Skills & Training Needs 2013 Victorian Manufacturing Industry Published by HESG Department of Education and Early Childhood Development Melbourne May 2014 ©State of Victoria (Department of Education and Early Childhood Development) 2014 The copyright in this document is owned by the State of Victoria (Department of Education and Early Childhood Development), or in the case of some materials, by third parties (third party materials). No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968, the National Education Access Licence for Schools (NEALS) (see below) or with permission. An educational institution situated in Australia which is not conducted for profit, or a body responsible for administering such an institution may copy and communicate the materials, other than third party materials, for the educational purposes of the institution. Authorised by the Department of Education and Early Childhood Development 2 Treasury Place, East Melbourne, Victoria, 3002. 2 Skills & Training Needs 2013 – Victorian Manufacturing Industry Content Introduction Industry and data scope Products and services Data Manufacturing trends and issues Key messages, issues and challenges Industry trends and outlook Economic contribution Employer profile Labour productivity Manufacturing workforce and skills Key messages, issues and challenges Employment Skills composition Job vacancies Labour market characteristics Occupations in demand Specialised and in-shortage occupations Workforce skills needs Manufacturing vocational training provision Key messages, issues and challenges Training activity Courses Enrolments by occupation Training providers Funding patterns Regional training activity Student characteristics Appendix A 5 7 7 7 8 8 9 9 10 12 13 13 14 15 16 17 19 20 22 23 23 24 27 28 28 29 29 31 32 Introduction In the context of Victoria’s dynamic economy, a demand-led approach is the best way to ensure a responsive vocational training system that will help as many people as possible build skills that lead to better jobs. This is most evident in the results of the market approach embodied in the Victorian Training Guarantee, which has achieved positive outcomes for both students and the economy. The Refocusing Vocational Training in Victoria reforms are designed to satisfy important criteria for a strong vocational training market. Through these reforms the Government is ensuring that the vocational training system continues to produce positive outcomes for students, businesses and Victoria. Through Refocusing Vocational Training, there is a role for Government in monitoring, providing information and responding to the performance of the vocational training system. A key mechanism by which the Government exercises this role is through the Industry Participation Model. The Industry Participation Model is based on a new partnership approach between Government, industry and training providers. It increases industry influence within the training market by supporting more direct relationships between industry and training providers and by increasing direct consultation with Government. An aim of the Industry Participation Model is to seek to improve information sharing about training provision, options, outcomes, gaps and associated barriers between industry, training providers and employers to improve alignment between industry needs and training delivery. A suite of information products and tools are being developed, of which this report is one, to support this aim and an overview of these is provided overleaf. This report describes training and economic activity and developments related to Victoria’s Manufacturing industry, bringing together a range of qualitative and quantitative insights from desk research and industry engagement. It highlights both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and Government have to address these challenges. Key metrics used in this report include enrolments by sub- industry, qualification level, occupation, courses, age group, gender, learners facing barriers, provider type, reason for study and completions. The report also covers apprentices and trainees, and an analysis of the alignment between training delivery and specific industry skills needs. The report produces industry, sub-industry and region-specific findings and, wherever possible, presents comparisons to developments at the State level. The purpose of this report is: 1. To provide a basis for understanding the Manufacturing sector in relation to employment levels, skills shortage occupations, current alignment and responsiveness of the vocational training market to the needs of the sector and to provide an overview of the challenges and opportunities in meeting industry vocational skills needs both now and into the future. 2. To give detailed information around vocational training enrolments by occupation, location, qualification levels and student characteristics, as it relates to the Manufacturing sector in order to gauge current trends in vocational training delivery. 3. To summarise the context of the Manufacturing sector in relation to the size and scale of the labour and training markets as well as the current policy, economic and social drivers that it is facing. Introduction 5 Suite of Information Products and Tools Victorian Quarterly Training Market Reports On-going series of quarterly reports aimed at providing a summary of Victorian training market performance following the introduction of the student entitlement system. The report covers three sections – the first provides an overview of the performance of the Victorian training market, the second section examines the participation of learners facing barriers and the third examines the alignment of training to industry skills needs Vocational Training: Victoria’s Regions Annual publication examining training delivery in each of Victoria’s regions in the context of the local population, economy and workforce, building a picture of the relationship between the local training system and regional skills needs, training market performance and responsiveness http://www.education.vic.gov.au/training/ providers/market/Pages/regionaltrends.aspx Vocational Training: Victoria’s Industry Report Published annually, this report combines industry intelligence and economic analysis with training data to build a picture of the relationship between industry skills needs, employment opportunities and skills training. Each industry training profile provides economic context and a summary of training challenges and highlights from Industry Participation Model initiatives http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx http://www.education.vic.gov.au/training/ providers/market/Pages/reports.aspx Industry Sub-sector Summary Reports and Industry Factsheets 46 sub-sector summary reports which highlight labour and training market dynamics with an overview of current and forecast employment needs and vocational training patterns across the sectors and at the regional level A series of factsheets are also available for 19 industries http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Business Toolkit and Case Studies Portfolio Industry Reports Toolkit for employers providing information on how to get government subsidised training under the Victorian Training Guarantee; getting the best training for your business, with a helpful checklist; information of Recognition of Prior Learning; and a range of interesting employer and training provider case studies These reports describe training and economic activity and developments related to key Victoria’s industry sectors. Highlighted are both the challenges the industry faces in attracting the right skills, and the opportunities businesses, training providers and government have to address these challenges. A range of key workforce and training metrics are also provided. There are two tiers of reports; detailed reports representing the focus industries for the Department in 2013, and summary reports covering other industry sectors http://www.education.vic.gov.au/ training/employers/workforce/Pages/ marketfacilitation.aspx http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Industry Blog Industry Skills Update - e-Alerts A forum for people interested in industry skills and training issues in Victoria, the blog features a range of topics relevant to stakeholders, information on recent industry events, groups and forums and new initiatives focused on enhancing market performance through facilitation activities Regular email update featuring the latest news about Industry Participation Model activities; market facilitation and related government initiatives; reports; and training performance information http://skillsblogvic.wordpress.com/ To subscribe contact: Department of Education and Early Childhood Development, skills.online@edumail.vic.gov.au Web Pages – Industry Training Market Information 19 webpages with information about the skills and training market for Victorian industries. For each industry, there’s a training snapshot, information about skills in demand, training market intelligence reports along with more detailed reporting for each industry sub- sector. Information is updated regularly http://www.education.vic.gov.au/training/ employers/industry/Pages/marketinfo.aspx Rate Your Training E-Marketplace (in development) Victorian Skills Gateway Ratings tool for industry and employers which is a simple-to-use system where employers can rate the performance of a training provider in a particular study area against selected criteria, and review and compare the ratings of other employers Website which facilitates connections between employers and training providers. Employers can anonymously post their training requirements and training providers are able to provide structured response online. Employers are then able to review the response with no obligation, create a shortlist and follow up directly with their preferred providers One-stop-shop of Victorian vocational education and training to help find the best option for students. Searches can be performed on occupations, courses, training providers, video and written case studies. This website is also viewable via a purposebuilt smartphone interface http://rateyourtraining.com.au/ 6 Skills & Training Needs 2013 – Victorian Manufacturing Industry http://www.education.vic.gov.au/ victorianskillsgateway/Pages/home.aspx Industry and data scope This section summarises the scope of the Manufacturing industry1 as well as key data sources. Products and services The Manufacturing industry covers the physical or chemical transformation of materials, substances or components into new products drawn from raw materials that are products of Agriculture, Forestry and Fishing industry, Mining industry or products of other Manufacturing units. Units in the Manufacturing industry are often described as plants, factories or mills and characteristically use power- driven machines and other materials-handling equipment. However, units that transform materials, substances or components into new products by hand, or in the unit’s home, are also included. Activities undertaken by units incidental to their manufacturing activity, such as selling directly to the consumer products manufactured on the same premises from which they are sold, such as bakeries and custom tailors, are also included in the division. If, in addition to self-produced products, other products that are not manufactured by the same unit are also sold, the rules for the treatment of mixed activities have to be applied and units classified according to their predominant activity. Assembly of the component parts of manufactured products, either self-produced or purchased from other units, is considered manufacturing. For example, assembly of self- manufactured prefabricated components at a construction site is considered manufacturing, as the assembly is incidental to the manufacturing activity. Conversely, when undertaken as a primary activity, the on-site assembly of components manufactured by others is considered to be construction. Figure 1.1: Manufacturing ANZSIC breakdown ANZSIC code ANZSIC industry 11 Food Product Manufacturing 12 Beverage and Tobacco Product Manufacturing 13 Textile, Leather, Clothing and Footwear Manufacturing 14 Wood Product Manufacturing 15 Pulp, Paper and Converted Paper Product Manufacturing 16 Printing (including the Reproduction of Recorded Media) 17 Petroleum and Coal Product Manufacturing 18 Basic Chemical and Chemical Product Manufacturing 19 Polymer Product and Rubber Product Manufacturing 20 Non-Metallic Mineral Product Manufacturing 21 Primary Metal and Metal Product Manufacturing 22 Fabricated Metal Product Manufacturing 23 Transport Equipment Manufacturing 24 Machinery and Equipment Manufacturing 25 Furniture and Other Manufacturing Data The main source of data on vocational training activities is the training activity database referred to as SV Training System (SVTS). The report presents findings for the time period from 2008 to 2013, with an in depth analysis of developments and patterns in the 2013 calendar year. Data was extracted from SVTS as at March 2014 and subject to revision. This report includes government subsidised vocational training enrolments only. Data on completions contain all government subsidised and fee for service enrolments at any course level by all providers. 1 As defined by the Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006. Training data shown in the tables are rounded to the nearest 100 when the figures are greater than 1,000; to the nearest 50 when they are between 100 and 1,000; and to the nearest 10 when they are less than 100. Any percentages are calculated based on the original, unrounded data. Industry and data scope 7 Manufacturing trends and issues This section focuses on the Manufacturing industry as a whole. It covers: key issues and challenges including economic conditions, new regulations, demographic changes, changing social attitudes, new technology/processes, changing consumer tastes, environmental sustainability and the direction of industry restructuring. Key messages, issues and challenges • Manufacturing is a key part of the Victorian economy, with deep links to other industries including agriculture, construction, utilities and services. The industry plays a vital role in exports as well as in the dissemination of innovation. • Manufacturing has been in transition for decades and despite experiencing declining trends in output and employment, over recent years, remains one of the leading industries central to Victoria. Lately, it has been under significant pressure from a range of macroeconomic factors, including a volatile Australian dollar and increased international competition. • This highlights the need to shift focus to high-end innovative products where the industry has comparative advantage. Emerging opportunities have been identified in establishing niche areas in knowledge intensive manufacturing, e.g. pharmaceuticals, transport equipment; developing upstream processing in extractive and agricultural industries and focusing on the automotive and defence supply chains. However, capitalising on such opportunities will require a highly skilled workforce and stellar management systems. • Industry research2 has identified a number of key change drivers that can influence skills requirements. These include the volatile Australian dollar and overseas competition and their snowball effects on production costs which can be further exacerbated by the slow productivity growth in Victorian Manufacturing compared to its global counterparts. Other factors include advancements in technology, changes in regulations and an ageing workforce. • These change drivers over the past few years have put increasing emphasis on the need for a highly skilled Manufacturing workforce, which is driving greater educational requirements and changing the occupational mix of jobs. 2 8 Literature review includes (but is not confined to) the following reports: MSA Environmental Scans (2012, 2013 and 2014), Deloitte Access Economics (2012) ITAB report, IBIS World (2012) reports, DIISR (2010) reports, AWPA (2014) Manufacturing Workforce Study. Skills & Training Needs 2013 – Victorian Manufacturing Industry Efforts have also been made to improve the productivity of the workforce. In many cases, improved productivity has come about with a fall in employment numbers, as the workforce adjusts to grow in efficiency. Consequently, it is prudent to develop a flexible and skilled workforce to meet productivity targets. • Given the changing face of Manufacturing, it is of the highest priority to upskill and cross skill existing workers in the industry. Increasingly there are calls for cross-skilling and hybrid skills that enable an employee to work with integrated technologies, especially across mechanical, electrical, digital and sustainability skills. • Furthermore, there has been a push to improve core skills in the Manufacturing workforce. Research has identified the need to increase skill development in Science, Technology, Engineering and Mathematics (STEM) skills at all levels, as they equip students for vocational training and higher education. The industry’s future competitiveness is reliant on workers with higher level qualitative and quantitative skill. Foundation skills are essential in promoting a workplace culture that supports innovation and growth. Language, Literacy and Numeracy (LLN) skills have been earmarked for improvement as these skills help boost labour productivity and eliminate resource wastage via miscalculation and/or repetition. • Manufacturing needs strong leadership to help realise and capitalise on opportunities and as such the need for better management skills. Managers at all levels play an important role in fostering a high performing culture and improving the qualification profile of managers will strengthen capacity. • Furthermore, in order for the industry to prosper, logistics and supply chain functions and customer service will need to be improved. Having a workforce highly skilled in these functions will help the industry adapt to an industry in transition. • Engineering skills too, have been identified as in shortage across all Manufacturing sub-industries, and include shortages in Industrial, Mechanical and Chemical Engineers and Aircraft Maintenance Engineers. • A shortage in the metals trades, particularly amongst Structural Steel Trades Workers, Metal Fitters and Machinists is also prevalent across many Manufacturing sub-industries. Many of these skills are in demand in the resources and defence sectors, making it challenging to attract and retain workers with similar skills in the Manufacturing industry. Industry trends and outlook • The total value of Manufacturing output has remained stable over the past decade, but its share of the economy has fallen and its composition is changing. However, despite a recent decline of one per cent, the industry remains the third largest contributor in Victoria. • Victoria is transitioning from an industrial economy to a more knowledge intensive, globalised economy led by a rapidly growing services sector. The Manufacturing sector has been the primary driving force behind this rapid structural change within Victorian industries over the past two decades.3 Its output has fallen as a share of total Victorian output since 2006-07. • Based on the recently announced closures of several large manufacturers in Victoria, it is expected that structural changes within the economy will continue. However, as a large part of the shift out of manufacturing has already occurred, these may not generate the levels of structural change seen in the past. • Reflecting economic trends, the Victorian Manufacturing industry workforce has shrunk by eight per cent since 200708. 3 Economic contribution Victoria’s Manufacturing industry contributed approximately $29 billion to the state economy in 2012-13, around 10 per cent of total output. The industry directly employs approximately 298,000 workers, representing 10 per cent of Victorian employment, the third largest sector by employment size. The sub-sectors that make up Manufacturing are varied and owing to the change in the structure and nature of the industry, there has been declining economic activity in some sub-sectors while activity has strengthened in other sub- sectors where economic opportunities are emerging. Manufacturing output has fallen slightly (by one per cent) since 2007-08. Over the past five years, the following Manufacturing sub-sectors have witnessed a rise in output: Food Products, Beverage and Tobacco Product, Petroleum and Coal Product, Basic Chemical and Chemical Product, Non- metallic Mineral Products, Primary Metal and Metal Products and Furniture and Other Products. Furniture and Other Product Manufacturing was the largest contributing sub-sector in 2012-13, accounting for 35 per cent of the Victorian Manufacturing output - a trend prevalent since 2007-08. The sub-sector has also witnessed the largest growth in output since 2007-08, by 31 per cent. Textile, Clothing and Footwear Manufacturing accounted for the next largest share of output (20 per cent). However, the output of this sub-sector fell by 17 per cent over the same period. Employment in the Manufacturing industry has declined by eight per cent since 2007-08. However, as with output, the employment decline has not been prevalent in all Manufacturing sub-sectors. Details on the Manufacturing workforce have been elaborated in the next section. Deloitte Access Economics (2014) Structural change and labour market trends in Victoria, for the Department of Education and Early Childhood Development, Melbourne Manufacturing trends and issues 9 Figure 2.1: Manufacturing output ($ million), Victoria, 2007-08 and 2012-13 10,100 7,700 6,800 5,600 Furniture/ other Non-metallic mineral products Polymer/ rubber products Basic chemical 950 700 Machinery & Equipment 150 200 100 150 Petroleum & coal products 1,800 1,500 1,9001,800 1,0001,200 Transport equipment 750 1,300 1,500 1,4001,400 Fabricated metal products 1,800 Printing TCF products Beverage/ tobacco products Food products Wood products 600 500 250 300 Pulp & Paper products 1,200 Primary metal/ metal products 2,300 1,200 1,300 2007-08 2012-13 Source: Monash Centre of Policy Studies (CoPS) Employment Forecasts, June 2013 A highly skilled workforce leads to increased productivity and economic growth. High quality education and skills training is essential for Victorians to access the opportunities of a growing and changing economy, and an increasingly sophisticated and information-rich society. Employer profile At the end of June 2012, it was estimated that there were 24,300 businesses in the Victorian Manufacturing sector. The distribution of Manufacturing businesses by employment level was skewed towards small sized employing businesses (between 1 and 19 employees). Forty-eight per cent of all Manufacturing businesses employ between 1 to 19 employees compared with an all-industry average of 35 per cent. Non-employing businesses comprised a smaller proportion of Manufacturing businesses when compared with the all-industry average (40 per cent compared with 61 per cent). Figure 2.2: Share of businesses by employment, Victoria, 2012 61% 48% 40% 35% 11% 4% Non Employing 1 to 19 1% 20 to 199 200+ Manufacturing Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012 10 Skills & Training Needs 2013 – Victorian Manufacturing Industry 0.3% All industries With regards to turnover, Victoria’s Manufacturing businesses were less likely to be in the low/medium turnover ranges (zero to less than $200,000), and more likely than average to have a large annual turnover of $200,000 or more. Figure 2.3: Share of businesses by turnover size, Victoria, 2012 39% 35% 28% 31 % 25% 20% 16% 6% Zero to less than $50k $50k to less than $200k $200k to less than $2m $2m or more Manufacturing All industries Source: Australian Bureau of Statistics (ABS), Count of Australian Businesses, including entries and exits, 2012 Seventy-six per cent of employment in the Manufacturing industry was located within metropolitan Melbourne, with 24 per cent located in regional Victoria. In Melbourne, Manufacturing business establishments were heavily concentrated in the south-east (Greater Dandenong, Kingston), east (Knox) and north-west (Hume) industrial nodes. Manufacturing business establishments in regional Victoria were also generally consolidated in major centres and townships. 4 The highest concentration of employment within the Manufacturing industry in Victoria was within the Southern Metropolitan (23 per cent), Eastern Metropolitan (18 per cent), and Northern Metropolitan (15 per cent) regions.5 4 DSDBI (2012) Business location in Victoria: A decade of change 5 Regional Distribution are estimates only based on ABS (2011) Census of Population and Housing Manufacturing trends and issues 11 Figure 2.4: Number of Manufacturing establishments in metropolitan and regional Victoria, 2012-13 1 to 5 5 to 10 10 to 50 50 to 100 100 or more Mildura Swan Hill Echuca Wodonga Shepparton Wangaratta Horsham Labour productivity Labour productivity is defined as real gross value added per hour worked. The figure below shows the average annual compound rate of growth in labour productivity for the Manufacturing industry over the period 2003 to 2013. Nationally the average compound annual growth rate of labour productivity for Manufacturing was 1.5 per cent, higher than the all-industry average of 1.3 per cent. Bendigo Upskilling the workforce continues to be an important focus for increasing productivity, and producing more with less. A welltrained, job-ready workforce is the life-blood of Victoria’s industry and business and the largest determinant of productivity in the State’s economy. Ballarat Bairnsdale Geelong Traralgon Warrnambool Figure 2.5: Labour productivity measure by gross value added (GVA) per hour worked, average annual growth, Australia, 2003-2013 Campbellfield 1.5% Manufacturing Bayswater Dandenong All industries 1.3% 1 to 50 50 to 100 100 to 200 200 to 500 500 or more Source: Australian Bureau of Statistics (ABS), Australian System of National Accounts, 5204.0 Source: Based on data from WorkSafe Victoria 12 Skills & Training Needs 2013 – Victorian Manufacturing Industry Manufacturing workforce and skills This section focuses on the Manufacturing industry workforce. It covers employment levels and trends, as well as workforce characteristics such as age and skill level. Key messages, issues and challenges • Approximately 298,000 people were employed in Victoria’s Manufacturing industry in 2012-13. The industry has seen employment fall by eight per cent over the five years to 2012-13. Characteristics of the Manufacturing workforce include: – The industry’s workforce had a comparatively smaller representation within the youth cohort of 15-24 years old. – Manufacturing is male dominated, with men making up a much higher proportion of the workforce (70 per cent) than women. – A large proportion of the Manufacturing industry workforce (45 per cent) had no post school qualifications, higher than the all industry average of 40 per cent. • Trends in the Manufacturing recruitment market have shown that the number of job vacancies in the industry has been falling slightly, reflecting economic and industry trends. • Nine occupations in the Manufacturing industry – including Sheetmetal Trades Workers, Bakers and Mechanical Engineers – are considered to be experiencing skills shortages in Victoria. • In an environment of significant pressure to innovate and compete, the Manufacturing industry is increasingly reliant on a workforce that is flexible, has highly developed broad skills and strengths in design thinking, technology, management and innovation. Through a higher skill level and strong foundation skills the workforce will be positioned to adapt as the industry continues its transition towards more advanced manufacturing.6 • A quality, highly-skilled workforce is therefore identified as critical to the success of businesses in the Manufacturing industry, and the industry continues to face significant challenges in meeting its workforce needs. • The traditional skills required of the Manufacturing workforce remain paramount: strong Science, Technology, Engineering and Mathematics (STEM) and LLN skills, logistics/supply chain and customer service alongside strong management and leadership skills. 6 AWPA (2014) manufacturing Workforce study Manufacturing workforce and skills 13 Employment Approximately 298,000 people were employed in Victoria’s Manufacturing industry in 2012-13. The industry has seen employment fall by eight per cent over the last five years, equating to losses of around 26,100 employees. However, reflecting trends in output and corresponding to the changing nature and structure of the industry, this decline has not been prevalent in all Manufacturing sub-sectors. • Over the past five years, the following Manufacturing sub-sectors have witnessed a rise in employment: Food Products, Beverage and Tobacco Product, Printing, Petroleum and Coal Product, Non-metallic Mineral Products and Primary Metal and Metal Products. • Food Product Manufacturing was the largest contributing sub-sector in 2012 13, accounting for 21 per cent of the Victorian Manufacturing employment - a trend prevalent since 2007-08. The sub-sector witnessed a four per cent growth in employment since 2007-08. Transport Equipment Manufacturing accounted for the next largest share of employment (15 per cent). 14 Skills & Training Needs 2013 – Victorian Manufacturing Industry 20,900 16,600 Furniture/ other 36,800 Machinery & Equipment 2007-08 Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 29,900 46,100 Transport equipment 23,300 16,000 Fabricated metal products 18,100 16,400 Primary metal/ metal products 13,200 12,600 Non-metallic mineral products 20,400 19,700 Polymer/ rubber products 14,500 14,800 Basic chemical 3,200 Petroleum & coal products 2,700 18,300 17,400 Printing 8,200 8,700 Pulp & Paper products 12,700 10,500 Wood products 17,900 20,400 TCF products 7,600 7,100 Beverage/ tobacco products Food products 37,600 66,700 63,900 Figure 3.1: Manufacturing, Victoria, 2007-08 and 2012-13 2012-13 Skills composition Compared to the majority of sectors, the pattern in Manufacturing is different in that there are a greater proportion of lower skilled roles than higher skilled roles. The Manufacturing industry’s skill levels show a relatively stable pattern into the future. Higher skilled roles as a percentage of the overall workforce are projected to remain at approximately 26 per cent of the workforce through to 2020-21, higher than the levels reported in 2004-05. Higher skilled roles surpassed medium skilled roles in 2010-11 and this trend is expected to continue to 2020 21. Lower skilled roles are expected to continue to account for the highest proportion of industry employment into the future, accounting for half of employment in 2020-21 (compared with 51 per cent in 2012-13). The proportion of medium skilled roles in the industry is expected to remain unchanged over the same period. Figure 3.2: Manufacturing industry skill levels, Victoria, 2004-05 to 2020-21 Forecast 2012-13 to 2020-21 60% 50% 40% 30% 20% 10% 0% 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15 High Skill 2016-17 2018-19 Medium Skill 2020-21 Low Skill Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Note: High skill—managers and professionals. Medium skill—technicians and trades workers, community and personal service workers. Low skill—clerical and administrative workers, sales workers, machinery operators, drivers and labourers Manufacturing workforce and skills 15 Job vacancies Figure 3.3 below highlights the number of vacancies posted online in Victoria over the last two years for selected key Manufacturing occupations. The number of online job advertisements across Manufacturing occupations has fluctuated over the period and generally tracks the decreasing trend seen in the national Internet Vacancy Index.7 Job advertisements for Product Assemblers and Food and Drink Factory Workers have undergone fewer fluctuations and the decline in vacancies has been slower since 2011 than the other top employing Manufacturing occupations. There were approximately 3,900 newly lodged vacancies in key Manufacturing occupational groupings in November 2013. Sales Assistants were the largest occupational grouping, followed by Storepersons, Forklift Drivers, Packers and Metal Fitters and Machinists. Figure 3.3: Number of newly lodged online vacancies in key Manufacturing occupations, Victoria, 2011 to 2013 600 Storepersons Forklift Drivers 500 Packers 400 Metal Fitters and Machinists Production Managers 300 Structural Steel and Welding Trades 200 Industrial, Mechanical and Production Engineers 10 0 Product Assemblers Food and Drink Factory Workers 0 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Mar-13 Jul-13 Nov-13 Source: Department of Education, Employment and Workplace Relations (DEEWR) Internet Vacancy Index (based on a count of online vacancies newly lodged on SEEK, My Career, CareerOne and Australian JobSearch), major advertising occupations only. Note: caution advised when using monthly occupation data as it is susceptible to fluctuation from month to month. 7 16 Department of Education, Employment and Workplace Relations, DEEWR Vacancy Report, February 2013 Skills & Training Needs 2013 – Victorian Manufacturing Industry Labour market characteristics Figure 3.4: Proportion of employment by age, Victoria, 2012-13 Employment by age The Manufacturing workforce was generally evenly split across all age groups. Most of the Manufacturing industry workforce was within the age cohort of 25-54 years – at 70 per cent, slightly higher than the proportion across all Victorian industries (67 per cent). However, at 12 per cent, the proportion of youth cohort (15-24 years) was less than the all industry average of 16 per cent. Manufacturing All industries 15-24 12% 22% 16% 24% 25-34 24% 23% 35-44 24% 21% 18% 17% 45-54 55+ Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Employment by gender Figure 3.5: Proportion of employment by gender, Victoria, 2012-13 Manufacturing employed a higher proportion of men (70 per cent) than women. The all-industry average is 54 per cent male compared with 46 per cent female. Manufacturing All industries 30% 46% 70% 54% Females Males Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Manufacturing workforce and skills 17 Figure 3.6: Proportion of employment by qualification level, Victoria, 2012-13 Employment by qualification level A large proportion of the Manufacturing industry workforce (45 per cent) had no post school qualifications, higher than the all industry average of 40 per cent. The industry had a lower proportion of higher education qualified workers than the ‘all industries’ average (20 per cent compared to 29 per cent). Manufacturing 45% 40% All industries No post school quals Certificate I or II 4% 22% 8% 20% 3% 18% 11% Certificate III or IV 29% Diploma Higher Education Source: Monash Centre of Policy Studies Employment Forecasts, June 2013 Employment by region In 2011 the bulk of employment in the Manufacturing industry was located in Metropolitan Victoria, with the highest proportion of employment (24 per cent) in the Southern Metropolitan area. Figure 3.7: Share of Manufacturing employment in metropolitan and regional Victoria, 2011 24% 17% 18% 18% Western Metropolitan Eastern Metropolitan 7% Barwon South West 3% 3% Gippsland Grampians 5% 5% Hume Loddon Mallee Northern Metropolitan Regional Victoria Source: Department of State Development, Business and Innovation (2013) LGA Employment Forecasts 18 Skills & Training Needs 2013 – Victorian Manufacturing Industry Southern Metropolitan Metropolitan Victoria Occupations in demand Table 3.1 highlights the occupations at four-digit ANZSCO level (Australian and New Zealand Standard Classification of Occupations) that align to the Manufacturing industry. Note that while some occupations also align to other industries, the figures shown are specific to the Manufacturing industry. In 2012-13, Production Managers, Packers and Product Assemblers were the largest employing occupations, representing 12 per cent of total employment in this sector. Table 3.1: Employment change for top 20 occupations in the Manufacturing industry, Victoria, 2007-08 to 2012-13 2007-08 employment 2012-13 employment % Change 2007-08 to 2012-13 Production Managers 7,300 13,000 78% Packers 11,500 11,070 -4% Product Assemblers 15,120 11,050 -27% Food and Drink Factory Workers 7,290 10,320 42% Metal Fitters and Machinists 10,310 9,770 -5% Structural Steel and Welding Trades Workers 9,810 9,220 -6% Forklift Drivers 6,590 8,150 24% Storepersons 7,370 7,670 4% Sales Assistants (General) 6,650 7,290 10% Industrial, Mechanical and Production Engineers 6,350 6,460 2% Advertising and Sales Managers 5,070 5,760 14% Purchasing and Supply Logistics Clerks 5,080 5,520 9% Accounting Clerks 4,170 5,460 31% Manufacturers 5,630 5,160 -8% Occupation Sales Representatives 5,260 5,020 -4% Truck Drivers 4,060 4,280 6% Plastics and Rubber Production Machine Operators 6,110 4,230 -31% Engineering Production Workers 8,690 4,180 -52% Cabinetmakers 7,130 4,170 -41% Meat Process Workers 3,070 4,010 31% 152,000 155,500 2% Other VET occupations highlighted in green Manufacturing workforce and skills 19 Specialised and in-shortage occupations This section focuses on current skills shortages in specific occupations related to the Manufacturing industry as well as those occupations that are specialised.8 The Department’s analysis of skill shortages considers both quantitative evidence and intelligence gathered through industry consultation and related sources.9 Highlighted below are the occupations within the Manufacturing industry that are deemed to be specialised and/or in-shortage. Table 3.2 then provides a summary of key Manufacturing occupations by specialised and in-shortage status. Mechanical Engineers are identified as being a shortage occupation in Victoria and are also a specialised occupation. Mechanical Engineers plan, design, organise and oversee the assembly, erection, operation and maintenance of mechanical and process plant and installations. Shortages associated with Mechanical Engineers in Victoria are driven by high growth trends in employment, expanding average working hours and higher levels of graduate absorption. Industry research has shown that recruitment difficulties were most prevalent in specific technical areas, with a lack of candidates with suitable experience in turbines, heating and ventilation, production lines or reliability schedules. For design vacancies, competency in key design software packages, such as Revit, were also in demand. Employers also considered employability skills such as communication skills, English language skills and a strong work ethic as essential for many roles. Mechanical Engineers Skills Shortage Specialised Occupation Fitter / Turners are identified as being a shortage occupation in Victoria and are also a specialised occupation. Fitter / Turners fit, assemble, grind and shape metal parts and subassemblies to fabricate production machines and other equipment. Skill Shortages associated with Fitter / Turners in Victoria are driven by high growth trends in employment and expanding average working hours. Labour market research has shown that specialist skills and experience in demand by employers includes hydraulics, pneumatics, welding and CNC-machining as well as exposure to industry sector specific working environments. English language skills were also a barrier for the successful recruitment of some candidates. Exposure within the food and pharmaceutical manufacturing industries was particularly sought in the labour market. Fitter / Turners Skills Shortage Specialised Occupation Bakers are identified as being a shortage occupation in Victoria. Bakers prepare and bake bread loaves and rolls. Skill Shortages associated with Bakers in Victoria are driven by high trend levels in employment and replacement demand, growing average working hours and graduate absorption. Labour market research has shown that skill shortages are particularly prevalent in metropolitan Victoria, with some vacancies that were long standing and had been advertised a number of times. Some intelligence suggests that there may be difficulty in attracting candidates due to working conditions such as pay levels and difficult work hours. Further, employers are generally seeking people with both qualifications (Certificate III in Retail Baking) and up to five years bakery experience. Labour market demand is also strong for people with specialist skills, such as extensive experience with sourdough bread, artisan baking or expertise with particular bakery machinery. Bakers Skills Shortage Specialised Occupation Sheetmetal Trades Workers are identified as being a shortage occupation in Victoria and are also a specialised occupation. Sheetmetal Trades Workers mark out, shape, form and join sheetmetal and other materials to make products and components. Skill Shortages associated with Sheetmetal Trades Workers in Victoria were driven by above average graduate absorption and a high vacancy rate, with 1.4 suitable applicants per vacancy on average. Employers sought skilled apprentices in computer software such as Plasma Computerised Cutter, replacing most of the basic jobs in the industry. Base skills in reading drawings, use of a guillotine and press break machine together with familiarity with emerging occupational technologies were critical skill sets in the labour market. 8 DEECD uses the Australian Workforce and Productivity Agency Specialised Occupations List 2013. These occupations have a long lead-time for training, high economic value and a significant match between training and employment. 9 Department of Employment, Labour Market Research and Analysis Branch (2013) Skill Shortage Occupations – various occupations 20 Skills & Training Needs 2013 – Victorian Manufacturing Industry Sheetmetal Skills Trades Workers Shortage Specialised Occupation Metal Machinists are identified as being a shortage occupation in Victoria and are also a specialised occupation. Metal Machinists set up and operate machine tools to shape and form metal stock and castings to fine tolerances, using detailed drawings and specifications. Shortages associated with Metal Machinists in Victoria are driven by high growth trends in employment and expanding average working hours. Labour market research has shown that although most positions required a qualification, employers noted the most important factor was high level experience of at least two years when recruiting for specialist positions within the industry. Metal Machinists Skills Shortage Specialised Occupation Cabinetmakers are identified as being a shortage occupation in Victoria. Cabinetmakers fabricate or repair wooden furniture, and fit and assemble prepared wooden parts to make furniture. Skill Shortages associated with Cabinetmakers in Victoria are driven by a high growth in replacement demand, coupled with market intelligence supporting areas of skill shortage. Industry research has shown that recruitment difficulties were often associated with a lack of supply of people with the appropriate trade qualifications, experience, licensing or workmanship, with a number of employers sighting a deficit between the skill level claimed by many applicants and their actual capabilities. Cabinetmakers Skills Shortage Specialised Occupation Electrical Engineers are identified as being a shortage occupation in Victoria and are also a specialised occupation. Electrical Engineers design, develop and supervise the manufacture, installation, operation and maintenance of equipment, machines and systems for the generation, distribution, utilisation and control of electric power. Skill Shortages associated with Electrical Engineers in Victoria are driven by high trend levels in replacement demand, wages, vacancies and graduate absorption. Industry intelligence is consistent in flagging this as a shortage occupation. Research has shown that employers found it difficult to recruit people with both technical and soft skills such as communication, English language skills and a positive work attitude. Particular challenges related to technical skills included smart meters, switches, surges and high voltage cables as well as AutoCAD. Electrical Engineers Skills Shortage Specialised Occupation Electronics Engineers are identified as being a shortage occupation in Victoria and are also a specialised occupation. Electronics Engineers design, develop, adapt, install, test and maintain electronic components, circuits and systems used for computer systems, communication systems, entertainment, transport and other industrial applications. Available labour market and recruitment data suggests that with growing replacement demand and high wage growth pressure and graduate absorption, this occupation will continue to be inshortage. Electronics Engineers Skills Shortage Specialised Occupation Skills shortage occupations also relevant to Manufacturing: Supply and Distribution Managers are identified as being a shortage occupation in Victoria. Supply and Distribution Managers plan, organise, direct, control and coordinate the supply, storage and distribution of goods produced by an organisation. Industry trends show growing employment demand coupled with industry intelligence reporting that businesses are experiencing difficulties in sourcing managerial level employees with sufficient experience and the capabilities required for the role. Supply and Distribution Managers Skills Shortage Specialised Occupation Table 3.2: Occupations ‘in-shortage’ or ‘specialised’ Occupation In-shortage Specialised Mechanical Engineers Yes Yes Fitters / Turners Yes Yes Bakers Yes No Sheetmetal Trades Workers Yes Yes Metal Machinists Yes Yes Cabinetmakers Yes No Supply and Distribution Managers Yes No Electrical Engineers Yes Yes Electronics Engineers Yes Yes Manufacturing workforce and skills 21 Workforce skills needs • Changing economic conditions over the past few years have put increasing emphasis on the need for a highly skilled workforce in Manufacturing. In order to continue to be a global competitor, the industry needs a more flexible workforce, and up-skilling and cross-skilling are a high priority for this industry. • Technological advancement in the industry has also led to evolving job roles which require employees to have higher and/or greater breadth of skills and use of technology. As manufacturers change and innovate, most jobs across the industry will be increasingly integrated with technology and the ability to manage and navigate these technologies will be a central role for the training market, driving growth in higher and broader skills across the workforce. Significant competitive advantage can be gained by creating high performing and technologically advanced manufacturing capabilities10 and improving current IT proficiency levels across the industry sector - the Victorian manufacturing workforce currently has the fourth lowest problem solving in technology-rich environments proficiency across all industries.11 • The Manufacturing workforce is also ageing, leading to increasing demands for new, skilled recruits. Skills in environment and sustainability are also becoming increasingly important. • Reports from across the industry suggest a skills shortage in engineering. Specifically, skills shortages in the following occupations have been identified: Aircraft Maintenance Engineer (Avionics); Aircraft Maintenance Engineer (Mechanical); Aircraft Maintenance Engineer (Structures). • Research indicates a need to increase skill development in Science, Technology, Engineering and Mathematics (STEM) skills at all levels, as they equip students for vocational training. Greater focus on foundation skills is also essential as these skills help promote a workplace culture that supports innovation and growth. The issue of low language, literary and numeracy (LLN) skills that is prevalent in the industry also needs to be addressed to allow workers to engage in further training. 10 AWPA (2014) manufacturing Workforce study 11 ABS (2013) 4228.0 - Programme for the International Assessment of Adult Competencies, Australia, 2011-12 22 Skills & Training Needs 2013 – Victorian Manufacturing Industry • Victorian manufacturers have a lower level of skills utilisation for technicians and trades workers, labourers and process workers and apprentices than seen at the national level and 60 per cent of Victorian manufacturing companies don’t have human resource management plans in place. This indicates an opportunity for Manufacturing companies to be guided in how to gain skills utilisation improvements that will make available more of the existing skills of the workforce. • Skills recognised as supporting the advancement of Manufacturing in Victoria include enhanced management capabilities, innovation and design thinking: - Management skills:12 Strong management skills are required to support change and innovation across the industry. Managerial competence has been found to be a key contributor to productivity growth. Research has shown that productivity is positively correlated with high management practice, with improvements in management of one-sixth increasing productivity by onequarter to one-third. - Innovation: A skilled workforce geared towards innovative thinking will support the creation and implementation of new ideas and adapt to new technologies and organisational changes across the industry, countering competitive pressures in a high cost operating environment. Further, through innovation the industry can enhance their productivity through product development, system and process improvements and organisational change. - Design thinking: Closely linked to innovation, is creating broader skills across the whole workforce to think, with a ‘design mindset.’13 This requires developing skills in workers to think about their role in an integrated manufacturing system from customers, R&D, design, manufacturing, and the delivery of products and services. Soft skills characteristic of a design skills set include – empathy, integrative thinking, optimism, experimentalism and collaboration.14 12 Roos, G (2014) Manufacturing in 2030 – the new horizon, MSA Symposium, April 2014 13 Bucolo, S (2014) Manufacturing in 2030 – the new horizon, MSA Symposium, April 2014 14 Brown, T. (2008) Design Thinking HBR June Manufacturing vocational training provision This section focuses on training provided for the Manufacturing industry. It covers training activity including a regional analysis, courses, providers and student characteristics. Key messages, issues and challenges • Government subsidised enrolments in Manufacturing courses have increased over the five years between 2008 and 2013, up by 61 per cent to approximately 43,500 enrolments. • A relatively high proportion of Manufacturing enrolments were traineeships – 30 per cent of industry enrolments in 2013, compared with an average across all industries of 13 per cent. • Apprenticeship enrolments accounted for 15 per cent of training delivery in this industry in 2013. • Engineering Production Systems Worker, Factory Process Workers and Food and Drink Factory Workers were the largest occupational groupings, collectively representing 53 per cent of all enrolments across the industry in 2013. The courses with the highest number of enrolments were the Certificates IV and III in Competitive Systems and Practices and Certificate III in Process Manufacturing. • Research and consultation with industry has revealed some concerns with training provision, including difficulty in navigating the training system by small and medium enterprises and availability of qualified vocational training teachers. • Training barriers include access to modern equipment and facilities and niche trades that attract small numbers of students which can deter providers from offering the necessary training modules. • It can be difficult to access training providers when operations are located in remote areas. Consequently, many employers are the primary providers of training. This raises issues around variance in training delivery, including lack of quality training provision and, around skills transferability. • Anecdotal evidence also suggests that manufacturers lack strong links with schools and higher education institutions, which are pivotal in ensuring smooth flow of training delivery. • The majority of training is with private training providers, who accounted for around 68 per cent of industry enrolments in 2013. This has increased from 56 per cent in 2012. • In 2013, the largest region in terms of Manufacturing training delivery was Western Metropolitan, accounting for 30 per cent of industry enrolments, followed by Southern Metropolitan accounting for 23 per cent of enrolments. • Culturally and Linguistically Diverse (CALD) students represented 33 per cent of all Manufacturing enrolments in 2013. Four per cent of 2012 enrolments were by students reporting a disability, and one per cent were by students from an Indigenous background. • The age profile of Manufacturing students is older than the average student age profile across all industry training. This mirrors Manufacturing workforce trends. Seventy-two per cent of enrolments aligned to this industry were by students aged 25 or older compared with an all-industry average of 56 per cent. Manufacturing vocational training provision 23 Training activity Table 4.1 opposite gives a summary of training activity for the Manufacturing industry over the period 2008 to 2013. Enrolments Government subsidised enrolments in Manufacturing courses have increased between 2008 and 2013, up by 61 per cent from 2008. Between 2012 and 2013, government subsidised enrolments in Manufacturing increased by four per cent. In 2013, Manufacturing was the fourth largest industry in terms of government subsidised training delivery. A third of government subsidised enrolments related to the Manufacturing in 2013 (14,250 enrolments) were focused on competitive systems and practices and competitive manufacturing technology. These courses reflect the emerging skill needs required in advanced Manufacturing including management skills, innovation, design thinking and technological developments. For example the Certificate IV in Competitive Systems and Practices covers process capability improvements, six sigma techniques, planning software systems, the use of SCADA, structured problem solving tools, proactive maintenance strategy for a seasonal or cyclical business and optimisation of sustainability of a process or plant area. Through these courses students are exposed to new and emerging technologies to support production processes (e.g. 3D printing, apps, embedded systems, smart sensors and flexible electronics) as well as coverage of advanced materials, nanotechnologies and carbon fibres composites. 24 Skills & Training Needs 2013 – Victorian Manufacturing Industry Apprentices and trainees There were approximately 19,500 apprentice and trainee enrolments in courses aligned to Manufacturing in 2013, 45 per cent of all enrolments in this industry. Traineeships represented a majority of these enrolments (66 per cent in 2013), with enrolments aligned to the occupation Engineering Production Worker accounting for the highest proportion. Compared to the average across all industries, traineeships represented a relatively high proportion of enrolments in Manufacturing – 30 per cent of training delivery compared with an all-industry average of 13 per cent. Apprenticeships accounted for 15 per cent of training delivery in 2013, also above the all-industry average of 10 per cent. Specialised and in-shortage occupations Approximately 23 per cent of Manufacturing industry enrolments were linked to specialised occupations or those considered to be in-shortage in Victoria. This has increased from 2012, when 21 per cent of enrolments were aligned to specialised or in-shortage occupations. Qualification level A high proportion of Manufacturing enrolments were at the Certificate III–IV level (84 per cent). This is slightly higher than the all-industry average (75 per cent). Completed qualifications In 2013, Manufacturing sector completions rose by 14 per cent when compared with 2012, to 15,500 in total. Table 4.1: Key training activity in the Manufacturing industry, 2008 to 2013 Government Subsidised Enrolments Industry sub-sector Basic Chemical and Chemical Product Manufacturing Beverage and Tobacco Product Manufacturing 2008 2009 2010 2011 2012 2013 150 300 650 1,700 2,300 1,200 600 300 250 150 150 150 Fabricated Metal Product Manufacturing 2,000 1,600 1,900 1,500 1,400 1,300 Food Product Manufacturing 6,700 5,500 5,000 7,000 9,200 10,400 Furniture and Other Manufacturing 2,400 2,400 2,500 2,500 1,700 1,500 Machinery and Equipment Manufacturing 2,800 2,200 2,300 2,000 1,900 2,000 Manufacturing nfd 2,200 2,100 3,400 5,700 9,500 14,700 Non-Metallic Mineral Product Manufacturing 10 150 550 1,800 2,400 1,300 Polymer Product and Rubber Product Manufacturing 350 550 1,300 3,800 5,300 2,800 Primary Metal and Metal Product Manufacturing 2,700 2,000 2,400 1,900 1,700 1,600 Printing (including the Reproduction of Recorded Media) 800 700 750 600 750 950 Pulp, Paper and Converted Paper Product Manufacturing 350 350 400 100 150 150 Textile, Leather, Clothing and Footwear Manufacturing 1,900 1,500 1,800 1,600 1,500 1,300 Transport Equipment Manufacturing 3,600 3,300 3,500 3,200 3,400 3,900 350 550 500 350 250 200 27,000 23,500 27,200 33,700 41,700 43,500 Apprentice/ Trainee 2008 2009 2010 2011 2012 2013 Apprentice 7,300 6,800 6,900 6,700 6,800 6,600 Wood Product Manufacturing Total Apprentice or trainee Trainee 3,500 3,100 4,900 10,900 14,400 12,900 Total 10,800 9,900 11,800 17,600 21,200 19,500 nfd = not further defined Manufacturing vocational training provision 25 Specialised/ in shortage Industry sub-sector 2008 2009 2010 2011 2012 2013 Fabricated Metal Product Manufacturing 1,400 1,200 1,400 1,200 1,200 1,200 Food Product Manufacturing 750 750 750 800 1,100 1,600 Furniture and Other Manufacturing 1,500 1,400 1,500 1,400 1,300 1,200 Machinery and Equipment Manufacturing 2,100 1,900 2,000 1,800 1,800 1,900 - - 30 10 - - 1,500 1,300 1,500 1,300 1,300 1,400 550 100 10 - - - 2,400 2,200 2,300 2,100 2,200 2,600 40 30 30 20 20 20 10,100 8,900 9,500 8,600 8,900 10,000 2008 2009 2010 2011 2012 2013 Basic Chemical and Chemical Product Manufacturing 80 60 100 500 950 800 Beverage and Tobacco Product Manufacturing 40 40 20 20 40 10 Fabricated Metal Product Manufacturing 400 550 550 550 650 450 1,900 1,800 1,600 2,500 2,300 2,400 Furniture and Other Manufacturing 400 350 550 500 450 300 Machinery and Equipment Manufacturing 500 550 550 600 600 550 1,600 1,200 950 1,800 2,700 5,800 450 900 750 Manufacturing nfd Primary Metal and Metal Product Manufacturing Textile, Leather, Clothing and Footwear Manufacturing Transport Equipment Manufacturing Wood Product Manufacturing Total Completed qualifications Industry sub-sector Food Product Manufacturing Manufacturing nfd Non-Metallic Mineral Product Manufacturing - 20 60 Polymer Product and Rubber Product Manufacturing 250 70 150 Primary Metal and Metal Product Manufacturing 550 750 700 750 850 600 Printing 200 250 200 200 250 150 - 10 - - 60 - Textile, Leather, Clothing and Footwear Manufacturing 700 750 650 450 500 300 Transport Equipment Manufacturing 750 750 700 800 1,200 1,500 Wood Product Manufacturing 20 50 60 40 150 70 7,300 7,100 6,900 10,200 13,600 15,500 Pulp, Paper and Converted Paper Product Manufacturing Total nfd = not further defined 26 Skills & Training Needs 2013 – Victorian Manufacturing Industry 1,000 2,000 1,700 Qualification levels – 2013 Qualification levels Enrolments % total 4,100 9% Certificate III-IV 36,500 84% Diploma+ 2,900 7% Total 43,500 100% Certificate I-II Courses The top ten courses in Manufacturing accounted for 63 per cent of enrolments in 2013. The Certificate IV in Competitive Systems and Practices attracted the most enrolments, representing approximately 10 per cent of all industry enrolments. Table 4.2: Manufacturing qualifications ranked by 2013 enrolments, government subsidised, 2008 to 2013 Course name Certificate IV in Competitive Systems and Practices Certificate III in Process Manufacturing Certificate III in Competitive Systems and Practices Certificate IV in Competitive Manufacturing Certificate III in Food Processing 2008 2009 2010 2011 2012 2013 - - - - 10 4,500 150 250 2,100 6,900 9,600 4,500 - - - - - 3,600 550 550 1,400 3,000 5,200 3,300 500 600 500 1,000 1,500 2,700 2,400 2,200 2,200 2,200 2,400 2,500 Certificate III in Meat Processing (Food Services) 150 200 250 950 2,700 2,200 Certificate III in Competitive Manufacturing 400 300 350 1,100 2,400 1,700 Certificate III in Engineering - Mechanical Trade 1,900 1,800 2,000 1,700 1,500 1,400 Certificate II in Food Processing 1,600 900 950 1,200 1,200 1,300 Certificate III in Engineering - Fabrication Trade Note: course totals include equivalent superseded courses; totals are rounded. Manufacturing vocational training provision 27 Enrolments by occupation The largest occupation in terms of 2013 training delivery was Engineering Production Systems Worker, which accounted for 31 per cent of industry enrolments and which showed strong growth over the period 2012 to 2013 (increasing by 67 per cent). Factory Process Workers and Food and Drink Factory Workers were the second and third largest occupations, with around 5,100 and 4,600 enrolments respectively in 2013. These three occupations accounted for over half (53 per cent) of training delivery aligned to the Manufacturing industry in 2013. Table 4.3: Manufacturing occupations ranked by 2013 enrolments, government subsidised, 2008 to 2013 Occupation 2008 2009 2010 2011 2012 2013 Engineering Production Systems Workers 1,600 1,700 2,700 4,800 8,100 13,500 200 650 2,200 7,000 9,700 5,100 Factory Process Workers Food and Drink Factory Workers 3,200 1,700 1,500 3,400 3,700 4,600 Sheetmetal Trades Worker 2,500 2,200 2,300 2,200 2,400 2,500 300 250 350 1,100 2,800 2,300 2,900 2,200 1,900 1,900 1,900 2,000 Meat Boner and Slicer Mechanical Engineering Technician Baker Fitter (General) Vehicle Body Builder Cabinetmaker 750 750 750 750 1,100 1,600 1,900 1,800 2,000 1,700 1,500 1,400 800 850 950 950 1,100 1,200 1,300 1,200 1,400 1,300 1,200 1,100 Please see Appendix A for occupations and associated qualifications with funding bands (available for 2012 and 2013). Training providers A total of 101 training providers delivered government subsidised Manufacturing training in 2013, however only 59 providers reported more than 100 enrolments. The number of providers delivering government subsidised training has increased from 75 in 2008. The majority of training was with private training providers, who accounted for around 68 per cent of industry enrolments in 2013. This has increased from 10 per cent in 2008 and 56 per cent in 2012. In contrast, TAFE training provision has decreased. Table 4.4: Proportion of enrolments by provider type, government subsidised, 2008 to 2013 Provider type Learn Local 2008 2009 2010 2011 2012 2013 1% 1% 1% 1% <1% <1% Private 10% 14% 20% 45% 56% 68% TAFE 89% 85% 79% 55% 43% 32% 28 Skills & Training Needs 2013 – Victorian Manufacturing Industry Funding patterns From July 2012 funding bands for government subsidised training were introduced. The allocation of funding within these bands is designed to better target areas of greatest public benefit and future jobs growth. Where there is not a strong need for Government support the training subsidies are lower. Figure 4.1: Enrolments by subsidy band, government subsidised, 2013 Enrolments by funding band Twenty six per cent of enrolments in Manufacturing courses in 2013 were in subsidy Band A. A further 57 per cent were in Band B. This was significantly higher than the average across all industries. 26% Manufacturing 57% 6% 10% See Appendix A for a list of courses and associated subsidy bands. 19% All industries Band A Band B 34% Band C 30% 8% 9% Band D Band E Regional training activity In 2013, the largest region in terms of Manufacturing training delivery was Western Metropolitan, accounting for 30 per cent of industry enrolments. Southern Metropolitan was the next largest region with 23 per cent. Hume was the largest regional area, accounting for nine per cent of industry enrolments in 2013. Table 4.5: Victorian regions ranked by 2013 enrolments, government subsidised, 2008 to 2013 Region 2008 2009 2010 2011 2012 2013 Western Metropolitan 5,400 3,800 5,300 8,600 14,200 12,800 Southern Metropolitan 2,900 3,100 3,900 5,300 7,400 9,700 Northern Metropolitan 4,400 4,600 4,900 5,700 5,700 5,900 Eastern Metropolitan 2,600 2,200 3,500 2,400 3,100 4,200 Hume 4,000 2,700 2,400 3,700 3,500 3,800 Barwon South West 2,500 2,300 2,300 2,800 2,900 2,600 Loddon Mallee 1,800 1,400 1,500 2,000 2,000 1,600 Grampians 750 1,000 900 1,000 1,100 1,100 Gippsland 1,300 1,100 1,000 900 900 1,000 Note: regional enrolment figures sum to slightly more than the overall Victoria-wide figures due to a small number of students undertaking training in campuses in more than one region Manufacturing vocational training provision 29 Figure 4.2: Manufacturing training providers and enrolments, 2013 Loddon Mallee 24 providers 1,600 enrolments Grampians 19 providers 1,100 enrolments Hume 20 providers 3,800 enrolments See metro inlay Barwon South West 20 providers 2,600 enrolments Gippsland 18 providers 1,000 enrolments Northern metro 5,900 enrolments Western metro (inc. CBD) 59 providers 12,800 enrolments Eastern metro 32 providers 4,200 enrolments Southern metro 9,700 enrolments 30 Skills & Training Needs 2013 – Victorian Manufacturing Industry Student characteristics Students from diverse backgrounds engage in vocational training in Manufacturing fields. Students from a Culturally and Linguistically Diverse (CALD) background represented 33 per cent of the enrolments in this industry, while unemployed students accounted for 11 per cent of the total. Four per cent of enrolments were by students with a disability, while one per cent were from an Indigenous background. The age profile of Manufacturing students was relatively older when compared with the average student age profile across all industry training. Seventy-two per cent of enrolments in this industry were by students aged 25 or older compared with an allindustry average of 56 per cent. Table 4.6: Learners Facing Barriers enrolments, government subsidised, 2008 to 2013 Learner Groups 2008 2009 2010 2011 2012 2013 CALD 4,700 4,500 5,700 9,400 12,700 14,200 400 300 300 400 300 350 Indigenous Disability 1,800 1,500 1,600 1,900 2,000 1,900 Unemployed 2,800 3,000 2,800 3,200 3,700 4,700 Aged 25+ 13,300 11,300 13,900 21,100 29,000 31,400 At the time of enrolment, students enrolling in Manufacturing courses were less likely to have completed Certificate III and higher. Unlike the average across all industries, students were more likely to have completed up to Year 11 or below. The main reasons students were enrolling in vocational training related to Manufacturing were job requirements (28 per cent), extra skills (27 per cent), to get a job (12 per cent) and for personal interest (seven per cent). Within the industry, 18 per cent of enrolments were by students with a highest prior qualification of Certificate III or above, compared with an average 23 per cent across all industries (see Figure 4.3). Figure 4.4: Enrolments by reason for study, government subsidised, 2013 It was a requirement of my job Figure 4.3: Enrolments by highest prior qualification, government subsidised, 2013 Bachelor Degree or Higher Degree level 0.7% Advanced Diploma, Diploma or Associate Degree 1% 2% 28% I wanted extra skills for my job To get a job 1% For personal interest or self-development 7% Other 16% 20% Certificate III - IV 12% 27% 38% 42% Year 12 or Certificate II Certificate I 26% 1.8 % 1% 42% Year 11 or below 35% Manufacturing Note: ‘Other’ includes ‘To get a better job or promotion’, ‘To try for a different career’, ‘To start my own business’, ‘To develop my existing business’, ‘To get into another course of study’. All Industries Manufacturing vocational training provision 31 Appendix A Table 5.1: Enrolments by occupation, course and subsidy band, 2012 and 2013 Occupation Course name Aircraft Maintenance Engineer (Avionics) Advanced Diploma of Engineering (Aerospace) Funding band 2012 2013 Band C 40 - Certificate II in Aeroskills Band B <10 <10 Certificate IV in Aeroskills (Avionics) Band A 40 90 Diploma of Aeroskills (Avionics) Band C 40 60 100 150 Total Aircraft Maintenance Engineer (Mechanical) Certificate IV in Aeroskills (Mechanical) Band A 250 300 Diploma of Aeroskills (Mechanical) Band C 150 250 Diploma of Aircraft Maintenance Engineering Mechanical TB1 Band C 20 <10 400 550 Total Aircraft Maintenance Engineer (Structures) Certificate IV in Aeroskills (Structures) Band A 60 200 Certificate IV in Aircraft Surface Finishing Band A <10 <10 70 200 Total Baker Certificate III in Food Processing (Retail Baking - Bread) Band A 250 100 Certificate III in Food Processing (Retail Baking - Cake and Pastry) Band A 70 30 Certificate III in Food Processing (Retail Baking Combined) Band A 150 70 Certificate III in Plant Baking Band A 10 - Certificate III in Retail Baking (Bread) Band A 200 350 Certificate III in Retail Baking (Cake and Pastry) Band A 250 750 Certificate III in Retail Baking (Combined) Band A 150 300 Certificate IV in Advanced Baking Band B - <10 1,100 1,600 30 - 30 - Total Boat Builder and Repairer Certificate III in Marine Craft Construction Band A Total Butcher or Smallgoods Maker Certificate I in Meat Processing (Smallgoods) Band B <10 - Certificate II in Meat Processing (Smallgoods) Band B <10 60 Certificate III in Meat Processing (Smallgoods - General) Band B <10 <10 Certificate III in Meat Processing (Smallgoods Manufacture) Band B 20 10 Certificate IV in Meat Processing (Leadership) Band B - <10 40 80 Total 32 Skills & Training Needs 2013 – Victorian Manufacturing Industry Occupation Course name Cabinetmaker Certificate III in Cabinet Making Certificate III in Furniture Making Certificate III in Furniture Making (Cabinet Making) Funding band 2012 2013 Band A 950 1,000 Band A 80 80 Band A 200 40 1,200 1,100 Total Chemical Plant Operator Advanced Diploma of Process Plant Technology Band C <10 <10 Certificate III in Process Plant Operations Band B 70 40 Certificate IV in Process Plant Technology Band B 90 <10 Diploma of Process Plant Technology Band C 60 <10 250 50 40 <10 40 <10 150 Total Clay, Concrete, Glass and Stone Processing Machine Operators n.e.c. Certificate III in Manufactured Mineral Products Band B Total Clothing Patternmaker Certificate III in Applied Fashion Design and Technology Band B 90 Certificate IV in Applied Fashion Design and Technology Band B 200 300 Certificate IV in Textile Design and Development Band B 70 100 350 600 150 50 Total Dressmaker or Tailor Certificate III in Clothing Production Band B Certificate IV in Clothing Production Band B Total Electrical Engineering Technician Band C 10 <10 Advanced Diploma of Engineering Technology - Electrical Band C 50 40 70 40 60 80 60 80 30 <10 30 <10 Certificate III in Engineering - Electrical/Electronic Trade Band A Total Electronic Engineering Technician Engineering Production Worker 90 150 Advanced Diploma of Electrical - Technology Total Electrician (General) - 150 Advanced Diploma of Electronics Engineering Band C Total Certificate II in Competitive Manufacturing Band B 70 20 Certificate II in Competitive Systems and Practices Band B - 50 Certificate II in Engineering Studies Band A 400 300 Certificate III in Competitive Manufacturing Band B 2,400 1,700 Certificate III in Competitive Systems and Practices Band B <10 3,600 Certificate III in Manufacturing Technology Band B <10 50 Certificate IV in Competitive Manufacturing Band B 5,200 3,300 Certificate IV in Competitive Systems and Practices Band B 10 4,500 Certificate IV in Manufacturing Technology Band B 20 20 8,100 13,500 Total Appendix A 33 Occupation Course name Environmental Consultant Certificate IV in Sustainable Environment Practices Funding band Band B Total Fabric and Textile Factory Worker Certificate I in Textiles Clothing and Footwear Band B Total Factory Process Workers n.e.c. - 50 - Band E 9,600 4,400 Band B - 600 9,700 5,100 Advanced Diploma of Applied Fashion Design and Technology Band C 200 150 Advanced Diploma of Fashion and Textiles Merchandising Band D 10 20 Advanced Diploma of Textile Design and Development Band C 10 <10 Certificate IV in Fashion and Textiles Merchandising Band C 60 50 Diploma of Applied Fashion Design and Technology Band C 350 150 Diploma of Fashion and Textiles Merchandising Band D 40 30 Diploma of Textile Design and Development Band C 30 40 700 450 Certificate III in Engineering - Mechanical Trade Band A 1,500 1,400 1,500 1,400 Certificate I in Food Processing Band B 1,000 650 Certificate II in Food Processing Band B 1,200 1,300 Certificate III in Food Processing Band B 1,500 2,700 3,700 4,600 Certificate IV in Food Processing Band B 150 100 Certificate IV in Food Science & Technology Band B 100 <10 Certificate IV in Food Science and Technology Band B - 60 Diploma of Food Processing Band C 10 <10 Diploma of Food Science & Technology Band C 100 40 Diploma of Food Science and Technology Band C - 20 350 250 Certificate III in Furniture Finishing Band A 20 20 Certificate IV in Furnishing Technology Band A <10 <10 30 20 <10 <10 <10 <10 Diploma of Printing and Graphic Arts (Multimedia) Total 34 50 Certificate IV in Process Manufacturing Total Graphic Designer - Certificate III in Process Manufacturing Total Furniture Finisher <10 10 Total Food Technologist - 150 Total Food and Drink Factory Workers n.e.c. <10 Band E Total Fitter (General) 2013 Certificate II in Process Manufacturing Total Fashion Designer 2012 Skills & Training Needs 2013 – Victorian Manufacturing Industry Band D Occupation Course name Graphic Pre-press Trades Worker Certificate II in Printing and Graphic Arts (Desktop Publishing) Certificate III in Printing and Graphic Arts (Graphic Design Production) Funding band 2012 2013 Band B 20 20 Band B 20 <10 Band B 80 200 Band B 10 - Band B 150 150 Certificate III in Printing and Graphic Arts (Graphic Prepress) Certificate IV in Printing and Graphic Arts (Graphic Prepress) Certificate IV in Printing and Graphic Arts (Multimedia) Diploma of Printing and Graphic Arts (Digital Production) Band C Total Industrial Designer 10 <10 300 350 Advanced Diploma of Furniture Design and Technology Band C <10 <10 Certificate IV in Furniture Design and Technology Band B <10 <10 Diploma of Furniture Design and Technology Band C <10 - Diploma of Product Design Band D 60 70 70 70 Band A 30 20 Total Jeweller Certificate III in Jewellery Manufacture 30 20 Life Science Technician Advanced Diploma of Laboratory Operations Band C <10 - Certificate III in Laboratory Skills Band B 40 20 Certificate IV in Laboratory Techniques Band B 80 100 Diploma of Environmental Monitoring and Technology Band C 10 <10 Diploma of Laboratory Technology Band C 150 150 Diploma of Sustainable Operations Band D 20 <10 300 300 Total Total Meat Boner and Slicer Certificate III in Meat Processing (Boning Room) Band B 150 150 Certificate III in Meat Processing (Food Services) Band B 2,700 2,200 2,800 2,300 40 Total Meat Inspector Certificate III in Meat Processing (Meat Safety) Band B 80 Certificate IV in Meat Processing (Meat Safety) Band B 100 50 Certificate IV in Meat Processing (Quality Assurance) Band B <10 <10 200 90 Total Meat Process Worker Certificate II in Meat Processing (Abattoirs) Band B 400 500 Certificate II in Meat Processing (Food Services) Band B 100 150 Certificate III in Meat Processing (General) Band B 150 300 Certificate III in Meat Processing (Rendering) Band B <10 <10 650 900 Total Appendix A 35 Occupation Course name Funding band 2012 2013 Mechanical Engineering Technician Advanced Diploma of Engineering Band C 50 100 Advanced Diploma of Engineering Technology Band C 600 500 Advanced Diploma of Engineering Technology (Principal Technical Officer) Band C 150 40 Certificate IV in Engineering Band A 850 1,200 Diploma of Engineering - Advanced Trade Band C 70 40 Diploma of Engineering - Technical Band C 20 40 Diploma of Engineering Technology Band C 200 90 Diploma of Engineering Technology (insert stream) Band C <10 <10 1,900 2,000 Total Metal Engineering Process Worker Certificate I in Engineering Band B 20 - Certificate II in Engineering Band B 400 350 Certificate II in Engineering - Production Technology Band B Band B Total Metal Fabricator Certificate III in Engineering - Production Systems Band A Total Musical Instrument Maker or Certificate IV in Musical Instrument Making and Repair Repairer Band B Total Organisation and Methods Analyst 50 200 50 200 <10 <10 <10 <10 Band C 10 30 Advanced Diploma of Competitive Systems and Practices Band C Diploma of Competitive Manufacturing Band C - 20 Band C 1,100 650 Diploma of Competitive Systems and Practices Band C <10 300 Vocational Graduate Certificate in Competitive Manufacturing Band C <10 <10 Vocational Graduate Certificate in Competitive and Practices Band C <10 30 1,100 1,100 Certificate II in Furniture Finishing Band A 20 20 Certificate II in Furniture Making Band A 250 250 Certificate III in Sawmilling and Processing Band B 50 10 Certificate III in Wood Panel Products Band B 70 - Certificate IV in Timber Processing Band B 10 20 Certificate IV in Timber Truss and Frame Manufacturing Band A Total 36 50 400 Advanced Diploma of Competitive Manufacturing Total Other Wood Processing Machine Operator 350 750 Skills & Training Needs 2013 – Victorian Manufacturing Industry - 20 400 300 Occupation Course name 2012 2013 Band B 40 90 Certificate III in Pulp and Paper Manufacturing Band B 20 - Certificate III in Pulping Operations Band B - <10 Certificate IV in Papermaking Operations Band B <10 <10 Certificate IV in Pulp and Paper Manufacturing Band B 20 - Certificate IV in Pulp and Paper Services Band B <10 - Certificate IV in Pulping Operations Band B <10 <10 90 100 Paper and Pulp Mill Operator Certificate III in Papermaking Operations Funding band Total Paper and Pulp Mill Worker Certificate I in Pulp and Paper Manufacturing Band B 10 - Certificate II in Papermaking Operations Band B <10 40 Certificate II in Pulp and Paper Manufacturing Band B 40 - Certificate II in Pulping Operations Band B <10 <10 60 40 <10 <10 <10 <10 20 20 20 20 Total Pastrycook's Assistant Certificate II in Retail Baking Assistance Band B Total Picture Framer Certificate III in Picture Framing Band A Total Plastics Production Machine Certificate II in Polymer Processing Operator (General) Band B 20 <10 Certificate III in Polymer Processing Band B 100 90 150 100 Total Plastics Technician Advanced Diploma of Polymer Technology Band C <10 <10 Certificate IV in Polymer Technology Band B 20 30 Diploma of Polymer Technology Band C <10 <10 Graduate Certificate in Plastics Product and Tool Design Band C - <10 30 50 Band B 150 300 150 300 Band A - <10 - <10 Band B 250 250 250 250 30 20 30 20 10 <10 10 <10 Total Print Finisher Certificate III in Printing and Graphic Arts (Print Finishing) Total Printer's Assistant Certificate II in Printing and Graphic Arts (General) Printing Machinist Certificate III in Printing and Graphic Arts (Printing) Total Total Product Assembler Certificate I in Furnishing Band B Total Production Manager (Manufacturing) Vocational Graduate Certificate in Food Industry Management Total Band D Appendix A 37 Occupation Course name Funding band Saw Maker and Repairer Certificate III in Sawdoctoring Band A Total Sawmill or Timber Yard Worker Certificate II in Sawmilling and Processing Band B Total Science Technicians n.e.c. Certificate II in Sampling and Measurement Band B Total Screen Printer Certificate III in Printing and Graphic Arts (Screen Printing) Band B Total Seafood Process Worker Certificate II in Seafood Processing Certificate III in Seafood Processing Band B Band B Total Sewing Machinist 80 20 80 20 <10 20 <10 20 10 20 10 - 20 - <10 - 20 40 40 - 40 40 Certificate III in Engineering - Composites Trade Band A - 20 Certificate III in Engineering - Fabrication Trade Band A 2,400 2,500 Certificate III in Engineering - Technical Band A Certificate IV in Custom-made Footwear Certificate III in Meat Processing (Slaughtering) Diploma of Printing and Graphic Arts (Management/ Sales) <10 10 2,400 2,500 Band B 30 20 30 20 Band B 200 300 200 300 <10 - <10 - Band C Certificate II in Millinery Band B 10 Certificate III in Engineering - TCF Mechanic Band B <10 - Certificate III in Millinery Band B 70 <10 Certificate III in Textile Fabrication Band B 10 <10 Certificate III in Textile Production Band B <10 <10 Certificate IV in Millinery Band B 100 30 Certificate IV in Textile Technology and Production Band B <10 <10 200 60 Total 38 20 <10 Total Textile and Footwear Production Machine Operators n.e.c. <10 Band B Total Technical Sales Representatives n.e.c. <10 <10 Band B Total Slaughterer <10 Certificate II in Clothing Production (Intermediate) Total Shoemaker 2013 Certificate II in Applied Fashion Design and Technology Total Sheetmetal Trades Worker 2012 Skills & Training Needs 2013 – Victorian Manufacturing Industry <10 Occupation Course name Upholsterer Certificate III in Mattress and Base Making Funding band 2012 2013 Band A <10 <10 Certificate III in Production Upholstery Band B <10 <10 Certificate III in Upholstery Band B 20 30 30 40 Band B 20 - Band B - <10 Band B - 30 Band B 40 40 Band A 20 - Band A 90 90 Band A - <10 Band A - <10 Band A 950 1,100 Band A 20 <10 1,100 1,200 - <10 - <10 - <10 - <10 <10 <10 <10 <10 Total Vehicle Body Builder Certificate II in Automotive Manufacturing (Passenger Motor Vehicle) Certificate II in Automotive Manufacturing Production Bus, Truck and Trailer Certificate II in Automotive Manufacturing Production Passenger Motor Vehicle Certificate II in Automotive Vehicle Body Certificate III in Automotive Manufacturing (Bus, Truck & Trailer) Certificate III in Automotive Manufacturing (Bus/Truck/ Trailer) Certificate III in Automotive Manufacturing Technical Operations - Bus, Truck and Trailer Certificate III in Automotive Manufacturing Technical Operations - Passenger Motor Vehicle Certificate III in Automotive Vehicle Body Certificate III in Recreational Vehicle Manufacturing Total Vehicle Painter Certificate III in Automotive Refinishing Technology Band A Total Vehicle Trimmer Certificate III in Automotive and Marine Trimming Technology Band A Total Wine Maker Diploma of Wine Technology Band C Total Winery Cellar Hand Certificate II in Food Processing (Wine) Band B 10 <10 Certificate II in Wine Industry Operations Band B <10 30 Certificate III in Food Processing (Wine) Band B 100 <10 Certificate III in Wine Industry Operations Band B <10 90 150 150 Total Wood and Wood Products Factory Worker Certificate II in Wood Panel Products Band B <10 - Certificate III in Timber Manufactured Products Certificate III in Timber Truss and Frame Design and Band B 40 30 Band A 10 20 Manufacture Total Wood Machinist 60 50 Certificate III in Furniture Making (Wood Machining) Band A 30 20 Certificate III in Woodmachining Band A 20 20 50 40 Total Appendix A 39