TRANSPORT AND LOGISTICS IRC SKILLS FORECAST

Transcription

1 TRANSPORT AND LOGISTICS IRC SKILLS FORECAST KEY FINDINGS DISCUSSION PAPER 2017

2 KEY FINDINGS DISCUSSION PAPER MARCH 2017 The purpose of the paper is to provide industry stakeholders with a summary of the key findings from the recent industry intelligence gathering activities overseen by the Transport and Logistics Industry Reference Committee (IRC). The key findings will be used by the IRC in the development of the Transport and Logistics IRC Skills Forecast and Proposed Schedule of Work for the Road Transport, Logistics and Warehousing components of the TLI Transport and Logistics Training Package. Once approved by the Australian Industry and Skills Committee (AISC) the Skills Forecast will replace the 2016 Transport and Logistics IRC Workplan. Several targeted strategies were employed to collect industry intelligence about the opportunities and challenges for the Transport and Logistics workforce and any Training Package review work necessary to meet these industry needs. These included: A Call for Submissions process inviting stakeholder responses about key issues affecting skills and workforce development; An IRC Skills Forecast Survey seeking information on priority skill needs, skill shortages and issues relating to workforce training and; A comprehensive review of Data and Research Sources nominated by the Transport and Logistics IRC Australian Industry Standards has been tasked by the IRC to collect feedback from interested stakeholders about these issues on its behalf. HOW TO PROVIDE FEEDBACK Stakeholders are invited to submit their comments on the findings outlined in this paper by close of business on March 17th It is acknowledged that the information provided about issues in this paper is deliberately brief. The purpose of this paper is to validate and confirm the findings, which will inform the advice the Transport and Logistics IRC will provide to the AISC. In considering the key issues and themes identified in this paper, we are keen to have any feedback that either confirms your issue has been covered, or else raises an issue you feel should be addressed in the Proposed Schedule of Work (FY17/18 FY20/21) for the Road Transport, Logistics and Warehousing components of the TLI Transport and Logistics Training Package to be submitted to the AISC on April 28th Responses can be ed to enquiries@australianindustrystandards.org.au For further information please contact: Klausch Schmidt Industry Manager P (03) M Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 1

3 TRANSPORT AND LOGISTICS INDUSTRY OVERVIEW With Australia s freight task forecast to increase by 26 per cent over the next decade, the Road Transport sector, which employs almost 500,000 people, will continue to be the predominant mode of transport for moving freight around Australia. The increasing adoption of ecommerce platforms by Australian retailers is expected to support industry expansion while also increasing the need for upskilling workers to adapt to evolving technology and systems. TRANSPORT AND LOGISTICS INDUSTRY METRICS Revenue ($b) Profit ($m) 10,296 Average Wage ($ per year) 66, No of Businesses 84,635 Employment Growth (% to 2022) 4.5 Scope: Grain Storage, General Warehousing and Cold Storage, Removalists, Taxi and Limousine Transport, Urban Bus and Tramway Transport, Long Distance Bus Transport, Rail, Air and Sea Freight Forwarding, Road Freight Transport, Customs Agency Services, Stevedoring Services, Port Operators, Road Freight Forwarding, Courier Pick-up and Delivery Services, Postal Services, Scenic and Sightseeing Transport 1 KEY FACTS: 48,747 registered businesses in the road freight transport ranging from single truck operators to large multi-national corporations 2 19 per cent growth by 2026 forecast for domestic passenger task 2 $53 billion per year by 2031 is the estimated cost of congested transport infrastructure 3 $21.65 billion spent by Australians on ecommerce in 2016 requiring distribution to customers 4 $1.2 billion of cargo moved in Australian ports everyday 4 1 IBISWorld Industry Reports. 2 National transport Commission (NTC). August What moves what where: Freight and passenger transport in Australia. 3 Australian Government, Infrastructure Australia. April Australian Infrastructure Audit: Our infrastructure challenges, executive summary. 4 National Australia Bank. December NAB online retail sales index: Indepth report. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 2

4 TRANSPORT AND LOGISTICS WORKFORCE TRANSPORT AND LOGISTICS WORKFORCE NSW VIC QLD WA SA TAS NT ACT 13,650 7,325 6,125 44,600 85, , , ,725 Source: ABS Labour Force, Australia, Detailed, Quarterly, Nov 2016 TRANSPORT AND LOGISTICS SKILL SHORTAGES per cent of employers reported experiencing a skills shortage in the last 12 months 5. The occupations reported as being in shortage were: 1. Truck Drivers 2. Educators 3. Logistics Supervisors/Managers 4. Warehousing Staff 5. Forklift Drivers Employers identified the following reasons for the shortage with the most frequent response listed first. Reasons for shortage Shortage of skilled/qualified personnel Ageing workforce/current staff retiring Remuneration/employment conditions Unattractive job/poor industry image Cost/time to achieve the required qualification 5 Australian Industry Standards. February IRC Skills Forecast Survey. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 3

5 KEY TRANSPORT AND LOGISTICS SKILL ISSUES AUTOMATION AND ROBOTICS Increasing goods-to-person automation processes will continue to expand to make the fulfilment of e-commerce more effective and efficient. Innovations such as drone technology and robotics are propelling the industry. The first autonomous drone delivery was achieved recently in the USA. 6 Automation of port operations is ongoing in Australia and the rapid uptake of technology is driving the need for higher order skills in the industry as well as new skills such as those required for maintenance of automated equipment. Mining companies are already using autonomous vehicles. Transport vehicles, or robots, equipped with artificial intelligence (AI) technology that allows transport of materials to a target location while calculating the optimal route and avoiding humans and obstacles are already available. 7 Trials involving expansion of this technology into delivery operations are underway. 8 The introduction of autonomation and robotics in the Transport and Logistics industry will have a major impact on the economy, workforce as well as other supporting industries. Some predictions assert that driverless truck technology will be implemented in Australia within the decade. 9 Whether or not this will become a reality, the automation of tasks will continue to replace manual handling activities across the supply chain. 31 per cent of businesses within the transport and storage industries are investigating how to integrate VR, with key applications being developed to improve occupational health and safety training Transport & Logistics News. July First-ever FAA-approved drone delivery to customer s home. 7 Kyodo News JBN. 1 February OMRON launches promotional website for AI-equipped Mobile Robot LD Series. 8 Prime Mover Magazine. 9 February FedEx reveals game-changing automated delivery technology. 9 Allianz In Australia self driving trucks are closer than you think Procurement and Supply Australasia (PASA). 24 February Aussie business owners turn immersive tech into a (virtual) reality. com/2017/02/aussie-business-owners-turn-immersive-tech-into-a-virtual-reality Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 4

6 KEY TRANSPORT AND LOGISTICS SKILL ISSUES DISRUPTIVE TECHNOLOGY Crowdsourcing delivery or transport management systems is a reality. 11 As demonstrated above with drone parcel delivery, automation, robotics and other technology initiatives are being developed by disruptors who are looking to take a slice of the transport and logistics market. How businesses react or grow with technological disruption is yet to be seen, however lessons learnt from Uber and other service platforms is that businesses need to be proactive when devising strategies for providing better services to customers or risk being left out of the market. Integrated transport facilities are already a reality and a significant focus of research and development activity. Environmental sensors are being combined with traffic-measurement devices and other sensors to help researchers understand the effects of various types of vehicles and congestion levels. This includes investigating the impacts of emerging disruptive technologies such as autonomous, on-demand and shared mobility systems. 12 The impact of this technology on the transport and logistics jobs of the future cannot be underestimated. INTERNET OF THINGS (IOT) Companies are now using an expanding number of devices, sensors and data methods to connect networks linking the physical environment to collect data and turn it into useful information. Growth of these analytics is leading to new innovations across communications, systems engineering and security environments to improve transport systems. 13 IoT will also have an impact on the workforce, driving demand for new skill sets to effectively manage and operate within a changing environment. Worldwide it has been estimated that by 2025, up to $2.5 trillion of additional value will be generated by IoT for the global logistics industry. Spending on connected logistics solutions is expected to more than double between now and 2020 because of IoT s potential Transport Intelligence. 29 October Ti Crowd sourcing and Uberisation M. Sarvi. 23 February City streets become a living lab that could transform your daily travel NICTA. July Logistics & Materials Handling. 17 February Deutsche Post DHL and Huawei to work together on IoT supply chain tech. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 5

7 KEY TRANSPORT AND LOGISTICS SKILL ISSUES IoT has the capacity to enhance asset tracking, warehouse operations, freight transportation and the development of driverless delivery vehicles. Its application extends to every aspect of the logistics value chain and has already been incorporated into the supply chains of logistics providers. 14 It will be necessary to develop skills to capitalise on the operational efficiencies, heightened security, improved customer experience and new business models that follow from this technology. 15 OMNI-CHANNEL LOGISTICS Customers now expect that they can buy products 24 hours a day online and instore, and on multiple devices simultaneously with the same level of customer service as shopping instore. The change from traditional single-channel and multi-channel logistics, omni-channel logistics seamlessly connects the market with highly personalised customer service. It affects marketing, mechanising, ordering systems, fulfilment and returns. 16 Logistics and supply chains are the key enablers that ensure retailers achieve inventory visibility and optimisation to meet customer demand. Securing identity for physical property and packaging is going to be a big business opportunity over the next decade, involving high value parts of logistics supply chains and regulated industries like energy, pharmaceuticals and cold chain. The existing workforce will need to be equipped with the necessary digital skills and higher-level skills including problem solving and adaptability if the benefits of this technology are to be fully realised. SUSTAINABILITY Sustainable operating practices are increasingly part of key performance indicators within the industry. 17 Pressure to reduce greenhouse gas emissions as well as manage environmental compliance parameters, have increased the requirement to undertake sustainable business practices. New technologies and innovative approaches are being implemented to address environmental issues such as driving, energy, vehicles, fuel efficiency and facilities. Alternative fuels including biogas, bioethanol, biodiesel and hybrid electric buses are making their way into everyday operations, which is particularly evident in the bus and coach industry 18. These changes bring consequent impacts for the workforce who need to adapt to changing job demands and develope new knowledge relating to safety and operational efficiency. 15 DHL Trend Report: The Internet of Things. 16 DHL Omni-Channel Logistics. A DHL perspective on implications and use cases for the logistics industry. downloads/g0/about_us/logistics_insights/dhl_trendreport_omnichannel.pdf 17 DHL Delivering tomorrow: Towards sustainable logistics. 18 Australasian Bus & Coach. 16 February Scania Electric Bus Trial. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 6

8 KEY TRANSPORT AND LOGISTICS SKILL ISSUES Supply chain sustainability goes much further than environmental compliance, extending to workforce sustainability. Companies are looking to streamline operations through savings on resourcing and improved productivity performance. These savings have a trickledown effect onto the workforce. Tesla Motors has recently announced development of an electric truck called the Tesla-semi, which they state will deliver a substantial reduction in the cost of cargo transport. 19 Companies are being required to focus more strongly on environmental, social and governance (ESG) performance. Companies will require innovative approaches to workforce development and to standards of performance expected by investors and the workforce alike, into the future. This will have a flow-on effect on labour relations, safety and approaches to address multi-factor productivity, requiring a greater depth in human capital performance that will need to be reflected in workforce skills. REGULATORY ENVIRONMENT Any changes made to the regulatory environments within the Transport and Logistics industry directly affects the workforce, with companies required to upskill or retrain workers to meet these requirements (e.g. fatigue management). Of note, telematics have been incorporated into the regulatory framework through the Intelligent Access Program (IAP). IAP is also breaking ground internationally, acting as a benchmark for the development of international standards for telematics. 20 Australia s preparedness for global system changes is also critical, as companies don t want to be hindered by regulatory barriers that stops competition beyond Australia s borders. Harmonisation between international and domestic regulatory markets will be key. 19 Financial News, Analysis & Data. 10 February Lithium Rising As Electric Vehicles Take Hold. lithium-rising-as-electric-vehicles-take-hold 20 NTC. November Review of the Intelligent Access Program. CEF).pdf Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 7

9 KEY TRANSPORT AND LOGISTICS SKILL ISSUES AGEING WORKFORCE, INDUSTRY ATTRACTION AND WORKFORCE FLEXIBILITY The Transport and Logistics workforce is the second oldest workforce in the country 21, with a large proportion of workers set to retire in the next decade. 22 Succession planning will impact the industry. The industry currently faces a recruitment challenge, whereby attracting, training and retaining young workers to undertake a career in the sector is proving to be a challenge. Compounding the issue is the increased use of subcontracting and other new forms of employment engagement within the industry. Stakeholders report that part of the difficulty attracting young drivers is that the occupation isn t seen as a professional position which, when coupled with the industry s poor perception in the broader community, amounts to a significant barrier. Career progression is often limited in driving roles and career pathways are often not clear. Growth tends to be within existing roles instead of progressing further in the industry. RESPONDING TO TECHNOLOGICAL CHANGE The Transport and Logistics sector is changing at a phenomenal pace and companies require their workforce to be agile and responsive to meet the skills demands created by new technologies, automation and other innovations as they evolve. Providing the right training at the right time will be crucial for companies. Forecasting the skills gaps within the industry and then skilling the workforce in preparation for these changes will be an essential part of workforce planning. Lean management styles often mean that companies cannot afford the loss of key staff to training. Companies will require high-quality training that allows for flexibility in training options. Industries affected by the advent of new technologies have the opportunity to contribute to their design and development while also having scope to prepare their workforce for potential paradigm shifts. Providing training in advanced analytics, communication practices and nextgeneration information technologies will be beneficial in the long-term Transport and Logistics Industry Skills Council (TLISC) Environmental Scan. 22 Australian Bureau of Statics Retirement and retirement intentions, Australia, July 2014 to June NSW Department of Transport Future Transport Technology Roadmap Overview. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 8

10 KEY TRANSPORT AND LOGISTICS SKILL ISSUES While innovation is considered to be important by numerous Australian organisations, a recent survey of companies found that only one in five consider their supply chains to be innovative despite the majority including it in their business strategy. These organisations also noted the top influencers driving innovation as competitive forces, customer behaviours and corporate responsibility, with omni-channel, last-mile delivery and the regulatory environment having lesser importance. 24 There is a clear requirement to focus workforce skill development in these key areas. DIVERSITY Transport and Logistics is characterised by immense diversity in types of business and range of occupations. However, this does not translate to diversity in workforce demographics. The majority of the workforce are men and stakeholders report a perception that most work undertaken is stereotypically masculine. Women are predominantly employed in support roles such as administration, human resources, procurement and finance. Initiatives to make roles more flexible and attractive to sections of the broader community not traditionally engaged and the Transport and Logistics workforce would benefit in this regard. While the advancement in technology has arguably increased employment opportunities for women, barriers still exist; certain jobs roles considered too dangerous or impractical for females in the minds of those doing the recruiting. There is evidence that shows females in the Transport and Logistics sectors on average have higher education levels than their male counterparts, with 18.3 per cent achieving a diploma or higher compared with 11.7 per cent of males. This demonstrates that women have the desire, skills and knowledge to meet job requirements in this changing and advancing industry. According to research conducted, one in five employees in the wider transport industry is female. Male managers in the industry outweigh female managers by 4 to 1 and under 15 per cent of directors on transport company boards are women. And although the industry has experienced growth of 28 per cent in the last decade, female representation in the industry has increased by one per cent only Transport and Logistics News. 19 January Is your supply chain innovative? 25 Prime Mover Magazine. February Diversity and inclusion. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 9

11 KEY TRANSPORT AND LOGISTICS SKILL ISSUES FUNDING Variations in jurisdictional funding and traineeship arrangements are reported as impacting the viability of delivering training, in particular for narrow markets and in specialist technical areas. Longer-term, this situation may lead to capacity constraints for employers and training organisations alike. These conditions also present challenges for RTOs when considering future investment in training infrastructure and equipment, particularly those involved in new technology. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 10

12 PRIORITY SKILLS The priority skills results are drawn from Transport and Logistics stakeholder responses to the IRC Skills Forecast survey conducted in February In order of priority to the industry, the following skills were identified as the most important for the Transport and Logistics workforce within the next three to five years. SKILL CATEGORY Compliance Driving WHS Technical Adaptability Ranking of the 12 generic workforce skills in order of importance to the Transport and Logistics industry. GENERIC SKILL Managerial/Leadership Customer service/marketing Design mindset/thinking critically/system thinking/solving problems Technology Learning agility/information literacy/intellectual autonomy and self-management Language, Literacy and Numeracy (LLN) Communication/Virtual collaboration/social intelligence Science, Technology, Engineering, Mathematics (STEM) Environmental and Sustainability Financial Data analysis Entrepreneurial Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 11

13 BACKGROUND INFORMATION INDUSTRY REFERENCE COMMITTEES New arrangements for training product development commenced in January These arrangements consider the needs of employers of all sizes, across all industry sectors, and ensure the delivery of high quality Training Packages that are nationally endorsed and internationally regarded. Industry References Committees (IRCs): Provide a forum for industry engagement. Direct the review, development and implementation of training package content relevant to the industry sectors they cover. Act as a conduit for industry feedback to the Australian Industry and Skills Committee (AISC) and governments on industry trends. IRCs are composed of individuals and industry members with the experience, skills and knowledge of their particular industry sector. IRCs are supported by independent and professional Skills Service Organisations (SSO) to develop and review Training Packages, and to inform Training Package development priorities. IRCs have a direct relationship with the AISC, and are charged with identifying industry s skills needs, developing business cases setting out the case for change, and providing the sign off on training products before they go to the AISC for consideration. Each IRC will perform the following functions; Gather intelligence for their industry sectors to inform advice on Training Package development and review. Direct the work of its SSO in the development of industry proposals, cases for change and cases for endorsement. Oversight the development and review of Training Packages in line with the requirements of the AISC. Provide sign off for industry proposals, cases for change, cases for endorsement and other submissions for consideration by the AISC. Direct the work of the SSO in preparing the support materials where funding for additional activities is provided. Report to the AISC on progress of its work. Promote the use of Vocational Education and Training (VET) in the sectors they represent. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 12

14 BACKGROUND INFORMATION TRANSPORT AND LOGISTICS INDUSTRY REFERENCE COMMITTEE The Transport and Logistics Industry Reference Committee (IRC) has been assigned responsibility for the Road Transport, Logistics and Warehousing components of the TLI Transport and Logistics Training Package. Chair: Mark McKenzie, ACAPMA Deputy Chair: Catherine Payne of Payne Haulage The TLI Transport and Logistics Training Package provides the only nationally recognised Vocational Education and Training (VET) qualifications for occupations involved in: Warehousing and Logistics Operations, Driving Operations, Stevedoring, Yard Operations Freight Handler, Furniture Removals, International Freight Forwarding, Mobile Crane Operations, Waste Driving Operations, Driving Instruction for car, heavy vehicle and motorcycles, Materiel and Deployment Logistics, Traffic Operations, Bus and Coach Operations and Customs Broking. The Road Transport, Logistics and Warehousing components of the TLI Transport and Logistics Training Package comprises 36 qualifications, 38 Skill Sets, 461 units of competency and associated assessment requirements and covers: Logistics and Warehousing, Road Transport, International Freight Forwarding and Customs Broking, Materiel and Deployment Logistics and Ports. The Road Transport, Logistics and Warehousing components of the TLI Transport and Logistics Training Package are in the Scope of Registration of 660 Registered Training Organisations. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 13

15 BACKGROUND INFORMATION IRC SKILLS FORECAST & PROPOSED SCHEDULE OF WORK The IRC Skills Forecasts focus on the prioritisation of the skill needs of the industry sectors each IRC has responsibility for. They are developed and reviewed annually in consultation with industry stakeholders, and submitted on behalf of the IRC to the Australian Industry and Skills Committee (AISC) for approval. IRCs are required to consult broadly with stakeholders to ensure a whole-of-industry view about the opportunities and challenges for the workforce and the Training Package review work necessary to meet industry needs. The IRC Skills Forecast is submitted to the AISC inform the development of a four-year rolling National Schedule for Training Package development and review work. More information on the National Schedule can be found at: AUSTRALIAN INDUSTRY STANDARDS Australian Industry Standards (AIS) provides high-quality, professional secretariat services to the Transport and Logistics Industry Reference Committee, in our role as a Skills Service Organisation. AIS provide services to eleven allocated IRCs which also cover the Gas, Electricity, Electrotechnology, Corrections, Public Safety (including Police, Fire and Emergency Services, Defence), Water, Aviation, Rail and Maritime industries. AIS supports these important industry sectors using our world class in-house capability and capacity in technical writing, quality assurance, project management and industry engagement in the production of training packages. AIS was established in early 2016, 20 years after its predecessor the Transport and Logistics Industry Skills Council (TLISC) was established in More information about AIS can be found at We support industry growth and productivity through our modern innovative approach to establishing skills standards. We provide high-quality, professional secretariat services to help our allocated industry reference committees develop the skills that industry needs. We partner with industry to shape the workforce of the future. Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 14

16 P: (03) E: W: twitter.com/ausindstds Level 2, 31 Market Street, South Melbourne, Victoria 3205 Transport and Logistics IRC Key Findings Paper March 2017 Australian Industry Standards Ltd. 15