with an ageing workforce. The latest figures released by DEEWR show that nearly half of all workers in the industry are aged 45 years and over, compared with the average of 38.5% for all industries. New and Emerging technologies ― Technological developments call for higher-order skills in the workforce. Adaptability will be particularly important, as workers will need to cope with an industry that is constantly changing. Source: Transport & Logistics Industry Skills Council, Environmental Scan 2011 10 | Workforce Development Challenges A Cleaner Environment ― New ‘green’ jobs will emerge over time as a result of a low-carbon economy and advances in fuel sources and infrastructure. Many of these roles will require investment in training at a workforce level to ensure employees are appropriately skilled. Competition for workers ― Competition from the resources industry is a challenge for the Industry. Many transport and logistics skills are easily transferable. Workers are being drawn away by higher-paid jobs in resources. Competition is expected to intensify with feedback from industry suggesting that skills shortages across sectors are likely to increase. Regulatory Reform ― Industry has found it difficult to keep up with regulatory requirements accross jurisdictions. Reforms are underway across the various sectors to reduce the compliance burden carried by industry. The workforce skill set needs to be able to respond quickly to address the impact of reforms. Vocational Education and Training (VET) Reforms ― Several VET reforms are underway, focused on a renewed role for industry and new funding models that aim to leverage industry investment in workforce development. Source: Transport & Logistics Industry Skills Council, Environmental Scan 2011 11 | National skills in demand Sector Occupations in Skill Demand Logistics Management, Road Transporting & Warehousing • Transport and Logistics Trainers/Assessor (including Driver Instructor/Trainer) • Truck Drivers: Local Delivery Driver (M/R – H/R licence) B Double Driver/General Freight (particularly interstate driver) Aviation • • • • Maritime • Deck Hand/General Purpose Hand/ Integrated Rating • Deck Officer Rail • • • • Aeroplane Pilot Ground Crewman Aircraft Support Aircraft Load Controller Aircraft Baggage Handler/Ground Crew Train Driver Signalling Technician Railway Track Worker Team Leader Infrastructure Source: Transport & Logistics Industry Skills Council, Environmental Scan 2012 12 | • • • • • • Dangerous Goods Driver Transport/Logistics Manager Transport/Logistics Supervisor/Scheduler Bus Driver Warehouse Manager Storeperson • Flying Instructor (Aeroplane and Helicopter) • Trainer/Assessor • Aircraft Maintenance Engineers • Marine Engineer • Ship’s Captain/Ship’s Master • Maritime Trainer/Assessor • • • • • Track Patroller / Inspector Rail Trainer /Assessor Guard / Conductor Overhead Wiring Technician Civil Specialist Note: Red text indicates occupation included as part of this labour market analysis Hume region General description of the Transport system in Hume • The transport system is vital to the economy and viability of industries in the Hume Region. • Drivers of growth of the Hume Transport system over the next 25 years include: ― Population Growth: The population of the four Hume sub regions is expected to grow from 300,000 to 400,000 people. ― Increased freight movement: Movement will increase to a projected 58 million tonnes annually, with the Hume Freeway freight task projected to grow by 50% over the next 20 years. ― Increased visitor numbers: Visitors to the region are projected to rise well above the current 2.5 million that come to the region each year. • The road system network (shown in following slide) will need to mature through upgrades and improvements to infrastructure and service links traversing east-west and north-south across the Hume Region. These links will provide mobility within the region and to locations outside of the region and will support a strong, robust network of connected settlements. • The future growth and success of the transport and logistics industry in Hume is largely dependent on the advancement of transport infrastructure. Source: Hume Strategy for Sustainable Communities 2010-2012, Skills Vic 2010 14 | Road and Rail System Network Source: Hume Strategy for Sustainable Communities 2010-2012, Skills Vic 2010 15 | Employment in Transport, Postal & Warehousing by LGA 2006 Census vs. 2011 Census data Moira 465 (2006) 464 (2011) G Shepparton 1,048 (2006) 1,092 (2011) Indigo 268 (2006) 311 (2011) Wangaratta 413(2006) 496(2011) Murrindindi 239(2006) 224(2011) Mansfield 179 (2006) 133 (2011) Alpine 152 (2006) 194 (2011) Source: ABS Census Data 2006 and ABS Census Data 2011. This table has been prepared using data generated by the ABS TableBuilder. 16 | Towong 108(2006) 109 (2011) Benalla 206 (2006) 255 (2011) Strathbogie 235 (2006) 222 (2011) Mitchell 1,001 (2006) 1,125 (2011) Wodonga 654 (2006) 812 (2011) Total Industry 4,968 (2006) 5,437 (2011) 9% Hume Region Boundary Sub-region Boundary Local Government Area (LGA) Boundary Employment growth projections in Hume • According to Monash projections employment is expected to grow and level out over the period to 2015. • Average annual growth rate is calculated at 4%. 3 2.5 2 1.5 Employment levels 1 0.5 0 2010-1 2011-2 2012-3 2013-4 2014-5 2015-6 Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria. Source: Monash Centre of Policy Studies, 2011 17 | Occupations • The top employing occupations in the region are as follows: Transport (Top 10 occupations by employment level Hume) ANZOG Code Occupation Employment (2011-12) 7331 Truck Drivers 2.24041 5612 Couriers & Postal Deliverers (Delivery Driver) 0.62048 7312 Bus & Coach Drivers 0.40552 7213 Forklift Drivers 0.34351 1494 Transport Services Managers 0.33596 7411 Store persons 0.33194 7311 Automobile Drivers 0.29521 6211 Sales Assistants (General) 0.20364 7313 Train & Tram Drivers 0.17735 1336 Supply & Distrib. Managers (Warehouse Admin) 0.15232 Note: Red text indicates occupation included as part of this labour market analysis Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria . Source: Monash Centre of Policy Studies, 2011 18 | Occupation growth • Monash projections show growth in all transport and logistics occupations. • Strongest growth is expected in the truck driver occupation. Supply & Distrib. Managers Train & Tram Drivers Sales Assistants (General) Automobile Drivers Storepersons 2010-1 Forklift Drivers 2014-5 Transport Services Managers Bus & Coach Drivers Couriers & Postal Deliverers Truck Drivers 0 0.5 1 1.5 2 2.5 Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria. Source: Monash Centre of Policy Studies, 2011 19 | Industry Education attainment levels • VET education enrolment data shows an increase in course enrolments for the industry. Growth is being driven by the Cert IV, III, I level qualifications Diploma Certificate IV 2008 Certificate III 2011 Certificate II Certificate I 0 200 400 600 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 20 | 800 1000 1200 1400 Age profile of enrolments • Across all industry occupations there has been the greatest growth in VET course enrolments from the 15-19 and 20-24 year old age groups. 500 450 400 350 300 250 2008 200 2011 150 100 50 0 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 21 | 50 to 54 55 to 59 60 to 64 65 and over Diversity of Enrolments • The diversity of enrolments has increased in the industry within Hume. • The strongest growth can be seen in the proportion of CALD enrolments. 6% 5% 4% 2008 3% 2011 2% 1% 0% Disabled Indigenous Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 22 | CALD Transport, Postal and Warehousing VET Education Data Truck Driver (General) Storeperson Delivery Driver Warehouse Administrator © Workforce Planning Australia - www.workforceplanning.com.au Truck Driver (General) Truck Driver VET Course Enrolments • Truck Driver enrolments in VET courses have decreased in Hume from 2008-2011. • Decreases can be seen in both VET courses for the occupation. Certificate IV in Transport and Logistics (Road Transport) 2008 2011 Certificate III in Transport and Logistics (Road Transport) 0 100 200 300 400 500 600 700 Note: A representative from the Industry Skills Council explained that a decrease in enrolments may be attributable to a change in the training package. An additional factor is that due to the nature of the job, drivers are time poor and limited in study capacity. (03/04/2012) Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 25 | Truck Driver Age Profile of VET Enrolments • The age profile of truck drivers enrolled in VET courses has remained consistent to the drop in total enrolment numbers for the period. • Enrolments are generally spread across age groups with small increases in the 35-39, 40-44 and 45-49 groups. 120 100 80 2008 60 2011 40 20 0 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 26 | 45 to 49 50 to 54 55 to 59 60 & over Diversity of Truck Driver VET Enrolments • Despite a decrease in total enrolment numbers, there has been an increase in indigenous and CALD enrolments over the period 2008-2011. • The total number of disabled students has decreased however this is seen to be in alignment with total decrease in VET enrolment numbers for the occupation. 6% 5% 4% 2008 3% 2011 2% 1% 0% Disabled Indigenous Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 27 | CALD Delivery Driver VET Course Enrolments • There has been a decrease in Delivery Driver enrolments from 2008-2011. • A change in course titles is likely to have skewed data on course enrolments. Certificate III in Driving Operations 2008 Certificate II in Transport and Logistics (Road Transport) 2011 Certificate II in Driving Operations 0 100 200 300 400 500 600 700 800 900 1000 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 29 | VET Enrolments Age Profile • The age profile trend of delivery driver enrolments has generally remained consistent relative to the decrease in total enrolment numbers for the period. 140 120 100 80 2008 2011 60 40 20 0 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 30 | 45 to 49 50 to 54 55 to 59 60 & Over Diversity of VET Enrolments • Despite a decrease in total enrolment numbers the proportion of indigenous and CALD enrolments has increased. • Disabled enrolments have decreased. 5% 5% 4% 4% 3% 2008 3% 2011 2% 2% 1% 1% 0% Disabled Indigenous Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 31 | CALD Storeperson Storeperson VET Course Enrolments • Store person enrolments in VET courses have increased in Hume from 2008-2011. • This growth is being observed in the cert II Transport & Logistics qualification course. • Cert III enrolment numbers have dropped relative to the total increase in course enrolment numbers. Certificate III in Transport and Logistics (Warehousing and Storage) 2008 2011 Certificate II in Transport and Logistics (Warehousing and Storage) 0 100 200 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 33 | 300 400 500 600 700 800 Store person Age Profile of VET Enrolments • The age profile trend of store person enrolments has generally remained consistent relative to the total increase in course enrolment numbers for the period. • Enrolments have seen significant growth in the 15-19, 19-24 and 25-29 age groups. 250 200 150 2008 2011 100 50 0 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 34 | 45 to 49 50 to 54 55 to 59 60 & over Diversity of Store person VET Enrolments • Relative to the increase in store person enrolment numbers all categories of disabled, indigenous and CALD enrolments has increased. 9% 8% 7% 6% 5% 2008 4% 2011 3% 2% 1% 0% Disabled Indigenous Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 35 | CALD Warehouse Administrator VET Course Enrolments • There has been a significant increase in warehouse administrator enrolments for the period 2008-20122. • This growth is primarily attributed to increased enrolments in the certificate IV in Transport & Distribution (Warehousing & Storage) course. Certificate IV in Transport and Distribution (Warehousing and Storage) 2008 Certificate IV in Warehousing Operations 2011 Certificate IV in Logistics and Supply Chain Principles 0 100 200 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 37 | 300 400 500 600 700 VET Enrolments Age Profile The majority of warehouse administrators are in the 20-24 age group. • 140 120 100 80 2008 2011 60 40 20 0 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 38 | 45 to 49 50 to 54 55 to 59 60 & over Diversity of VET Enrolments • Diversity of VET enrolments has increased relative to overall growth however there has been a small decrease in CALD enrolments. 6% 5% 4% 2008 3% 2011 2% 1% 0% Disabled Indigenous Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. 39 | CALD Future direction What this means? 41 | 1. Population Growth, increased freight movement and visitor numbers will place increased pressure on the Hume transport system and logistics industry. 2. Employment in the Hume industry is expected grow faster than the national average with an average annual growth rate of 4% to 2016. (National industry growth forecast of 2.2%) 3. Truck drivers are projected to show the strongest occupational growth with an average annual growth rate to 2016 forecast at 5.9%. It should be noted that there is a shortage of truck drivers nationally and this poses risk to the Hume industry. 4. Overall industry enrolments in VET courses have increased (most notable in the Cert I, III and IV qualification levels) 5. The strongest growth in industry enrolments has come from the 15-19 and 2024 age groups. This suggests any current youth attraction strategies in place are effective. 6. The diversity of enrolments has increased across all focus occupations of the labour market scan including number of disabled, indigenous and CALD students from 2008 to 2011. This suggests any current diversity strategies in place to increase enrolments from these groups are effective. What this means? • 42 | There is a high percentage of Warehouse Administrator and Store person VET enrolments in the 15-19 and 20-24 age groups. Truck and Delivery Driver occupations have an older age profile. A potential explanation for this may be that youth are following a pathway in the industry where they start in operational / administrative positions and transition to driver roles later in their career. Another factor may be the insurance implications and cost for employers of training / employing young drivers in these occupations. Questions 1. What is driving growth stronger then the national average in the Hume Transport & Logistics industry? Have all factors been considered? 2. Is there a strategy to attract, recruit and retain truck drivers in the industry? 3. What has driven the increase in VET course enrolments over 2006-2012? o o o 43 | Growth in youth age groups of 15-19 and 20-24? Increase in diversity of enrolments? WELL Program etc.? Decrease in driver VET enrolments against this trend? Changes to training package / occupational requirements? 4. Are youth following a pathway in the industry? Starting in operational / administrative positions and transitioning to driver roles? 5. What factors are inhibiting youth age groups in the driver occupations? E.g. Insurance, cost, training etc.? 6. What are the lessons learnt that are applicable in other industries?