Research Report on Manufacturing Sector

A MORE COMPETITIVE
MANUFACTURING INDUSTRY
Management and Workforce
Skills and Talent
February 2012
Suggested citation:
Fisher, L., Agarwal, R. and Green, R., The Australian Industry Group and the University of Technology Sydney, 2011, Management and Workforce Skills
and Talent Report prepared for the Victorian Department of Business and Innovation.
Principal contact persons for the report:
Megan Lilly
Director – Education and Training
The Australian Industry Group
20 Queens Road, Melbourne VIC 3004
Work: + 61 3 9867 0202
Fax: + 61 3 9867 0195
Email: [email protected]
Dr Renu Agarwal
Senior Lecturer
Management Discipline Group and
Research Director, Management Practices Project,
UTS Business School
University of Technology, Sydney
Work: + 61 2 9514 3624
Mobile : + 61 419 463 953
Fax: + 61 2 9514 3602
Email: [email protected]
ISBN: 978-1-921768-36-1
Published in Sydney by The Australian Industry Group
51 Walker Street North Sydney NSW 2060
© The Australian Industry Group, 2012
This publication is copyright. Except for purposes of, and subject to the conditions in, the Copyright Act, no part may be reproduced, stored in any
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of the Commonwealth of Australia. References to legislation and regulations and companion material are accurate as the date of publication only.
A MORE COMPETITIVE
MANUFACTURING INDUSTRY
Management and Workforce
Skills and Talent
February 2012

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL l
LkLCU1IVL SUMMAk¥
Introduct|on
1he manufacLurlng secLor ls sLraLeglcally lmporLanL Lo Lhe vlcLorlan economy as a source of [obs,
exporLs, lnvesLmenLs, lnnovaLlon, and research and developmenL. uesplLe lLs decllnlng share of
naLlonal and sLaLe ouLpuL, manufacLurlng remalns Lhe second-largesL secLor ln Lhe vlcLorlan
economy.
1

1he sLarLlng polnL for Lhls research reporL, prepared by Lhe AusLrallan lndusLry Croup ln
parLnershlp wlLh Lhe unlverslLy of 1echnology Sydney, ls LhaL effecLlve managemenL pracLlces,
skllls and capablllLles have Lhe poLenLlal Lo drlve producLlvlLy, lnnovaLlon and compeLlLlveness ln
Lhe vlcLorlan manufacLurlng secLor. 1he secLor ls dependenL on Lhe avallablllLy of a skllled
workforce whlch ls able Lo adapL and respond Lo Lhe slgnlflcanL challenges lL faces. 1hese
challenges lnclude Lhe shlfL Lo hlgher-level skllls drlven by Lhe lnLroducLlon of new Lechnologles
and Lhe demands of global compeLlLlon, Lhe recrulLmenL and reLenLlon challenges LhaL come
from oLher secLors hungry for skllls, such as Lhe resources secLor, and Lhe challenges LhaL flow
from a wlde publlc percepLlon LhaL manufacLurlng ls a secLor aL rlsk.
1he essenLlal quesLlons addressed are:
• 1o whaL exLenL are skllls and LalenL crlLlcal Lo Lhe compeLlLlveness of vlcLorla's
manufacLurlng lndusLry?
• Pow are skllls and Lralnlng requlremenLs changlng wlLh Lhe needs of lndusLry?
• Pow lmporLanL are managemenL and sLraLeglc capablllLles Lo global compeLlLlveness for
vlcLorlan manufacLurers?
SlLLlng behlnd Lhose quesLlons are a mulLlLude of lssues, many of whlch are canvassed ln Lhe
reporL. 1he research has been underLaken from an lndusLry perspecLlve. 1he guldlng quesLlons
have been: WhaL are Lhe needs of lndusLry? And whaL ls lmporLanL Lo enLerprlses and whaL
would make a dlfference? 1he alm of Lhls reporL ls Lo make commenL on Lhe skllllng sysLem from
Lhe perspecLlve of where lL lnLersecLs wlLh lndusLry and enLerprlses.
key Sk||||ng Issues
1he vlcLorlan manufacLurlng secLor ls under exLreme pressure, faclng a hlgh AusLrallan dollar,
relenLless global compeLlLlon, uncerLalnLles over fuLure energy prlces and enLrenched sklll
shorLages - Lo name [usL Lhe mosL obvlous challenges. ln recenL years, employmenL ln
manufacLurlng has decllned from a 20° share ln Lhe mld-1980s Lo 11.1° ln 2010. 1hls
downward Lrend ls expecLed Lo conLlnue, whlch fuels publlc concerns abouL Lhe secLor's ongolng
vlablllLy. Skllls are one of Lhe key drlvers of Lhe compeLlLlveness of vlcLorlan manufacLurlng
flrms.


1 1he vlcLorlan ManufacLurlng Labour lorce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
LxecuLlve summary
_______________________________________________________________________________
ll A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
8u||d|ng Sk|||s for Wor|d C|ass Compan|es
More producLlve flrms requlre more hlghly skllled people, from Lhe shop floor Lo Lhe boardroom.
We began by looklng aL how well vlcLorlan flrms are farlng from a skllls perspecLlve. A
comparlson can be made wlLh world class flrms, whlch we know from earller research,
2
spend no
more on skllllng Lhan oLher flrms buL are more llkely Lo have a comparaLlvely hlghly skllled
workforce, Lo have skllls assessmenLs and workforce developmenL plans ln place, and Lo offer
formal Lralnlng leadlng Lo quallflcaLlons. 1hese flrms are also more llkely Lo Lake parL ln
collaboraLlve arrangemenLs and Lo have llnks Lo unlverslLles.
vlcLorlan manufacLurers are requlrlng hlgher-level skllls whlch are drlven by Lechnology and
global compeLlLlon, whlle sLlll requlrlng workers wlLh lower-level skllls - albelL ln decllnlng
numbers. ln Lhls conLexL of fuLure sklll Lrends, Lhls research found LhaL 43° of vlcLorlan
manufacLurlng employees do noL hold posL-school quallflcaLlons and LhaL Lhere exlsL many areas
of skllls shorLage whlch are expecLed Lo perslsL lnLo Lhe medlum Lerm. Skllls shorLages were
ldenLlfled for meLal Lrades workers, manufacLurlng professlonals, machlnery operaLors,
englneers, Lechnlclans, clerlcal and admlnlsLraLlve sLaff, and managers.
Workforce Sk|||s - the Lnterpr|se Lxper|ence
1he reporL also conslders parLlcular aspecLs of Lhe skllllng of Lhe manufacLurlng workforce from
an lndlvldual flrm perspecLlve: skllls uLlllsaLlon, modes of Lralnlng dellvery, and Lhe llnked lssue
of Lhe lmpacL company slze has on Lralnlng and llLeracy and numeracy levels.
Cne of Lhe hallmarks of world class companles ls LhaL Lhey have workforce developmenL plans ln
place. lorLy per cenL of vlcLorlan manufacLurlng companles have human resource managemenL
plans ln place and a slmllar number have formal skllls uLlllsaLlon measures ln place. WlLhln Lhls
secLor, as ls Lrue across Lhe economy, hlgher-level occupaLlonal groups have hlgher levels of
skllls uLlllsaLlon, 91° of Lhe skllls of managers are aL leasL mosLly used, compared Lo 67° of Lhe
skllls of labourers and process workers. vlcLorlan manufacLurers reporLed lower levels of skllls
uLlllsaLlon for Lechnlclans and Lradeworkers, labourers and process workers, and apprenLlces
Lhan seen ln Lhe naLlonal daLa. 1hls lndlcaLes an opporLunlLy for companles Lo be gulded ln how
Lo galn skllls uLlllsaLlon lmprovemenLs LhaL wlll make avallable more of Lhe exlsLlng skllls of Lhe
workforce.
1he lssue of on- and off-Lhe-[ob Lralnlng was consldered and, whlle lL was found LhaL for
companles Lhe preferred meLhod of Lralnlng depended ln large parL on Lhe needs of Lhe group
belng Lralned, lL was clear LhaL many companles are noL able Lo access Lhe cusLomlsed Lralnlng
LhaL would besL meeL Lhelr needs. Small and medlum-slzed flrms are ofLen unable Lo access Lhe
Lralnlng servlce Lhey need. ln many cases Lhey are unaware of Lhe flexlblllLles avallable wlLhln
Lhe Lralnlng sysLem and, whlle Lhere ls clearly a need for Lhe Lralnlng sLaff worklng dlrecLly
wlLh companles Lo be sufflclenLly skllled Lo offer a full servlce, enLerprlses need access Lo
lndependenL advlsory servlces Lo asslsL. Such access wlll resulL ln more companles Lralnlng Lhelr
sLaff, lncludlng ln skllls aL hlgher levels - Lhe skllls so necessary for a compeLlLlve fuLure.
llnally, ln Lhls secLlon of Lhe reporL conslderaLlon was glven Lo Lhe llLeracy and numeracy levels
of Lhe manufacLurlng workforce. Around half of all adulL AusLrallans have llLeracy and numeracy
skllls below Lhe level consldered necessary Lo funcLlon effecLlvely aL work.

2 Splndler, k., wotlJ closs skllls fot wotlJ closs loJosttles: ímployets´ petspectlves oo sklllloq lo Aosttollo, AusLrallan lndusLry Croup,
Sydney, 2006

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL lll
ManufacLurlng compares poorly wlLh oLher lndusLrles, and vlcLorla ls noL one of Lhe leadlng
[urlsdlcLlons ln llLeracy and numeracy. Survey resulLs revlewed for Lhls reporL found 34° of
labourers and process workers employed ln vlcLorlan manufacLurlng had low levels of llLeracy,
compared Lo 43° of Lhls occupaLlonal grouplng ln Lhe all AusLralla daLa. 1here are slgnlflcanL
beneflLs LhaL flow from lmprovlng llLeracy and numeracy levels - safeLy ls lmproved, producLlvlLy
ls lncreased, and hlgher levels of llLeracy and numeracy make lL posslble Lo successfully
underLake hlgher levels of skllllng. uesplLe Lhe enormlLy of Lhe llLeracy and numeracy skllllng
challenge, companles flnd lL dlfflculL Lo access sulLable Lralnlng for Lhelr sLaff. lndependenL
advlsory servlces would be hlghly beneflclal, parLlcularly lf, as suggesLed ln Lhls reporL, Lhere was
an lncrease ln Lhe avallablllLy of workforce llLeracy and numeracy Lralnlng, boLh as a speclallsL
servlce and embedded ln exlsLlng Lralnlng dellvery.
key Management Issues
ln Lhe vlcLorlan manufacLurlng secLor, Lhe occupaLlon group LhaL has experlenced Lhe hlghesL
lncrease ln recenL years ls 'managers'. 1he vlcLorlan CovernmenL acknowledges LhaL:
'8ulldlng leadershlp and managemenL capablllLles ln Lhe face of global and domesLlc challenges
ls crlLlcal Lo lmprovlng producLlvlLy and ensurlng vlcLorla's fuLure economlc prosperlLy.'
3

1hls reporL analyses Lhe sLraLeglc managemenL and leadershlp skllls of managers ln vlcLorla's
manufacLurlng lndusLry, based on daLa from 121 vlcLorlan manufacLurlng flrms among Lhe LoLal
of 439 AusLrallan manufacLurlng flrms surveyed as parL of AusLrallan ManagemenL ÞracLlces
8esearch. 1he AusLrallan ManagemenL ÞracLlces 8esearch (Lhe AMÞ research) was
commlssloned by Lhe ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch (ullS8), and
repllcaLes Lhe lnnovaLlve research meLhodology deslgned by 8loom and van 8eenen (2007)
4
ln
Lhe AusLrallan conLexL Lo benchmark managemenL pracLlces ln AusLrallan manufacLurlng flrms
agalnsL Lhe global besL.
3

Among all managemenL areas, human resource managemenL ls where vlcLorlan manufacLurlng
flrms mosL slgnlflcanLly Lrall AusLrallan and lnLernaLlonal besL pracLlce: Lhls area presenLs Lhe
besL opporLunlLy for lmprovemenL and warranLs speclal aLLenLlon. Skllls and capablllLles form
a key deLermlnanL of hlgh managemenL performance, Lhe proporLlon of boLh managers and non-
managers wlLh unlverslLy degrees explalns around 10° of Lhe varlaLlon ln managemenL scores.
1here ls a sLaLlsLlcally slgnlflcanL relaLlonshlp beLween educaLlon and sklll level and Lhe
managemenL scores across all Lhree managemenL areas - operaLlons, performance and people
managemenL. Lnhanclng educaLlon and fosLerlng skllls boLh ln Lhe managerlal cadre and Lhe
general workforce ln vlcLorlan manufacLurlng flrms ls beneflclal. lnvesLlng ln educaLlon, skllls and
LalenL ls a key drlver of effecLlve managemenL pracLlces and, ln Lurn, enhanced performance and
compeLlLlveness ln vlcLorlan manufacLurlng flrms.


3 1be vlctotloo Mooofoctotloq loboot lotce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
4 8loom, n. and van 8eenen, !., ºMeasurlng and Lxplalnlng ManagemenL ÞracLlces Across llrms and CounLrles", Ooottetly Iootool of
ícooomlcs, vol. Cxxll, lssue 4, 2007, pp. 1,331-408
3 Moooqemeot Mottets lo Aosttollo. Iost bow ptoJoctlve ote we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
LxecuLlve summary
_______________________________________________________________________________
lv A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
CLher key flndlngs wlLh respecL Lo managemenL pracLlces and skllls ln Lhe vlcLorlan
manufacLurlng secLor are as follows.
• vlcLorlan flrms are sLaLlsLlcally on par wlLh Lhe oLher sLaLes ln overall and people
managemenL, and are sLaLlsLlcally slgnlflcanLly beLLer Lhan Lhe resL ln operaLlons and
performance managemenL,
• Lhe Machlnery and LqulpmenL ManufacLurlng (AnZSlC 28) sub-secLor performs
sLaLlsLlcally beLLer Lhan oLher lndusLry sub-secLors ln all managemenL areas lncludlng
overall managemenL,
• large-slzed vlcLorlan manufacLurlng flrms (200+ employees) score sLaLlsLlcally beLLer
Lhan medlum-slzed ones (30-1,899 employees) across all managemenL areas lncludlng
overall managemenL. Correspondlngly, Lhere are also a sLaLlsLlcally hlgher proporLlon of
managers and non-managers wlLh degrees ln large-slzed flrms as compared Lo medlum-
slzed flrms,
• Lhe smaller flrms (30-99 employees) score sLaLlsLlcally slgnlflcanLly lower Lhan flrms wlLh
100 or more employees across all managemenL areas excepL performance managemenL.
1hls underperformance also relaLes Lo Lhe sLaLlsLlcally lower proporLlon of managers
wlLh degrees ln small-slzed flrms as compared Lo Lhe resL of Lhe cohorL, and
• Lhe 88W-llsLed flrms score sLaLlsLlcally hlgher on managemenL pracLlces across all areas
of managemenL excepL people managemenL. noLably, Lhere are also a sLaLlsLlcally hlgher
proporLlon of managers and non-managers wlLh degrees ln 88W-llsLed flrms as
compared Lo Lhe resL of Lhe cohorL.
Management and Workforce Sk||||ng Cpportun|t|es
ln Lhe conLexL of a workforce decllnlng ln LoLal numbers, where over 40 percenL of workers do
noL have posL-school quallflcaLlons, where Lhere are wldespread skllls shorLages, buL where
fuLure compeLlLlveness ls llnked Lo hlgher-level skllls we musL ask: WhaL needs Lo be done Lo
ensure vlcLorlan manufacLurlng has Lhe skllls lL needs?
We need Lo conslder all avenues avallable Lo bulldlng Lhe sLock of skllls - new enLranLs, exlsLlng
workers, skllled mlgranLs and also Lhe dlfferenL skllllng opLlons, noL [usL skllls developed Lhrough
formal skllllng processes.
Workforce skllllng ln vlcLorla has undergone recenL reforms wlLh Lhe lnLroducLlon of Lhe
vlcLorlan 1ralnlng CuaranLee, whlch funds Lhe Lralnlng of lndlvlduals as Lhey progress Lhrough
Lhe quallflcaLlons of Lhe AusLrallan CuallflcaLlons lramework. 1he lndlvldual demand-drlven
sysLem meeLs a real need, lL dlrecLly Lles Lralnlng Lo demand, lL promoLes hlgher-level skllllng
over a worklng llfe and lL wlll help Lo bulld hlgher levels of skllls across Lhe manufacLurlng
workforce. 8uL Lhe general requlremenL LhaL Lhe guaranLee wlll only fund lncreaslngly hlgher
level quallflcaLlons poses dlfflculLles for lndlvlduals, enLerprlses and lndusLry ln Lhls secLor. lL ls
ofLen Lhe case LhaL lndlvlduals need Lo supplemenL or refresh Lhelr skllls wlLh 'lower'
quallflcaLlons Lhan Lhe ones Lhey already hold Lo lmprove Lhelr employablllLy and Lhese
quallflcaLlons are lnellglble for fundlng. 1hls slLuaLlon can apply Lo a range of people lncludlng,
LerLlary graduaLes, people re-enLerlng Lhe workforce afLer a break, people who compleLed Lhelr
quallflcaLlon(s) a conslderable perlod of Llme ago, people worklng ln companles adopLlng new

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL v
Lechnologles and people who have been affecLed by lndusLry re-sLrucLurlng. CreaLer flexlblllLy ln
Lhls fundlng ls requlred Lo beLLer reflecL Lhe paLhways ln manufacLurlng.
1he oLher lssue wlLh Lhe vlcLorlan 1ralnlng CuaranLee ls LhaL wlLh lLs focus on lndlvlduals lL does
noL address all lndusLry and enLerprlse skllllng lssues and Lhere needs Lo be an lmproved
allgnmenL beLween Lhe quallflcaLlons whlch lndlvlduals wlsh Lo underLake and for whlch Lhey
wlll be funded and Lhe skllls needed by Lhe secLor.
Spec|a||st Adv|sory Serv|ce
Companles play a key role ln drlvlng Lralnlng demand and, when faced wlLh skllls shorLages, 27°
opL Lo bulld Lhe skllls of Lhelr exlsLlng workforce as Lhelr flrsL response. Companles would be
greaLly asslsLed ln Lhelr efforLs lf Lhey had access Lo lndependenL, secLor-speclflc skllllng advlsory
servlces. 1here ls a slgnlflcanL opporLunlLy Lo refocus and expand Lhe provlslon of skllllng advlce
Lhrough a speclallsL manufacLurlng advlsory program.
Sk||||ng for New 1echno|og|es
A sLrong Lheme of Lhls research ls Lhe lmporLance of Lechnology Lo Lhe compeLlLlve fuLure
of vlcLorlan manufacLurlng. 8uL havlng lnvesLed ln Lhe Lechnologles, companles ofLen sLruggle
Lo access Lhe Lralnlng needed Lo make Lhe besL use of new Lechnologles, and 8eglsLered 1ralnlng
CrganlsaLlons (81Cs) are unable Lo provlde Lhe skllllng soluLlons as Lhey are unable Lo access
Lhe sLaff wlLh Lhe necessary Lechnlcal skllls. 1hls Lralnlng gap reduces Lhe reLurn on Lhe caplLal
lnvesLmenL. AsslsLance from governmenL Lo supporL Lechnlcal upskllllng ln new Lechnology
areas LhaL are noL covered by Lhe formal Lralnlng sysLem would supporL Lechnology-drlven
producLlvlLy lmprovemenLs.
1ra|n|ng for N|che 1rades
lor vlcLorlan manufacLurlng, Lhe decllnlng numbers of employees LhaL comprlse Lhls agelng
workforce and Lhe reduclng numbers of people aLLracLed Lo Lhe lndusLry mean LhaL Lhere are
lncreaslngly examples of skllls whlch are crlLlcal Lo Lhe effecLlve worklng of Lhe secLor buL for
whlch Lhe Lralnlng ls elLher no longer able Lo be offered vlably by 81Cs, or whlch ls llkely Lo be
dlsconLlnued ln Lhe near fuLure because of reduclng demand. ln recognlLlon of Lhe lmporLance of
manufacLurlng Lo Lhe vlcLorlan economy and Lhe conLrlbuLlon LhaL skllls make Lo
compeLlLlveness, a mulLl-pronged approach ls recommended Lo ensure LhaL Lralnlng conLlnues
Lo be avallable ln whaL are becomlng nlche Lrades. 1he approach lncludes faclllLaLlng a process
Lo deLermlne Lhe manufacLurlng-crlLlcal Lrades where fuLure Lralnlng dellvery ls uncerLaln and
fundlng Lhe developmenL of lnnovaLlve, lndusLry-led soluLlons Lo assure dellvery, lncludlng
Lhrough Lhe aggregaLlon of demand, Lhe ldenLlflcaLlon of dellvery opLlons and Lhe developmenL
of approprlaLe resources. lundlng should also be applled Lo lncenLlves for 81Cs Lo dellver
Lralnlng ln nlche areas and Lhrough Lhls acLlvlLy Lo esLabllsh ManufacLurlng CenLres of Lxcellence.
Improv|ng the Çua||ty of 1ra|n|ng
AnoLher crlLlcal sysLemlc lssue ls LhaL of Lralnlng quallLy. 1here are many lnsLances of exemplary
Lralnlng buL Lhey are noL Lhe norm, and lncreaslngly companles are expresslng Lhe concern LhaL
Lhe quallLy of Lralnlng ls noL meeLlng Lhelr needs. A renewed commlLmenL Lo drlvlng Lhe level of
quallLy of lLs 81Cs needs Lo be made. SMLs flnd lL parLlcularly dlfflculL Lo access quallLy Lralnlng
Lo meeL Lhelr needs, and lncenLlves should be lnLroduced for 81Cs Lo cusLomlse Lralnlng for
small and medlum-slzed enLerprlses. Also, lmproved lnformaLlon on 81C performance, lncludlng
Lhrough Lhe publlcaLlon of audlL reporLs, would asslsL enLerprlse declslon maklng and also drlve
quallLy lmprovemenLs.
LxecuLlve summary
_______________________________________________________________________________
vl A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Attract|ng New Sk|||s to Manufactur|ng
ÞarL of Lhe response Lo sklll shorLages and lncreaslng Lhe sklll levels of Lhe secLor wlll be found ln
new enLranLs Lo manufacLurlng, lncludlng LerLlary englneerlng graduaLes, skllled mlgranLs, young
people aL Lhe sLarL of Lhelr career, career changers and people reLurnlng Lo Lhe workforce.
1he research demonsLraLed LhaL Lhe shorLage of englneerlng skllls ls llkely Lo worsen as demand
for naLlonal and vlcLorlan englneers lncreases, large numbers of englneers reLlre and
lnLernaLlonal compeLlLlon for englneerlng professlonals lncreases. uomesLlc supply of new
englneerlng graduaLes ls noL keeplng pace wlLh demand, largely because sLudenL demand ls noL
sLrong enough Lo flll avallable englneerlng courses. 1here ls already much work belng done ln
Lhls area, and Lhe naLlonal Lnglneerlng 1askforce ls well placed Lo ldenLlfy sLaLe-based lnlLlaLlves
Lo lmplemenL recommendaLlons of Lhe early work of Lhls group. 1he Laskforce should be
supporLed ln Lhese efforLs.
1he lmporLance of skllled mlgraLlon Lo vlcLorlan manufacLurlng varles slgnlflcanLly across Lhe
secLor. 1he key role for governmenL ls Lo ensure Lhrough Lhe SLaLe MlgraLlon Þlans and Lhe
8eglonal Sponsored MlgraLlon Scheme LhaL Lhe skllls needs of manufacLurers are recognlsed and
Lhrough Lhese channels LhaL manufacLurers across Lhe sLaLe are able Lo access skllled workers.
Much as has been wrlLLen abouL Lhe dlfflculLles of aLLracLlng people - young people, career
changers and people re-enLerlng Lhe workforce - Lo manufacLurlng. 1hese people represenL a
valuable source of skllls, and currenL efforLs need Lo be supporLed and expanded Lo provlde
conLemporary lmages of, and lnformaLlon on, manufacLurlng Lo aLLracL workers from Lhese
groups.
Management Matters
1hls sLudy provldes an lnLernaLlonally comparable measure of managemenL performance for
vlcLorlan manufacLurlng flrms, and Lhe resulLs conLrlbuLe Lo Lhe evldence base on Lhe quallLy of
vlcLorlan managemenL pracLlces. Cverall, Lhe flndlngs can be used Lo lnform governmenL pollcy
and organlsaLlonal efforLs almed aL promoLlng beLLer managemenL capablllLles ln vlcLorlan
manufacLurlng flrms as a means of enhanclng producLlvlLy and compeLlLlveness ln Lhe vlcLorlan
manufacLurlng secLor.
Conc|us|on
ManagemenL LalenL and workforce skllls are vlLal conLrlbuLors Lo susLalned lnnovaLlon and
compeLlLlveness ln Lhe vlcLorlan manufacLurlng secLor, and on Lhls basls we urge LhaL Lhe level
of educaLlon, skllls and managemenL capablllLles ln vlcLorlan manufacLurlng be ralsed. Achlevlng
Lhls wlll requlred concerLed efforL, Lhrough lnlLlaLlves aL Lhe flrm and lndusLry level, and pollcy
drlvers aL Lhe governmenL level. SpeclallsL servlces supporLlng manufacLurlng companles Lo bulld
Lhelr managemenL and workforce skllls need Lo be supporLed by broader lnlLlaLlves whlch wlll
conLrlbuLe Lo secLor wlde lmprovemenLs.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
CCN1LN1S
LkLCU1IVL SUMMAk¥ |

1 IN1kCDUC1ICN 1
1.1 8ackground 1
1.2 MeLhodology 2
1.3 ueflnlLlons 3
1.4 ConsulLaLlons and lnLeresLs 4

2. VIC1CkIAN MANUIAC1UkING INDUS1k¥ WCkkICkCL SkILLS AND
MANAGLMLN1 S
2.1 1he lmporLance of Skllls Lo Lhe CompeLlLlveness of vlcLorla's
ManufacLurlng lndusLry 3
2.2 1he LxLenL and lmpacL of Skllls ShorLages 12
2.3 1he lmporLance of SLraLeglc ManagemenL and Leadershlp Skllls 27
2.4 8enchmarklng vlcLorlan ManufacLurlng 33
2.3 8enchmarklng LducaLlon and Skllls ln vlcLorlan ManufacLurlng 49
2.6 Skllls and LducaLlon Level - lnslghLs from Case SLudles of vlcLorlan
ManufacLurlng llrms 39

3. VIC1CkIAN MANUIAC1UkING INDUS1k¥ SkILLING ÞLkSÞLC1IVLS 69
3.1 1he LxLenL of 1ralnlng underLaken by vlcLorlan ManufacLurlng
8uslnesses and Lhe lmpacL of Lhe vlcLorlan 1ralnlng 8eforms 69
3.2 Skllls uLlllsaLlon Levels and CpporLunlLles 83
3.3 Cn-Lhe-[ob or Cff-Lhe-[ob 1ralnlng 89
3.4 1he lmpacL and lnfluence of Company Slze on 1ralnlng 96
3.3 LlLeracy and numeracy Skllls 104

4. WCkkICkCL SkILL kLÇUIkLMLN1S - A MLDIUM-1LkM ÞLkSÞLC1IVL 117
4.1 key urlvers for Lhe ManufacLurlng SecLor 118
4.2 key urlvers, CccupaLlons and Skllls by ManufacLurlng Sub-SecLor 119
4.3 Skllls uevelopmenL 8oles and 8esponslblllLles ln 2020 128

S. MLL1ING 1nL WCkkICkCL AND SkILLS DLVLLCÞMLN1 NLLDS CI
VIC1CkIA'S MANUIAC1UkING INDUS1k¥ 132
3.1 1he CurrenL and LxpecLed CapaclLy of Lhe 1erLlary LducaLlon SysLem
Lo MeeL Lhe vlcLorlan ManufacLurlng SecLor's needs 132
3.2 1he lmporLance and CapaclLy of Skllled MlgraLlon 141
3.3 lncreaslng Lhe ulverslLy of Lhe Workforce 146
3.4 ÞercepLlons of Lhe lndusLry and Lhe lmpacL on 8ecrulLmenL 134

6. ÞCLIC¥ IMÞLICA1ICNS 161
6.1 Lessons from Lxemplary naLlonal and Cverseas CovernmenL
lnlLlaLlves Almed aL Lnhanclng Lhe Skllls CapaclLy and
CapablllLy of Lhe Workforce 161
6.2 lmpllcaLlons of CommonwealLh ManagemenL and Workforce Skllls
uevelopmenL Þollcy 168

7 CVLkALL kLSLAkCn CCNCLUSICNS 172

8 AÞÞLNDICLS 177
Appendlx 1 SupplemenLary 1ables 177
Appendlx 2 lnslghLs lrom Analysls of Þeople ManagemenL ÞracLlces of vlcLorlan
ManufacLurlng llrms 183
Appendlx 3 Company ConsulLaLlons LlsL 193

ConLenLs
_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
CnAk1S
CharL 1: 1he mlcroeconomlc buslness envlronmenL 6
CharL 2: number employed ln manufacLurlng by sub-dlvlslon, vlcLorla, 1996 Lo 2010 13
CharL 3: CuallflcaLlon aLLalnmenLs of employees ln manufacLurlng, 2009 14
CharL 4: ÞercenLage of manufacLurlng-relaLed vL1 enrolmenLs, vlcLorla, 2009 13
CharL 3: 8lsk of skllls shorLages lmpacLlng on effecLlve operaLlon 16
CharL 6: ÞrlorlLy companles are glvlng Lo managlng skllls shorLages rlsks 17
CharL 7: lmporLance of governmenLs Laklng more acLlve sLeps 18
CharL 8: Companles LhaL have fllled, or Lrled Lo flll, poslLlons ln Lhe lasL slx monLhs 18
CharL 9: ulfflculLy fllllng poslLlons 19
CharL 10: Skllled occupaLlons vacanL as a proporLlon of companles clLlng vacancy 20
CharL 11: ÞercenLages of skllled poslLlons fllled by occupaLlon 20
CharL 12: 8easons for ma[or dlfflculLles ln fllllng vacancles 21
CharL 13: SoluLlons pursued when unable Lo flll a vacancy 22
CharL 14: Companles LhaL expecL Lo recrulL ln Lhe nexL 12 monLhs 23
CharL 13: Skllled occupaLlons expecLed Lo be dlfflculL Lo flll 23
CharL 16: 8easons companles expecL Lo have dlfflculLles fllllng occupaLlons ldenLlfled 24
CharL 17: Cverall managemenL scores by counLry 31
CharL 18: Þeople managemenL scores by counLry 32
CharL 19: ManagemenL scores by level of educaLlon 33
CharL 20: vlcLorlan managemenL pracLlces across Lhe 18 dlmenslons 37
CharL 21: Caps ln vlcLorlan managemenL performance by each dlmenslon 38
CharL 22: ulsLrlbuLlon of lnLervlews across AusLrallan sLaLes 39
CharL 23: Cverall managemenL scores by AusLrallan sLaLes 40
CharL 24: vlcLorlan managemenL performance relaLlve Lo oLher sLaLes 41
CharL 23: ulsLrlbuLlon of vlcLorlan lnLervlews by manufacLurlng lndusLry secLors 42
CharL 26: Cverall managemenL scores by manufacLurlng lndusLry secLors 43
CharL 27: 8elaLlve manufacLurlng lndusLry secLor performance across
managemenL areas 44
CharL 28: ManagemenL scores correlaLes well wlLh several producLlvlLy meLrlcs ln
AusLrallan manufacLurlng flrms 46
CharL 29: ManagemenL pracLlce - labour and caplLal equlvalency assoclaLlon 47
CharL 30: Level of educaLlon 31
CharL 31: Cverall managemenL scores by skllls and educaLlon levels of managers
and non-managers 32
CharL 32: CperaLlons managemenL scores by educaLlon levels of managers and
non-managers 33
CharL 33: Þerformance managemenL scores by educaLlon levels of managers and
non-managers 33






_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
CharL 34: Þeople managemenL scores by educaLlon levels of managers and
non-managers 34
CharL 33: 8elaLlonshlp beLween flrm slze and managemenL scores ln vlcLorlan
manufacLurlng flrms 33
CharL 36: uynamlc capablllLy bulldlng process - Company x 62
CharL 37: uynamlc capablllLy bulldlng process - Company ? 63
CharL 38: Puman resources plan ln place by company slze 83
CharL 39: MeLhods used Lo Lrack workforce skllls 83
CharL 40: MeLhods used Lo Lrack workforce skllls by company slze 86
CharL 41: LxLenL of company skllls uLlllsaLlon measuremenL by company slze 86
CharL 42: LxLenL of skllls uLlllsaLlon by occupaLlon 87
CharL 43: Puman resources managemenL approaches used 88
CharL 44: 1ypes of learnlng opporLunlLles, AusLrallan companles, 2003 91
CharL 43: MeLhods of upskllllng by secLor 91
CharL 46: Success of upskllllng meLhods by secLor 92
CharL 47: use of Lralnlng ln 2009 by employer slze 96
CharL 48: use of Lhe vL1 sysLem ln 2009 by employer slze 97
CharL 49: AvallablllLy of naLlonally recognlsed Lralnlng 98
CharL 30: ÞroporLlon of AusLrallan adulLs aL each sklll level 106
CharL 31: ComparaLlve percenLage of manufacLurlng skllled workers Lo all workers 106
CharL 32: ÞercenLage of populaLlon aL Level 3 and above on prose llLeracy scale 107
CharL 33: ÞercenLage of populaLlon aL Level 3 and above on documenL llLeracy scale 107
CharL 34: ÞercenLage of populaLlon aL Level 3 and above on numeracy scale 108
CharL 33: ÞercenLage of populaLlon aL Level 3 and above on problem solvlng scale 108
CharL 36: ÞroporLlon aL sklll Level 1-2 by age 109
CharL 37: lmpacL on buslness 112
CharL 38: lmpacL by enLerprlse slze 113
CharL 39: Cverall lmpacL by occupaLlonal groups 113
CharL 60: Þreferred measures for lmprovlng llLeracy and numeracy skllls 114
CharL 61: Lnglneerlng and relaLed Lechnologles hlgher educaLlon commencemenLs
and compleLlons, AusLralla, 2001-08 136
CharL 62: Cverseas mlgranLs go where Lhe [obs are 143
CharL 63: lemale workforce parLlclpaLlon ln LCWA reporLlng organlsaLlons 2010 148
CharL 64: ManufacLurlng employmenL ln vlcLorla by age, 1993-2010 149
CharL 63: ÞercenLage of respondenLs who sLrongly agree or agree wlLh each sLaLemenL 133
CharL 66: uynamlcs of Lralnlng ln bulldlng boLh skllls and poslLlve flrm culLure 186
CharL 67: Þrocess of sLraLeglc recrulLmenL 188
CharL 68: 8eLalnlng human caplLal Lhrough flrm culLure 189

ConLenLs
_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1A8LLS
1able 1: Summary of AusLrallan managemenL scores 31
1able 2: Summary of vlcLorlan managemenL scores 37
1able 3: Summary of managemenL scores and educaLlon levels -
large and medlum-slzed vlcLorlan manufacLurlng flrms 36
1able 4: Summary of managemenL scores and educaLlon levels - smaller vlcLorlan
manufacLurlng flrms vs. resL of Lhe cohorL 36
1able 3: Summary of managemenL scores and educaLlon levels -
88W Lop 1000-llsLed vlcLorlan manufacLurlng flrms vs. resL of Lhe cohorL 37
1able 6: Company characLerlsLlcs and managemenL performance of Lhe vlcLorlan
case sLudy flrms 61
1able 7: 8elaLlve managemenL pracLlces scores of Lhe vlcLorlan case sLudy flrms 61
1able 8: 1oLal apprenLlces ln Lralnlng 70
1able 9: 1oLal Lralnees ln Lralnlng 71
1able 10: ApprenLlce year commencemenLs 72
1able 11: 1ralnee year commencemenLs 73
1able 12: ApprenLlce year compleLlons 74
1able 13: 1ralnee year compleLlons 74
1able 14: '8ecommencemenL' ad[usLmenL facLor, conLracL and lndlvldual
compleLlon raLes, Lrade occupaLlons, commenced ln 2003 73
1able 13: vL1 manufacLurlng enrolmenLs by fundlng source 76
1able 16: vL1 manufacLurlng enrolmenLs by lndusLry grouplngs 76
1able 17: All vL1 manufacLurlng enrolmenLs by quallflcaLlon level 77
1able 18: CommencemenLs by occupaLlon and sLaLe/LerrlLory, 12 monLhs
endlng 30 SepLember 2010 78
1able 19: ln-Lralnlng ln Lop 20 Lralnlng packages by sLaLe/LerrlLory,
as aL 30 SepLember 2010 80
1able 20: CommencemenLs ln Lop 20 Lralnlng packages by sLaLe/LerrlLory,
SepLember quarLer 2010 81
1able 21: CompleLlon raLes by Lrades and slze of employer 100
1able 22: Women ln manufacLurlng 133
1able 23: 8anklng by respondenLs of lndusLry preference lf Lhey were beglnnlng
Lhelr career Loday 133
1able 24: Company characLerlsLlcs and people managemenL performance of Lhe
'besL' vlcLorlan flrms 183
1able 23: Company characLerlsLlcs and people managemenL performance of Lhe
'worsL' vlcLorlan flrms 190


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 1
1 IN1kCDUC1ICN
1.1 8ACkGkCUND
ln recognlLlon of Lhe lmporLance of manufacLurlng Lo Lhe vlcLorlan economy and Lhe slgnlflcanL
and susLalned challenges Lhls secLor ls faclng, Lhe AusLrallan lndusLry Croup (Al Croup) has
underLaken Lhls research lnLo managemenL and workforce skllls and LalenL, ln parLnershlp wlLh
Lhe unlverslLy of 1echnology Sydney (u1S). 1hls research ls grounded ln Lhe raLlonale LhaL Lhe
effecLlveness and lnnovaLlveness of Lhe vlcLorlan manufacLurlng secLor ls dependenL on Lhe
avallablllLy of a skllled workforce LhaL ls able Lo adapL and respond Lo Lhe challenges Lhe secLor
faces. 1hese challenges lnclude Lhe shlfL Lo hlgher-level skllls drlven by Lhe lnLroducLlon of new
Lechnologles and Lhe demands of global compeLlLlon, Lhe recrulLmenL and reLenLlon challenges
whlch come from oLher secLors also hungry for skllls, such as Lhe resources secLor, and whlch
flow from a wlde publlc percepLlon LhaL manufacLurlng ls a secLor ln decllne.
1he recenL CLCu lnnovaLlon sLraLegy reporL hlghllghLs Lhe slgnlflcance of Lhe skllls and educaLlon
of managers and Lhelr workforce ln developlng LalenL needed for lnnovaLlon, and sLrongly
endorses Lhe need Lo acqulre skllls Lhrough formal educaLlon, Lralnlng, experlence and oLher
forms of lnformal learnlng: 'Puman caplLal ls Lhe source of lnnovaLlon.vocaLlonal educaLlon and
Lralnlng play an lmporLanL role ln lnnovaLlon.Moreover, Lhe acqulslLlon of skllls ls a llfelong
process, lL does noL end wlLh formal educaLlon. 1he ongolng acqulslLlon of furLher skllls needs Lo
be encouraged'.
6

1hls reporL has been prepared by Al Croup ln parLnershlp wlLh u1S, brlnglng LogeLher Lhe
managemenL and workforce skllls perspecLlves whlch comblned wlll play such an lmporLanL role
ln Lhe fuLure success of Lhe vlcLorlan manufacLurlng secLor.
1.2 ML1nCDCLCG¥
1he meLhodology for Lhls pro[ecL ls based on Lhe comblned experLlse of Al Croup and u1S. 1he
breadLh of Lhls research pro[ecL ls such LhaL a very conslderable body of lnformaLlon has been
drawn on, lncludlng Lhe research knowledge and dlrecL experlence of Lhe parLners, lndusLry
lnLelllgence, oLher relevanL research and sLaLlsLlcs from AusLralla and overseas, and also daLa
provlded by Lhe vlcLorlan CovernmenL7.
1he pro[ecL conslsLed of Lhree phases, as seL ouL below.
Þhase 1: Þreparat|on of a draft Management and Workforce Sk|||s kev|ew paper to gu|de
|ndustry consu|tat|on
1he paper consldered:
• Lhe lmporLance of Lechnlcal skllls Lo Lhe compeLlLlveness of vlcLorla's manufacLurlng
lndusLry, Lhe skllls shorLages lssues faced by Lhe lndusLry and how Lhese shorLages are
affecLlng performance. Al Croup drew on lLs own survey daLa and oLher research
exLracLlng flndlngs speclflc Lo vlcLorlan manufacLurlng,

6 CrganlsaLlon for Lconomlc Co-operaLlon and uevelopmenL, looovotloo sttoteqy - qettloq o beoJ stott oo tomottow,
vlewed 10 CcLober 2010, <www.oecd.org/lnnovaLlon/sLraLegy>, 2010b, p.79
7 1he deflnlLlon of whaL consLlLuLes a small, medlum and large buslness dlffers beLween Lhe research sourced for Lhls reporL whlch
explalns Lhe varlaLlons ln company slze caLegorles ln Lhls reporL.
lnLroducLlon
_______________________________________________________________________________
2 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• Lhe lmporLance of sLraLeglc managemenL leadershlp skllls. u1S has collecLed daLa on
managemenL pracLlces and skllls Lhrough a survey of 439 medlum- and large-slzed
manufacLurlng flrms ln AusLralla, as parL of Lhe 2009 AusLrallan managemenL pracLlces
pro[ecL. ouL of Lhe LoLal of 439 AusLrallan manufacLurlng flrms surveyed LhroughouL
AusLralla, 121 flrms are manufacLurlng flrms ln vlcLorla,
• a quanLlflcaLlon of Lhe exLenL of Lralnlng underLaken by vlcLorlan manufacLurlng flrms
Lo Lhe exLenL LhaL Lhls daLa ls capLured Lhrough publlc collecLlon, and
• posslble fuLure dlrecLlons. ln developlng Lhe revlew paper deLalled conslderaLlon ls glven
Lo llkely fuLure lssues around key occupaLlons and sklll seLs, skllls area needs, Lhe mosL
effecLlve way Lo develop Lhese skllls, lncludlng Lhe respecLlve role of Lhe key
sLakeholders and also Lhe role of skllled mlgraLlon, and flnally, Lhe relaLlve lmporLance
of skllls Lo fuLure compeLlLlveness.
Þhase 2 : Consu|tat|on w|th enterpr|ses on the rev|ew paper
Cne-on-one consulLaLlons on Lhe key lssues ldenLlfled ln Lhe drafL revlew paper were conducLed
wlLh 20 vlcLorlan manufacLurlng companles ln meLropollLan and reglonal areas, across Lhe
manufacLurlng sub-secLors. ConsulLaLlons were also held wlLh Lhe relevanL lndusLry skllls
advlsory bodles. A llsL of Lhe companles and bodles consulLed ls aLLached ln Appendlx 3.
Þhase 3 : Sk|||s acqu|s|t|on ana|ys|s and po||cy |mp||cat|ons
All of Lhe research and advlce gaLhered ln Lhe precedlng secLlons was consldered ln worklng
Lhrough Lhe pollcy lmpllcaLlons. ln addlLlon:
• relevanL workforce skllls developmenL lnlLlaLlves from elsewhere ln AusLralla and
lnLernaLlonally were revlewed,
• as a ma[or manager of LnLerprlse ConnecL dellvery ln vlcLorla Al Croup uLlllsed Lhls
experlence and consldered Lhe lmpllcaLlons for vlcLorlan manufacLurlng,
• pollcy lmpllcaLlons were consldered wlLhln Lhe conLexL of Lhe governmenL's skllls reform
agenda and oLher relevanL vlcLorlan governmenL pollcles, and
• human resources managemenL and lndusLrlal relaLlons perspecLlve were Laken lnLo
accounL.
1he resulL ls a reporL whlch draws Lhe maLerlal LogeLher, lllusLraLes lL wlLh Lhe conLemporary
volce of lndusLry, uslng quoLaLlons drawn from Lhe companles consulLed ln Lhe course of Lhls
work, and hlghllghLs pollcy gaps and areas for lmprovemenL ln Lhe vlcLorlan CovernmenL's skllls
and LalenL developmenL lnlLlaLlves.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 3
1.3 DLIINI1ICNS
Manufactur|ng
lor Lhe purposes of Lhls reporL, Lhe manufacLurlng lndusLry ls deflned uslng Lhe AusLrallan
8ureau of SLaLlsLlcs (A8S) deflnlLlon:
ManufacLurlng relaLes Lo Lhe physlcal or chemlcal LransformaLlon of maLerlals, subsLances or
componenLs lnLo new producLs (excepL agrlculLure and consLrucLlon). 1he maLerlals, subsLances
or componenLs Lransformed by unlLs ln Lhls dlvlslon are raw maLerlals LhaL are producLs of
agrlculLure, foresLry, flshlng and mlnlng, or producLs of oLher manufacLurlng unlLs
8
.
Sub-secLors covered lnclude:
• food producL manufacLurlng • beverage and Lobacco producL
manufacLurlng
• LexLlle, leaLher, cloLhlng and
fooLwear manufacLurlng
• wood producL manufacLurlng
• pulp, paper and converLed paper
producL manufacLurlng
• prlnLlng (lncludlng Lhe reproducLlon of
recorded medla)
• peLroleum and coal producL
manufacLurlng
• baslc chemlcal and chemlcal producL
manufacLurlng
• polymer producL and rubber
producL manufacLurlng
• non-meLalllc mlneral producL
manufacLurlng
• prlmary meLal and meLal producL
manufacLurlng
• fabrlcaLed meLal producL manufacLurlng
• LransporL equlpmenL
manufacLurlng
• machlnery and equlpmenL
manufacLurlng
• furnlLure and oLher manufacLurlng.
Sk|||s Shortages
1he research llLeraLure lncludes a number of deflnlLlons of skllls shorLages and Lhe Lerm ls Lhe
sub[ecL of wldespread debaLe and lnLerpreLaLlon. 1he CommonwealLh ueparLmenL of LducaLlon,
LmploymenL and Workplace 8elaLlons (uLLW8) sLaLes LhaL '.sklll shorLages exlsL when
employers are unable Lo flll or have conslderable dlfflculLy fllllng vacancles for an occupaLlon, or
slgnlflcanL speclallsed sklll needs wlLhln LhaL occupaLlon, aL currenL levels of remuneraLlon and
condlLlons of employmenL, and ln reasonably accesslble locaLlons.'
9
Skllls AusLralla noLes 'sklll
shorLage refers Lo [ob vacancles LhaL resulL from Lhe lack of sulLable appllcanLs, whlle Lhe Lerm
'skllls gap' refers Lo workers wlLh lower Lhan requlred skllls'.
10

ln carrylng ouL Lhls work, raLher Lhan engage ln a debaLe around Lhe deflnlLlon of skllls
shorLages, where companles have been asked dlrecLly Lo commenL on skllls shorLages, Lhelr

8 As speclfled ln ulvlslon C of Lhe 2006 edlLlon of Lhe AusLrallan and new Zealand SLandard lndusLrlal ClasslflcaLlon (AnZSlC) (caL. no.
1292.0)
9 hLLp://www.deewr.gov.au/employmenL/lml/sklllshorLages/pages/sklllshorLagellsLs.aspx
10 AusLrallan Workforce luLures, A Notloool wotkfotce uevelopmeot 5ttoteqy, Skllls AusLralla, 2010, p. 13
lnLroducLlon
_______________________________________________________________________________
4 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
percepLlons and undersLandlngs as Lo whaL consLlLuLes a skllls shorLage have been adopLed
wlLhouL recourse Lo academlc references.
1.4 CCNSUL1A1ICNS AND IN1LkLS1S
Consu|tat|ons
A serles of consulLaLlons wlLh enLerprlses were used Lo LesL Lhe maln Lhemes and pollcy
dlrecLlons of Lhls reporL. 1he flndlngs of Lhe consulLaLlon process have provlded valuable,
currenL 'real world' lnpuL lnLo Lhls reporL. Companles have provlded Lhls advlce on Lhe basls LhaL
lndlvldual commenLs wlll noL be aLLrlbuLed Lo Lhem. Where a commenL would ldenLlfy a
company, changes have been made Lo proLecL Lhe source. A llsL of Lhe companles consulLed ls
lncluded as an aLLachmenL.
ConsulLaLlons have also been underLaken wlLh vlcLorlan lndusLry Lralnlng advlsory boards and
Lhe deLalls are also aLLached.
Dec|arat|on of Interests
Al Croup represenLs Lhe lnLeresLs of lLs members on a wlde varleLy of bodles, some of whlch are
relevanL Lo Lhls work, lncludlng:
• ManufacLurlng Skllls 1askforce • ManufacLurlng and Lnglneerlng Skllls Advlsory 8oard
(MLSA8)
• vlcLorlan lood lndusLry 1ralnlng 8oard • vlcLorlan Skllls Commlsslon
• ManufacLurlng Skllls AusLralla • LÞlC lndusLry 1ralnlng 8oard CommlLLee
(ÞrlnLlng)
• naLlonal CuallLy Councll • 8uslness Skllls vlcLorla
• lnnovaLlon & 8uslness Skllls AusLralla
(l8SA) CommlLLee (ÞrlnLlng)
• uLLW8's vlcLorlan Advlsory CommlLLee for Workforce
Lngllsh Language and LlLeracy program (WLLL)
• Agrllood Skllls AusLralla SLandlng
CommlLLee (lood and 8everages)

Al Croup, ln parLnershlp wlLh vlcLorla unlverslLy, ls a Skllls for CrowLh servlce provlder.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 3
2. VIC1CkIAN MANUIAC1UkING INDUS1k¥ WCkkICkCL SkILLS AND
MANAGLMLN1
2.1 1nL IMÞCk1ANCL CI SkILLS 1C 1nL CCMÞL1I1IVLNLSS CI VIC1CkIA'S
MANUIAC1UkING INDUS1k¥
key I|nd|ngs
• Skllls are one of Lhe key drlvers of Lhe compeLlLlveness of vlcLorlan manufacLurlng flrms.
• WlLh lncreaslng pressure Lo compeLe globally, skllls and knowledge become cenLral Lo
compeLlLlon and Lhey are an area ln whlch lmprovemenLs can conLrlbuLe Lo lmprovlng
compeLlLlveness.
• 1he manufacLurlng lndusLry ls seelng consLanL change and resLrucLurlng, wlLh Lhe focus
shlfLlng Lo managlng global supply chalns, producL deslgn and developmenL, cusLomer
value proposlLlon and susLalnable markeLs. 1hese warranL new and hlgher sklll seLs
wlLhln Lhe vlcLorlan manufacLurlng secLor.
• Skllls have a cruclal role ln sLlmulaLlng producLlvlLy growLh, wlLh several sLudles urglng
lncreased lnvesLmenL ln workplace Lralnlng Lo lmprove naLlons' lnLernaLlonal
compeLlLlveness and long-Lerm economlc performance and Lo address Lhe 'skllls gap'.
• World class AusLrallan flrms spend no more on skllllng Lhan oLher flrms buL Lhey are
more llkely Lo have a comparaLlvely hlghly skllled workforce, Lo have skllls assessmenL
processes and workforce developmenL plans ln place and Lo have llnks Lo unlverslLles.
1hey are more llkely Lhan oLher flrms Lo offer some Lypes of learnlng opporLunlLles,
such as onllne learnlng and formal Lralnlng leadlng Lo quallflcaLlons.
• Puman caplLal ls Lhe source of lnnovaLlon and vocaLlonal educaLlon, and Lralnlng plays
an lmporLanL role ln lnnovaLlon. Moreover, Lhe acqulslLlon of skllls ls a llfelong process,
lL does noL end wlLh formal educaLlon.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
6 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
1o paraphrase Mlchael ÞorLer, Lhe prosperlLy of Lhe vlcLorlan manufacLurlng lndusLry depends
on lLs compeLlLlveness, whlch ls based on Lhe producLlvlLy wlLh whlch lL produces goods and
servlces. 1he producLlvlLy of an lndusLry ls ulLlmaLely seL by Lhe producLlvlLy of lLs companles.
More producLlve companles requlre more hlghly skllled people, beLLer lnformaLlon, more
efflclenL governmenL processes, lmproved lnfrasLrucLure, beLLer suppllers, more advanced
research lnsLlLuLlons, and more lnLense compeLlLlve pressure. WlLh lncreaslng pressure Lo
compeLe globally, skllls and knowledge become cenLral Lo compeLlLlon, and Lhey are an area
ln whlch lmprovemenLs can conLrlbuLe Lo lmprovlng compeLlLlveness. 8uL compeLlLlveness
ls a complex concepL wlLh many lnLeracLlng elemenLs - of whlch skllls form [usL one - as
lllusLraLed ln Lhe dlagram below.
11

Chart 1: 1he m|croeconom|c bus|ness env|ronment



11 hLLps://members.weforum.org/pdf/Ccr/CC8_2003_2004/8Cl_ChapLer.pdf, p. 32

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 7
1here are many deLermlnanLs drlvlng producLlvlLy and compeLlLlon. 1he Clobal CompeLlLlveness
lndex capLures and groups Lhese aspecLs lnLo 12 plllars of economlc compeLlLlveness:
lnsLlLuLlons, lnfrasLrucLure, Macroeconomlc envlronmenL, PealLh and prlmary educaLlon, Plgher
educaLlon and Lralnlng, Coods markeL efflclency, Labour markeL efflclency, llnanclal markeL
developmenL, 1echnologlcal readlness, Marker slze, 8uslness sophlsLlcaLlon and lnnovaLlon. Cf
Lhe flfLh plllar - Plgher educaLlon and Lralnlng - Lhe commenL ls made:
'CuallLy Plgher educaLlon and Lralnlng ls cruclal for economles LhaL wanL Lo move up Lhe value
chaln beyond slmple producLlon processes and producLs. ln parLlcular, Loday's globallzlng
economy requlres counLrles Lo nurLure pools of well-educaLed workers who are able Lo adapL
rapldly Lo Lhelr changlng envlronmenL and Lhe evolvlng needs of Lhe producLlon sysLem. 1hls
plllar measures secondary and LerLlary enrolmenL raLes as well as Lhe quallLy of educaLlon
as evaluaLed by Lhe buslness communlLy. 1he exLenL of sLaff Lralnlng ls also Laken lnLo
conslderaLlon because of Lhe lmporLance of vocaLlonal and conLlnuous on-Lhe-[ob Lralnlng -
whlch ls neglecLed ln many economles - for ensurlng a consLanL upgradlng of workers' skllls.'
Whlle Lhe Clobal CompeLlLlveness 8eporL focuses on lndlvldual 'plllars of compeLlLlveness', lL ls
self-evldenL LhaL Lhey are lnLerdependenL. lor example, wlLhouL a well educaLed and Lralned
workforce, lL wlll be very dlfflculL Lo successfully lnLroduce lnnovaLlon and Lo supporL Lhe Lake-up
of new Lechnologles.
Cn Lhe mosL recenL Clobal CompeLlLlve lndex, AusLralla ranks 16Lh overall and 14Lh on Lhe
Plgher educaLlon and Lralnlng plllar. 1hese resulLs are largely conslsLenL wlLh Lhose of recenL
years. under Lhe broad Plgher educaLlon and Lralnlng plllar, buslnesses were asked Lo make a
number of ranklngs, and Lhree lmporLanL lndlvldual ranklngs are found Lo be lower Lhan Lhe
overall ranklng for Lhls secLlon - Lhe exLenL of Lhe avallablllLy of hlgh-quallLy, speclallsed Lralnlng
servlces was ranked 20Lh and Lhe quallLy of maLhs and sclence educaLlon ln AusLralla's schools
was ranked 24Lh. 1hese resulLs lndlcaLe a relaLlve opporLunlLy Lo lmprove.
12
AnoLher lnLeresLlng
resulL ls Lhe lnnovaLlon score, whlch aL 21 also lndlcaLes an lmprovemenL opporLunlLy.


12 1be Clobol competltlveoess kepott 2010-11, World Lconomlc lorum, 2010
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
8 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he Importance of Sk|||s and Lducat|on to the V|ctor|an Manufactur|ng Industry
8esearch flndlngs demonsLraLe LhaL educaLlon and skllls ls a key drlver of effecLlve managemenL
pracLlces wlLhln vlcLorlan manufacLurlng flrms. 1he manufacLurlng lndusLry ls seelng consLanL
change and resLrucLurlng wlLh Lhe focus shlfLlng Lo managlng global supply chalns, producL
deslgn and developmenL, cusLomer value proposlLlon and susLalnable markeLs. 1hese warranL
new and hlgher sklll seLs wlLhln Lhe vlcLorlan manufacLurlng secLor. 1he vlcLorlan CovernmenL
rlghLly ldenLlfles LhaL:
'ManufacLurlng skllls lssues are abouL quallLy and noL [usL quanLlLy.'
13

8esearch has shown LhaL skllls and knowledge are boLh drlvers and ouLcomes of lnnovaLlon,
lmplemenLlng a parLlcular lnnovaLlon ofLen requlres Lralnlng a workforce, and use of Lhls
lnnovaLlon by Lhe workforce ln producLlon and consumpLlon glves rlse Lo lncremenLal
lmprovemenLs Lo Lhe orlglnal lnnovaLlon.
14
Skllls have a cruclal role ln sLlmulaLlng producLlvlLy
growLh, wlLh several sLudles urglng lncreased lnvesLmenL ln workplace Lralnlng Lo lmprove
naLlons' lnLernaLlonal compeLlLlveness and long-Lerm economlc performance and Lo address Lhe
'skllls.
13, 16, 17

A reporL on research focuslng on skllls ln vlcLorlan lndusLrles noLes LhaL:
'Lmployers need skllled people lf Lhelr organlsaLlons are Lo be producLlve, lnnovaLlve
and proflLable, survlvlng and prosperlng ln an lncreaslngly compeLlLlve world. A sLaLe's
sklll base ls a crlLlcal asseL, conLrlbuLlng Lo economlc achlevemenL, sLandards of llvlng
and, Lhrough lLs lmpacL on lndlvldual well-belng, soclal coheslon.'
18

1hls research was parL of a broader pro[ecL, whlch lncluded a naLlonal survey ln whlch
companles were asked Lo nomlnaLe how lmporLanL lL was for Lhem Lo become a world class
company ln Lhe nexL Lhree years. LlghLeen per cenL of companles consldered Lhey were
currenLly world class. 1hese flrms had many slmllarlLles Lo Lhose who dld noL yeL regard
Lhemselves as world class, buL Lhere were some key dlfferences, whlch are hlghllghLed on Lhe
followlng page.


13 1be vlctotloo Mooofoctotloq loboot lotce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
14 1oner, Þ., ºWorkforce skllls and lnnovaLlon: An overvlew of ma[or Lhemes ln Lhe llLeraLure", ulrecLoraLe for sclence, Lechnology
and lndusLry commlLLee for sclenLlflc and Lechnologlcal pollcy, CrganlsaLlon for Lconomlc Co-operaLlon and uevelopmenL, 2009
13 8lack, S. L. and Lynch, L. M., ºWhaL's drlvlng Lhe new economy? 1he beneflLs of workplace lnnovaLlon", 1be ícooomlc Iootool,
vol. 114, 2004, pp. 97-116
16 C'Panlon-8ose, 1., º1he skllls gap - whaL ls lL? Pow do we flll lL?", vCCAL: 1be Aosttolloo Iootool of vocotloool íJocotloo ooJ
1tololoq, vol. 7, 2008-09, pp. 10-18
17 Moooqemeot Mottets lo Aosttollo. Iost bow ptoJoctlve ote we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
18 Splndler, k., wotlJ closs 5kllls fot wotlJ closs loJosttles. ímployets´ petspectlves oo sklllloq lo vlctotlo, AusLrallan lndusLry Croup,
2006

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 9
Wor|d C|ass Austra||an I|rms - A snapshot
Character|st|cs
World class flrms are llkely Lo be slgnlflcanLly larger ln boLh Lurnover and numbers of employees
Lhan Lhose noL seelng Lhemselves as world class. llrms ln Lhe mlnlng and uLlllLles and wholesale
and reLall Lrades are more llkely Lo nomlnaLe as world class Lhan Lhose from manufacLurlng.
1hey derlve a larger percenLage of Lurnover from overseas operaLlons, and Lhelr workforces
lnclude hlgher proporLlons of Lechnlclans and paraprofesslonals and lower proporLlons of
labourers and process workers. A hlgher, buL sLlll small, proporLlon of Lhe workforce ln world
class flrms ls Lralned overseas.
Workforce requ|rements
World class flrms are, noL surprlslngly, more llkely Lo look for employees LhaL are comparable
wlLh Lhe besL ln Lhe world, and Lhey puL a hlgher premlum Lhan oLher flrms do on Lechnlcal
compeLence. 1hey are more llkely Lhan oLhers Lo recrulL maLure age apprenLlces.
World class flrms are [usL as llkely as oLhers Lo have experlenced dlfflculLles ln securlng
employees LhaL are ln shorLesL supply - Lrades, Lechnlclans and paraprofesslonals and
englneerlng professlonals - and Lhelr raLes of sLaff Lurnover are no dlfferenL.
Sk||||ng approaches
1here was no dlfference ln Lhe average percenLage of Lurnover devoLed Lo Lralnlng by world
class and oLher companles (for elLher formal or lnformal Lralnlng). Powever, world class flrms
are more llkely Lo have formal skllls assessmenL processes and workforce developmenL plans
ln place. 1hey are more llkely Lhan oLher flrms Lo offer some Lypes of learnlng opporLunlLles,
such as onllne learnlng and formal Lralnlng leadlng Lo quallflcaLlons.
1hey have Laken many of Lhe same acLlons Lo address skllls shorLages as oLher flrms, buL are
more llkely Lo have recrulLed from overseas and dlrecLly from 1AlL and unlverslLy and Lo see
Lhemselves conLlnulng Lo do so. World class flrms are slgnlflcanLly more llkely Lo have close llnks
wlLh unlverslLles.
19






19 Splndler, k., wotlJ closs 5kllls fot wotlJ closs loJosttles. ímployets´ petspectlves oo sklllloq lo Aosttollo, AusLrallan lndusLry
Croup, 2006
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
10 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Cn Lhe global scene, an CLCu sLraLegy reporL hlghllghLs Lhe slgnlflcance of Lhe skllls and
educaLlon of managers and Lhelr workforce ln developlng LalenL needed for lnnovaLlon, and
sLrongly endorsed Lhe need Lo acqulre skllls Lhrough formal educaLlon, Lralnlng, experlence
and oLher forms of lnformal learnlng:
'Puman caplLal ls Lhe source of lnnovaLlon.vocaLlonal educaLlon and Lralnlng play an
lmporLanL role ln lnnovaLlon.Moreover, Lhe acqulslLlon of skllls ls a llfelong process, lL
does noL end wlLh formal educaLlon. 1he ongolng acqulslLlon of furLher skllls needs Lo be
encouraged.'
20

1he ouLpuL of vlcLorlan manufacLurlng has largely remalned unchanged over Lhe pasL decade,
desplLe Lhe vlcLorlan economy growlng by over 73°. As a resulL, producLlvlLy, flexlblllLy and
worker parLlclpaLlon have lmproved over Lhe perlod wlLh [obs shlfLlng Lowards hlgher skllls seLs
whlle Lhe number of workers has decllned. ln Lhe fuLure, Lhe manufacLurlng lndusLry ls expecLed
Lo face an lncreased demand for hlgher skllls as lL moves from hlgh volume, low-value
manufacLurlng Loward areas of comparaLlve advanLage - prlnclpally low volume, nlche and/or
hlgh-quallLy manufacLurlng.
21
AusLrallan buslnesses are lncreaslngly seelng skllls as a way of
brlnglng abouL lnnovaLlon Lo drlve success. 1he flndlngs of Lhe 2008 AusLrallan lndusLry Croup
and uelolLLe Notloool cíO 5otvey lndlcaLe a clear llnk beLween sklll shorLages and a lack of
lnnovaLlve ablllLy ln AusLrallan buslnesses. 1hls suggesLs LhaL pollcles LhaL help llfL Lhe naLlon's
skllls base wlll have dlrecL and poslLlve effecLs on buslness lnnovaLlon ln AusLralla.
22

1he WorkuSA survey, utlvloq bosloess tesolts tbtooqb cootloooos eoqoqemeot, demonsLraLed
LhaL when employees are hlghly engaged, Lhelr companles achleve hlgher labour producLlvlLy
and lower sLaff Lurnover and provlde hlgher reLurns Lo shareholders.
23
A more skllled workforce
ls llkely Lo be more moLlvaLed, engaged and producLlve. 1herefore, lnvesLmenL ln skllls and
educaLlon provldes an lmpeLus Lo labour producLlvlLy and lnnovaLlve capablllLy, Lhereby
enhanclng economlc growLh. 1hls relLeraLes Lhe need for enhanclng focus on skllls and educaLlon
wlLhln manufacLurlng employmenL ln vlcLorla. vlcLorlan flrms recognlse LhaL Lhelr employees are
an lmporLanL compeLlLlve advanLage. 8ulldlng Lhelr sklll base ls a key elemenL of Lhelr sLraLegy Lo
malnLaln and lmprove Lhelr efflclency, producLlveness, lnnovaLlve capablllLles and
compeLlLlveness.
24



20 looovotloo sttoteqy - qettloq o beoJ stott oo tomottow, CrganlsaLlon for Lconomlc Co-operaLlon and uevelopmenL, 2010b
21 1be vlctotloo Mooofoctotloq loboot lotce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
22 Aosttolloo loJostty Ctoop ooJ ueloltte Notloool cíO 5otvey - 5klllloq fot looovotloo, AusLrallan lndusLry Croup, 2008
23 ºurlvlng buslness resulLs Lhrough conLlnuous engagemenL", wotku5A 5otvey, WaLson WyaLL Worldwlde, 2008-09
24 Splndler, k., wotlJ closs 5kllls fot wotlJ closs loJosttles. ímployets´ petspectlves oo sklllloq lo vlctotlo, AusLrallan lndusLry Croup,
2006

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 11
Conc|us|on
1here ls an lncreased demand for a human caplLal LalenL model wlLh a range of dlfferenLlaLed
capablllLles, lncludlng enhanced managemenL and leadershlp skllls, LalenL culLure and
collaboraLlon dexLerlLles.
23
LducaLlon and workplace Lralnlng plays a ma[or role ln fosLerlng Lhe
skllls seLs requlred for leadershlp, managemenL and lnnovaLlon. When people become more
educaLed and Lralned, Lhelr ablllLy Lo engage, parLlclpaLe, undersLand and lmplemenL lncreases
correspondlngly.
26
ln Loday's knowledge-based economy, lL ls our people, skllls and capablllLles
LhaL are core Lo bulldlng and susLalnlng a compeLlLlve advanLage. 8esearch by Al Croup on
vlcLorla also found LhaL a skllled workforce ls cruclal Lo susLalnlng and sLrengLhenlng Lhe
lnLernaLlonal compeLlLlveness of local lndusLry. 1he flndlngs suggesL a need for governmenLs aL
all levels Lo conslder ways of rebalanclng currenL arrangemenLs Lowards upskllllng Lhe exlsLlng
workforce, Lo help flrms arLlculaLe a 'whole-of-enLerprlse' skllls developmenL sLraLegy, and Lo
asslsL flrms formally ldenLlfy and recognlse Lhe 'hldden' skllls of employees.
27
Plgher-order
compeLencles and sklll developmenL underplns Lhe role of knowledge managemenL processes ln
bulldlng dynamlc capablllLles.
28
1he AMÞ reporL concludes LhaL AusLrallan manufacLurlng flrms:
'need noL only Lo fosLer and lnculcaLe Lhe process of dynamlc capablllLy bulldlng Lhrough
collaboraLlon, buL also should Lake measures Lo lnculcaLe, promoLe and manage hlgher-
order sklll seLs for lnnovaLlon, be Lhey producL, process, organlsaLlonal or managerlal
lnnovaLlons.'
29

1hus, skllls and educaLlon of managers and Lhelr workforce are crlLlcal Lo fosLer lnLanglble asseLs
needed for susLalned lnnovaLlon and producLlvlLy ouLcomes.
1be 8toJley kevlew noLes LhaL AusLralla ls currenLly lagglng behlnd oLher counLrles ln
performance and lnvesLmenL ln hlgher educaLlon and lLs lmpllcaLlon for Lhe counLry's global
compeLlLlveness.
30
1here are sLrong llnks beLween economlc producLlvlLy and Lhe proporLlon of
Lhe populaLlon wlLh hlgh-level skllls, hence lnvesLlng ln educaLlon ls essenLlal noL only Lo
encourage an lncrease ln Lhe numbers of Lhe populaLlon wlLh degree-level quallflcaLlons, buL
also Lo lmprove Lhe quallLy of graduaLes. 8esearch has shown LhaL Lhe vlcLorlan Lralnlng sysLem
has conslderable room for lmprovemenL ln a number of areas: balanclng Lechnlcal sklll Lralnlng,
wlLh a focus on hlgher-level skllls and sofL skllls, Lhe flexlblllLy and proacLlvlLy of Lralnlng
provlders ln respondlng Lo speclflc flrms' needs, and Lhe quallLy of Lralnlng.
31



23 ºClobal LalenL lnnovaLlon sLraLegles for breakLhrough performance", 8ooz and Company, 2009
26 Agarwal, 8. and Creen, 8., º1he 8ole of ManagemenL ÞracLlces and lLs lmpacL on lnnovaLlon ln Lhe AusLrallan conLexL",
for publlcaLlon ln Lhe nCvL8 lnnovaLlon book of readlngs LlLled lostetloq eotetptlse. tbe looovotloo ooJ skllls oexos -
teseotcb teoJloqs, lS8n: web edlLlon - 978 1 921809 83 3, ÞrlnL edlLlon - 978 1 921809 84 2 (under prlnL)
27 losltlooloq vlctotlo lo tbe Clobol ícooomy - Al Ctoop 5obmlssloo oo 2006/07 vlctotloo Covetomeot 8oJqet ltlotltles, AusLrallan
lndusLry Croup, 2006
28 Cepeda, C. and vera, u., ºuynamlc capablllLles and operaLlonal capablllLles: a knowledge managemenL perspecLlve", Iootool of
8osloess keseotcb, vol. 60, 2007, pp. 426-37, Agarwal, 8. and Selen, W., ºuynamlc CapablllLy 8ulldlng ln Servlce value neLworks for
Achlevlng Servlce lnnovaLlon", ueclsloo 5cleoces, AugusL, vol. 40, lssue 3, 2009, pp. 431-73
29 Moooqemeot Mottets lo Aosttollo. Iost bow ptoJoctlve ote we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
30 8evlew of AusLrallan Plgher LducaLlon (Lhe '8radley 8evlew'), CommonwealLh of AusLralla, 2008
31 Splndler, k., wotlJ closs 5kllls fot wotlJ closs loJosttles - ímployets´ petspectlves oo sklllloq lo vlctotlo, AusLrallan lndusLry
Croup, 2006
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
12 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
2.2 1nL Lk1LN1 AND IMÞAC1 CI SkILLS SnCk1AGLS
key I|nd|ngs
• Cver a Lhlrd of vlcLorlan manufacLurlng companles (34.7°) conslder Lhere ls a hlgh Lo
exLreme rlsk of skllls shorLages lmpacLlng on Lhe effecLlve operaLlon of Lhelr buslness ln
Lhe near Lerm, and Lhls level of concern lncreases (Lo 38.3°) when companles look ouL
Lo 2013.
• Cver 40° of Lhe companles surveyed (43.1°) are currenLly glvlng Lhe managemenL of
skllls shorLages a hlgh prlorlLy, and Lhls level of managemenL commlLmenL ls expecLed Lo
conLlnue over Lhe nexL flve years.
• AlmosL Lwo-Lhlrds of all companles are of Lhe vlew LhaL lL ls very lmporLanL for
governmenLs Lo Lake more acLlve sLeps Lo address skllls shorLages lmmedlaLely (63°)
and lnLo Lhe fuLure (63.8°). As skllls developmenL ls a shared CommonwealLh and SLaLe
and 1errlLory CovernmenL responslblllLy, Lhls call for more acLlon ls dlrecLed aL all
governmenLs.
• 1hree-quarLers of companles have fllled, or Lrled Lo flll, poslLlons ln Lhe pasL slx monLhs
and 23° of all vacancles over Lhe prevlous slx monLhs were unfllled.
• 1he greaLesL dlfflculLles ln fllllng vacancles were seen ln Lhe followlng occupaLlons: MeLal
flLLers and machlnlsLs (39.6° of all vacancles were unfllled), Lnglneerlng professlonals
(31.7° unfllled vacancles), MeLal casLlng, forglng and flnlshlng Lradespersons (36.7°
unfllled vacancles), SLrucLural sLeel and weldlng Lrades workers (32.9° unfllled
vacancles) and 8uslness admlnlsLraLlon managers (36.7° unfllled vacancles).
• unfllled vacancy raLes for some seml-skllled and unskllled poslLlons were also hlgh,
lncludlng Sales asslsLanLs and sales persons (39.8° unfllled vacancles) and Clerlcal and
admlnlsLraLlon workers (23.3° unfllled vacancles).
• 1he ma[or reasons why poslLlons could noL be fllled relaLed Lo skllls: Lhe lack of
speclallsed skllls requlred for Lhe [ob (23.7°), Lhe lack of appllcanL skllls and experlence
(22.9°), and Lhe absence of local Lralnlng opLlons (12.2°).
• A furLher ma[or dlfflculLy reporLed was slmply a lack of appllcanLs (19.1°).
• Skllls shorLages lead Lo manufacLurers:
- havlng Lo puL llmlLaLlons on producLlon,
- experlenclng wage pressures, as some shorLages are Lhe resulL of skllled workers
movlng lnLo Lhe resources secLor and Lhere ls pressure Lo make wage
ad[usLmenLs Lo keep skllled workers - Lhough no suggesLlon LhaL Lhese wage
levels would keep pace wlLh resource secLor remuneraLlon,
- focuslng on lmmedlaLe prlorlLles whlch compllcaLes plannlng processes ln
ldenLlfylng and addresslng sklll prlorlLles,

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 13
- expresslng concerns abouL Lhe lmpllcaLlons for quallLy and safeLy as a
consequence of belng rellanL on less-skllled workers, and
- belng concerned LhaL where Lhe skllls shorLages were ln hlgher-level
occupaLlons, Lhey were mlsslng ouL on Lhe 'crlLlcal lnLelllgence and leadershlp'
of Lhe enLerprlse.
Introduct|on
1hls secLlon beglns by conslderlng Lhe employmenL and quallflcaLlons proflles of Lhe vlcLorlan
manufacLurlng secLor, and goes on Lo look aL Lhe exLenL of skllls shorLages and Lhelr lmpacL on
company performance.
Lmp|oyment and Cccupat|ona| 8reakdown
LmploymenL ln manufacLurlng ln vlcLorla has decllned from a 20° share ln Lhe mld-1980s, Lo
16.3° ln 1993, Lo 11.1° ln 2010
32
(l.e. 290,000 people). 1hls downward Lrend ls expecLed Lo
conLlnue. 1he lndusLry-wlde flgures mask slgnlflcanL varlances wlLhln Lhe sub-secLors LhaL make
up manufacLurlng. lood Þrocesslng, Machlnery and LqulpmenL, and 1ransporL LqulpmenL are
Lhe largesL employers, whlch comblned employ 44° of Lhe vlcLorlan manufacLurlng workforce.
CharL 2 (below) lllusLraLes how Lhe numbers employed across manufacLurlng sub-secLors have
changed over Lhe perlod 1996 Lo 2010. A sLeep decllne ls evldenL ln Lhe 1exLlle and CloLhlng
sub-secLor, and Lhe only areas Lo have recorded an lncrease are lood, 8everage and 1obacco
and Lhe 'CLher' caLegory.
Chart 2: Number emp|oyed |n manufactur|ng by sub-d|v|s|on, V|ctor|a, 1996-2010

As ls Lrue for Lhe AusLrallan manufacLurlng secLor, vlcLorlan manufacLurers wlll face lncreased
demand for hlgher-level skllls as Lhe secLor conLlnues Lo moves from hlgh-volume, low-value
manufacLurlng Lowards areas of comparaLlve advanLage whlch are prlnclpally low-volume,
unlque and/or hlgh-quallLy manufacLures.


32 Skllls shorLages, vlcLorla, ueparLmenL of LducaLlon, LmploymenL and Workplace 8elaLlons, 2010
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
14 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
noLwlLhsLandlng Lhls shlfL, Lhe vlcLorlan manufacLurlng secLor requlres workers of all sklll levels,
from unskllled labourers Lo Lradespeople and Lechnlclans Lo professlonals, Lhough demand ls
expecLed Lo shlfL away from unskllled workers. 8ecenL daLa (u8l 2010), lllusLraLed ln CharL 3
below, shows LhaL 43° of manufacLurlng workers do noL hold posL-school quallflcaLlons,
and LhaL of Lhe ma[orlLy of Lhe workforce who do, 27° hold CerLlflcaLe lll or lv quallflcaLlons,
24° hold ulploma or hlgher quallflcaLlons, and 6° hold CerLlflcaLe l or ll quallflcaLlons.
Chart 3: Çua||f|cat|on atta|nments of emp|oyees |n manufactur|ng (2009)
33

1here are slgnlflcanL varlaLlons ln quallflcaLlon proflles beLween lndusLry sub-secLors. An
lndlcaLlon of Lhe exLenL of Lhese varlaLlons ls lllusLraLed ln CharL 4 (on Lhe opposlLe page), whlch
shows ÞrlnLlng and Þubllshlng, Machlnery and LqulpmenL, lurnlLure and CLher, and ÞeLroleum,
Coal and Chemlcal are Lhe sub-secLors wlLh Lhe hlgher proporLlons of Lhelr workers havlng
posL-school quallflcaLlons aL around 60°, whlle Lhe 1exLlle, CloLhlng and looLwear, and
lood and 8everages sub-secLors have more Lhan 30° of Lhelr workforce wlLhouL posL-school
quallflcaLlons.
1here are also marked varlaLlons beLween lndusLry sub-secLors ln Lhe posL-school quallflcaLlons
proflle. Cver 40° of lurnlLure, MeLal ÞroducLs, and Wood and Þaper employees hold
quallflcaLlons galned Lhrough Lhe vocaLlonal educaLlon and Lralnlng secLor - cerLlflcaLes or
dlplomas. 1erLlary quallflcaLlons - degrees and posLgraduaLe quallflcaLlons - are mosL prevalenL
ln Lhe ÞeLroleum, Coal and Chemlcal (23°), ÞrlnLlng and Þubllshlng (23°), and Machlnery and
LqulpmenL (27°) secLors.


33 Skllls vlcLorla and CCÞS Model
3°
43°
6°
1°
13°
7°
27°
ÞosL-graduaLe degree
no posL school quals
CeruñcaLe l or ll
CraduaLe ulploma
8achelor degree
ulploma
CeruñcaLe lll or lv

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 13
Chart 4: Þercentage of manufactur|ng-re|ated Vocat|ona| Lducat|on and 1ra|n|ng (VL1) enro|ments,
V|ctor|a, 2009
34


1he overall Lrends ln employmenL numbers for Lhe secLor and sub-secLors, comblned wlLh an
undersLandlng of Lhe quallflcaLlon proflle, glves an lnslghL lnLo where fuLure skllls demands are
llkely Lo come from. 8uL before looklng aL posslble fuLure skllls needs, lL ls lmporLanL Lo
undersLand how well currenL skllls needs are belng meL.
Sk|||s Shortages |n V|ctor|an Manufactur|ng
ln CcLober 2009, AusLrallan lndusLry Croup and uelolLLe released 5klllloq 8osloess lo 1ooqb
1lmes, a reporL LhaL showed LhaL skllls shorLages conLlnued Lo be a ma[or sLraLeglc lssue for
CLCs, desplLe Lhe economlc downLurn and Lhe lmpacL lL had on employmenL. Lndurlng skllls
shorLages had compelled employers Lo do all Lhey could Lo hold on Lo sLaff, desplLe Lhe
deLerloraLlon ln condlLlons, wlLh a vlew Lo belng well placed Lo Lake advanLage of growLh when
lL resumed.
Slnce Lhe release of LhaL reporL, Lhe AusLrallan economy has sLrengLhened, leadlng Lo a re-
emergence of skllls shorLages ln some lndusLry secLors. ln order Lo galn a greaLer undersLandlng
of buslness skllls needs, AusLrallan lndusLry Croup and uelolLLe conducLed a furLher survey of
CLCs ln !uly 2010.
33
ln parLlcular, Lhls survey explored: Lhe exLenL Lo whlch skllls shorLages are a
rlsk Lo buslness, Lhe occupaLlons ln greaLesL shorLage, and Lhe reasons for Lhese shorLages.

34 Skllls vlcLorla
33 Skllls shorLages: A hlgh rlsk buslness, AusLrallan lndusLry Croup and uelolLLe, !uly 2010
33°
30°
47°
43°
44°
42°
41° 41°
39°
38°
3°
6°
3°
3°
4°
6°
4° 4°
3°
4°
18°
21°
24°
23°
32°
31°
19°
33°
28°
21°
9° 7°
7°
8°
6°
6°
9°
7°
8°
12°
12°
11°
12°
14°
10°
11°
19°
10°
13°
19°
2° 2° 2°
2° 2°
2°
1°
1°
2°
3° 3° 3° 3°
2° 2°
6°
2°
4° 4°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
ÞosL-graduaLe degree
CraduaLe dlploma
8achelor degree
ulploma
CeruñcaLe lll or lv
CeruñcaLe l or ll
?ear 12 and below
no ed aualnmenL
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
16 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
lor Lhls reporL, Lhe resulLs for vlcLorlan manufacLurers have been exLracLed from Lhe responses
recelved for Lhe Notloool cíO 5otvey and are presenLed below.
1he flndlngs of Lhe survey are based on Lhe responses of 73 vlcLorlan manufacLurlng company
CLCs. 1he respondenL companles generaLed around $1.3 bllllon ln sales revenue ln 2009-10 and
employed 3,128 people.
1he r|sk of shortages |s h|gh now and expected to |ntens|fy
!usL over a Lhlrd (34.7°) of vlcLorlan manufacLurlng companles conslder Lhere ls a hlgh Lo
exLreme rlsk of skllls shorLages lmpacLlng on Lhe effecLlve operaLlon of Lhelr buslness Lhls year
and beyond. 1hls number [umps Lo nearly 83° when we lnclude companles LhaL belleve Lhere ls
a moderaLe rlsk LhaL skllls shorLages wlll affecL Lhem ln Lhe lmmedlaLe fuLure (see CharL 3
below).
Companles were asked Lo asslgn a rlsk measure Lo skllls shorLages lmpacLlng on Lhem ln flve
years' Llme, more Lhan a Lhlrd (38.3°) of all companles conslder Lhere ls a hlgh Lo exLreme rlsk
of skllls shorLages lmpacLlng on Lhe effecLlve operaLlon of Lhelr buslness wlLhln flve years. 1hls
number [umps Lo over 90° when we lnclude companles LhaL belleve Lhere ls a moderaLe rlsk
LhaL skllls shorLages wlll affecL Lhem ln 2013.
Clearly, vlcLorlan manufacLurlng companles are currenLly faclng a slgnlflcanL rlsk of skllls
shorLages negaLlvely lmpacLlng on Lhelr buslness, and Lhey expecL Lhls rlsk level Lo worsen by
2013.
Chart S: k|sk of sk|||s shortages |mpact|ng on effect|ve operat|on


8.3
26.4
30.0
13.3
10.3
28.2
33.8
7.7
0
10
20
30
40
30
60
LxLreme rlsk Plgh rlsk ModeraLe rlsk Low rlsk
Þ
e
r
c
e
n
L
a
g
e

2010 2013

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 17
Manag|ng the r|sk: a h|gh pr|or|ty for compan|es |n the short and med|um term
Cver 40° of companles are glvlng Lhe managemenL of skllls shorLages hlgh prlorlLy now and, for
anoLher 6.9°, managlng skllls shorLages ls a Lop prlorlLy (see CharL 6 below). 1hls shows LhaL
even Lhose companles LhaL do noL conslder Lhe shorL-Lerm rlsk of skllls shorLages Lo be exLreme
or hlgh are worklng hard Lo puL ln place measures Lo ensure Lhe supply of Lhe skllls Lhey wlll
need.
Companles were asked Lo nomlnaLe Lhe level of prlorlLy Lhey anLlclpaLed glvlng Lo managlng
Lhese rlsks ln 2013. 1hose companles for whlch Lhls wlll be a hlgh prlorlLy lncreased sllghLly Lo
43.9°, whlle Lhose expecLlng Lhls Lo be a Lop prlorlLy ln 2013 dropped sllghLly, Lo 3.4°.
Cverall, companles are lndlcaLlng LhaL managlng skllls shorLages rlsks ls a slgnlflcanL prlorlLy now
and wlll conLlnue Lo be ln 2013.
Chart 6: Þr|or|ty compan|es are g|v|ng to manag|ng sk|||s shortages r|sks

Compan|es expect government to p|ay a stronger ro|e
Companles were asked Lo lndlcaLe how lmporLanL lL ls for governmenLs Lo Lake acLlve sLeps
Lo address skllls shorLages now and by 2013. 1here ls a clear message for governmenL here:
almosL Lwo-Lhlrds of all companles are of Lhe vlew LhaL lL ls exLremely or hlghly lmporLanL for
governmenLs Lo Lake mote acLlve sLeps Lo address skllls shorLages now (63.0°) and lnLo Lhe
fuLure (63.8°). (See CharL 7 on Lhe followlng page.) 1hls level of response ls conslsLenL across
companles of all slzes.
Cverall, companles acknowledge Lhe range of governmenL skllllng lnlLlaLlves currenLly on offer
buL are of Lhe vlew LhaL more needs Lo be done and LhaL lL needs Lo be done lmmedlaLely.

6.9
43.1
33.3
16.7
3.4
43.9
29.7
18.9
0
3
10
13
20
23
30
33
40
43
30
1op prlorlLy Plgh prlorlLy ModeraLe prlorlLy Low prlorlLy
2010 2013
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
18 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 7: Importance of governments tak|ng more act|ve steps

Compan|es are |ook|ng to f||| [ob vacanc|es across the economy
When examlnlng recrulLmenL acLlvlLy, [usL over Lhree-quarLers of vlcLorlan manufacLurlng
companles (77°) had fllled, or Lrled Lo flll, poslLlons ln Lhe prevlous slx monLhs. Large companles
were much more llkely Lo be seeklng Lo flll poslLlons Lhan smaller companles, all of Lhe large
companles ln Lhe survey had Lrled Lo flll vacancles, compared Lo 71.0° of medlum companles
and 76.0° of small companles (see CharL 8 below).


Chart 8: Compan|es that have f|||ed, or tr|ed to f|||, pos|t|ons |n the |ast s|x months


26.0
37.0
34.2
2.7
31.6
34.2
31.6
2.6
0
3
10
13
20
23
30
33
40
LxLremely lmporLanL Plghly lmporLanL Some lmporLance Low lmporLance
Þ
e
r
c
e
n
L
a
g
e

2010 2013
76
71
100
77
0
10
20
30
40
30
60
70
80
90
100
Small Medlum Large 1oLal
Þ
e
r
c
e
n
L
a
g
e

o
f

ñ
r
m
s


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 19
More Lhan half (36°) of companles lndlcaLed LhaL Lhey had dlfflculLy fllllng vacancles over Lhe
pasL slx monLhs (see CharL 9 below).


Chart 9: D|ff|cu|ty f||||ng pos|t|ons

Small companles had more dlfflculLy fllllng vacancles (39.4°) Lhan medlum (33.8°) or large
(40°) companles.

39.4
33.8
40
36
0
10
20
30
40
30
60
70
Small Medlum Large 1oLal
Þ
e
r
c
e
n
L
a
g
e

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
20 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Iob vacanc|es: D|verse range of occupat|ons |n demand over |ast s|x months
Companles were asked Lo nomlnaLe Lhe occupaLlons Lhey had vacancles for ln Lhe prevlous slx
monLhs. CharL 10 (below) shows Lhe skllled occupaLlons mosL frequenLly nomlnaLed by
companles. 1he llsL lncludes a wlde range of occupaLlons: MeLal Lrades workers, CLher
professlonals, Sales, MarkeLlng Þrofesslonals, Managers, Lnglneers, MeLal casLlng, forglng and
flnlshlng Lrades workers, and CLher Lrades workers. Survey respondenLs also nomlnaLed some
seml-skllled and unskllled occupaLlons, lncludlng Machlnery operaLors, Þrocess workers and
Clerlcal and admlnlsLraLlon workers.
Chart 10: Sk|||ed occupat|ons vacant as a proport|on of compan|es c|t|ng vacancy

Companles were Lhen asked Lo lndlcaLe how many of Lhese vacancles Lhey had been able Lo flll.
Cver a quarLer (27.4°) of all vacancles over Lhe pasL slx monLhs were unfllled. CharL 11 shows a
sample of Lhe proporLlons of skllled vacancles companles were able Lo flll by occupaLlonal group.

Chart 11: Þercentages of sk|||ed pos|t|ons f|||ed by occupat|on

37
43
33
30
28
26
24 24
22 22
20
4
0
10
20
30
40
30
60
70
Þ
e
r
c
e
n
L
a
g
e

o
f

c
o
m
p
a
n
l
e
s


c
l
u
n
g

v
a
c
a
n
c
y


48.3
63.3
67.1
40.4
63.3
92.3 93.2
31.7
36.7
32.9
39.6
36.7
7.7 6.8
0
20
40
60
80
100
L
n
g
l
n
e
e
r
l
n
g

Þ
r
o
f
e
s
s
l
o
n
a
l
s

M
e
L
a
l

C
a
s
u
n
g
,

l
o
r
g
l
n
g

&

l
l
n
l
s
h
l
n
g

1
r
a
d
e
s

W
o
r
k
e
r
s

S
L
r
u
c
L
u
r
a
l

S
L
e
e
l

&

W
e
l
d
l
n
g

1
r
a
d
e
s

W
o
r
k
e
r
s

M
e
L
a
l

l
l
u
e
r
s

&

M
a
c
h
l
n
l
s
L
s

8
u
s
l
n
e
s
s

A
d
m
l
n
l
s
L
r
a
u
o
n

M
a
n
a
g
e
r
s

A
c
c
o
u
n
L
a
n
L
s

M
a
c
h
l
n
e

C
p
e
r
a
L
o
r
s

Þ
e
r
c
e
n
L
a
g
e

o
f

p
o
s
l
u
o
n
s

Þosluons ñlled Þosluons unñlled

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 21
As Lhls charL shows, Lhe greaLesL dlfflculLles ln fllllng vacancles were seen ln Lhe followlng
occupaLlons: MeLal flLLers and machlnlsLs (39.6° of all vacancles were unfllled), Lnglneerlng
professlonals (31.7° unfllled vacancles), MeLal casLlng, forglng and flnlshlng Lradespersons
(36.7° unfllled vacancles), SLrucLural sLeel and weldlng Lrades workers (32.9° unfllled vacancles)
and 8uslness admlnlsLraLlon managers (36.7° unfllled vacancles). unfllled vacancy raLes for
some seml-skllled and unskllled poslLlons were also hlgh, lncludlng for Sales asslsLanLs and sales
persons (39.8° unfllled vacancles) and Clerlcal and admlnlsLraLlon workers (23.3° unfllled
vacancles). ln aL leasL Lwo caLegorles - AccounLanLs and Machlne operaLors - demand and
supply are close Lo balanced.
Sk|||s |ssues predom|nate as the reason for vacanc|es
Companles were asked Lo nomlnaLe reasons why Lhey had dlfflculLy fllllng vacancles. 1he ma[or
dlfflculLles reporLed by companles relaLed dlrecLly Lo skllls lssues. Ma[or dlfflculLles were relaLed
Lo Lhe speclallsed skllls requlred for Lhe [ob (23.7°), a lack of general skllls and experlence
(22.9°) and Lhe absence of local Lralnlng opLlons (12.2°). A furLher ma[or dlfflculLy reporLed was
slmply a lack of appllcanLs (19.9°) (see CharL 12 below).
CLher posslble reasons Lo explaln dlfflculLles ln fllllng poslLlons, such as uncompeLlLlve wages,
undeslrable locaLlons, undeslrable Lypes of work and llcenslng or reglsLraLlon requlremenLs, dld
noL emerge as ma[or facLors for respondenLs.
Chart 12: keasons for ma[or d|ff|cu|t|es |n f||||ng vacanc|es

Compan|es respond to unf|||ed vacanc|es by upsk||||ng ex|st|ng workers
Companles were asked Lo nomlnaLe by prlorlLy Lhe soluLlons Lhey lmplemenL when Lhey are
unable Lo flll a vacancy. 8esponses are shown below ln CharL 13. 1he mosL popular response
where a vacancy cannoL be fllled ls Lo ouLsource/sub-conLracL work, wlLh 33° of companles
pursulng Lhls course. 1he nexL mosL frequenL response ls Lo upsklll exlsLlng sLaff (27°). 1hese
resulLs for vlcLorlan manufacLurers are dlfferenL Lo Lhose reporLed for Lhe larger CLC survey
across all lndusLrles and across AusLralla. 1he full survey found Lhese Lwo Lop prlorlLles reversed,
wlLh 37.8° of all companles upskllllng exlsLlng workers and 31.2° ouLsourclng/sub-conLracLlng.
1here are llkely Lo be many reasons for Lhls varlaLlon, one of Lhe prevlous survey responses
lndlcaLed a lack of local skllllng opLlons and Lhls wlll have conLrlbuLed Lo Lhls resulL. lL ls also Lrue
LhaL Lhe upskllllng lnvolved wlll be ln relaLlvely small numbers when consldered across all areas
23.7
22.9
19.1
12.2
10.7
6.1
2.3
1.3
0.8 0.8
0
3
10
13
20
23
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a
g
e

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
22 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
of vocaLlonal educaLlon and Lralnlng, and Lhe Lralnlng secLor flnds lL dlfflculL Lo accommodaLe
small numbers of people who may also be geographlcally dlspersed.
1he prlorlLy ranklng of oLher alLernaLlves ls largely conslsLenL beLween vlcLorlan manufacLurers
and Lhelr lnLersLaLe and broader lndusLry colleagues, wlLh 14° respondlng Lo skllls shorLages by
redeslgnlng [obs around avallable skllls and 11° of companles havlng Lo puL llmlLaLlons on
producLlon levels as a resulL of shorLages.
Lleven per cenL of vlcLorlan manufacLurers lndlcaLed LhaL Lhey would underLake overseas
recrulLmenL as a preferred response Lo deallng wlLh skllls shorLages, and Lhls ls very slmllar Lo
Lhe response raLe recorded aL a naLlonal level.
Chart 13: So|ut|ons pursued when unab|e to f||| a vacancy

Iuture vacanc|es: kecru|tment act|v|ty expected to rema|n strong
!usL over 70° of companles (71.8°) expecL Lo recrulL sLaff ln Lhe nexL 12 monLhs. 1hls level of
recrulLmenL acLlvlLy ls a decrease on Lhe level of recrulLmenL acLlvlLy of Lhe prevlous slx monLhs
(77°).
Large companles conLlnue Lo be more llkely Lo be hlrlng Lhan Lhelr smaller counLerparLs, all
of Lhe large companles surveyed expecL Lo be recrulLlng, compared Lo 76.3° of medlum-slzed
companles and 67.3° of small companles, whlch ls an lncrease ln recrulLmenL acLlvlLy for
Lhe medlum flrms (71.0°) and a decrease for Lhe small flrms (76.0°). (See CharL 14 on Lhe
opposlLe page).

27°
14°
33°
11°
11°
4°
upskllllng exlsung sLañ
8edeslgn [obs
CuLsource/sub-conLracL work
Cverseas recrulLmenL
LlmlL producuon
CLher

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 23
Chart 14: Compan|es that expect to recru|t |n the next 12 months

Companles expecL Lo conLlnue Lo face dlfflculLles recrulLlng ln a range of occupaLlons, lncludlng
MeLal 1rades Workers, Managers, Mlscellaneous lacLory Þrocess Workers, MeLal CasLlng,
lorglng and llnlshlng 1rades, Lnglneerlng Þrofesslonals, and CLher Þrofesslonals (see CharL 13
below).
Chart 1S: Sk|||ed occupat|ons expected to be d|ff|cu|t to f|||

CharL 16 (on Lhe followlng page) shows LhaL Lhe prlmary reasons companles expecL Lo have
dlfflculLles fllllng poslLlons over Lhe nexL 12 monLhs conLlnue Lo relaLe sLrongly Lo skllls. lor
22.4° of companles, appllcanLs are expecLed Lo lack Lhe broad-based skllls and experlence
requlred, 21.6° of companles expecL noL Lo be able Lo flnd people wlLh Lhe speclallsed skllls
needed for Lhelr workplace, 14.7° expecL Lo have dlfflculLles flndlng appllcanLs wlLh Lhe rlghL
aLLlLude, and 13.8° of companles anLlclpaLe a lack of appllcanLs wlll be Lhelr maln problem ln
fllllng poslLlons.

67.3
76.3
100
71.8
0
20
40
60
80
100
Small Medlum Large 1oLal
Þ
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a
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e

37
20 20
17
13 13
10 10 10 10
3 3
0
3
10
13
20
23
30
33
40
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vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
24 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 16: keasons compan|es expect to have d|ff|cu|t|es f||||ng occupat|ons |dent|f|ed

CLher sources of lnformaLlon on skllls shorLages for Lhls secLor provlde a conslsLenL plcLure.
ueparLmenL of LducaLlon, LmploymenL and Workplace 8elaLlons (uLLW8) research on vlcLorlan
manufacLurlng skllls shorLages
36
ldenLlfles shorLages ln auLomoLlve Lrades, meLal Lrades,
consLrucLlon Lrades, elecLrlcal Lrades and food Lrades. lL ls lnsLrucLlve Lo look aL Lhe uLLW8 skllls
shorLage daLa for Lhe Lnglneerlng Lrades AnZSCC 322, 323 ln some deLall.
Cccupat|ons |n c|uster kat|ng
llLLer no shorLage
SheeLmeLal 1rades Worker ShorLage
MeLal labrlcaLor ShorLage
Welder (llrsL Class) ShorLage
MeLal MachlnlsL (llrsL Class) ShorLage
AlrcrafL MalnLenance Lnglneer (Avlonlcs) ShorLage (assessed aL a naLlonal level)
AlrcrafL MalnLenance Lnglneer (Mechanlcal) 8eglonal shorLage (assessed aL a naLlonal level)
LocksmlLh ShorLage (assessed aL a naLlonal level)
1oolmaker ShorLage (assessed aL a naLlonal level)
WlLhln Lhe englneerlng Lrades clusLer, 'flLLer' was Lhe only occupaLlon noL found Lo be ln
shorLage. 1he survey found LhaL 88° of flLLer vacancles were fllled from 2.3 sulLable appllcanLs
per vacancy, compared Lo Lhe March 2010 survey resulL of 93°. Cf parLlcular lnLeresL here ls
LhaL a relaLlvely larger number of successful candldaLes requlred oJJltloool ttololoq Lo fulfll Lhe
poslLlon duLles.

36 Sklll ShorLages, vlcLorla ueparLmenL of LducaLlon, LmploymenL and Workplace 8elaLlons, uecember 2010
22.4
21.6
14.7
13.8
12.1
6.0
3.2
3.4
0.9
0
3
10
13
20
23
Þ
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_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 23
All of Lhe oLher occupaLlons ln Lhls clusLer were raLed as ln shorLage, wlLh vacancy flll raLes
ranglng from 36° Lo 76°. A relaLlvely hlgh proporLlon of surveyed vacancles requlred exLenslve
skllls ln speclallsed appllcaLlons, mosL of whlch were assoclaLed wlLh manufacLurlng. Where
employers could noL flnd appllcanLs wlLh an exacL skllls maLch, mosL employers recognlsed Lhe
need Lo provlde speclflc Lralnlng.
Some employers reporLed a shrlnklng pool of skllled Lrades workers for Lhose ln lndusLry
segmenLs whlch have malnLalned or even lncreased ouLpuL, and Lhls has resulLed ln relaLlvely
hlgh demand for Lhese hlghly skllled occupaLlons. ManufacLurlng lndusLry segmenLs ln whlch
vlcLorla has a naLural compeLlLlve advanLage, such as food manufacLurlng, flgure promlnenLly ln
such demand.
Skllls deflclency among Lrade-quallfled candldaLes was a facLor ln all surveyed occupaLlons.
Many poslLlons requlred one or more speclflc skllls, and alLhough some appllcanLs may have
recelved Lhe relevanL Lrade Lralnlng, Lhey neverLheless may have lacked Lhe lndusLry experlence
consldered ldeal for Lhe poslLlons. Some employers have accepLed LhaL Lrade-quallfled
appllcanLs may sLlll lack expecLed skllls, so Lhey provlde Lralnlng for Lhe speclflc skllls requlred.
1he long-Lerm Lrend Lo a smaller manufacLurlng secLor has generally lessened demand for skllled
labour. Powever, lndusLrles ln whlch Lhere ls a compeLlLlve advanLage, such as food
manufacLurlng, have malnLalned a demand for skllled labour demand ln speclflc areas.
ManufacLurlng enLerprlses LhaL use a relaLlvely hlgh proporLlon of lmporLed lnpuLs are also
beneflLlng from Lhe sLrong exchange raLe.
8espondenLs Lo Lhe uLLW8 survey sLaLed LhaL appllcanLs were generally regarded as unsulLable
because of a lack of quallflcaLlons, lnadequaLe skllls and experlence, or poor presenLaLlon and
aLLlLude. 1hese flndlngs are echoed ln Lhe Al Croup survey. 1he conslsLenL ldenLlflcaLlon of
appllcanLs lacklng Lhe speclallsed skllls LhaL Lhe manufacLurlng secLor requlres polnLs Lo Lhe need
for a new approach Lo lndusLry skllls developmenL ln speclallsL areas.
now sk|||s shortages are |mpact|ng on the |ndustry's performance
ManufacLurlng companles reporL a wlde range of lmpacLs flowlng from skllls shorLages.
Skllls shorLages are one of Lhe blggesL facLors llmlLlng producLlvlLy. vlcLorlan manufacLurers have
reporLed Lo Al Croup Lhrough survey responses LhaL around one ln Len (11°) are forced Lo llmlL
producLlon when Lhey are unable Lo flll vacancles.
1he ManufacLurlng lndusLry Skllls Councll
37
ln lLs laLesL LnvlronmenLal Scan reporLed LhaL secLor
skllls shorLages led Lo manufacLurers:
• experlenclng wage pressures, as some shorLages are Lhe resulL of skllled workers movlng
lnLo Lhe resources secLor so Lhere ls pressure Lo make wage ad[usLmenLs Lo keep skllled
workers - Lhough no suggesLlon LhaL Lhese wage levels would keep pace wlLh resource
secLor remuneraLlon,
• focuslng on lmmedlaLe prlorlLles, whlch compllcaLes plannlng processes Lo ldenLlfy and
address sklll prlorlLles,
• expresslng concerns abouL Lhe lmpllcaLlons for quallLy and safeLy, as a consequence of
belng rellanL on less-skllled workers, and

37 1he ManufacLurlng lndusLry Skllls Councll ls a naLlonal lndusLry Skllls Councll whlch ls recognlsed by Lhe AusLrallan CovernmenL
and Lhe manufacLurlng lndusLry Lo ensure LhaL Lhe skllls needs of enLerprlses are belng meL.
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
26 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• belng concerned LhaL where Lhe skllls shorLages were ln hlgher-level occupaLlons, Lhey
were mlsslng ouL on Lhe 'crlLlcal lnLelllgence and leadershlp' of Lhe enLerprlse.
• company consulLaLlons for Lhls reporL (see Appendlx 3) have also found LhaL skllls
shorLages resulL ln companles lnLroduclng more overLlme and lncreaslng ouLsourclng
and Lhe use of casual labour - more expenslve forms of labour ln an already flscally
consLralned secLor.
´lt´s beeo o olqbtmote. we wooteJ to pot oo someooe wltb some skllls bot we coolJo´t qet
ooyooe. we ttleJ slx yoooq people ooJ oot ooe of tbem coolJ ´cot tbe mostotJ´. 8ot we bove to
qet ptoJoct oot.we pot oo tbe best we coo qet.´
8ollotot mooofoctotet
Conc|us|on
lL ls clear from Lhe revlew of survey and oLher daLa LhaL, desplLe many sub-secLors of
manufacLurlng experlenclng decllnlng numbers, Lhere remaln many areas of skllls shorLage.
8educed overall numbers means LhaL lncreaslngly Lhese shorLages wlll be ln areas LhaL are
becomlng nlche Lrades or ln oLher occupaLlons comprlslng hlghly speclallsed skllls. 1hese skllls -
whlle noL necessarlly represenLlng large numbers of people - are lnLegral Lo Lhe compeLlLlveness
of vlcLorlan manufacLurlng.
1hls presenLs a dlfflculL seL of clrcumsLances for Lhe Lralnlng sysLem Lo respond Lo. 8eglsLered
1ralnlng CrganlsaLlons operaLe ln a compeLlLlve markeL and are maklng commerclal declslons
abouL Lhe skllllng opLlons Lhey are offerlng. 1he sLereoLyplcal model requlres 12 sLudenLs who
move Lhrough a Lralnlng program LogeLher. Many of Lhe Lrades, sub-Lrades and oLher
occupaLlons menLloned above wlll noL aLLracL Lhls many people lnLo Lralnlng per year aL a slngle
Lralnlng organlsaLlon. 1he resulL ls LhaL lncreaslngly 81Cs are opLlng noL Lo dellver Lralnlng ln
Lechnlcal areas of lmporLance Lo manufacLurlng. 1here are many examples of where
lnLervenLlons have helped Lo overcome wlLhdrawal from parLlcular areas of Lralnlng, Lhough Lhls
has been largely crlsls drlven (see SecLlon 3).


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 27
2.3 1nL IMÞCk1ANCL CI S1kA1LGIC MANAGLMLN1 AND LLADLkSnIÞ SkILLS
key I|nd|ngs
• 8esearch has shown LhaL sLraLeglc managemenL and leadershlp capablllLles play a
slgnlflcanL role ln drlvlng producLlvlLy, lnnovaLlon and compeLlLlveness ln AusLrallan
lndusLrles.
• 1he AMÞ research demonsLraLed LhaL Lhe quallLy of managemenL pracLlces has a
measurable lmpacL on labour producLlvlLy, as well as sales and Lhe number of employees
ln AusLrallan manufacLurlng flrms.
• A slngle polnL lncrease ln Lhe managemenL score - a measuremenL derlved from Lhe 18
managemenL characLerlsLlcs ln Lhe scorlng grld - ls assoclaLed wlLh an lncrease ln ouLpuL
equlvalenL Lo a 36° lncrease ln Lhe labour force, or a 44° lncrease ln lnvesLed caplLal ln
AusLrallan manufacLurlng enLerprlses.
• ManagemenL pracLlces ln AusLrallan manufacLurlng flrms currenLly raLe as only
moderaLely above average when benchmarked globally, leavlng slgnlflcanL scope for
lmprovemenL ln Lhelr managemenL capablllLles.
• Among all Lhe managemenL areas, human resource managemenL presenLs Lhe maxlmum
opporLunlLy for lmprovemenL and warranLs speclal aLLenLlon of AusLrallan
manufacLurlng managers.
• 1he area of skllls and capablllLles ls a key deLermlnanL of hlgh managemenL
performance, hence lL ls lmporLanL Lo enhance educaLlon and fosLer skllls, boLh ln Lhe
managerlal cadre as well as Lhe general workforce ln AusLrallan manufacLurlng flrms.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
28 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
A recenL CLCu reporL hlghllghLs Lhe lmporLance of lnnovaLlon as a key drlver of producLlvlLy
growLh ln CLCu naLlons.
38
1he 2008 revlew of Lhe naLlonal lnnovaLlon SysLem by Lhe AusLrallan
CovernmenL also ldenLlfles Lhe role of managemenL and workplace lnnovaLlon ln producLlvlLy
performance. ln Lhls conLexL, Lhe AusLrallan CovernmenL's recenL lnnovaLlon whlLe paper,
lowetloq lJeos - Ao looovotloo AqeoJo fot tbe 21
st
ceototy, recognlses LhaL enhanclng Lhe
lnnovaLlon capaclLy and performance of organlsaLlons ls crlLlcal Lo lmprovlng Lhe counLry's
producLlvlLy growLh and susLalnlng fuLure economlc developmenL. 1he whlLe paper
acknowledged LhaL lnnovaLlon goes beyond sclence and Lechnology, and progresslvely lncludes
'organlsaLlonal lnnovaLlon' comprlslng aspecLs of new buslness models, sysLems lnLegraLlon and
hlgh-performance work sysLems. lL noLes LhaL:
'Maklng lnnovaLlon work requlres a workforce wlLh sophlsLlcaLed skllls of all klnds -
lncludlng leadershlp and managemenL skllls.'
39

ln Lhe vlcLorlan manufacLurlng secLor, Lhe occupaLlon group LhaL has experlenced Lhe hlghesL
lncrease ln recenL years ls 'managers'. 1he vlcLorlan CovernmenL acknowledges LhaL:
'8ulldlng leadershlp and managemenL capablllLles ln Lhe face of global and domesLlc
challenges ls crlLlcal Lo lmprovlng producLlvlLy and ensurlng vlcLorla's fuLure economlc
prosperlLy.'
40

1he CLCu's 2010 looovotloo sttoteqy tepott also hlghllghLs LhaL, ln some CLCu counLrles, flrms
now lnvesL as much ln Lhe lnLanglble asseLs relaLed Lo lnnovaLlon (8&u, sofLware, skllls,
organlsaLlonal know-how and brandlng) as Lhey do ln LradlLlonal caplLal such as machlnery,
equlpmenL and bulldlngs.
41
A survey of CLCs of AusLrallan buslnesses conducLed by Lhe
AusLrallan lndusLry Croup and uelolLLe showed LhaL Lhe alm of achlevlng lnnovaLlon and lndusLry
compeLlLlveness warranLs an array of sklll seLs, lncludlng skllls Lo be creaLlve and problem solve
(sofL skllls), Lechnlcal skllls, and managemenL skllls.
42
1hls accords wlLh a recenL sLudy conducLed
by Alexopoulos and 1ombe, whlch suggesLs LhaL developlng lnLanglble processes and
managemenL Lechnlques lmproves producLlvlLy slgnlflcanLly.
43

1he ko|e of Management Þract|ces to the Compet|t|veness of the Manufactur|ng Industry
SLraLeglc managemenL ls underplnned by collaboraLlon and ls crlLlcal for lnnovaLlon wlLhln
and across enLerprlses. Agarwal and Creen poslL LhaL drlvlng compeLlLlveness and ouLpuL ln
AusLrallan flrms requlres a change ln managerlal behavlour and people managemenL pracLlces,
mlndseL and envlronmenLs.
44
8esearch has shown LhaL changes ln Lhe workplace, Leam
sLrucLures, communlcaLlons and managerlal leadershlp all affecL flrm-level producLlvlLy and
workforce efflclency.
43,46
Cosh and Pughes's (2000) survey on small and medlum-slzed

38 lnnovaLlon ln flrms: a mlcroeconomlc perspecLlve, CrganlsaLlon for Lconomlc Co-operaLlon and uevelopmenL, Þarls, 2009
39 Þowerlng ldeas - An Agenda for Lhe 21sL CenLury, CommonwealLh of AusLralla, Canberra, 2009
40 1he vlcLorlan ManufacLurlng Labour lorce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
41 lnnovaLlon sLraLegy - geLLlng a head sLarL on Lomorrow, CrganlsaLlon for Lconomlc Co-operaLlon and uevelopmenL, Þarls, 2010b
42 AusLrallan lndusLry Croup and uelolLLe, Notloool cíO 5otvey - 5klllloq fot looovotloo, AusLrallan lndusLry Croup, 2008
43 Alexopoulos, M. and 1ombe, 1., ºManagemenL MaLLers", unpubllshed manuscrlpL, unlverslLy of 1oronLo, 2009
44 Agarwal, 8. and Creen, 8., º1he 8ole of ManagemenL ÞracLlces and lLs lmpacL on lnnovaLlon ln Lhe AusLrallan conLexL",
for publlcaLlon ln Lhe nCvL8 lnnovaLlon book of readlngs LlLled lostetloq eotetptlse. tbe looovotloo ooJ skllls oexos - teseotcb
teoJloqs, lS8n: web edlLlon - 978 1 921809 83 3, ÞrlnL edlLlon - 978 1 921809 84 2 (under prlnL)
43 uuLLon !. M. and 1homas, A., º1reaLlng progress funcLlons as a managerlal opporLunlLy", AcoJemy of Moooqemeot kevlew,
vol. 9, lssue 2, 1984, pp. 233-47
46 lnnovaLlon aLLlLudes ln AusLralla: Lhe resulLs of Lhe onllne survey conducLed by Cpen lorum, SocleLy of knowledge Lconomlcs,
2008a

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 29
enLerprlses provldes some lndlcaLlon of managemenL skllls as belng a slgnlflcanL deLermlnanL of
flrm producLlvlLy growLh.
47

1he manufacLurlng secLor ls sLraLeglcally lmporLanL Lo Lhe vlcLorlan economy for lncreaslng Lhe
proflle of [obs, exporLs, lnvesLmenLs, 8&u and lnnovaLlon. uesplLe lLs decllnlng share of naLlonal
and sLaLe ouLpuL, manufacLurlng remalns Lhe second-largesL secLor ln Lhe vlcLorlan economy,
wlLh Lhe secLor accounLlng for $29.3 bllllon of Cross SLaLe ÞroducL (CSÞ) ln 2008-09. 1hls ls
equlvalenL Lo 10.3° of Lhe vlcLorlan economy, down from 16.1° ln 1994-93.
48
1he fuLure of
vlcLorlan manufacLurlng remalns uncerLaln as lL has shown very llLLle growLh over Lhe lasL
decade, and lLs share of Lhe economy ls on Lhe decllne. ln response Lo lnLense global
compeLlLlon, Lhe vlcLorlan manufacLurlng secLor faces lncreaslng pressures Lo enhance efflclency
and producLlvlLy.
1he developmenL of lnnovaLlon capablllLy and performance ln manufacLurlng enLerprlses can
conLrlbuLe Lo lmproved economlc producLlvlLy and growLh. 1hls was Lhe focus of a number of
revlews, lncludlng Lhe revlew of AusLralla's auLomoLlve lndusLry whlch conLended LhaL:
'Clven Lhe compeLlLlve pressures Lhe lndusLry ls experlenclng, a greaLer emphasls on
lmprovlng producLlvlLy, reformlng work and managemenL pracLlces, and promoLlng a
producLlve workplace culLure wlll be requlred lf Lhe AusLrallan lndusLry ls Lo remaln
compeLlLlve ln Lhe longer Lerm. Whlle volume, economles of scale and lnnovaLlon
(broadly deflned) remaln Lhe key deLermlnanLs of producLlvlLy ln Lhe lndusLry, more
needs Lo be done Lo encourage hlgh-performance workplaces and cosL-compeLlLlve
supply chalns'.
49

Llkewlse, Lhe 8evlew of Lhe AusLrallan 1exLlles, CloLhlng and looLwear lndusLrles noLed LhaL all
lndusLrles ln hlgh-wage, globallsed economles llke AusLralla's depend for Lhelr success on:
'.Lhe developmenL of lnnovaLlve capablllLy aL Lhe level of Lhe enLerprlse and workplace.
1hls ls drlven noL only by research and Lechnology developmenL buL also by Lhe
lncreaslng emphasls on buslness model LransformaLlon, markeL-led organlsaLlonal
change and Lhe lnLegraLlon of flrms lnLo exLernal collaboraLlve neLworks and supply
chalns'.
30

8esearch has shown LhaL superlor managemenL behavlour and Lechnlques and Lhelr adopLlon
are correlaLed wlLh hlgher producLlvlLy galns. Powever, Lhere has noL been such analysls on a
comparable scale ln AusLralla slnce Lhe comprehenslve 1993 karpln 8eporL on leadershlp and
managemenL skllls, íotetptlsloq Notloo,
31
and an earller serles of AusLrallan workplace
employmenL relaLlons surveys (Alexander & Creen 1992).
32
1hls has led Lo a lack of rellable
emplrlcal daLa on managemenL hamperlng Lhe progress of research Lo undersLand Lhe quallLy of
managemenL pracLlces and lLs lmpacL on enLerprlse and naLlonal economlc performance. lL was
Lherefore Llmely for Lhe AusLrallan ManagemenL ÞracLlces 8esearch Lo be commlssloned LhaL
repllcaLes Lhe lnnovaLlve research meLhodology deslgned by 8loom and van 8eenen (2007)
33
ln

47 Cosh, A. and Pughes, A., ºCLCs, managemenL sLrucLure, growLh ob[ecLlves and consLralnLs", ln 8tltlsb íotetptlse lo 1toosltloo,
Cosh, A. and Pughes, A. (eds), LSC8 CenLre for 8uslness 8esearch, Cambrldge unlverslLy, 2000
48 1he vlcLorlan ManufacLurlng Labour lorce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, Melbourne, 2010
49 8evlew of AusLralla's AuLomoLlve lndusLry, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, Canberra, 2008
30 8evlew of AusLrallan 1exLlles, CloLhlng and looLwear lndusLrles, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2008, p. 84
31 karpln, u., LnLerprlslng naLlon: revlewlng AusLralla's managers Lo meeL Lhe challenges of Lhe Asla-Þaclflc cenLury, 8eporL of Lhe
lndusLry 1ask lorce on Leadershlp and ManagemenL Skllls, CommonwealLh of AusLralla, Canberra, 1993
32 Alexander, M. and Creen, 8., "Workplace producLlvlLy and [olnL consulLaLlon", AusLrallan 8ulleLln of Labour, vol18, lssue 2, !une
1992
33 8loom, n. and van 8eenen, !., ºMeasurlng and Lxplalnlng ManagemenL ÞracLlces Across llrms and CounLrles", Ooottetly Iootool
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
30 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Lhe AusLrallan conLexL Lo ldenLlfy deLermlnanLs of managemenL pracLlces and Lo benchmark
AusLrallan managemenL ln manufacLurlng flrms agalnsL Lhe global besL.
34
1hls sLudy has provlded
an lnformaLlon base for pollcy developmenL Lo:
'..lmprove lnnovaLlon skllls and workplace capablllLles, lncludlng managemenL and
leadershlp skllls - bulldlng on LnLerprlse ConnecL and Lhe LducaLlon 8evoluLlon'.
33

Management pract|ces |n Austra||an manufactur|ng
1he AMÞ research conducLed wlLh 439 medlum- and large-slzed manufacLurlng flrms ln AusLralla
examlned flrms' managemenL pracLlces across 18 dlfferenL dlmenslons, correspondlng Lo
Lhree broad areas of managemenL - operaLlons, performance and people. 1hls AMÞ research
demonsLraLed LhaL sLrong managemenL pracLlces leads Lo enhanced performance and
producLlvlLy wlLhln manufacLurlng flrms and ldenLlfled skllls and capablllLles as key deLermlnanLs
of hlgh managemenL performance ln AusLrallan manufacLurlng flrms. 1hls research shows LhaL
Lhe quallLy of managemenL pracLlces has a measurable lmpacL on labour producLlvlLy, as well as
sales and Lhe number of employees ln flrms. lmporLanLly, Lhe assoclaLlon beLween managemenL
pracLlces and flrm producLlvlLy performance ls economlcally slgnlflcanL, whlch ls conslsLenL wlLh
Lhe flndlngs from oLher lnLernaLlonal research.
36
As a resulL, o sloqle polot locteose lo tbe
moooqemeot scote - o meosotemeot JetlveJ ftom tbe 18 moooqemeot cbotoctetlstlcs lo oot
scotloq qtlJ - ls ossocloteJ wltb oo locteose lo ootpot epolvoleot to o 56X locteose lo tbe loboot
fotce ot o 44X locteose lo lovesteJ copltol. ln Lurn, managemenL capablllLles are key drlvers of
economlc prosperlLy, producLlvlLy and susLalned lnnovaLlon.
1he sLudy also lnLernaLlonally benchmarked AusLrallan flrms based on Lhelr managemenL
capablllLy. lL revealed LhaL:
'Whlle AusLrallan managemenL pracLlces are noL ln Lhe Lop rank of performance
worldwlde, Lhey are also noL among Lhe worsL. 1hey currenLly raLe as only moderaLely
above average when benchmarked globally, leavlng slgnlflcanL scope for conslsLenL and
susLalned lmprovemenL across key areas'.
37

AusLrallan managemenL pracLlces rank 6Lh among Lhe 16 parLlclpanL counLrles. AusLralla falls ln
Lhe second Ller of counLrles ln Lerms of lLs managemenL performance, wlLh sLaLlsLlcal parlLy wlLh
lrance, CreaL 8rlLaln and lLaly. Powever, AusLralla slgnlflcanLly lags behlnd Lhe besL performlng
counLrles - Lhe unlLed SLaLes, Sweden, !apan, Cermany, and Canada (see CharL 17 on Lhe
opposlLe page).


of ícooomlcs, vol. 122, lssue 4, 2007, pp. 1,331-408
34 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
33 Þowerlng ldeas - An Agenda for Lhe 21sL CenLury, CommonwealLh of AusLralla, Canberra, 2009
36 8loom, n., uorgan, S., uowdy, !. and van 8eenen, !., ºManagemenL ÞracLlce & ÞroducLlvlLy: Why Lhey maLLer?", ManagemenL
MaLLers, 2007
37 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
Canberra, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 31
Chart 17: Cvera|| management scores by country
S8


* AL Lhe 10° slgnlflcance level.
A key flndlng of Lhls research was LhaL many AusLrallan enLerprlses are relaLlvely sLrong ln Lhe
area of operaLlons and performance managemenL. Powever, AusLrallan buslnesses score leasL ln
people managemenL and lag behlnd ln Lhelr deploymenL of advanced human resource
managemenL pracLlces (1able 1). 1he people managemenL dlmenslons lnclude aLLracLlng,
developlng and reLalnlng LalenL and skllls, and nurLurlng human caplLal Lo lmprove performance
and add value Lo organlsaLlons. Puman resource managemenL presenLs a real opporLunlLy and
warranLs Lhe urgenL aLLenLlon of AusLrallan managers.
1ab|e 1: Summary of Austra||an management scores
S9

varlable Cbs Mean SLd. uev. Mln Max
Management 439 2.98 0.38 1.11 4.44
Cperat|ons 439 3.22 0.70 1.00 4.36
Þerformance 439 2.96 0.74 1.00 4.60
Þeop|e 439 2.71 0.32 1.00 4.33

When globally benchmarked, AusLralla's ranklng ls 8Lh

ln Lhe world ln people managemenL. 1he
uS, Canada and Cermany dellver excepLlonal performance ln Lhls area and emerge ahead of
AusLralla. 8elaLlve Lo Lhe besL performlng naLlon, Lhe AusLrallan scores ln Lhe area of people
managemenL are sLaLlsLlcally worse across all of Lhe slx dlmenslons (see CharL 18 on Lhe
followlng page). ln summary, whlle flrms should develop a sLrucLured approach Lo hollsLlcally
lmprovlng all Lhree managemenL areas, Lhey need Lo pay parLlcular aLLenLlon Lo Lhe sphere of
people and human resource managemenL.


38 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
39 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
3.32
3.19
3.19
3.18
3.15
3.02
3.01
2.99
2.98
2.90
2.79
2.77
2.68
2.67
2.66
2.64
2.6 2.8 3 3.2 3.4
management scores
US
Sweden
Japan
Germany
Canada
Australia
France
Great Britain
Italy
Poland
Portugal
Ireland
Brazil
India
Greece
China
!"# %#&#'%#'(&))*
+',,-.-/# 0
0
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
32 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 18: Þeop|e management scores by country
60


* AL Lhe 10° slgnlflcance level.
1he AMÞ sLudy also found LhaL Lhere ls conslderable varlance ln managemenL pracLlces wlLhln
AusLrallan flrms. 1he followlng are Lhe key flndlngs wlLh regard Lo Lhe deLermlnanLs of
managemenL pracLlces, summarlsed as follows:
• 1he level of educaLlon and skllls among boLh managemenL and non-managemenL
personnel lmpacLs managemenL performance.
• Slze ls an lmporLanL facLor ln managemenL performance, wlLh larger flrms scorlng beLLer
Lhan smaller flrms.
• Cwnershlp ls also a facLor and mulLlnaLlonals clearly ouLperform domesLlc flrms ln
managemenL performance.
• AusLrallan publlcly llsLed companles are also more llkely Lo adopL modern managemenL
pracLlces Lhan oLher Lypes of company ownershlps.
• lamlly run buslnesses Lend Lo charL lnferlor managemenL performance.
• lnLernaLlonal exposure ls lmporLanL, as Lhere ls a slgnlflcanL poslLlve correlaLlon beLween
Lhe managemenL score and share of exporLs.
• 1here ls a hlghly slgnlflcanL poslLlve relaLlonshlp beLween Lhe managemenL score and
Lhe overall degree of planL manager auLonomy.
• CrganlsaLlonal hlerarchy ls also poslLlvely correlaLed Lo Lhe managemenL scores,
a flndlng posslbly lndlcaLlng llmlLaLlons ln flaLLer sLrucLures.


60 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
3.22
2.97
2.86
2.84
2.83
2.82
2.78
2.75
2.72
2.71
2.67
2.66
2.64
2.54
2.53
2.51
2.4 2.6 2.8 3 3.2 3.4
people management scores
US
Canada
Germany
Japan
Poland
Great Britain
Sweden
Australia
France
Ireland
Italy
China
India
Portugal
Brazil
Greece
!"# %#&#'%#'(&))*
+',,-.-/# 0
0

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 33
ldenLlfylng skllls and capablllLy as a key deLermlnanL of hlgh managemenL performance ln flrms
ls ln sync wlLh global sLudy flndlngs LhaL suggesL LhaL:
'1he avallablllLy of skllled people, boLh ln managemenL and among Lhe workforce ln
general, ls anoLher lmporLanL dlfference beLween beLLer managed flrms and Lhe resL.'
61

ln Lhe AusLrallan conLexL, 64° of managers ln Lhe hlghesL-scorlng flrms possessed a unlverslLy
degree or hlgher, as dld 20° of Lhe managers ln Lhe non-managemenL workforce. Among Lhe
lowesL scorlng flrms, by conLrasL, only 3° of managers and only 1° of Lhe wlder workforce had
degrees (CharL 19, below). 1he relaLlonshlp beLween managemenL and sklll levels ls sLaLlsLlcally
slgnlflcanL, Lhe proporLlon of managers and non-managers wlLh unlverslLy degrees can explaln
approxlmaLely 6.8° and 4.6° of varlablllLy of managemenL score respecLlvely (Appendlx 1 -
1ables l -ll).
Chart 19: Management scores by |eve| of educat|on
62




61 8loom, n., uorgan, S., uowdy, !. and van 8eenen, !., ºManagemenL ÞracLlce & ÞroducLlvlLy: Why Lhey maLLer?", Moooqemeot
Mottets, 2007
62 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
20
64.32
13.78
63
9.60
48.36
5.84
37.06
3.05
30.57
2.75
26
1.25
3.25
0 20 40 60
4
3.5
3
2.5
2
1.5
1
proportion of managers with university degree
proportion of non-managers with university degree
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
34 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Conc|us|on
lnsLllllng effecLlve managemenL pracLlces and promoLlng skllls and capablllLles has Lhe poLenLlal
Lo bulld susLalnable compeLlLlve advanLage ln Lhe AusLrallan manufacLurlng secLor. 1here ls
room for lmprovemenL ln managemenL capablllLles wlLhln AusLrallan manufacLurlng flrms ln
comparlson wlLh lnLernaLlonal besL pracLlce. Whlle AusLrallan flrms score relaLlvely well ln some
dlmenslons of operaLlons and performance managemenL, Lhey lag slgnlflcanLly ln people
managemenL. LducaLlon and skllls, flrm slze, flrm ownershlp, presence of mulLlnaLlonals, and
labour markeL sLrucLures are key drlvers of good managemenL. 1hese facLors need Lo be kepL ln
mlnd when developlng sLraLegles Lo enhance managemenL performance ln AusLrallan
manufacLurlng flrms.
ln parLlcular, Lhe flndlngs supporL Lhe hypoLhesls LhaL flrms ln a hlgh-sklll envlronmenL wlll have
beLLer human caplLal managemenL pracLlces Lhan Lhose ln a low-sklll envlronmenL.
63
llrms
develop absorpLlve capaclLy as a resulL of Lhelr own knowledge base galned Lhough prevlous
learnlng exposures and educaLlon - dolng-by-learnlng - buL also as a by-producL of lnLense
acLlvlLy ln Lhe workplace - learnlng-by-dolng. ln Lhe case of AusLrallan flrms, Agarwal & Creen
(2011)
64
have also demonsLraLed LhaL hlgher sklll and educaLlon level, boLh for managers and
Lhelr workforces, are poslLlvely and slgnlflcanLly assoclaLed wlLh Lhe ablllLy Lo develop and
deploy superlor managemenL pracLlces and LhaL hlgh performlng managemenL ls a key drlver ln
Lhe promoLlon of more lnnovaLlve and producLlve manufacLurlng enLerprlses.


63 8loom, n. and van 8eenen, !., ºMeasurlng and Lxplalnlng ManagemenL ÞracLlces Across llrms and CounLrles", Ooottetly Iootool
of ícooomlcs, vol. 122, lssue 4, 2007, pp. 1,331-408
64 Agarwal, 8. and Creen, 8. º1he 8ole of ManagemenL ÞracLlces and lLs lmpacL on lnnovaLlon ln Lhe AusLrallan conLexL" for
publlcaLlon ln Lhe nCvL8 lnnovaLlon book of readlngs LlLled ºlosLerlng enLerprlse: Lhe lnnovaLlon and skllls nexus - research
readlngs", lS8n: web edlLlon - 978 1 921809 83 3, ÞrlnL edlLlon - 978 1 921809 84 2 (under prlnL), 2011

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 33
2.4 8LNCnMAkkING VIC1CkIAN MANUIAC1UkING
key I|nd|ngs
• 1hls sLudy has provlded an lnLernaLlonally comparable measure of managemenL
performance for vlcLorlan manufacLurlng flrms and Lhe resulLs conLrlbuLe Lo Lhe
evldence base on Lhe quallLy of vlcLorlan managemenL pracLlces.
• Whlle vlcLorlan flrms score relaLlvely well ln operaLlons and performance managemenL,
Lhey lag slgnlflcanLly ln people managemenL. 1hls ls Lhe area where vlcLorlan
manufacLurlng flrms Lrall mosL behlnd AusLrallan and lnLernaLlonal besL pracLlce.
• 1he overall managemenL score of vlcLorlan flrms ls sLaLlsLlcally on par wlLh LhaL of Lhe
remalnlng AusLrallan sLaLes. Powever, Lhe performance of vlcLorla ls sLaLlsLlcally
slgnlflcanLly beLLer Lhan Lhe resL of Lhe cohorL sLaLes ln Lhe sub-areas of operaLlons and
performance managemenL.
• 1he Machlnery and LqulpmenL ManufacLurlng (AnZlSC 28) secLor performs sLaLlsLlcally
beLLer Lhan oLher lndusLry secLors ln all managemenL areas, lncludlng overall
managemenL. 1he lood, 8everage and 1obacco ManufacLurlng (AnZSlC 21) secLor scores
sLaLlsLlcally slgnlflcanLly beLLer Lhan Lhe resL ln operaLlons managemenL. ln performance
managemenL, Lhe CLher ManufacLurlng (AnZSlC Code 29) secLor ls sLaLlsLlcally worse
compared Lo Lhe resL of Lhe cohorL. 1he Wood and Þaper ÞroducL ManufacLurlng
(AnZSlC 23) secLor performs worse Lhan Lhe remalnlng secLors ln lLs people
managemenL pracLlces.
• 1he flndlngs of Lhls research also uncover Lhe key deLermlnanLs of good managemenL
pracLlce, educaLlon and skllls, flrm slze, flrm ownershlp, presence of mulLlnaLlonals,
manager auLonomy and organlsaLlonal hlerarchy are facLors whlch need Lo be
consldered when developlng sLraLegles Lo enhance managemenL performance.
• AlLhough Lhe flndlngs from Lhe sample of vlcLorlan manufacLurlng flrms do noL show a
sLaLlsLlcally slgnlflcanL assoclaLlon beLween managemenL pracLlces and flrm producLlvlLy
performance, sales and number of employees, Lhls needs Lo be Laken wlLh cauLlon glven
Lhe smaller sample slze of vlcLorlan manufacLurlng flrms, along wlLh Lhe reduced
avallablllLy of performance daLa on Lhese flrms.
• Cverall, Lhe flndlngs can be used Lo lnform pollcy almed aL promoLlng, lnculcaLlng and
fosLerlng beLLer managemenL pracLlces ln vlcLorlan manufacLurlng workplaces as a
means of enhanclng producLlvlLy and compeLlLlveness of Lhe vlcLorlan manufacLurlng
secLor.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
36 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
Clven Lhe key focus of Lhls sLudy ls Lo undersLand Lhe sLraLeglc managemenL and leadershlp skllls
of managers ln vlcLorla's manufacLurlng lndusLry, quanLlLaLlve analysls of Lhe 121 vlcLorlan
manufacLurlng flrms among Lhe LoLal of 439 AusLrallan manufacLurlng flrms surveyed was
conducLed. 1hls analysls leads Lo lnslghLs on:
• 1he domesLlc landscape of managemenL capablllLles ln vlcLorlan manufacLurlng secLor
- lLs areas of sLrengLh and Lhe poLenLlal scope for lmprovemenL,
• Comparlson of managemenL capablllLles ln vlcLorlan manufacLurlng agalnsL Lhose ln Lhe
oLher AusLrallan sLaLes,
• vlcLorlan managemenL pracLlces aL Lhe level of manufacLurlng lndusLry secLors (AnZSlC
Codes 21-29), and
• lacLors deLermlnlng Lhe quallLy of managemenL pracLlces ln vlcLorlan manufacLurlng
flrms.
Domest|c Landscape of Management Capab|||t|es |n V|ctor|an Manufactur|ng
1he average overall managemenL score for vlcLorlan manufacLurlng flrms ls 3.06 (see 1able 2,
on Lhe followlng page). 1he dlsLrlbuLlon of managemenL scores among Lhe lnLervlewed vlcLorlan
flrms ls falrly homogenous.
CperaLlons managemenL ls Lhe besL performlng managemenL area for vlcLorlan manufacLurlng
flrms, wlLh an average score of 3.34 (1able 2). Around 20° of all lnLervlewed flrms earned an
operaLlons managemenL score above 4, wlLh a maxlmum score of 4.8. Cnly 3° of Lhe flrms
scored less Lhan 2, suggesLlng LhaL mosL companles have effecLlvely lmplemenLed modern
sysLems and processes Lo manage Lhelr operaLlons.
1he spread of performance managemenL scores ls relaLlvely more negaLlvely skewed. Around
10° of flrms had a score above 4, buL 10° of flrms fared poorly, scorlng below 2. ln all, vlcLorlan
manufacLurlng flrms score an average of 3.08 ln Lhls area (1able 2).
Þeople managemenL ls a weak area for vlcLorlan manufacLurers, who scored an average
managemenL score of only 2.71 ln Lhls sphere (1able 2). Whlle 1° of Lhe flrms scored above 4,
abouL 10° of flrms had a score below 2. 1hls spread ls lndlcaLlve of Lhe vasL poLenLlal for
lmprovemenL ln Lhls area.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 37
1ab|e 2: Summary of V|ctor|an management scores
6S

Var|ab|e Cbs Mean Std. Dev. M|n Max
ManagemenL 121 3.06 0.60 1.11 4.33
CperaLlons 121 3.34 0.73 1 4.86
Þerformance 121 3.08 0.76 1 4.6
Þeople 121 2.71 0.32 1.33 4.33

uelvlng lnLo Lhe managemenL performance across Lhe 18 dlmenslons of Lhe Lhree areas of
managemenL, Lhere ls a noLable varlaLlon ranglng from worse Lo beLLer performance among Lhe
vlcLorlan flrms (see CharL 20 below).
Chart 20: V|ctor|an management pract|ces across the 18 d|mens|ons
66


CharL 21 (on Lhe followlng page) compares Lhe managemenL scores of vlcLorlan manufacLurlng
flrms ln Lhe 18 managemenL dlmenslons Lo Lhose of AusLrallan flrms overall, and globally
benchmarks vlcLorlan managemenL pracLlces agalnsL 16 oLher counLrles LhaL have parLlclpaLed
ln Lhls research.


63 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
66 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
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vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
38 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he resulLs reveal Lhe followlng:
• vlcLorlan manufacLurlng flrms perform sLaLlsLlcally worse Lhan Lhe global besL
performlng naLlon ln a number of speclflc managemenL dlmenslons wlLhln Lhe broad
areas of operaLlons, performance and people managemenL whlch are lndlcaLed by
verLlcal arrows ln CharL 21 (below),
• 1he exLenL Lo whlch managemenL pracLlces Lralls ln each of Lhe 18 dlmenslons varles
conslderably Loo,
• vlcLorlan manufacLurlng flrms are sLaLlsLlcally on par wlLh Lhe global besL performer ln
Lwo operaLlons managemenL dlmenslons - AdopLlon of lean manufacLurlng
managemenL pracLlces and 8aLlonale for adopLlng Lhe same, and
• vlcLorlan managemenL pracLlces are sLaLlsLlcally no dlfferenL Lo Lhe Lop performlng
counLry ln Lwo dlmenslons of performance managemenL - clarlLy and lnLer-connecLlon
of goals and LargeLs.
Chart 21: Gaps |n V|ctor|an management performance by each d|mens|on
67




67 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: AsLerlsks denoLe managemenL dlmenslons LhaL are sLaLlsLlcally slgnlflcanLly dlfferenL Lo Lhe global besL performer. Arrows
lndlcaLe scope for lmprovemenL ln Lhese pracLlces.
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6
3.8
4
Victorian
management score
Australian
management score
Management score
of global best
perf orming country
Operations
Management
Perf ormance
Management
People
Management

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 39
1he nexL level of analysls examlnes Lhe performance of vlcLorlan managemenL from several
perspecLlves as follows:
• Comparlng how vlcLorlan manufacLurlng managemenL performs agalnsL Lhe oLher
AusLrallan sLaLes,
• vlcLorlan managemenL pracLlces by manufacLurlng lndusLry secLors, and
• ManagemenL pracLlces ln medlum (30-199 employees) and large (200+ employees)
vlcLorlan manufacLurlng flrms.
Compar|ng V|ctor|an Management Þerformance w|th other Austra||an States
llrms across dlfferenL AusLrallan sLaLes were lnLervlewed as parL of Lhe AMÞ research, 27° of all
lnLervlewed flrms were vlcLorlan (CharL 22, below).
Chart 22: D|str|but|on of |nterv|ews across Austra||an states
68


Whlle Lhe flrms across sLaLes appear Lo score varylngly ln Lhelr managemenL performance
(CharL 22, above), Lhe overall managemenL score of vlcLorlan flrms ls acLually sLaLlsLlcally
on par wlLh LhaL of Lhe remalnlng sLaLes (CharL 23, on Lhe followlng page).


68 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL. ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
7°
34°
16°
13°
2°
28°
WesLern AusLralla new SouLh Wales Cueensland SouLh AusLralla 1asmanla vlcLorla
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
40 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 23: Cvera|| management scores by Austra||an states
69


Looklng aL Lhe Lhree managemenL areas, Lhe followlng polnLs are worLh noLlng:
• 1he performance of vlcLorla ls sLaLlsLlcally slgnlflcanLly beLLer Lhan Lhe resL of Lhe cohorL
sLaLes ln operaLlons and performance managemenL, and
• 1he dlfference ln scores among Lhe sLaLes ls noL sLaLlsLlcally slgnlflcanL ln Lhe remalnlng
managemenL areas.
1hese polnLs are lllusLraLed ln CharL 24, on Lhe opposlLe page.

69 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL. ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: 1asmanla was noL lncluded due Lo negllglble sample slze and flndlngs for WesLern AusLralla should be Laken wlLh cauLlon
due Lo a small sample slze.
2.68
2.95
2.95
3.06
3.09
2.4 2.6 2.8 3 3.2
management
Western Australia
New South Wales
Queensland
Victoria
South Australia

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 41
Chart 24: V|ctor|an management performance re|at|ve to other states
70


Compar|ng management pract|ces w|th|n V|ctor|an manufactur|ng |ndustry sectors
Among Lhe 121 vlcLorlan manufacLurlng flrm lnLervlewed, 27° of Lhese flrms belong Lo AnZSlC
21 - lood, 8everage and 1obacco ManufacLurlng flrms.


70 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: 1asmanla noL lncluded due Lo negllglble sample slze and flndlngs for WesLern AusLralla should be Laken wlLh cauLlon due Lo
a small sample slze.
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
42 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 2S: D|str|but|on of V|ctor|an |nterv|ews by manufactur|ng |ndustry sectors
71


An examlnaLlon of Lhe relaLlve performance ln Lhe overall managemenL scores of vlcLorlan
manufacLurlng flrms across AnZSlC manufacLurlng lndusLry secLors reveals LhaL AnZSlC 28 -
Machlnery and LqulpmenL ManufacLurlng - scores hlghesL (CharL 23, above), and performs
sLaLlsLlcally slgnlflcanLly beLLer Lhan Lhe oLher manufacLurlng secLors (CharL 26, on Lhe
opposlLe page).


71 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
21: lood, 8everage and 1obacco ManufacLurlng, 22: 1exLlle, CloLhlng, looLwear and LeaLher ManufacLurlng, 23: Wood and Þaper
ÞroducL ManufacLurlng, 24: ÞrlnLlng, Þubllshlng and 8ecorded Medla, 23: ÞeLroleum, Coal, Chemlcal and AssoclaLed ÞroducL
ManufacLurlng, 26: non-MeLalllc Mlneral ÞroducL ManufacLurlng, 27: MeLal ÞroducL ManufacLurlng, 28: Machlnery and LqulpmenL
ManufacLurlng, 29: CLher ManufacLurlng.
19.83%
6.61%
6.612%
6.61%
17.36%
5.79%
5.79%
27.27%
4.13%
21 22
23 24
25 26
27 28
29

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 43
Chart 26: Cvera|| management scores by manufactur|ng |ndustry sectors
72


lurLher analysls reveals Lhe followlng key flndlngs:
• Lhe Machlnery and LqulpmenL ManufacLurlng (AnZlSC 28) secLor performs sLaLlsLlcally
beLLer Lhan oLher lndusLry secLors ln all managemenL areas, lncludlng overall
managemenL,
• Lhe lood, 8everage and 1obacco ManufacLurlng (AnZSlC 21) secLor scores sLaLlsLlcally
slgnlflcanLly beLLer Lhan Lhe resL ln operaLlons managemenL,
• ln performance managemenL, Lhe CLher ManufacLurlng (AnZSlC Code 29) secLor ls
sLaLlsLlcally worse compared Lo Lhe resL of Lhe cohorL,
• Lhe Wood and Þaper ÞroducL ManufacLurlng (AnZSlC 23) secLor performs worse
Lhan Lhe remalnlng secLors ln lLs people managemenL pracLlces, and
• Lhe performance of all oLher secLors ls sLaLlsLlcally equlvalenL wlLhln each area.
1hese flndlngs are represenLed ln CharL 27, on Lhe followlng page.

72 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe 1: llndlngs for 1exLlle, CloLhlng, looLwear and LeaLher ManufacLurlng (AnZSlC 22), Wood and Þaper ÞroducL ManufacLurlng
(AnZSlC 23), ÞrlnLlng, Þubllshlng and 8ecorded Medla (AnZSlC 24), non-MeLalllc Mlneral ÞroducL ManufacLurlng (AnZSlC 26), MeLal
ÞroducL ManufacLurlng (AnZSlC 27) and CLher ManufacLurlng (AnZSlC 29) should be Laken wlLh cauLlon due Lo a small sample slze.
noLe 2: 21: lood, 8everage and 1obacco ManufacLurlng, 22: 1exLlle, CloLhlng, looLwear and LeaLher ManufacLurlng, 23: Wood and
Þaper ÞroducL ManufacLurlng, 24: ÞrlnLlng, Þubllshlng and 8ecorded Medla, 23: ÞeLroleum, Coal, Chemlcal and AssoclaLed ÞroducL
ManufacLurlng, 26: non-MeLalllc Mlneral ÞroducL ManufacLurlng, 27: MeLal ÞroducL ManufacLurlng, 28: Machlnery and LqulpmenL
ManufacLurlng, 29: CLher ManufacLurlng.
2.76
2.82
2.83
2.90
2.98
3.01
3.15
3.16
3.35
2.6 2.8 3 3.2 3.4
management
24
23
29
21
25
27
22
26
28
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
44 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 27: ke|at|ve manufactur|ng |ndustry sector performance across management areas
73




73 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
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_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 43
Determ|nants of V|ctor|an Manufactur|ng Management Þract|ces
1he research uncovers Lhe followlng key facLors LhaL drlve Lhe adopLlon of managerlal besL
pracLlce ln vlcLorlan manufacLurlng flrms.
• Skllls and educaLlon form an lmporLanL deLermlnanL of managemenL pracLlces, hlgher
levels of skllls and educaLlon among boLh managers and non-managers poslLlvely lmpacL
managemenL performance. 1he proporLlon of boLh managers and non-managers wlLh
unlverslLy degrees can each explaln around 10° of Lhe varlaLlon ln managemenL scores
(Appendlx 1 - 1ables lll-lv),
• llrm slze ls a facLor ln managemenL performance, large-slzed vlcLorlan manufacLurlng
flrms slgnlflcanLly ouLperform medlum-slzed flrms ln Lerms of Lhelr overall managemenL
capablllLy and across all Lhree managemenL areas - operaLlons, performance and
people. llrm slze alone can explaln 6° of Lhe varlablllLy of managemenL scores wlLhln
Lhe sample (Appendlx 1 - 1able v),
• Cwnershlp ls also a facLor, mulLlnaLlonal corporaLlons ln vlcLorla adopL and spread
beLLer managemenL pracLlces as compared Lo domesLlc flrms, and Lhe dlfference ls
sLaLlsLlcally slgnlflcanL (Appendlx 1 - 1able vl). lurLhermore, forelgn MnCs, lncludlng
subsldlarles of a forelgn mulLlnaLlonal company ln vlcLorla, have Lhe besL managemenL
scores. AusLrallan MnCs based ln vlcLorla also ouLperform companles whlch only
operaLe domesLlcally. 1he resulLs suggesL LhaL MnCs can help Lhe advancemenL of
knowledge dlffuslon and bulldlng of skllls leadlng Lo enhanced buslness lnnovaLlon
across parLnerlng organlsaLlons,
• 1he degree of manager auLonomy ls a cruclal facLor leadlng Lo superlor managemenL
performance. CreaLer manager auLonomy ls assoclaLed wlLh hlgher managemenL scores,
manager auLonomy can explaln approxlmaLely 4° of varlablllLy ln Lhe managemenL
score (Appendlx 1 - 1able vll), and
• CrganlsaLlonal hlerarchy ls also slgnlflcanLly relaLed Lo managemenL scores, wlLh
organlsaLlonal hlerarchy belng able Lo explaln 6° of varlablllLy ln managemenL scores
(Appendlx 1 - 1able vlll). A sLrucLured hlerarchy cerLalnly supporLs Lhe meLhodlcal
deploymenL of managemenL pracLlces wlLhln manufacLurlng flrms, yeL adopLlng a
flexlble managemenL sLyle and creaLlng an empowered workforce ls equally lmporLanL
ln drlvlng performance. CpLlmally balanclng organlsaLlonal sLrucLure and managerlal
auLonomy ln vlcLorlan manufacLurlng flrms ls hence cruclal.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
46 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he econom|c |mpact of management pract|ces |n V|ctor|an manufactur|ng f|rms
1he AMÞ research shows LhaL Lhe quallLy of managemenL pracLlces has a measurable and
economlcally slgnlflcanL lmpacL on labour producLlvlLy, as well as on sales and Lhe number of
employees ln flrms (CharL 28, below). 1hls resulL lmplles LhaL beLLer managemenL pracLlces are
llnked wlLh lncreases ln producLlvlLy, and resonaLes wlLh Lhe flndlngs from oLher lnLernaLlonal
research.
74

Chart 28: Management scores corre|ates we|| w|th severa| product|v|ty metr|cs
|n Austra||an manufactur|ng f|rms
7S


1he resulLs show LhaL a slngle unlL lncrease ln Lhe managemenL score ls assoclaLed wlLh an
lncrease ln sales per employee ranglng from 8.4° Lo 16°, an lncrease ln sales of 13°, and an
lncrease ln Lhe number of employees of 19.3°. ln Lhe conLexL of Lhls research, a slngle polnL ln
Lhe managemenL score refers Lo a polnL as per Lhe scorlng grld, whereln a one polnL lncrease
ln Lhe overall managemenL score.
lurLher, Lhe relaLlve level of flrm ouLpuL assoclaLed wlLh an lncrease of a slngle polnL ln Lhe
managemenL score ls equlvalenL Lo a 36° lncrease ln Lhe labour force, or a 44° lncrease ln
lnvesLed caplLal (CharL 29, on Lhe opposlLe page). AlLhough Lhe relaLlonshlp ls noL necessarlly
causal, Lhls flndlng does suggesL LhaL managemenL pracLlces have an economlcally slgnlflcanL
assoclaLlon wlLh sales ouLpuL for manufacLurlng flrms. 1hls flndlng suggesLs LhaL lnvesLlng ln
managemenL pracLlces may be a cosL-effecLlve way for flrms Lo boosL producLlvlLy, relaLlve Lo
hlrlng addlLlonal employees or maklng dlrecL lnvesLmenL ln flxed caplLal.

74 8loom, n., uorgan, S., uowdy, !. and van 8eenen, !., ºManagemenL ÞracLlce & ÞroducLlvlLy: Why Lhey maLLer?", ManagemenL
MaLLers, 2007
73 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Þanel daLa for flrms over Lhe perlod 2004-08. llrms are grouped ln 0.3 lncremenLs of assessed managemenL score and
performance measure varlables are logged. LconomeLrlc Analysls (noL reporLed here) reveals LhaL Lhls poslLlve assoclaLlon ls robusL
Lo Lhe lncluslon of conLrols such as reglon, lndusLry and oLher facLors whlch have been shown Lo explaln producLlvlLy.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 47
Chart 29: Management pract|ce - |abour and cap|ta| equ|va|ency assoc|at|on
76


1he same economeLrlc analysls was repllcaLed for Lhe sample of vlcLorlan flrms. Powever, Lhe
resulLs do noL show a sLaLlsLlcally slgnlflcanL assoclaLlon beLween managemenL pracLlces and
flrm producLlvlLy performance, sales and number of employees. 1hls resulL ls lnconslsLenL wlLh
Lhe AMÞ and oLher global research. Cne plauslble argumenL for Lhls ls Lhe smaller sample slze of
vlcLorlan manufacLurlng flrms, along wlLh Lhe reduced avallablllLy of performance daLa on Lhese
flrms, whlch decreases Lhe rlgour and robusLness of analysls and Lhe resulLs Lhereof. lL ls
recommended LhaL Lhls economeLrlc analysls ls repeaLed afLer collecLlng daLa from a larger and
more robusL sample of vlcLorlan manufacLurlng flrms, whlch wlll help produce more rellable
resulLs.
Conc|us|on
1hls sLudy has provlded an lnLernaLlonally comparable measure of managemenL performance
for vlcLorlan manufacLurlng flrms. 1he resulLs conLrlbuLe Lo Lhe evldence base on Lhe quallLy of
vlcLorlan managemenL pracLlces, and suggesL LhaL lnsLllllng effecLlve managemenL pracLlces and
promoLlng a hlgh-performance workplace culLure can help enhance Lhe compeLlLlveness of Lhe
vlcLorlan manufacLurlng secLor. 1he flndlngs can be used Lo lnform pollcy almed aL lmprovlng
Lhe Lrend raLe of producLlvlLy and performance ln vlcLorlan manufacLurlng.
1he sLudy also ldenLlfles managemenL areas where vlcLorlan manufacLurlng flrms Lrall behlnd
AusLrallan and lnLernaLlonal besL pracLlce, whlch ls where Lhey have scope for lmprovemenL.
Whlle vlcLorlan flrms score relaLlvely well ln operaLlons and performance managemenL, Lhey
lag slgnlflcanLly ln people managemenL. Comparlng vlcLorlan managemenL performance
agalnsL LhaL of oLher AusLrallan sLaLes and wlLhln Lhe manufacLurlng lndusLry secLors provldes
meanlngful lnslghLs. 1he flndlngs of Lhls research also uncover Lhe key deLermlnanLs of

76 ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: ConLrols for counLry, secLor, employees, sklll and hours worked. AnoLher meLhod used Lo calculaLe Lhls assoclaLlon generaLes
larger labour and caplLal lncreases assoclaLed wlLh 1 polnL lmprovemenL ln managemenL pracLlces.
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
48 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
good managemenL pracLlce: educaLlon and skllls, flrm slze, flrm ownershlp, presence of
mulLlnaLlonals, manager auLonomy and organlsaLlonal hlerarchy are facLors whlch need
Lo be consldered when developlng sLraLegles Lo enhance managemenL performance.
AlLhough Lhe flndlngs from Lhe sample of vlcLorlan manufacLurlng flrms do noL show a
sLaLlsLlcally slgnlflcanL assoclaLlon beLween managemenL pracLlces and flrm producLlvlLy
performance, sales and number of employees, Lhls needs Lo be Laken wlLh cauLlon glven
Lhe smaller sample slze of vlcLorlan manufacLurlng flrms, along wlLh Lhe reduced avallablllLy
of performance daLa on Lhese flrms, whlch decreases Lhe rlgour and robusLness of analysls
and Lhe resulLs. 1he AMÞ research clearly shows LhaL Lhe quallLy of managemenL pracLlces
has a measurable and economlcally slgnlflcanL lmpacL on labour producLlvlLy, as well as
sales and Lhe number of employees ln flrms. ÞromoLlng, lnculcaLlng and fosLerlng beLLer
managemenL pracLlces ln vlcLorlan manufacLurlng workplaces may ulLlmaLely LranslaLe lnLo
lmproved producLlvlLy performance ln Lhese flrms.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 49
2.S 8LNCnMAkkING LDUCA1ICN AND SkILLS IN VIC1CkIAN MANUIAC1UkING
key I|nd|ngs
• vlcLorlan manufacLurlng flrms have Lhe second-hlghesL proporLlon of unlverslLy-
educaLed managers wlLhln AusLralla. Powever, when benchmarked lnLernaLlonally,
Lhe educaLlon and sklll level wlLhln AusLrallan manufacLurlng ls among Lhe lowesL
ln Lhe world, hence Lhls ls an area LhaL presenLs scope for lmprovemenL wlLhln Lhe
vlcLorlan manufacLurlng secLor.
• Level of educaLlon and sklll poslLlvely lmpacLs Lhe managemenL score, Lhose vlcLorlan
manufacLurlng flrms wlLh a larger proporLlon of managers and non-managers holdlng a
unlverslLy degree score hlgher ln managemenL. 1he relaLlonshlp beLween managemenL
performance and sklll levels ls sLaLlsLlcally slgnlflcanL, Lhe proporLlon of boLh managers
and non-managers wlLh a unlverslLy degree can each explaln around 10° of Lhe
varlaLlon ln managemenL scores.
• 1here ls a sLaLlsLlcally slgnlflcanL relaLlonshlp beLween educaLlon and sklll level, and Lhe
managemenL scores across all Lhree managemenL areas - operaLlons, performance and
people managemenL.
• Large-slzed vlcLorlan manufacLurlng flrms (200+ employees) score sLaLlsLlcally beLLer
Lhan medlum-slzed ones (30-1,899 employees) across all managemenL areas, lncludlng
overall managemenL. Correspondlngly, Lhere ls also a sLaLlsLlcally hlgher proporLlon
of managers and non-managers wlLh a degree ln large-slzed flrms, as compared Lo
medlum-slzed flrms.
• 1he smaller flrms (30-99 employees) score sLaLlsLlcally slgnlflcanLly lower Lhan flrms
wlLh 100 or more employees across all managemenL areas excepL performance
managemenL. 1hls underperformance also relaLes Lo Lhe sLaLlsLlcally lower proporLlon
of managers wlLh degree ln small-slzed flrms, as compared Lo Lhe resL of Lhe cohorL.
• 1he 88W-llsLed flrms scored sLaLlsLlcally hlgher on managemenL pracLlces across all
areas of managemenL excepL people managemenL. noLably, Lhere ls also a sLaLlsLlcally
hlgher proporLlon of managers and non-managers wlLh degree ln 88W-llsLed flrms as
compared Lo Lhe resL of Lhe cohorL.
• Cverall, Lhls research relLeraLes LhaL lnvesLmenL ln educaLlon, skllls and LalenL ls a key
drlver of effecLlve managemenL pracLlces and, ln Lurn, enhanced performance and
compeLlLlveness ln vlcLorlan manufacLurlng flrms.
• 1he flndlngs can lnform governmenL pollcy lnlLlaLlves and organlsaLlonal efforLs Lo fosLer
beLLer workforce skllls and managemenL LalenL ln vlcLorlan manufacLurlng flrms.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
30 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
1hls research also analyses ln deLall Lhe role of managemenL educaLlon and skllls ln deLermlnlng
Lhe level of managemenL pracLlces and, ln Lurn, buslness performance wlLhln Lhese
manufacLurlng flrms. 1he resulLs shed llghL on:
• Lhe benchmarked levels of skllls and educaLlon ln vlcLorlan manufacLurlng flrms,
• Lhe lmpacL of skllls and educaLlon on Lhe managemenL capablllLles wlLhln Lhese flrms,
and
• skllls and educaLlon, cross-examlned by dlfferenL sub-groups ln vlcLorlan manufacLurlng.
1he flndlngs lndlcaLe Lhe llnkage beLween managemenL and leadershlp skllls of employees and
flrm producLlvlLy and compeLlLlveness ln Lhe vlcLorlan manufacLurlng secLor.
Lducat|on Leve|
Where does V|ctor|an manufactur|ng stand?
1he educaLlon level wlLhln vlcLorlan manufacLurlng ls relaLlvely hlgh ln comparlson wlLh oLher
AusLrallan sLaLes. WlLh an average of [usL 47° of managers and 8° of non-managers ln Lhe
flrm sample havlng a unlverslLy degree, vlcLorlan manufacLurlng flrms have Lhe second-hlghesL
proporLlon of unlverslLy-educaLed managers ln Lhe counLry (CharL 30, on Lhe opposlLe page).
Powever, when benchmarked lnLernaLlonally, Lhe educaLlon level wlLhln AusLrallan
manufacLurlng ls among Lhe lowesL ln Lhe world. WlLh an average of only 44° of managers and
8° of non-managers ln Lhe flrm sample havlng a unlverslLy degree, ln Lhls area AusLralla ranks
13Lh among 13 parLlclpanL counLrles (excludlng Canada). Clven LhaL AusLralla ls clearly a global
laggard ln lLs educaLlon levels, Lhls ls an area LhaL presenLs scope for lmprovemenL for Lhe
vlcLorlan manufacLurlng secLor Loo.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 31
Chart 30: Leve| of educat|on
77


A dr|ver of good management |n V|ctor|an manufactur|ng
Level of educaLlon poslLlvely lmpacLs Lhe managemenL score. vlcLorlan manufacLurlng flrms,
havlng a larger proporLlon of managers and non-managers wlLh a unlverslLy degree, score hlgher
ln managemenL. Among Lhe lnLervlewed vlcLorlan flrms, 48° of managers ln Lhe hlghesL-scorlng
flrms possessed a unlverslLy degree or hlgher, as dld 17° of Lhe non-managemenL workforce.
Powever, among Lhe lowesL-scorlng flrms, none of Lhe managers, and only 3° of Lhe
non-managers, possessed a unlverslLy degree (CharL 31, on Lhe followlng page). 1he relaLlonshlp
beLween managemenL performance and sklll levels ls sLaLlsLlcally slgnlflcanL, Lhe proporLlon
of boLh managers and non-managers wlLh unlverslLy degrees can each explaln around 10°
of Lhe varlaLlon ln managemenL scores (Appendlx 1 - 1ables lll-lv).


77 AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?, ueparLmenL of lnnovaLlon, lndusLry, Sclence and
8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Level of educaLlon ls used as an lndlcaLor of skllls among managers and non-managers ln Lhe workforce.
7.93
34.13
3.74
39.13
8.76
44.65
8
47.44
9.61
50.55
0 10 20 30 40 50
Queensland
Western Australia
New South Wales
Victoria
South Australia
Proportion of managers with degree
Proportion of non-managers with degree
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
32 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 31: Cvera|| management scores by sk|||s and educat|on |eve|s of managers
and non-managers
78


1he nexL level of analysls delves deeper, Lo undersLand Lhe lmpacL of skllls and educaLlon on
each of Lhe Lhree areas of managemenL - operaLlons, performance and people managemenL.
1he resulLs conflrm LhaL flrms wlLh hlgher employee skllls and educaLlon have sLaLlsLlcally
slgnlflcanLly beLLer operaLlons managemenL pracLlces. 1he proporLlon of managers and non-
managers wlLh unlverslLy degrees can respecLlvely explaln around 6° and 7° of Lhe varlablllLy
ln operaLlons managemenL scores (Appendlx 1 - 1ables lx-x).


78 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Level of educaLlon ls used as an lndlcaLor of skllls among managers and non-managers ln Lhe workforce, manager and
non-manager sklll levels are grouped ln lncremenLs of 0.3 of Lhelr managemenL scores.
16.7143
47.8571
16.6
64.4211
6.3
51.7561
6.24138
41.2069
4.94444
36.1111
1
18.5
5
0
0 20 40 60
4
3.5
3
2.5
2
1.5
1
Proportion of managers with university degree
Proportion of non-managers with university degree

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 33
Chart 32: Cperat|ons management scores by educat|on |eve|s of managers
and non-managers
79


1he proporLlon of managers and non-managers wlLh unlverslLy degrees can respecLlvely explaln
around 11° and 10° of Lhe varlablllLy ln performance managemenL scores (Appendlx 1 - 1ables
xl-xll).
Chart 33: Þerformance management scores by educat|on |eve|s of managers
and non-managers
80


1he level of educaLlon also poslLlvely lmpacLs people managemenL scores. 1he proporLlon of
managers and non-managers wlLh unlverslLy degrees can respecLlvely explaln around 6° and 8°
of Lhe varlablllLy ln people managemenL scores (Appendlx 1 - 1ables xl-xll). 1he resulLs supporL

79 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Level of educaLlon ls used as an lndlcaLor of skllls among managers and non-managers ln Lhe workforce, manager and
non-manager sklll levels are grouped ln lncremenLs of 0.3 of Lhelr managemenL scores.
80 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Level of educaLlon ls used as an lndlcaLor of skllls among managers and non-managers ln Lhe workforce, manager and
non-manager sklll levels are grouped ln lncremenLs of 0.3 of Lhelr managemenL scores.
23.57
60.57
11.33
56.79
8.59
53
5.45
47.97
8.56
36.25
5.12
39.06
2
33
5
0
0 20 40 60
4.5
4
3.5
3
2.5
2
1.5
1
Proportion of managers with university degree
Proportion of non-managers with university degree
10
35
17.2
56.36
14.28
70.28
6.63
47.23
4.38
35.88
5.6
44.6
2
19.43
2.5
15
0 20 40 60 80
4.5
4
3.5
3
2.5
2
1.5
1
Proportion of managers with university degree
Proportion of non-managers with university degree
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
34 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Lhe premlse LhaL flrms ln a hlgh-sklll envlronmenL wlll have beLLer human caplLal managemenL
pracLlces Lhan Lhose ln a low-sklll envlronmenL.
81

Chart 34: Þeop|e management scores by educat|on |eve|s of managers and non-managers
82


A cross-exam|nat|on of educat|on |eve| |n d|fferent sub-groups of V|ctor|an manufactur|ng
1o relnforce Lhe flndlngs, educaLlon level as a deLermlnanL of managemenL pracLlces ls examlned
wlLhln vlcLorlan manufacLurlng sub-groups formed on Lhe basls of flrm slze and managemenL
performance. 1he followlng analysls ls underLaken surroundlng educaLlon.
• WlLh respecL Lo flrm slze, medlum (30-199 employees) and large (200+ employees) flrms
ln vlcLorla are compared,
• Smaller flrms (30-99 employees) are sLudled relaLlve Lo Lhe resL of Lhe cohorL, and
• ln Lerms of managemenL performance, vlcLorlan flrms belonglng Lo Lhe 8uslness 8evlew
Weekly (88W) 1op 1000 llsL are compared wlLh Lhe resL of Lhe cohorL.


81 8loom, n. and van 8eenen, !., ºMeasurlng and Lxplalnlng ManagemenL ÞracLlces Across llrms and CounLrles", Ooottetly Iootool
of ícooomlcs, vol. 122, lssue 4, 2007, pp. 1,331-408
82 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL. ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
uepottmeot of looovotloo, loJostty, 5cleoce ooJ keseotcb, AusLralla, 2007
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
noLe: Level of educaLlon ls used as an lndlcaLor of skllls among managers and non-managers ln Lhe workforce, manager and
non-manager sklll levels are grouped ln lncremenLs of 0.3 of Lhelr managemenL scores.
12.5
42.5
23
66
12.39
56.42
6.83
47.17
4.48
44.52
2.67
11.5
5
0
0 20 40 60 80
4
3.5
3
2.5
2
1.5
1
Proportion of managers with university degree
Proportion of non-managers with university degree

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 33
Compar|son of educat|on |eve| between med|um and |arge V|ctor|an manufactur|ng f|rms
As shown below ln CharL 33 below, large-slzed vlcLorlan manufacLurlng flrms perform
conslderably beLLer Lhan Lhe medlum-slzed flrms ln Lerms of Lhelr overall managemenL capablllLy
(CharL 33),
83
and Lhls resulL ls sLaLlsLlcally slgnlflcanL. llrm slze lmpacLs managemenL pracLlces,
flrm slze alone can explaln 6° of Lhe varlablllLy of managemenL scores wlLhln Lhls sample
(Appendlx 1 - 1able v).
Chart 3S: ke|at|onsh|p between f|rm s|ze and management scores |n V|ctor|an
manufactur|ng f|rms
84


1he resulLs of Lhe analysls are summarlsed ln 1able 2 (lncluded earller ln Lhls chapLer), and Lhe
followlng lnferences can be drawn:
• Larger flrms Lend Lo have hlgher managemenL scores Lhan smaller ones,
• Large-slzed flrms score sLaLlsLlcally beLLer Lhan medlum-slzed ones across all Lhree
managemenL areas - operaLlons, performance and people (Appendlx 1 - 1able xv), and
• Correspondlngly, Lhere ls also a sLaLlsLlcally hlgher proporLlon of managers and non-
managers wlLh degree ln large-slzed flrms as compared Lo medlum-slzed flrms (Appendlx
1 - 1able xv).


83 Medlum-slzed flrms have 30 Lo 199 employees and large-slzed flrms have above 200 employees. noLe LhaL A8S deflnes small
flrms as flrm slze less Lhan 20 employees, medlum slze flrms from 20 Lo 199 employees, and large as flrms wlLh employees 200 and
greaLer.
84 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL. ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
1
2
3
4
5
4 5 6 7 8 9
log (employees in firm)
Fitted values management
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
36 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1ab|e 3: Summary of management scores and educat|on |eve|s - |arge and med|um-s|zed V|ctor|an
manufactur|ng f|rms
8S

Management score
V|ctor|an |arge-s|zed f|rms
(200+ emp|oyees)
V|ctor|an med|um-s|zed
f|rms (S0-199 emp|oyees)
D|fference |s stat|st|ca||y
s|gn|f|cant
Cverall score 3.17 2.84 v
CperaLlons 3.44 3.13 v
Þerformance 3.19 2.86 v
Þeople 2.84 2.47 v
ÞroporLlon of managers wlLh
degree 33.46° 36.39°
v
ÞroporLlon of non-managers
wlLh degree 10.24° 4.88°
v
Compar|son of educat|on |eve| |n sma||er V|ctor|an f|rms aga|nst the rest of the cohort
As smaller flrms ranglng from 30 Lo 99 employees consLlLuLe a large proporLlon of manufacLurlng
organlsaLlons ln vlcLorla, Lhe performance of managemenL pracLlces ln Lhls cohorL ls cerLaln Lo
slgnlflcanLly lmpacL Lhe overall producLlvlLy performance across Lhe enLlre economy. 1he resulLs
from Lhe analysls of Lhese flrms, whlch fall lnLo Lhe smaller end (30-99 employees) of Lhe A8S
medlum-slzed flrm caLegory, are summarlsed ln 1able 3 above, wlLh Lhe followlng key flndlngs:
• 1he smaller flrms (30-99 employees) score sLaLlsLlcally slgnlflcanLly lower Lhan flrms
wlLh 100 or more employees across all managemenL areas excepL performance
managemenL (Appendlx 1 - 1able xvl), and
• 1hls underperformance also relaLes Lo Lhe sLaLlsLlcally lower proporLlon of managers
wlLh a degree ln small-slzed flrms as compared Lo Lhe resL of Lhe cohorL (Appendlx 1 -
1able xvl).
1ab|e 4: Summary of management scores and educat|on |eve|s - sma||er V|ctor|an manufactur|ng f|rms
vs. rest of the cohort
86

Management score
V|ctor|an sma||er f|rms
(S0-99 emp|oyees)
kest of the cohort
(100+ emp|oyees)
D|fference |s stat|st|ca||y
s|gn|f|cant
Cverall score 2.63 3.09 v
CperaLlons 2.78 3.38 v
Þerformance 2.76 3.10 x
Þeople 2.43 2.73 v
ÞroporLlon of managers wlLh degree 24.00° 49.30° v
ÞroporLlon of non-managers wlLh
degree
6.33° 8.31° x



83 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
86 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 37
Compar|son of educat|on |eve| |n 8kW top 1000-||sted V|ctor|an manufactur|ng f|rms aga|nst
the rest of the cohort
1he 88W 1op 1000 llsL annually ranks AusLrallan companles ln Lerms of Lhelr performance.
Cf Lhe 121 lnLervlewed vlcLorlan flrms, 30 flrms were maLched as belng llsLed among Lhe
1op 1000 88W 2008 llsLlng. 1he resulLs wlLh respecL Lo Lhese flrms are summarlsed ln 1able 4
(on Lhe precedlng page), and key flndlngs are llsLed below:
• 1he 88W-llsLed flrms scored slgnlflcanLly hlgher on managemenL pracLlces,
• 1helr performance was sLaLlsLlcally beLLer Lhan Lhe resL of Lhe flrms across all areas of
managemenL excepL people managemenL (Appendlx 1 - 1able xvll), and
• noLably, Lhere ls also a sLaLlsLlcally hlgher proporLlon of managers and non-managers
wlLh degrees ln 88W-llsLed flrms, as compared Lo resL of Lhe cohorL (Appendlx 1 -
1able xvll).
1ab|e S: Summary of management scores and educat|on |eve|s - 8kW 1op 1000-||sted V|ctor|an
manufactur|ng f|rms vs. rest of the cohort
87

Management score
8kW 1op 1000-||sted
V|ctor|an f|rms
kest of the cohort
D|fference |s stat|st|ca||y
s|gn|f|cant
Cverall score 3.21 3.00 v
CperaLlons 3.34 3.27 v
Þerformance 3.33 2.99 v
Þeople 2.74 2.70 x
ÞroporLlon of managers wlLh degree 64.33° 41.94° v
ÞroporLlon of non-managers wlLh degree 12.27° 7.01° v
ln summary, Lhe analysls above relnforces Lhe lmporLance of educaLlon and hlghllghLs lLs lmpacL
on managemenL pracLlces and lLs dlmenslons - overall, and ln Lhe areas of operaLlons,
performance and people managemenL. 1he slgnlflcanL flndlngs are as follows:
• Plgh performlng vlcLorlan companles seem Lo hlre workers wlLh superlor skllls and
educaLlonal quallflcaLlons, and focus on developlng on-Lhe-[ob skllls and LalenL,
• 1op performlng flrms and larger-slzed manufacLurlng flrms ln vlcLorla have hlgher
numbers of boLh managers and non-managers wlLh a unlverslLy degree, whlch poslLlvely
lmpacLs managemenL capablllLy and, ln Lurn, flrm performance,
• Cn Lhe oLher hand, smaller vlcLorlan flrms whlch underperform ln managemenL
pracLlces are consLralned by Lhe llmlLed human caplLal resources Lhey possess, and
• 1hls underperformance may be aLLrlbuLed Lo Lhelr lack of a skllled and educaLed
workforce, or Lhelr selecLlve recrulLmenL based on need, as opposed Lo a more sLraLeglc
recrulLmenL ouLlook, elLher of whlch ls llkely Lo ulLlmaLely affecL flrm performance.
88

87 uaLa from sample of vlcLorlan flrms from AMÞ daLaseL, ManagemenL MaLLers ln AusLralla: !usL how producLlve are we?,
ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2009
hLLp://www.lnnovaLlon.gov.au/lndusLry/8eporLsandSLudles/uocumenLs/ManagemenLMaLLerslnAusLralla8eporL.pdf
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
38 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Conc|us|on
1he resulLs of Lhls research demonsLraLe Lhe lmpacL of educaLlon level on managemenL and
leadershlp capablllLles ln Lhe vlcLorlan manufacLurlng secLor. SLudylng skllls and educaLlon by
conducLlng a cross-examlnaLlon of dlfferenL sub-groups ln vlcLorlan manufacLurlng also provldes
lnLeresLlng lnslghLs. 8ecenL research on Lhe AusLrallan manufacLurlng secLor shows LhaL focuslng
on human caplLal Lhrough lnvesLmenL ln Lhe managemenL of educaLlon and skllls, and ln
managemenL pracLlces as a supporLlng plaLform, ls a cosL-effecLlve way Lo enhanclng AusLralla's
producLlvlLy performance, hence:
'lnvesLlng ln educaLlon and fosLerlng sklll developmenL aL managemenL levels and ln Lhe
general workforce should be a hlgh prlorlLy, parLlcularly ln manufacLurlng flrms.'
89

Cverall, Lhls research relLeraLes LhaL Lhls concluslon holds for Lhe vlcLorlan manufacLurlng secLor
by demonsLraLlng LhaL educaLlon ls a key drlver of effecLlve managemenL pracLlces and ln Lurn
enhanced buslness performance ln vlcLorlan manufacLurlng flrms.


88 Agarwal, 8. and Creen, 8., º1he 8ole of ManagemenL ÞracLlces and lLs lmpacL on lnnovaLlon ln Lhe AusLrallan conLexL" for
publlcaLlon ln Lhe nCvL8 lnnovaLlon book of readlngs LlLled lostetloq eotetptlse. tbe looovotloo ooJ skllls oexos - teseotcb teoJloqs,
lS8n: web edlLlon - 978 1 921809 83 3, ÞrlnL edlLlon - 978 1 921809 84 2 (under prlnL)
89 Agarwal, 8. and Creen, 8., º1he 8ole of ManagemenL ÞracLlces and lLs lmpacL on lnnovaLlon ln Lhe AusLrallan conLexL" for
publlcaLlon ln Lhe nCvL8 lnnovaLlon book of readlngs LlLled lostetloq eotetptlse. tbe looovotloo ooJ skllls oexos - teseotcb teoJloqs,
lS8n: web edlLlon - 978 1 921809 83 3, ÞrlnL edlLlon - 978 1 921809 84 2 (under prlnL)

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 39
2.6 SkILLS AND LDUCA1ICN LLVLL - INSIGn1S IkCM CASL S1UDILS CI VIC1CkIAN
MANUIAC1UkING IIkMS
key I|nd|ngs
• 1he case sLudles of Lwo vlcLorlan manufacLurlng flrms provlde lnslghLs lnLo besL
pracLlces adopLed by Lhese flrms ln fosLerlng skllls and capablllLles and developlng
managemenL and leadershlp skllls, ln Lurn leadlng Lo susLalned compeLlLlveness and
success.
• 1he key dynamlc capablllLles of LnLrepreneurlal AlerLness, knowledge ManagemenL and
CollaboraLlve LngagemenL, and Lhelr offshooL operaLlonal dynamlc capablllLles
comprlslng of CapaclLy Lo ueploy lnnovaLlon, AsseL and 8esource ManagemenL,
CrganlsaLlonal AglllLy and Change ManagemenL are evldenL ln boLh Lhe vlcLorlan
manufacLurlng flrms sLudled. ln boLh cases, Lhe key dynamlc capablllLles prlmarlly drlve
Lhe dynamlc capablllLy bulldlng process wlLhln Lhe flrms, and ln Lurn enable Lhe oLher
operaLlonal capablllLles.
• 1he dynamlc capablllLy bulldlng process has enabled each of Lhese vlcLorlan case sLudy
flrms Lo adopL co-evoluLlonary and adapLlve learnlng mechanlsms, effecLlve sysLems of
learnlng and developmenL, focused LalenL managemenL, and expllclL knowledge
managemenL sysLems, Lowards bulldlng and susLalnlng knowledge, skllls and LalenL.
• CrganlsaLlonal leadershlp and culLure, governmenL supporL and company sLrucLure
(belng subsldlarles of mulLlnaLlonal corporaLlons) acL as acLlvaLors of dynamlc capablllLy
bulldlng ln Lhe case sLudy flrms. 1he rlsks and challenges faclng Lhe manufacLurlng
lndusLry lnhlblL Lhe dynamlc capablllLy process ln Lhese vlcLorlan flrms. 1he vlcLorlan
case sLudy flrms keenly employ upskllllng, Lralnlng and developmenL pracLlces ln
developlng managemenL LalenL, and managers ln Lhese flrms fosLer employee
engagemenL, promoLe lnnovaLlve capablllLles Lo fosLer a hlgh-performance workplace
culLure. 1hese pracLlces ln bulldlng skllls and LalenL conLrlbuLe Lowards sound knowledge
managemenL capablllLles, ln Lurn drlvlng Lhe creaLlon of a sLraLeglc compeLlLlve
advanLage and organlsaLlonal success ln Lhese flrms.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
60 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
1he role of skllls and LalenL ln managemenL pracLlces ls now assessed, based on quallLaLlve
analysls of lnLervlews conducLed by u1S wlLh a sample of vlcLorlan manufacLurlng flrms,
a sub-seL of Lhe LoLal sample for Lhe 2010 LxLenslon 8esearch on Lhe orlglnal 2009 AMÞ pro[ecL.
1hls exLenslon research sLudled Lhe hlsLorlc dynamlc capablllLy bulldlng processes ln AusLrallan
medlum-slzed manufacLurlng enLerprlses. uynamlc capablllLles:
º.eooble bosloess eotetptlses to cteote, exteoJ, opqtoJe, tecooflqote, Jeploy ooJ
ptotect lotooqlble ossets tbot soppott sopetlot looq-too bosloess petfotmooce."
90

uynamlc capablllLles are Lhose:
´.blqbet-otJet copobllltles tbot belp o fltm exteoJ, moJlfy, ot lmptove lts otJlooty ot
opetotloool copobllltles tbot ote televoot to moooqloq ooy qlveo tosk.´
91

1he bulldlng blocks of Lhese dynamlc capablllLles are:
´...Jlstloct skllls, ptocesses, ptoceJotes, otqoolsotloool sttoctotes, Jeclsloo toles, ooJ
Jlsclplloes - wblcb ooJetqltJ eotetptlse level seosloq, selzloq ooJ cooflqotloq
copocltles..."
92

Cf Lhe LoLal sample of lnLervlewed besL performlng AusLrallan medlum-slzed manufacLurlng
flrms Lwo are flrms from vlcLorla. 1he case sLudles on Lhese Lwo vlcLorlan flrms have been
deeply analysed Lo unearLh lnslghLs lnLo: besL pracLlces adopLed by Lhese flrms Lo fosLer dynamlc
capablllLles, how Lhese flrms have hlsLorlcally developed managemenL and leadershlp skllls, and
ln Lurn how Lhese efforLs have led Lo susLalned compeLlLlveness and success ln Lhelr conLexL.
lacLors LhaL enable and lnhlblL Lhe dynamlc capablllLy bulldlng process ln vlcLorlan
manufacLurlng flrms are also sLudled.
1able 3 (on a precedlng page) shows Lhe demographlc deLalls of Lhe Lwo vlcLorlan case sLudy
flrms - flrm slze, ownershlp Lype, and manufacLurlng sub-secLor, and Lhelr overall managemenL
performance, lncludlng Lhe Lhree dlmenslons of operaLlons, performance and people
managemenL (based on scores ln Lhe orlglnal 2009 AMÞ pro[ecL). lurLher, 1able 6 (on Lhe
opposlLe page) shows Lhe performance of Lhe Lwo vlcLorlan companles across Lhe 18
managemenL pracLlces. 1he case sLudles examlne how each of Lhese Lwo vlcLorlan companles
has evolved skllls and capablllLles, how Lhelr skllls and capablllLles have a bearlng on Lhelr
managemenL pracLlces scores, and how Lhelr skllls and capablllLles appear Lo have poslLlvely
lmpacLed Lhelr managemenL performance.


90 1eece, u. !., uyoomlc copobllltles ooJ 5ttoteqlc Moooqemeot, Cxford unlverslLy Þress, London, 2009
91 kale, Þ. and Slngh, P., º8ulldlng flrm capablllLles Lhrough learnlng: Lhe role of Lhe alllance learnlng process ln alllance capablllLy
and flrm-level alllance success", 5ttoteqlc Moooqemeot Iootool, vol. 28, 2007, pp. 981-1,000
92 1eece, u. !., uyoomlc copobllltles ooJ 5ttoteqlc Moooqemeot, Cxford unlverslLy Þress, London, 2009

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 61
1ab|e 6: Company character|st|cs and management performance of the V|ctor|an
case study f|rms
93




1ab|e 7: ke|at|ve management pract|ces scores of the V|ctor|an case study f|rms
94



93 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan
medlum-slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
noLe: 8elaLlve managemenL scores are presenLed so as Lo noL dlsclose Lhe absoluLe managemenL scores of flrms and malnLaln
confldenLlallLy of lndlvldual flrm daLa.
94 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan
medlum-slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
noLe: 8elaLlve managemenL scores are presenLed so as Lo noL dlsclose Lhe absoluLe managemenL scores of flrms and malnLaln
confldenLlallLy of lndlvldual flrm daLa.
!" #$ &'$( !" #$ )" *( +,&(#-." / 012)34 567( 8'&9:'5;9#" &< -(5;6# +=(#'> > $<$; +/(#';" 6&- ?6#$'&5( ?(6/> (
46$/'&@ A BCD 814 CE ?(;#6> (9$F 46'> F 4.($" 5'> '&7 0--65" ';(7 ?#6795; 8'&9:'5;9#" &< G" <. G" <. G" <. 0=(#'<(
46$/'&@ H BID !'$" > @ CJ 8'5." &(#@ '&7 KL9" /$(&; 8'&9:'5;9#" &< G" <. G" <. 0=(#'<( 0=(#'<(
!" #$ %&'() "+ ,$) (-+#) '. /01 2 1
34)(-#) %&'() "+ ,$) (-+#) '. 5 2 /01
!"#$ &' ($)$*#+#),
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-.#"$,/&)0 ($)$*#+#),
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!4&.,/&) &' 5#$) ($)6'$3,6"/)*
#$ %& #$ %&
7$,/&)$2# '&" ,8# $4&.,/&)
#$ %& #$ %&
9"&3#00 ."&:2#+ 4&36+#),$,/&)
#$ %& #$ %&
-.#"$,/&)0 9#"'&"+$)3# ,"$3;/)*
#$ %& #$ %&
-.#"$,/&)0 9#"'&"+$)3# "#1/#<
#$ %& #$ %&
-.#"$,/&)0 9#"'&"+$)3# 4/$2&*6#
#$ %& #$ %&
=&)0#>6#)3# +$)$*#+#),
#$ %& #$ %&
9#"'&"+$)3# ($)$*#+#),
-1#"$22 03&"# #$ %& '()*+%)
?@.#0 &' *&$20
#$ %& '()*+%)
A),#"3&))#3,/&) &' *&$20
#$ %& #$ %&
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#$ %& #$ %&
C#,,/)* 0,"#,38 *&$20 #$ %& '()*+%)
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!44"#00/)* .&&" .#"'&"+$)3#
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9"&+&,/)* 8/*8 .#"'&"+#"0
'()*+%) '()*+%)
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'()*+%) '()*+%)
7#,$/)/)* 8/*8 .#"'&"+#"0
,-. '()*+%)
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
62 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1hls sLudy demonsLraLes LhaL Lhe key dynamlc capablllLles of LnLrepreneurlal AlerLness,
knowledge ManagemenL and CollaboraLlve LngagemenL, and Lhelr offshooL operaLlonal dynamlc
capablllLles, comprlslng of CapaclLy Lo ueploy lnnovaLlon, AsseL and 8esource ManagemenL,
CrganlsaLlonal AglllLy and Change ManagemenL, are evldenL ln boLh Lhe besL-managed vlcLorlan
manufacLurlng flrms sLudled. ln boLh cases, Lhe key dynamlc capablllLles prlmarlly drlve Lhe
dynamlc capablllLy bulldlng process wlLhln Lhe flrms, and ln Lurn enable Lhe oLher operaLlonal
capablllLles. 1hls flndlng concurs wlLh Lhe concluslon of Cepeda and vera LhaL new operaLlonal
capablllLles are Lhe ouLpuL of key dynamlc capablllLles, and help Lo clarlfy Lhe llnk beLween key
dynamlc and operaLlonal capablllLles.
93

A summary of Lhe perLlnenL case sLudy flndlngs of Lhe Lwo vlcLorlan manufacLurlng flrms sLudled
(Companles x and ?) ln bulldlng dynamlc capablllLy ls lncluded below.
Company k - Dynam|c capab|||t|es
Company x has lnculcaLed and fosLered all seven componenLs of dynamlc capablllLles. CharL 36
shows Lhe relaLlonshlp beLween Lhe varlous componenLs of dynamlc capablllLy, and Lhe process
adopLed by Company x ln deploylng Lhem wlLhln lLs organlsaLlonal conLexL. 1he four key
dynamlc capablllLles - knowledge ManagemenL, CollaboraLlve LngagemenL, CrganlsaLlonal
AglllLy and LnLrepreneurlal AlerLness - form Lhe drlvlng force ln faclllLaLlng Lhe creaLlon of Lhe
operaLlonal dynamlc capablllLles - CapaclLy Lo lnnovaLe, Change ManagemenL, and AsseL and
8esource ManagemenL. 1hls, ln Lurn, leads Lo flrm success by enabllng susLalned performance ln
Company x and allowlng lL Lo creaLe a dlsLlncLlve compeLlLlve advanLage ln Lhe markeLplace.
Chart 36: Dynam|c capab|||ty bu||d|ng process - Company k
96


1he key lnslghLs on Company x's dynamlc capablllLles are as follows:
• knowledge ManagemenL has been Lhe key enabler for Lhe flrm ln addlng greaLer value
Lo lLs cusLomer offerlngs,
• Such knowledge has been galned Lhrough Lhe use of CollaboraLlve LngagemenL and
formal learnlng processes leadlng Lo a 'Co-evoluLlonary and AdapLlve learnlng' sysLem,

93 Cepeda, C. and vera, u., ºuynamlc CapablllLles and CperaLlonal CapablllLles: a knowledge ManagemenL perspecLlve", Iootool of
8osloess keseotcb, vol. 60, 2007, pp. 426-37
96 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan medlum-
slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
!"#$%&'$(&)%$*
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_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 63
• 1hls fosLers lnnovaLlon Lhrough collaboraLlve cusLomer engagemenL Lhrough slLe vlslLs
where cusLomers vlslL planLs Lo undersLand how flrms funcLlon and Lhe roles of
Lechnlclans, 1hus Company x uses cusLomers Lo co-creaLe offerlngs,
• 1he company also engages wlLh employees Lo provlde supporL for exLernal Lralnlng and
learnlng ln order Lo nurLure and grow LalenL,
• 1he company showed LnLrepreneurlal AlerLness ln proacLlvely gaLherlng lnformaLlon
from whlch Lhe company's leaders declded Lo renew sLraLeglc dlrecLlon from 'volume
based' whlch compeLed on prlce and low marglns, Lo hlgh margln markeLs whlch sold
premlum producLs wlLh an emphasls on servlclng cusLomer needs, and
• uurlng Lhls move, Lhe company showed CrganlsaLlonal AglllLy ln Lhelr ablllLy Lo change
wlLh speed, whlch ls Lhe capaclous facLor ln galnlng a flrsL mover advanLage.
Company ¥ - Dynam|c capab|||t|es
Company ? has developed sLrong dynamlc capablllLles LhaL have enabled Lhe organlsaLlon Lo
frucLlfy lLs sLraLeglc goals and consLanLly reallgn lLs resources ln keeplng wlLh Lhe changlng
buslness envlronmenL. CharL 37 shows Lhe relaLlonshlp beLween Lhe varlous componenLs of
dynamlc capablllLy, and Lhe process adopLed by Company ? ln deploylng Lhem wlLhln lLs
organlsaLlonal conLexL. LnLrepreneurlal AlerLness, CollaboraLlve LngagemenL, knowledge
ManagemenL, and CapaclLy Lo lnnovaLe are Lhe four key dynamlc capablllLles LhaL form Lhe core
enablers LhaL prlmarlly drlve Company ?. 1hen, Lhe oLher operaLlonal dynamlc capablllLles are
acLlvaLed, such as AsseL and 8esource ManagemenL, and CrganlsaLlonal AglllLy. 1hrough Lhls,
Company ? successfully lmplemenLs lLs Change ManagemenL LhaL enables Lhe malnLenance of
a sLraLeglc advanLage ln a dynamlc markeLplace.
Chart 37: Dynam|c capab|||ty bu||d|ng process - Company ¥
97




97 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan medlum-
slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
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vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
64 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Company ? demonsLraLes Lhe followlng dynamlc capablllLles:
• 1he flrm deploys LnLrepreneurlal AlerLness as lL belleves ln Lhe need Lo be alerL and
responslve Lo Lhe changlng envlronmenL. WlLh a hlsLory of qulck and Llmely declslon
maklng, Lhls has enabled Lhe buslness Lo capLure markeL opporLunlLles,
• CollaboraLlve LngagemenL ln susLalnlng sLrong relaLlonshlps wlLh suppllers, cusLomers,
and employees allke, and processes Lo achleve Lhls engagemenL form Lhe core
foundaLlon of lLs funcLlonlng,
• LngagemenL wlLh employees has asslsLed ln knowledge ManagemenL Lhrough LalenL
developmenL, reLenLlon and sysLems of learnlng and developmenL. 1hls furLher
enhances Lhe flrm's CapaclLy Lo lnnovaLe, and
• Cver lLs 130 years of exlsLence now, Lhe company has developed a closely-knlL culLure
LhaL ls deeply embedded lnLo lLs operaLlons. 1hls has been key Lo lLs CrganlsaLlonal
AglllLy encouraglng qulck declslon maklng and helplng Lhe company Lo be aglle and
nlmble ln Lhelr lnLernal worklng.
8u||d|ng sk|||s and ta|ent through foster|ng dynam|c capab|||t|es
lL ls evldenL LhaL boLh Lhe vlcLorlan case sLudy flrms keenly employ upskllllng, Lralnlng and
developmenL pracLlces ln developlng managemenL LalenL, and managers ln Lhese flrms fosLer
employee engagemenL, promoLe lnnovaLlve capablllLles Lo fosLer a hlgh-performance workplace
culLure. 1hese pracLlces ln bulldlng skllls and LalenL conLrlbuLe Lowards sound knowledge
managemenL capablllLles, and ln Lurn have drlven Lhe creaLlon of a sLraLeglc compeLlLlve
advanLage and organlsaLlonal success ln Lhese flrms. 1he dynamlc capablllLy bulldlng process has
enabled each of Lhese vlcLorlan case sLudy flrms (Company x and ?) Lo adopL speclflc pracLlces
Lowards bulldlng and susLalnlng knowledge, skllls and LalenL such as:
• Co-evoluLlonary and adapLlve learnlng mechanlsms,
• LffecLlve sysLems of learnlng and developmenL,
• locused LalenL managemenL, and
• LxpllclL knowledge managemenL sysLems.
1he process of how Lhese pracLlces were developed and deployed by Company x and ? ls
descrlbed nexL.
Co-evo|ut|onary and adapt|ve |earn|ng mechan|sm
1he Lwo vlcLorlan case sLudy flrms adopL co-evoluLlonary and adapLlve learnlng mechanlsms Lo
develop hlgher-order compeLencles. Company x focuses on sLraLeglc plannlng processes LhaL
engage employees. 1hls flrm has enabled sLronger employee engagemenL wlLhln Lhe company
due Lo lLs LalenL managemenL pracLlces such as Lralnlng and developmenL whlch lncorporaLe
employee feedback mechanlsms.
Company ? has a sLrong focus on co-evoluLlonary learnlng and developmenL Loo, playlng a
crlLlcal role ln engaglng wlLh cusLomers for supporL and lnpuLs durlng Lralnlng and developmenL

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 63
programs. 1he company collaboraLes wlLh supply chaln vendors Lo galn experLlse ln regards Lo
enhanclng LalenL and malnLalnlng conLlnuous lmprovemenL of Lralnlng pracLlces.
Company ? has been able Lo effecLlvely handle varlous change managemenL programs Lhrough
ºslmple lovolvemeot ooJ possloq oo lofotmotloo" Lo employees. 1he company has regular
lnformaLlon sesslons once a monLh ºjost to let employees koow wbot´s boppeoloq ooJ wby´.
1hrough Lhls, Company ? was able Lo easlly wade Lhrough lLs resLrucLurlng process ln Lhe wake
of Lhe Clobal llnanclal Crlsls and Lhe downLurn ln Lhe auLomoLlve lndusLry.
Company ? encourages Leam work and collaboraLlon Lo lnduce knowledge sharlng. Cne manager
commenLed:
´l'm olwoys ptomotloq tbot tbe oteo moooqets bove to wotk coopetotlvely
toqetbet.tbey've octoolly qot to Jo lt jost os o oototol woy of Joloq lt. 5o we bove meetloqs
tbot lovolve evetyboJy, we bove teoms tbot lovolve evetyboJy.´.
1hls company works Lowards geLLlng closer Lo Lhe employee Lhrough Leam lnvolvemenL acLlvlLles
- ºbotbepoes ot cbtlstmos pottles ooJ tbloqs llke tbot wbete boslcolly tbe employees oppteclote
beloq pott of tbe fomlly.´
Lffect|ve systems of |earn|ng and deve|opment
Company x's formal learnlng sysLem, parLlcularly for Lhe sales Leam, ls one of Lhe flrm's key
success facLors. 1he Lralnlng ls pushed from Lhe norLh Amerlcan headquarLers and focuses on
Lhe new way of selllng by ºteolly ooJetstooJloq costomets - tbe volce of tbe costomet ooJ ttyloq
to cootlooe to lmptove tbe voloe sole ptoposltloo.´ 1here exlsL speclflc processes LhaL sales
recrulLs are Lralned ln, lncludlng cusLomer needs mapplng (CnM), cusLomer ob[ecLlves, cusLomer
proflllng and lmplemenLaLlon sLraLegles.
1ralnlng and developmenL ls a key area of focus for Company ?. lL Lakes a sLraLeglc vlew Lo Lhls
aspecL wlLh a conLlnulng revlew of people's skllls and an analysls of sklll gaps. SLrucLured Lralnlng
plans are scheduled Lo brldge Lhose gaps, and Lhe company Lhus ensures LhaL Lhey are people -
ready Lo Lake on Lhe nexL sLage of growLh and developmenL. 1he company supplles as much
Lralnlng Lowards upskllllng lLs people as requlred for Lhe buslness:
´5o lf we oeeJ someooe to be ttoloeJ os o spot welJet tbeo we qet tbem tbe best cootse
ovolloble so tbot we bove tbe sklll ooJ lt´s ooqoloq. lf we oeeJ tbe sklll we moke sote we qet
lt.´
MulLl-skllllng ls also emphaslsed as an effecLlve means of developlng employees and lncreaslng
Lhelr producLlvlLy aL Lhe same Llme. 1he Lralnlng plans bulld ln a sLrucLured schedule for mulLl-
skllllng as well, whlch ensures LhaL Lhere ls always a pool of shop floor employees who are cross-
Lralned.

vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
66 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Iocused ta|ent management pract|ces
Company x engages wlLh Lhelr employees Lo provlde supporL for exLernal Lralnlng and learnlng
ln order Lo nurLure and grow managemenL skllls and LalenL:
´1be loJlvlJool tokes coottol of tbot jextetool ttololoq] wltb tbe soppott of tbelt compooy
ooJ, lo some coses, we octoolly sobslJlse some of tbe ttololoq llke Jeqtee cootses ooJ
M8A cootses ooJ tbloqs llke tbot.´
Company x recognlses Lhe lmporLance of engaglng wlLh lLs employees. Cne manager explalns
Lhe company's employee bound phllosophy:
ºwe tolk opeoly ftom oo otqoolsotloool petspectlve oboot beloq lotlmote wltb oot
costomets. 1be some sttoteqy opplles wltb oot employees os fot os l om coocetoeJ,
becoose polte slmply, tbey ote tbe bockbooe of tbe otqoolsotloo. 1be foct tbot tbey've
beeo bete so looq, we've lovesteJ o lot of mooey, o lot of tlme lo ttololoq ooJ
Jevelopmeot of tbese people.´
As such, for any new producL developmenL, lnLernal engagemenL has been furLher fosLered
Lhrough Lhe collaboraLlon and knowledge sharlng wlLh employees. CfLen, personnel from
'appllcaLlon' orlenLed areas wlll work wlLh ChemlsL and Sales personnel when dellverlng
producLs. 1hls denoLes a culLural change aL Lhe workplace LhaL has creaLed an engaged
workforce where ºpeople ot oll levels toke owoetsblp ooJ ooJetstooJ tbelt potpose."
Company ? has effecLlvely handled LalenL developmenL, reLenLlon and sysLems of learnlng and
developmenL:
´As socb tbe Jtlvloq fotce fot o bosloess octoolly comes o lot ftom loJlvlJools so yoo bove
to moke sote tbot tbe moooqets ooJ people ote vety well motlvoteJ, ooJ tbe motlvotloo ls
oot jost woqes ooJ lt's oot oecessotlly boooses, bot lt's lovolvemeot ooJ lt's feelloq tbe
occoootoblllty ooJ feelloq pott of tbe teom.´
1he managemenL Leam has been around, conslsLenLly, for a long Llme, showlng LhaL Company ?
has ºbeeo oble to tetolo toleot ooJ koowleJqe ooJ expettlse ooJ expetleoce.´ Cne of Lhe maln
reasons for Lhls ls a ºfootostlc wotk eovltoomeot tbot ls qlvloq people lotetestloq tbloqs to Jo
wblcb ls oll cboooellloq towotJs tbe ooe qool´. 1he managemenL Leam has also empowered
employees and creaLed a hlgh degree of auLonomy ln Lhe work culLure. Company ? also
recognlses Lhe need Lo collaboraLlvely engage wlLh lLs employees, and leLLlng Lhem ºkoow tbot
tbelt lovolvemeot ls key to keeploq tbe bosloess toooloq.´ Company ? cares for lLs people, LreaLs
Lhem well and provldes opporLunlLles for growLh and promoLlon from wlLhln. Lmployee
empowermenL and accounLablllLy ls Lhus a sLraLeglc human resource pracLlce LhaL has
conLrlbuLed Lo a change ln Lhls organlsaLlon's culLure Lhrough a range of lnlLlaLlves LhaL
encourage LalenL developmenL and workplace engagemenL.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 67
Lxp||c|t know|edge management systems
Company x has an lnLernal knowledge managemenL sysLem whlch ls uLlllsed for Lhe purpose of
producL managemenL, and Lhls furLher enhances Lhe company's cusLomer engagemenL. 1hls
global knowledge managemenL sysLem allows producL knowledge Lo be sLored and shared and ls
parLlcularly useful as Lhe company's 8esearch and uevelopmenL cenLres are scaLLered around
Lhe globe. 1hls sysLem ls predomlnanLly used by Lhe sales Leam Lo qulckly ldenLlfy approprlaLe
producLs LhaL maLch cllenL needs, whlch allows Lhem Lo swlfLly and nlmbly respond Lo cllenL and
markeL requlremenLs - boLh belng essenLlal elemenLs of CrganlsaLlonal AglllLy. 1ralnlng has also
been provlded Lo employees on developlng LnLrepreneurlal AlerLness Lo lncrease awareness of
buslness LhreaLs and opporLunlLles.
lL ls evldenL, from Lhe lnsLances descrlbed above, LhaL Lhls company has effecLlvely used lLs
knowledge managemenL sysLems Lo bulld and susLaln skllls and LalenL. 1hls LranslaLes lnLo beLLer
managemenL pracLlces adopLed wlLhln Lhe company, especlally ln Lracklng and revlewlng and
lmprovlng operaLlons performance. 1hls ls reflecLed ln Lhe hlgh managemenL pracLlces scores of
Company x ln Lhese dlmenslons as shown earller ln 1able 7.
Company ? has lnsLlLuLed processes Lo ensure Lhe sLraLeglc plans are cascaded down Lo Lhe shop
floor level. 1he company organlses sesslons where Lhe Lop managemenL ouLllnes Lhe board
sLraLegles and vlslon. 1hese are open forums where everyone does have Lhe opporLunlLy Lo ask
quesLlons. lL ls also mlddle managemenL's responslblllLy Lo cascade Lhe buslness dlrecLlon and
plans Lo Lhe shop floor Lhrough regular sLand up meeLlngs, managemenL Leam geL LogeLhers,
cross deparLmenL meeLlngs and managemenL meeLlngs.
Act|vators of dynam|c capab|||ty bu||d|ng |n V|ctor|an manufactur|ng f|rms
1he followlng key acLlvaLors of dynamlc capablllLy bulldlng are found Lo exlsL:
• CrganlsaLlonal leadershlp and culLure
- Company x's leadershlp has consclously Lrled Lo embed lnLo flrm culLure Lhe
values of employee empowermenL, wlLh managemenL encouraglng employees
Lo Lake rlsks and chances. 1he organlsaLlonal culLure ln Company ? also
encourages a hlgh level of auLonomy and Lransparency.
• CovernmenL SupporL
- Company ? has Laken advanLage of fundlng and supporL from governmenL
programs for developlng and launchlng new producLs and processes. 1he
company has been proacLlve ln collaboraLlng wlLh lndusLry assoclaLlons
Lo leverage governmenL supporL for varlous pro[ecLs.
• Company SLrucLure - subsldlarles of mulLlnaLlonal corporaLlons (MnCs)
- 1he mulLlnaLlonal sLrucLure of Company x allows greaLer speclallsaLlon for
producL developmenL faclllLles, whlch ln Lurn has provlded greaLer resource
aglllLy for lLs operaLlons and global supply chaln. Company x has an
organlsaLlonal sLrucLure LhaL demands and encourages lnLernal collaboraLlon.
1hls ls prlmarlly due Lo Lhe facL LhaL managlng resources wlLhln speclallsed
faclllLles locaLed on dlfferenL conLlnenLs requlres lLs own governance and conLrol
mechanlsms.
vlcLorlan manufacLurlng lndusLry workforce skllls and managemenL
____________________________________________________________________________
68 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Inh|b|tors of Dynam|c Capab|||ty 8u||d|ng |n V|ctor|an Manufactur|ng I|rms
1he key lnhlblLor of dynamlc capablllLy bulldlng ln Lhe vlcLorlan manufacLurlng flrms sLudled ls
as follows:
• lndusLry scenarlo - rlsks and challenges faced
• Company ? faces challenges ln belng excluslvely llnked Lo Lhe auLomoLlve lndusLry.
1he lncrease ln compeLlLlve pracLlces, along wlLh lncreased uncerLalnLy wlLhln Lhe
auLomoLlve lndusLry, ls a key lnhlblLor for Company ?. 1here ls concern regardlng
Lhe fuLure prospecLs of Lhe lndusLry as a whole, and Lhe currenL lndusLry scenarlo ls
drlvlng Company ? Lo a compleLe shlfL ln lLs sLraLeglc paradlgm. lL ls always a challenge
Lo venLure lnLo uncharLered waLers especlally because Lhe exlsLlng resource base
of Lhe company needs slgnlflcanL reorlenLaLlon and reallgnmenL Lo meeL Lhe new
requlremenLs.
Conc|us|on
ln summary, lL ls evldenL from Lhe case sLudles LhaL a focus on learnlng and developmenL,
human resource managemenL and knowledge managemenL, ls crlLlcal Lo enhanclng skllls and
LalenL wlLhln vlcLorlan manufacLurlng flrms. CapablllLles based on developlng and sharlng
lnformaLlon Lhrough Lhe flrm's human caplLal.
98
1eece eL al. (1997) suggesL LhaL learnlng
lncorporaLes boLh organlsaLlonal and lndlvldual sklll developmenL by noLlng LhaL:
'Whlle lndlvldual skllls are of relevance, Lhelr value depends upon Lhelr employmenL, ln
parLlcular organlsaLlonal seLLlngs.'
99


8y faclllLaLlng learnlng, manlfesLlng speclflc aspecLs of knowledge, and ouLllnlng clear learnlng
ob[ecLlves, employees can share, reflne and comblne Lhelr flrm-speclflc experlences more
effecLlvely and apply Lechnologles more creaLlvely.
100
1he developmenL or acqulslLlon of new
knowledge and skllls ln response Lo lnLernal or exLernal sLlmull leads Lo a change ln collecLlve
behavlour, and LhaL enhances organlsaLlonal efflclency and/or effecLlveness (Splcer & Sadler-
SmlLh, 2006).
101
Pence, wlLh beLLer skllls and LalenL, flrms are able Lo develop and susLaln beLLer
managemenL pracLlces, whlch ln Lurn leads Lo beLLer performance, producLlvlLy and
compeLlLlveness ln vlcLorlan manufacLurlng flrms. A quallLaLlve analysls of lnLervlews wlLh Lhe
Lwo flrms ln Lhe 'besL' performlng group and Lhe Lhree flrms ln Lhe 'worsL' performlng group
provldes comparaLlve lnslghLs lnLo Lhe dlfferlng human resource managemenL pracLlces adopLed
by Lhese Lwo groups and Lhls lnformaLlon ls lncluded ln Appendlx 2.


98 AmlL, 8. and Schoemaker, Þ. !. (1993), ºSLraLeglc asseLs and organlsaLlonal renL", 5ttoteqlc Moooqemeot Iootool, vol. 14, pp. 33-
46, Andreu, 8. and Clborra, C, ºCrganlsaLlonal learnlng and core capablllLles developmenL: 1he role of l1", Iootool of 5ttoteqlc
lofotmotloo 5ystems, vol. 3, 1996, pp. 111-127
99 1eece, u. !., Þlsano, C. and Shuen, A., ºuynamlc capablllLles and SLraLeglc ManagemenL", 5ttoteqlc Moooqemeot Iootool,
vol. 18, 1997, pp. 309-33
100 Þueyo, l. and Sanso, M., º1echnologlcal change, human caplLal updaLe and growLh pollcles", 5poolsb ícooomy kevlew,
vol. 7, 2003, pp. 23-41
101 Splcer, u. and Sadler-SmlLh, L., ºCrganlsaLlonal Learnlng ln Smaller ManufacLurlng llrms", lotetootloool 5moll 8osloess Iootool,
vol. 24, lssue 2, 2006, pp. 133-138

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 69
3. VIC1CkIAN MANUIAC1UkING INDUS1k¥ SkILLING ÞLkSÞLC1IVLS
3.1 1nL Lk1LN1 CI 1kAINING UNDLk1AkLN 8¥ VIC1CkIAN MANUIAC1UkING 8USINLSSLS
AND 1nL IMÞAC1 CI 1nL VIC1CkIAN 1kAINING kLICkMS
key I|nd|ngs
• 1he numbers of manufacLurlng apprenLlces and Lralnees have been ln decllne, by 8.7°
for apprenLlces, and a slgnlflcanL 38.2° for Lralnees, from 2003-10. 1he manufacLurlng
ln-Lralnlng share of LoLal apprenLlces and Lralnees ls also ln decllne: 4.2° for apprenLlces
and 3.8° for Lralnees.
• 1he slLuaLlon ls slmllar for manufacLurlng apprenLlce and Lralnee commencemenLs:
a decrease of 9.8° for apprenLlces and a slgnlflcanL 26° decrease for Lralnees. 1he
manufacLurlng apprenLlce commencemenLs share of LoLal apprenLlce commencemenLs
reduced by nearly 6° and by 3.9° for Lralnees.
• vlcLorlan CovernmenL funded enrolmenLs by lndusLry for 2006-10 lndlcaLe an lncrease
for manufacLurlng of 13.1°. 1he lncrease ln lee-for-Servlce Lralnlng (17.3°) was sllghLly
hlgher Lhan Lhe lncrease for CovernmenL funded enrolmenLs (14.3°).
• naLlonally, vlcLorla has had Lhe second-hlghesL level of apprenLlce and Lralnee
commencemenLs ln manufacLurlng occupaLlons, wlLh approxlmaLely 18,000 ln Lhe
12 monLhs endlng SepLember 2010. 1hls ls almosL a quarLer of all naLlonal
commencemenLs. Some occupaLlonal groups ln vlcLorla represenL slgnlflcanL
proporLlons of Lhe AusLrallan LoLal: facLory process workers (37°), prlnLlng Lrades
workers (37°), food Lrades workers (28°), auLomoLlve englneerlng Lrades (21°), wood
Lrades workers (20°) and professlonals (20°).
• vlcLorla also has slgnlflcanL parLlclpaLlon aL Lhe naLlonal level ln Lhe 20 Lop Lralnlng
packages for manufacLurlng areas, lncludlng 33.8° of ManufacLurlng, 32° of lood
Þrocesslng, 28.3° of lurnlshlng, 21.3° of MeLal and Lnglneerlng, and 18.3° of Lhe MeaL
lndusLry.
• Slnce Lhe lnLroducLlon ln 2009 of Lhe vlcLorlan 1ralnlng CuaranLee (v1C), a number of
lndusLry areas, lncludlng manufacLurlng, have experlenced rapld growLh ln enrolmenLs
(76°). MeLals and Lnglneerlng has been relaLlvely sLaLlc, wlLh a 2° reducLlon ln
enrolmenLs.

lL ls dlfflculL Lo lnfer a level of recovery ln manufacLurlng as a resulL of Lhls daLa, glven
Lhe shorL perlod Lo daLe of Lhe lmplemenLaLlon of Lhe v1C.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
70 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
1hls secLlon lncludes vocaLlonal educaLlon and Lralnlng sLaLlsLlcs provlded by Lhe naLlonal CenLre
for vocaLlonal LducaLlon 8esearch (nCvL8) on apprenLlces and Lralnees, and daLa provlded by
Lhe vlcLorlan ueparLmenL of 8uslness and lnnovaLlon. lndusLry Lralnlng advlsory bodles Lake
lssue wlLh some of Lhe daLa provlded and advlse LhaL Lhelr daLa collecLlon efforLs yleld qulLe
dlfferenL resulLs.
V|ctor|an Þart|c|pat|on |n Apprent|cesh|p]1ra|neesh|p 1ra|n|ng
A key lndlcaLor of Lhe exLenL of Lralnlng by vlcLorlan manufacLurlng buslnesses ls Lhe level of
parLlclpaLlon ln apprenLlceshlp/Lralneeshlp Lralnlng. 1hls parLlclpaLlon can be consldered ln
relaLlon Lo Lhree maln aspecLs of Lralnlng: ln-Lralnlng, commencemenLs and compleLlons.
1ota| part|c|pat|on |n apprent|cesh|p]tra|neesh|p tra|n|ng
1ab|e 8: 1ota| apprent|ces |n tra|n|ng
102

Industry 200S 2006 2007 2008 2009 2010
AuLomoLlve 82 70 73 92 83 89
ÞrlnLlng (LlecLro 1ech) 613 613 619 366 437 310
LlecLrlcal (LlecLro 1ech) 134 137 149 166 122 81
Lnglneerlng 3,823 6,072 6,498 6,388 3,936 3,686
lood 1,403 1,339 1,319 1,270 1,179 1,187
lurnlshlng 1,691 1,623 1,674 1,633 1,491 1,339
1Cl 334 292 236 177 131 132
1C1AL 10,104 10,146 10,370 10,314 9,379 9,224
ALL lnuuS18lLS 47,369 48,712 31,069 33,363 30,133 33,920
ÞercenLage 21.3° 20.8° 20.6° 19.7° 18.7° 17.1°

1he LoLal number of manufacLurlng apprenLlces ln Lralnlng has decllned, from 10,104 ln 2003
Lo 9,224 by 2010. All buL one of Lhe manufacLurlng sub-secLors, auLomoLlve, decllned durlng Lhls
perlod. 1hls decllne has occurred when Lhe overall number of ApprenLlces ln Lralnlng has been
lncreaslng: from 47,369 Lo 33,920 durlng Lhe perlod. Accordlngly, Lhe manufacLurlng ApprenLlce
share of LoLal ApprenLlces has sLeadlly decllned durlng Lhe perlod, from 21.3° ln 2003 Lo 17.1°
ln 2010.


102 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 71
1ab|e 9: 1ota| tra|nees |n tra|n|ng
103

Industry 200S 2006 2007 2008 2009 2010
Automot|ve 742 990 833 339 78 41
Þr|nt|ng (L|ectro 1ech) 167 139 119 73 101 123
L|ectr|ca| (L|ectro 1ech) 2 1 1 4 2 10
Lng|neer|ng 1,893 1,987 1,823 1,368 1,013 391
Iood 4,700 3,969 3,332 3,961 2,837 2,787
Þu|p Þaper & Iorestry Þroducts 211 160 90 183 182 91
Iurn|sh|ng 76 634 36 22 17 11
Þrocess Manufactur|ng 7,473 4,943 3,393 2,734 3,280 6,033
1CI 329 332 193 133 33 47
1C1AL 13,793 12,386 10,262 9,239 7,383 9,738
ALL INDUS1kILS 92,909 80,671 71,933 70,486 67,029 73,724
Þercentage 17° 13.6° 14.26° 13.1° 11.3° 13.2°

1he LoLal number of Lralnees ln Lralnlng decllned, from 13,793 ln 2003 Lo 9,738 by 2010. All
excepL LlecLrlcal (LlecLro 1echnology) whlch had very low numbers decllned durlng Lhls perlod.
Many of Lhese reducLlons were slgnlflcanL: Lnglneerlng (1,893 Lo 391), lood (4,700 Lo 2,787),
Þrocess manufacLurlng (7,474 Lo 6,033, lncludlng a drop Lo 2,734 durlng Lhe perlod), and
AuLomoLlve (742 Lo 41). 1hls decllne ln manufacLurlng Lralnees was parL of an overall decllne ln
Lralnees for all lndusLrles, from 92,909 Lo 73,724 durlng Lhe perlod. lurLher, Lhe manufacLurlng
Lralnees share of all Lralnees also decllned durlng Lhe perlod, from 17° ln 2003 Lo 13.2° ln 2010.
1he manufacLurlng lndusLry Lralnlng advlsory board, MLSA8, has noLed LhaL Lhese flgures need
Lo be vlewed wlLh a degree of cauLlon. MLSA8 advlses LhaL many of Lhese Lralnees are noL
employed ln manufacLurlng companles, buL ln one of Lhe many oLher lndusLry areas whlch uLlllse
Lhe process manufacLurlng quallflcaLlon and Lhe CompeLlLlve ManufacLurlng quallflcaLlons.
CLher lndusLry areas lnclude commerclal laundrles, manufacLurlng supply companles and
warehouse operaLlons.
1he upLake of manufacLurlng quallflcaLlons ls llnked ln parL Lo Lralnlng organlsaLlon markeLlng,
and Lhere are concerns LhaL Lhls ls drlvlng Lhe selecLlon of quallflcaLlons by companles, raLher
Lhan companles maklng lndependenL and lnformed cholces. 1here ls a vlew LhaL Lhls ls movlng
commencemenLs ouL of englneerlng, whlch ls LradlLlonally an expenslve quallflcaLlon Lo dellver,
lnLo areas such as process manufacLurlng whlch can be more proflLable for 81Cs. 1hese vlews
are wldely held buL Lhe deflnlLlve answer on boLh of Lhese lssues would requlre a deLalled sLudy
of Lhe companles, Lhe Lralnlng provlders and Lhe processes behlnd quallflcaLlon selecLlon, whlch
ls beyond Lhe scope of Lhls reporL.

103 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
72 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Manufactur|ng Apprent|cesh|p and 1ra|neesh|p Commencements
uaLa provlded by Lhe vlcLorlan ueparLmenL of 8uslness and lnnovaLlon lncludes Lhe followlng
recenL paLLern for apprenLlceshlp commencemenLs ln Lhe manufacLurlng area and all
lndusLrles.
1ab|e 10: Apprent|ce year commencements
104

Industry 200S 2006 2007 2008 2009 2010
Automot|ve 33 22 38 32 22 41
Þr|nt|ng (L|ectro 1ech) 194 173 186 124 93 237
L|ectr|ca| (L|ectro 1ech) 33 48 61 38 4 0
Lng|neer|ng 1,973 1,841 2,333 2 ,310 1,322 1,730
Iood 676 342 628 369 610 383
Iurn|sh|ng 622 388 637 630 480 633
1CI 94 147 73 46 48 30
1C1AL 3,649 3,363 3,936 3,789 2,779 3,318
ALL INDUS1kILS 17,413 16,722 18,828 19,333 16,476 22,011
Þercentage 20.93° 20.11° 21° 19.37° 16.86° 13°

1he overall Lrend ln apprenLlceshlp commencemenLs ln Lhe manufacLurlng lndusLry area ls a
decllne, from 3,649 ln 2003 Lo 3,318 ln 2010. MosL of Lhe lndlvldual sub-secLors have decllned
and englneerlng, as Lhe largesL secLor, has decllned from 1,973 Lo 1,730 durlng Lhls perlod.
Whlle Lhere has been a decllne ln Lhe manufacLurlng area, Lhere has been an lncrease ln
apprenLlceshlp commencemenLs across all lndusLrles, from 17,413 Lo 22,011 durlng Lhe perlod.
ln addlLlon, Lhe percenLage share by manufacLurlng of all lndusLry apprenLlceshlp
commencemenLs has decreased, from around 21° Lo 13° durlng Lhe perlod.
Slmllar daLa ls provlded for Lralnee commencemenLs ln Lhe manufacLurlng area over Lhe same
Llme perlod. 1he volume of Lralnees ls slgnlflcanLly more Lhan apprenLlces and parLlclpaLlon ls
more volaLlle.


104 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 73
1ab|e 11: 1ra|nee year commencements
10S

Industry 200S 2006 2007 2008 2009 2010
Automot|ve 261 461 381 111 7 13
Þr|nt|ng (L|ectro 1ech) 44 76 81 47 74 81
L|ectr|ca| (L|ectro 1ech) 0 0 0 3 4 18
Lng|neer|ng 1,078 1,301 1,229 933 376 104
Iood 2,927 2,393 2,388 2,913 2,166 2,149
Þu|p Þaper & Iorestry Þr 47 33 66 133 72 61
Iurn|sh|ng 61 34 24 20 14 12
Þrocess Manufactur|ng 3,387 2,833 2,089 1,463 2,304 3,038
1CI 297 203 137 30 33 23
1C1AL 10,102 7,396 6,413 3,633 3,232 7,301
ALL INDUS1kILS 64,139 38,469 33,883 33,127 33,327 63,300
Þercentage 13.74° 12.99° 11.9° 10.23° 9.43° 11.8°

1he overall Lrend ln Lhe commencemenL of Lralnees ls a decllne, from 10,102 ln 2003 Lo 7,301 ln
2010. 1hls ls slmllar Lo buL more slgnlflcanL Lhan Lhe Lrend for apprenLlces. MosL of Lhe secLors
have decllned durlng Lhe perlod, wlLh Lnglneerlng (1,078 Lo 104), lood Þrocesslng (2,927 Lo
2,149), Þrocess ManufacLurlng (3,387 Lo 3,038) and 1exLlles, CloLhlng and looLwear (297 Lo 23)
experlenclng Lhe largesL reducLlons.
1he decllne ln Lhe number of manufacLurlng Lralneeshlps has been assoclaLed wlLh flucLuaLlng
levels for all lndusLrles, whlle Lhe overall Lrend has been relaLlvely sLeady (64,139 Lo 63,300). 1he
percenLage share of Lralneeshlps by manufacLurlng ls less Lhan for apprenLlceshlps and has also
been decllnlng. 1he share has reduced from 13.7° ln 2003 Lo 11.8° ln 2010 and even slumped
Lo 9.4° ln 2009.


103 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
74 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Manufactur|ng Apprent|cesh|p and 1ra|neesh|p Comp|et|ons
A furLher lndlcaLor of Lhe exLenL of Lralnlng on Lhe manufacLurlng secLor relaLes Lo compleLlons.
1ab|e 12: Apprent|ce year comp|et|ons
106

Industry 200S 2006 2007 2008 2009 2010
Automot|ve 9 16 13 13 9 11
Þr|nt|ng (L|ectro 1ech) 103 102 106 96 133 108
L|ectr|ca| (L|ectro 1ech) 27 18 20 17 26 26
Lng|neer|ng 1,037 1,089 1,219 1,461 1,447 1,413
Iood 147 189 238 202 223 197
Iurn|sh|ng 284 293 268 284 282 281
1CI 243 62 92 71 34 22
1C1AL 1,832 1,769 1,938 2,144 2,176 2,060
ALL INDUS1kILS 8,107 8,083 8,630 9,270 10,006 10,004
Þercentage 22.8° 21.8° 22.6° 23.1° 21.7° 20.39°
1he LoLal number of manufacLurlng apprenLlce compleLlons lncreased from 1,832 Lo 2,060
beLween 2003 and 2010. MosL sub-secLors recorded an lncrease, some were sLeady buL 1Cl
experlenced a very slgnlflcanL decllne (243 Lo 22). 1he lncrease ln Lhe manufacLurlng
compleLlons was conslsLenL wlLh Lhe overall Lrend of compleLlons, whlch lncreased from 8,107
Lo 10,004 durlng Lhe perlod. 1he percenLage share of all lndusLry apprenLlce compleLlons for Lhe
manufacLurlng lndusLry was relaLlvely consLanL and only experlenced a sllghL fall durlng Lhe
perlod (22.8° Lo 20.6°).
1ab|e 13: 1ra|nee year comp|et|ons
107

Industry 200S 2006 2007 2008 2009 2010
Automot|ve 244 104 286 343 284 30
Þr|nt|ng (L|ectro 1ech) 44 81 40 74 27 29
L|ectr|ca| (L|ectro 1ech) 0 0 0 0 1 7
Lng|neer|ng 134 621 821 778 336 326
Iood 1,361 1,482 1,210 1,136 1,381 1,139
Þu|p Þaper & Iorestry Þr 60 37 97 13 40 116
Iurn|sh|ng 20 23 3 6 3 4
Þrocess Manufactur|ng 1,934 3,174 2,221 1,486 1,266 1,378
1CI 381 232 206 36 77 13
1C1AL 4,220 3,794 4,886 3,912 3,833 3,042
ALL INDUS1kILS 37,902 38,381 34,071 33,031 33,330 34,698
Þercentage 11.1° 13° 14.3° 11.8° 11.4° 8.76°



106 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.
107 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 73
1he LoLal number of manufacLurlng Lralnee compleLlons reduced from 4,220 Lo 3,042 from 2003
Lo 2010. 1he resulLs for Lhe lndusLry secLor were mlxed buL lncluded some slgnlflcanL reducLlons:
process manufacLurlng (1,934 Lo 1,378), food (1,361 Lo 1,139), 1Cl (381 Lo 13) and auLomoLlve
(244 Lo 30). 1hls decrease of manufacLurlng Lralnee compleLlons was conslsLenL wlLh Lhe decllne
ln Lralnee compleLlons for all lndusLrles, whlch fell from 37,902 ln 2003 Lo 34,698 ln 2010. 1he
share of Lhe Lralnee compleLlons for manufacLurlng of all lndusLry Lralnee compleLlons fell from
11.1° ln 2003 Lo 8.7° ln 2010.
1hese compleLlons sLaLlsLlcs relaLe Lo movemenL ln Lhe LoLal numbers of conLracLs of Lralnlng.
8ecenL nCvL8 research Lakes lnLo accounL LhaL around a quarLer of all apprenLlces change
employers durlng Lhelr apprenLlceshlp, and provldes lnformaLlon concernlng boLh lndlvldual and
conLracL compleLlon raLes for apprenLlces. 1hls shows LhaL compleLlon raLes are hlgher Lhan Lhe
LoLal daLa suggesLs, aL 36.6° compared Lo 43.6°.
1ab|e 14: 'kecommencement' ad[ustment factor, contract and |nd|v|dua| comp|et|on rates, trade
occupat|ons, commenced |n 200S
108

1rade Cccupat|ons Average annua|
ad[ustment factor
Contract comp|et|on
rate (¼)
Ind|v|dua|
comp|et|on rate (¼)
Lng|neer|ng, IC1 and sc|ence techn|c|ans 1.04 60.8 63.2
Automot|ve and eng|neer|ng trades workers 1.18 31.3 60.6
Construct|on trades workers 1.29 43.3 38.3
L|ectrotechno|ogy & te|ecommun|cat|ons trades workers 1.20 33.6 64.2
Iood trades workers 1.42 27.7 39.2
Sk|||ed an|ma| and hort|cu|tura| workers 1.09 48.3 32.6
Cther techn|c|ans and trades workers 1.27 41.3 32.3
na|rdressers 1.43 36.3 32.8
Þr|nt|ng trades workers 1.08 34.1 38.3
1ext||e, c|oth|ng and footwear trades workers 1.07 46.3 49.7
Wood trades workers 1.20 43.3 34.3
M|sce||aneous techn|c|ans and trades workers 1.03 32.2 33.0
1echn|c|ans and trades workers 1.24 4S.6 S6.6
1hls daLa lndlcaLes LhaL Lhe lndlvldual compleLlon raLes for Lhe apprenLlce cohorL sLarLlng ln
2003 ls 36.6°, compared Lo 43.6° on a conLracL of Lralnlng basls. 1he range varles, from 64.2°
for elecLroLechnology and LelecommunlcaLlons Lrades workers, Lo a low of 39.2° for food Lrades
workers. Lnglneerlng, lC1 and sclence Lechnlclans recorded compleLlon raLes of 63.2°.


108 karmel, 1., lndlvldual-based compleLlon raLes for apprenLlces, nCvL8, 2011
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
76 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Vocat|ona| Lducat|on and 1ra|n|ng Manufactur|ng Lnro|ments
A furLher lndlcaLlon of Lhe exLenL of Lralnlng underLaken by vlcLorlan manufacLurlng relaLes Lo
enrolmenLs by fundlng source.
1ab|e 1S: VL1 manufactur|ng enro|ments by fund|ng source
109

Iund|ng Source 2006 2007 2008 2009 2010
Iee for Serv|ce 10,317 10,248 10,326 10,843 12,334
Government Iunded 29,324 31,314 30,386 27,344 33,732
1ota| Lnro|ments 40,041 41,762 40,912 38,189 46,086
1hls Lable lndlcaLes LhaL LoLal enrolmenLs ln Lhe manufacLurlng lndusLry area lncreased by 13.1°
durlng Lhe perlod 2006-10. 1he lncrease ln lee for Servlce (17.3°) was sllghLly hlgher Lhan Lhe
lncrease for governmenL funded enrolmenLs (14.3°). 1hls daLa has been dlsaggregaLed lnLo
speclflc manufacLurlng lndusLry areas.
1ab|e 16: VL1 manufactur|ng enro|ments by |ndustry group|ngs
110

Industry 2006 2007 2008 2009 2010
Automot|ve 498 294 307 114 106
L|ectr|ca| 4,209 4,368 4,369 3,739 8,236
Lng|neer|ng 14,079 13,371 13,608 13,846 16,167
Iood 11,070 11,327 10,272 8,064 8,447
Iurn|sh|ng 4,009 3,973 3,811 3,694 4,304
Cther 70 293
Þr|mary 8 3 4 3 6
Þr|nt|ng 1,063 1,186 1,413 1,236 1,334
Þrocess Manufactur|ng 2,006 1,816 1,817 1,933 3,337
Þaper, Þu|p & Iorestry
Þroducts
346 477 313 390 341
1ext||es, C|oth|ng & Iootwear 2,331 2,343 2,796 2,838 3,093
1C1AL 40,041 41,762 40,912 38,189 46,086



109 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.
110 vlcLorlan ueparLmenL of 8uslness and lnnovaLlon, 2011.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 77
1hls daLa reveals LhaL Lhe ma[orlLy of lndusLry areas had enrolmenL lncrease durlng Lhe 2006-10
perlod. Some of Lhese lncreases were slgnlflcanL, especlally:
• LlecLrlcal 93.7°
• Þrocess ManufacLurlng 77.3°
• ÞrlnLlng 23.3°
• 1exLlles, CloLhlng and looLwear 21.2°, and
• Lnglneerlng 14.8°.
1here were also some decreases ln enrolmenLs durlng Lhe perlod. 1hls was especlally for
auLomoLlve wlLh a 78.7° decrease and food wlLh 23.7° decrease. lood was Lhe only hlgh
volume area of Lralnlng wlLh 18.3° of Lhe 2010 LoLal Lo experlence a decrease ln enrolmenLs.
1he Lable below provldes a breakdown of manufacLurlng enrolmenLs by quallflcaLlon, from
CerLlflcaLe ll Lo Advanced ulploma. 1hls daLa shows lncreases aL cerLlflcaLe level buL decreases aL
hlgher-level quallflcaLlons, whlch ls a concern as lL ls Lhese sklll levels whlch wlll be parLlcularly
lmporLanL ln Lhe fuLure.
1ab|e 17: A|| VL1 manufactur|ng enro|ments by qua||f|cat|on |eve|
Çua||f|cat|on |eve| 2006 2007 2008 2009 2010
Advanced D|p|oma 1,713 1,931 1,617 1,432 1,319
D|p|oma 1,370 2,113 2,888 2,334 1,983
Cert|f|cate IV 3,396 3,862 3,674 3,823 3,983
Cert|f|cate III 16,263 13,217 16,432 16,320 21,083
Cert|f|cate II 11,634 11,678 11,030 13,184 14,179
Cert|f|cate I 3,443 6,961 3,231 876 1,333
1he V|ctor|an 1ra|n|ng Guarantee
1he vlcLorlan CovernmenL lnLroduced Lhe vlcLorlan 1ralnlng CuaranLee whlch ls an enLlLlemenL
Lo a governmenL subsldlsed place ln recognlsed Lralnlng LhaL ls avallable aL successlvely hlgher
levels. 1he reform ls belng lnLroduced over a Lwo-year perlod and ls fully operaLlonally ln 2011.
Slnce Lhe lnLroducLlon of Lhe vlcLorlan 1ralnlng CuaranLee a number of lndusLry areas, lncludlng
manufacLurlng, have experlenced rapld growLh ln enrolmenLs (76°). MeLals and Lnglneerlng has
been relaLlvely sLaLlc wlLh a 2° reducLlon ln enrolmenLs. lL ls dlfflculL Lo lnfer a level of recovery
ln manufacLurlng as a resulL of Lhls daLa glven Lhe shorL perlod Lo daLe of Lhe lmplemenLaLlon of
Lhe v1C. Cf concern are reporLs from lndlvldual enLerprlses LhaL Lhey have noL been able Lo
enroll apprenLlces ln a range of quallflcaLlons because Lhe 81C ls no longer dellverlng LhaL
Lralnlng. 1hls means LhaL even Lhough a Lralnlng place would be funded Lhrough Lhe Lralnlng
guaranLee a place ls noL avallable and Lhe Lralnlng cannoL be underLaken. CurrenLly Lhere ls only
anecdoLal evldence avallable of young people, and exlsLlng workers noL belng Lo exerclse Lhelr
guaranLee and more daLa on such occurrences would be useful.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
78 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Nat|ona| Manufactur|ng Apprent|cesh|p and 1ra|neesh|p Commencements
ln addlLlon Lo Lhe vlcLorlan daLa, comparlsons can be made aL a naLlonal level Lhrough AnZSCC
occupaLlon groups. 1he followlng nCvL8 daLa lndlcaLes Lralnlng commencemenLs ln ldenLlfled
manufacLurlng occupaLlons compared across AusLralla ln four broad groups: professlonals,
Lechnlclans and Lrades workers, machlnery operaLors and drlvers, and labourers.
1ab|e 18: Commencements by occupat|on and state]terr|tory, 12 months end|ng
30 September 2010 ('000)
111

Occupation (ANZSCO) group NSW Vic Qld SA WA Tas NT ACT Australia
23 Design, engineering, science and
transport professionals
0.1 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.5
31 Engineering, ICT and science
technicians
1.1 0.4 1.4 0.4 1.0 0.2 0.0 0.1 4.6
32 Automotive and engineering 5.5 4.1 4.6 1.4 2.8 0.4 0.2 0.2 19.4
35 Food trades workers 3.0 3.0 2.5 0.7 0.8 0.4 0.1 0.2 10.6
39 Other technicians and trades workers 6.2 4.1 3.6 1.1 2.0 0.3 0.2 0.2 17.7
392 Printing trades workers 0.1 0.3 0.1 0.2 0.0 0.0 0.0 0.0 0.8
393 Textile, clothing and footwear trades
workers
0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 0.1
394 Wood trades workers 0.4 0.5 0.5 0.2 0.3 0.0 0.0 0.0 2.0
71 Machine and stationary plant
operators
1.1 0.6 1.0 0.6 1.2 0.1 0.1 0.0 4.6
83 Factory process workers 3.0 4.9 2.6 1.0 1.2 0.2 0.0 0.0 13.0
Total
5
20.5 18 16.5 5.6 8.4 1.6 0.6 0.7 73.3
A dash (-) represenLs a Lrue zero flgure, wlLh no conLracLs reporLed ln Lhese caLegorles.
Þrofess|ona|s
WlLhln Lhls broad caLegory 'deslgn, englneerlng, sclence and LransporL professlonals' are
consldered. vlcLorla has 1,000 commencemenLs, second only Lo Cueensland, represenLlng 20°
of all commencemenLs ln Lhls caLegory Lo 30 SepLember 2010.
1echn|c|ans and trades workers
1here are several occupaLlons Lo be consldered wlLhln Lhls broad caLegory.
• Lnglneerlng, lC1 and sclence Lechnlclans: vlcLorlan has 400 commencemenLs whlch
represenLs 8.6° of Lhe naLlonal LoLal. 1hree oLher sLaLes exceed vlcLorla: Cueensland
(1,400), nSW (1,000) and WesLern AusLralla (1,000),
• AuLomoLlve englneerlng: vlcLorla has 4,100 commencemenLs whlch represenLs 21° of
Lhe naLlonal LoLal. nSW (3,300) and Cueensland (4,600) have a greaLer share Lhan
vlcLorla,
• lood Lrades workers: vlcLorla has 3,000 commencemenLs whlch represenLs 28.3° of Lhe
naLlonal LoLal. vlcLorla has Lhe equal mosL wlLh nSW ln Lhls caLegory,
• ÞrlnLlng Lrades workers: vlcLorla has 300 commencemenLs whlch represenLs 37.3° of
Lhe naLlonal LoLal. vlcLorla leads Lhe naLlon ln Lhls caLegory,
• 1Cl Lrades workers: vlcLorla has none of Lhe naLlonal LoLal of 100 commencemenLs ln
Lhls occupaLlon, and

111 ApprenLlces and 1ralnees, AusLrallan vocaLlonal educaLlon and Lralnlng sLaLlsLlcs, nCvL8, SepLember CuarLer, 2010

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 79
• Wood Lrades workers: vlcLorla has 300 commencemenLs whlch represenLs 23° of Lhe
naLlonal LoLal. vlcLorla leads Lhe naLlon wlLh Cueensland ln Lhls caLegory.
Mach|nery operators and dr|vers
WlLhln Lhls broad caLegory 'Machlne and sLaLlonary planL operaLors' ls Lhe maln occupaLlon Lo
conslder. vlcLorla has 600 commencemenLs whlch represenLs 13° of Lhe naLlonal LoLal. WesLern
AusLralla (1,200), nSW (1,100) and Cueensland (1,000) have hlgher levels of commencemenLs
Lhan vlcLorla.
Labourers
'lacLory process workers' ls Lhe relevanL occupaLlon. vlcLorla has 4,900 commencemenLs whlch
represenLs 37.6° 0f Lhe naLlonal LoLal. vlcLorla leads Lhe naLlon ln Lhls caLegory.
Cvera||
1he overall LoLal for Lhese occupaLlons lndlcaLes LhaL vlcLorla has Lhe second-hlghesL level of
commencemenLs aL 18,000. 1hls represenLs almosL one quarLer of all commencemenLs for Lhese
occupaLlon caLegorles.
Nat|ona| Manufactur|ng 1ra|n|ng Þackage Þart|c|pat|on
A furLher naLlonal comparlson measure ls ln Lralnlng wlLhln relevanL lndusLry Lralnlng packages.
(lndusLry Lralnlng packages lnclude Lhe naLlonally recognlsed Lralnlng quallflcaLlons for each
lndusLry.)
ln relaLlon Lo MeLal and Lnglneerlng Lralnlng package programs vlcLorla has 3,600 parLlclpanLs ln
Lralnlng whlch represenLs 21.3° of Lhe AusLrallan LoLal. 1hls ls exceeded by Cueensland (7,900)
and nSW (3,800) buL ls slgnlflcanLly more Lhan all oLher [urlsdlcLlons.
1he lnformaLlon concernlng vlcLorla ls LhaL Lhere are 4,600 parLlclpanLs ln manufacLurlng
Lralnlng package programs whlch represenLs 33.8° of Lhe AusLrallan LoLal. 1hls ls only exceeded
by nSW wlLh 3,800 parLlclpanLs and ls slgnlflcanLly more Lhan all oLher [urlsdlcLlons.
ln Lhe food processlng lndusLry vlcLorla has Lhe largesL number of parLlclpanLs wlLh 2,600 whlch
represenLs 32° of Lhe AusLrallan LoLal. ÞarLlclpaLlon ln lood Þrocesslng lndusLry Lralnlng
packages only represenLs 8° of Lhe 20 Lop Lralnlng packages.
ln Lhe AusLrallan MeaL lndusLry area vlcLorla has 1,400 parLlclpanLs ln Lralnlng packages whlch
represenLs 18.6° of Lhe AusLrallan LoLal. Cnce agaln, Cueensland (2,400) and nSW (2,000) have
hlgher levels of parLlclpaLlon. AusLrallan meaL lndusLry Lralnlng packages only represenL 7.7° of
Lhe Lop 20 Lralnlng packages.
WlLhln Lhe Lop 20 Lralnlng packages for lurnlshlng vlcLorla has Lhe mosL parLlclpanLs ln Lralnlng
wlLh 1,800 whlch represenLs 28.3° of Lhe AusLrallan LoLal. 1he 20 Lop Lralnlng packages ln
lurnlshlng represenL 6.3° of Lhe LoLal.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
80 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1ab|e 19: In-tra|n|ng |n top 20 tra|n|ng packages by state]terr|tory, as at 30 September 2010 ('000)
112

Training package NSW Vic Qld SA WA Tas NT ACT Aust
Business Services (BSA, BSB) 24.3 11.0 16.1 6.1 1.6 1.8 0.4 0.7 61.9
Construction, Plumbing & Services Integrated
Framework (BCF, BCG, BCP, CPC)
14.1 18.5 11.7 3.4 3.0 1.4 0.4 1.1 53.6
Retail Services (SIR, WRP, WRR, WRW) 12.5 13.2 7.4 4.1 1.8 1.1 0.3 0.5 40.9
Tourism, Hospitality and Events (SIT, THH,
THT)
14.0 9.9 5.8 1.5 2.0 1.0 0.3 1.0 35.4
Electrotechnology (UEE, UTE, UTL) 8.8 7.4 6.9 2.5 3.5 0.8 0.5 0.7 31.2
Automotive Industry Retail, Service and
Repair (AUR)
9.0 6.7 5.8 2.4 3.2 0.7 0.4 0.4 28.6
Metal and Engineering (MEM) 5.8 5.6 7.9 1.7 4.4 0.7 0.2 0.1 26.3
Transport and Logistics (TDT, TLI) 10.4 5.4 4.5 1.9 2.6 0.4 0.2 0.2 25.6
Community Services (CHC) 8.7 6.0 3.8 1.0 2.3 0.8 0.4 0.9 24.0
Manufacturing (MCM, MSA) 5.8 4.6 1.7 0.4 1.1 0.0 0.0 0.0 13.6
Hairdressing (WRH) 3.7 2.4 3.0 0.9 1.3 0.3 0.1 0.3 12.0
Resources and Infrastructure (BCC, DRT,
MNC, MNM, MNQ, RII)
2.2 0.6 2.4 0.6 1.9 0.4 0.2 0.0 8.4
Food Processing Industry (FDF) 2.3 2.6 1.4 0.9 0.5 0.3 0.0 0.1 8.1
Australian Meat Industry (MTM) 2.0 1.4 2.4 0.8 0.7 0.2 0.0 0.1 7.5
Amenity Horticulture (RTF, RUH) 2.0 2.5 1.4 0.8 0.3 0.2 0.1 0.1 7.3
Financial Services (FNA, FNB, FNS) 3.0 1.1 1.8 0.4 0.4 0.1 0.1 0.1 7.0
Health (HLT) 2.6 2.7 0.5 0.2 0.2 0.2 0.0 0.2 6.6
Furnishing (LMF) 1.2 1.8 1.5 0.5 0.8 0.2 0.1 0.1 6.3
Asset Maintenance (PRM) 2.4 0.9 1.0 0.2 0.2 0.2 0.1 0.2 5.1
Rural Production (RTE, RUA) 0.9 1.2 0.5 0.4 0.3 0.1 0.1 - 3.6
Top 20 training packages sub-total ('000) 135.8 105.3 87.6 30.7 32.3 10.8 3.9 6.7
413.
1
Other training packages 9.9 7.1 6.5 2.7 3.7 1.0 0.5 0.9 32.3
All training packages ('000) 145.7 112.4 94.1 33.4 36.0 11.7 4.4 7.6
445.
4
Non-training packages 0.8 0.4 0.4 0.0 1.6 0.2 0.0 0.0 3.4
Total number ('000) 146.5 112.8 94.5 33.4 37.6 11.9 4.4 7.6
448.
8
Training packages as proportion of total
(%)
99.5 99.6 99.6 99.9 95.9 98.1 99.5 99.9 99.2
A dash (-) represenLs a Lrue zero flgure, wlLh no conLracLs reporLed ln Lhese caLegorles.
Slmllar daLa ls avallable for commencemenLs.
1he daLa concernlng commencemenLs ln manufacLurlng Lralnlng packages lndlcaLes LhaL vlcLorla
has 1,300 commencemenLs whlch represenL 30° of Lhe AusLrallan LoLal. lor Lhls seL of daLa
vlcLorla has more commencemenLs Lhan any oLher [urlsdlcLlon lncludlng Lhe more populous
nSW.
ln Lhe MeLals and Lnglneerlng area vlcLorla has 300 commencemenLs whlch represenLs 18.8° of
Lhe AusLrallan LoLal.

112 ApprenLlces and 1ralnees, AusLrallan vocaLlonal educaLlon and Lralnlng sLaLlsLlcs, nCvL8, SepLember CuarLer, 2010

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 81
ln Lhe AusLrallan MeaL lndusLry area vlcLorla has 300 commencemenLs or 17.6° of Lhe
AusLrallan LoLal.
ln Lhe lood Þrocesslng lndusLry area vlcLorla has 300 commencemenLs or one-Lhlrd of naLlonal
commencemenLs. vlcLorla has more commencemenLs Lhan any oLher [urlsdlcLlon.
1ab|e 20: Commencements |n top 20 tra|n|ng packages by state]terr|tory, September quarter 2010
('000)
113

Training package NSW Vic Qld SA WA Tas NT ACT Aust
Business Services (BSA, BSB) 5.8 3.8 4.5 1.4 0.5 0.5 0.1 0.2 16.8
Retail Services (SIR, WRP, WRR, WRW) 2.6 4.4 1.8 0.7 0.6 0.3 0.1 0.1 10.5
Tourism, Hospitality and Events (SIT,
THH, THT)
2.7 2.6 1.3 0.3 0.5 0.2 0.1 0.2 7.8
Transport and Logistics (TDT, TLI) 2.1 1.2 0.8 0.3 0.7 0.1 0.0 0.1 5.4
Community Services (CHC) 1.7 1.2 0.8 0.2 0.5 0.2 0.1 0.2 5.0
Construction, Plumbing & Services
Integrated Framework (BCF, BCG, BCP,
CPC)
1.1 1.8 0.9 0.4 0.5 0.1 0.0 0.1 4.9
Manufacturing (MCM, MSA) 1.0 1.5 0.3 0.0 0.3 – 0.0 – 3.0
Automotive Industry Retail, Service and
Repair (AUR)
0.6 0.7 0.5 0.3 0.3 0.1 0.0 0.0 2.6
Electrotechnology (UEE, UTE, UTL) 0.5 0.6 0.4 0.2 0.3 0.0 0.0 0.1 2.1
Australian Meat Industry (MTM) 0.4 0.3 0.7 0.1 0.1 0.1 0.0 0.0 1.7
Metal and Engineering (MEM) 0.3 0.3 0.5 0.1 0.3 0.0 0.0 0.0 1.6
Financial Services (FNA, FNB, FNS) 0.6 0.3 0.4 0.1 0.1 0.0 0.0 0.0 1.6
Food Processing Industry (FDF) 0.3 0.5 0.4 0.1 0.1 0.0 0.0 0.0 1.5
Asset Maintenance (PRM) 0.5 0.2 0.3 0.1 0.1 0.0 – 0.1 1.3
Hairdressing (WRH) 0.4 0.2 0.4 0.1 0.2 0.0 0.0 0.0 1.3
Resources and Infrastructure (BCC, DRT,
MNC, MNM, MNQ, RII)
0.4 0.1 0.4 0.1 0.3 0.0 0.0 – 1.3
Health (HLT) 0.5 0.5 0.1 0.0 0.1 0.0 0.0 0.0 1.2
Amenity Horticulture (RTF, RUH) 0.3 0.3 0.2 0.2 0.0 0.0 0.0 0.0 1.0
Rural Production (RTE, RUA) 0.2 0.2 0.1 0.1 0.1 0.0 0.0 – 0.6
Property Services (CPP, PRD, PRS) 0.3 0.1 0.1 0.0 0.1 0.0 0.0 0.0 0.6
Top 20 training packages sub-total 22.1 20.9 14.8 4.9 5.6 1.9 0.5 1.0 71.8
Other training packages 1.4 1.0 1.1 0.4 0.7 0.2 0.1 0.1 5.1
All training packages ('000) 23.4 21.9 16.0 5.3 6.3 2.1 0.7 1.2 76.9
Non-training packages 0.0 0.0 0.0 0.0 0.0 0.0 – – 0.1
Total number ('000) 23.5 22.0 16.0 5.3 6.3 2.1 0.7 1.2 77.0
Training packages as proportion of
total (%)
99.9 99.8 99.9 100.0 99.8 99.9 100.0 100.0 99.9
A dash (-) represenLs a Lrue zero flgure, wlLh no conLracLs reporLed ln Lhese caLegorles.







113 ApprenLlces and 1ralnees, AusLrallan vocaLlonal educaLlon and Lralnlng sLaLlsLlcs, nCvL8, SepLember CuarLer, 2010
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
82 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Conc|us|on
1he exLenL of Lralnlng underLaken by vlcLorlan manufacLurers has been dlfflculL Lo quanLlfy ln
Lhe pasL because publlcly avallable sLaLlsLlcs have relaLed only Lo publlcly funded Lralnlng Lhough
Lhls ls only one componenL of Lhe Lralnlng efforL of companles. lmprovemenLs ln daLa provlslon
and dlssemlnaLlon - parLlcularly Lo lndusLry Lralnlng advlsory bodles - wlll supporL publlc pollcy
developmenL.
lL ls clear LhaL vocaLlonal educaLlon, parLlcularly apprenLlceshlp and Lralneeshlp arrangemenLs,
have Lhe ongolng supporL of Lhe manufacLurlng secLor. noLwlLhsLandlng Lhe supplemenLary daLa
avallable, Lhere are opporLunlLles Lo lmprove key componenLs of Lhe apprenLlceshlp sysLem Lo
lncrease compleLlon raLes. 1he recenL CommonwealLh 8udgeL lnLroduced new measures Lo
lmprove reLenLlon raLes and Lo beLLer supporL apprenLlces.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 83
3.2 SkILLS U1ILISA1ICN LLVLLS AND CÞÞCk1UNI1ILS
key I|nd|ngs
• lorLy per cenL of vlcLorlan manufacLurlng companles respondlng Lo an Al Croup survey
reporLed havlng human resources plans ln place, compared Lo 46° of companles
surveyed ln Lhe cross-lndusLry AusLralla-wlde survey. Larger companles are more Lhan
Lwlce as llkely Lo have Lhese plans ln place as small and medlum-slzed flrms.
• nlneLy-Lhree per cenL of vlcLorlan manufacLurlng companles keep Lrack of Lhe skllls of
Lhelr workforce, 38° use a skllls reglsLer, 33° keep a mlx of formal and lnformal records
and 22° have an lnformal undersLandlng of Lhe skllls of Lhelr sLaff. 1he larger Lhe flrm,
Lhe more llkely LhaL some form of record ls held.
• nearly 40° of companles have formal skllls uLlllsaLlon measuremenLs ln place, a quarLer
use lnformal measuremenLs of skllls use and 13° measure skllls use ln some areas of
Lhelr operaLlon. Small flrms are much more llkely noL Lo aLLempL Lo measure skllls
uLlllsaLlon levels Lhan medlum or large flrms, 39° compared Lo 13° and 23°
respecLlvely.
• Plgher-level occupaLlonal groups have hlgher levels of skllls uLlllsaLlon: 91° of Lhe skllls
of managers are mosLly or fully uLlllsed, 89° of Lhe skllls of clerlcal and admlnlsLraLlve
sLaff are mosLly or fully uLlllsed, and 86° of Lhe skllls of professlonal sLaff are mosLly or
fully uLlllsed.
• vlcLorlan manufacLurers reporLed somewhaL lower levels of skllls uLlllsaLlon for
Lechnlclans and Lrades workers and labourers and process workers, and apprenLlces and
Lralnees, Lhan Lhe broader survey found.
• 1he mosL frequenL human resources managemenL approach clLed by vlcLorlan
manufacLurlng flrms ls upskllllng, wlLh 37° of companles provldlng Lhls opLlon Lo Lhelr
workforce. Cver 40° of companles offer multiple job roles, revlew Lralnlng needs,
provlde feedback for managers and clerlcal sLaff, and offer flexlble worklng
arrangemenLs. Cver 30° of companles offer [ob roLaLlon, feedback for professlonal sLaff,
Lechnlclans and Lrades workers, provlde flexlble [ob descrlpLlons and famlly-frlendly
pollcles, and run suggesLlon schemes. Cver Lhe 18 human resources managemenL
measures llsLed, large companles reporL hlgher levels of use ln all buL Lwo measures -
suggesLlon schemes and [ob roLaLlon.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
84 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
ln laLe 2009, Al Croup underLook a survey whlch focused on Lwo lssues of sLrong lnLeresL Lo
companles: workplace llLeracy and numeracy and skllls uLlllsaLlon levels. 1he lnLeresL ln skllls
uLlllsaLlon arose from a revlew of sLudles on hlgh performlng companles, whlch showed LhaL
Lhere were cerLaln hallmarks of hlgh performlng workplaces - lncludlng hlgh levels of skllls
uLlllsaLlon. 1o develop Lhls secLlon of Lhe reporL, Lhe resulLs for vlcLorlan manufacLurers have
been exLracLed from Lhe orlglnal daLa, whlch lncluded flrms from oLher lndusLrles and oLher
sLaLes. 1hls secLlon of Lhe reporL conslders Lhe flndlngs of Lhe quesLlons relaLed Lo skllls
uLlllsaLlon. Where Lhere are slgnlflcanL dlfferences beLween Lhe resulLs for vlcLorlan
manufacLurers and Lhe broader sample, Lhese dlfferences are hlghllghLed. 1he flndlngs for
vlcLorlan manufacLurers on llLeracy and numeracy can be found ln SecLlon 3.3 of Lhls reporL.
kesearch Deta||s: kespondents by Sector and Company S|ze
Companles were asked Lo locaLe Lhemselves by lndusLry secLor, currenL value of Lurnover and
LoLal number of full-Llme employees ln 2009-10. 1he survey generaLed responses from 93
vlcLorlan manufacLurlng companles, wlLh LoLal employmenL of 14,716 employees and LoLal
annual Lurnover of $2.9 bllllon.
1he largesL number of responses was from small-slzed enLerprlses of up Lo 23 employees,
represenLlng 42° of all respondenLs. Medlum-slzed flrms of 26 Lo 100 employees accounLed for
27° of respondenLs, whlle large-slzed flrms (more Lhan 100 employees) conLrlbuLed 22°.
Survey I|nd|ngs
numan resources p|ann|ng
lorLy per cenL of Lhe vlcLorlan manufacLurlng companles surveyed had a formal human
resources plan ln place, compared Lo 46° of Lhe orlglnal AusLralla and lndusLry-wlde survey
sample. 1he larger Lhe company, Lhe more llkely LhaL Lhere wlll be a formal human resources
plan: 70° of large companles, 32° of medlum companles and 30° of small companles have
Lhese plans.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 83
Chart 38: numan resources p|an |n p|ace by company s|ze

ln Lhe full survey resulLs lL was found LhaL Lhe lndusLry ln whlch Lhe organlsaLlon ls engaged ls
slgnlflcanL, wlLh servlce organlsaLlons havlng a hlgher level of human resources plannlng (38°)
Lhan elLher manufacLurlng flrms (39°) or consLrucLlon flrms (40°).
Methods used to track workforce sk|||s
nlneLy-Lhree per cenL of vlcLorlan manufacLurlng companles keep Lrack of Lhe skllls of Lhelr
workforce, 38° use a skllls reglsLer, 33° keep a mlx of formal and lnformal records, and
22° have an lnformal undersLandlng of Lhe skllls of Lhelr sLaff.
Chart 39: Methods used to track workforce sk|||s
1he larger Lhe flrm, Lhe more llkely LhaL some form of Langlble record ls held, 93° of large flrms
have mechanlsms ln place, compared Lo 68° of medlum flrms and 38° of small flrms. Medlum
and large flrms are more llkely Lo use a skllls reglsLer Lhan small flrms (44° and 43° respecLlvely
compared Lo 26°) and large flrms are more llkely Lo rely on a mlx of lnformal and formal records
Lhan small and medlum flrms (30° compared Lo 32° and 24° respecLlvely).

30°
68°
3°
32°
60°
8°
70°
20°
10°
?es no unsure
Þ
e
r
c
e
n
L
a
g
e

Small Medlum Large
38°
33°
22°
7°
Skllls 8eglsLer Mlx of formal/lnformal lnformal undersLandlng no records
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
86 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 40: Methods used to track workforce sk|||s by company s|ze

Measur|ng workforce sk|||s ut|||sat|on
vlcLorlan manufacLurlng companles were asked lf Lhey measured Lhe exLenL of skllls uLlllsaLlon ln
Lhelr workforce. nearly 40° of companles have formal measuremenLs ln place, a quarLer use
lnformal measuremenLs of skllls use, and 13° measure skllls use ln some areas of Lhelr
operaLlon. A quarLer of Lhe companles ln Lhe survey do noL make any aLLempL Lo measure skllls
uLlllsaLlon levels. Small flrms are much more llkely noL Lo make any aLLempL Lo measure skllls
uLlllsaLlon levels Lhan medlum or large flrms: 39° compared Lo 13° and 23° respecLlvely.
Chart 41: Lxtent of company sk|||s ut|||sat|on measurement by company s|ze


26°
32°
34°
8°
44°
24°
28°
4°
43°
30°
0°
3°
Skllls 8eglsLer Mlx of formal/lnformal lnformal undersLandlng no records
Small Medlum Large
8°
26° 26°
39°
17°
38°
33°
13°
13°
40°
20°
23°
?es, formally ?es, lnformally ln some areas no
Small Medlum Large

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 87
Workforce sk|||s ut|||sat|on |eve|s
Companles were asked Lo lndlcaLe Lhe exLenL Lo whlch Lhe skllls of Lhelr workforce are uLlllsed
across occupaLlonal groups. 1he responses lndlcaLe LhaL hlgher-level occupaLlonal groups have
hlgher levels of skllls uLlllsaLlon: 91° of Lhe skllls of managers are mosLly or fully uLlllsed, 89° of
Lhe skllls of clerlcal and admlnlsLraLlve sLaff are mosLly or fully uLlllsed and 86° of Lhe skllls of
professlonal sLaff are mosLly or fully uLlllsed. 1hese flndlngs are conslsLenL wlLh Lhose of Lhe
broader survey. vlcLorlan manufacLurers reporLed somewhaL lower levels of skllls uLlllsaLlon for
Lechnlclans and Lrades workers and labourers and apprenLlces Lhan Lhe broader survey found.
SevenLy-flve per cenL (compared Lo Lhe all respondenL resulL of 82°) of Lhe skllls of Lechnlclans
and Lrades workers are mosLly or fully uLlllsed, 67° (compared Lo Lhe all respondenL resulL of
70.3°) of Lhe skllls of labourers and process workers are mosLly or fully uLlllsed, and flnally,
60° (compared Lo Lhe all respondenL resulL of 63°) of Lhe skllls of apprenLlces and Lralnees are
mosLly or fully uLlllsed. Cn balance Lhe varlaLlons are relaLlvely small and could be explalned
by Lhe small sample slze.
Chart 42: Lxtent of sk|||s ut|||sat|on by occupat|on

numan resources management approaches used
llnally, companles were asked Lo nomlnaLe from a llsL whlch human resources managemenL
approaches Lhey used. 1he mosL frequenL response clLed by vlcLorlan manufacLurlng flrms
ls upskllllng, wlLh 37° of companles provldlng Lhls opLlon Lo Lhelr workforce. Cver 40° of
companles offer multiple job roles, revlew Lralnlng needs, provlde feedback for managers and
clerlcal sLaff, and offer flexlble worklng arrangemenLs. Cver 30° of companles offer [ob roLaLlon,
feedback for professlonal sLaff and for Lechnlclans and Lrades workers, provlde flexlble [ob
descrlpLlons, famlly-frlendly pollcles, and run suggesLlon schemes.

18°
24°
38°
42°
43°
31°
49°
36°
37°
44°
46°
40°
24°
18°
16°
7°
7°
6°
4°
12°
3°
1°
3°
10°
6°
3°
4°
4°
0° 10° 20° 30° 40° 30° 60° 70° 80° 90° 100°
Labourers
Apprenuces and Lralnees
1echnlclans and Lrades
workers
Þrofesslonals
Clerlcal and admln
Managers
lully uullsed MosLly uullsed ÞarLly uullsed noL uullsed unsure
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
88 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 43: numan resources management approaches used

Cver Lhe 18 measures llsLed, large companles reporL hlgher levels of use ln all buL Lwo measures
- suggesLlon schemes and [ob roLaLlon. lor Lhe oLher measures, large companles have
slgnlflcanLly hlgher levels of use Lhan medlum and small companles. lor example, famlly-frlendly
pollcles are ln place ln 40° of large companles, 32° of medlum companles, and 31° of small
companles. llexlble worklng arrangemenLs are avallable ln 32° of large companles, 41° of
medlum companles, and 38.3° of small companles. As a flnal example, feedback for Lechnlclans
ls provlded ln 44° of large companles, 40.3° of medlum flrms, and 23° of small companles.
Conc|us|on
1he Lerm 'skllls uLlllsaLlon' does noL have broad currency ln lndusLry, lncludlng ln Lhe
manufacLurlng secLor. lL ls an lssue of lncreaslng lnLeresL and prlorlLy as skllls shorLages deepen.
8uL lL ls clear LhaL companles need supporL Lo be able Lo maxlmlse skllls use as for many Lhls wlll
requlre a slgnlflcanL 're-Lhlnk' of Lhelr approach Lo human resource managemenL.

21°
22°
22°
26°
27°
30°
31°
34°
34°
36°
37°
40°
42°
43°
46°
46°
49°
37°
0° 10° 20° 30° 40° 30° 60° 70° 80° 90° 100°
SLañ surveys
AssessmenL Lools
1CM
leedback for Lechnlclans and Lrades
lamlly frlendly pollcles
leedback for professlonals
llexlble worklng arrangemenLs
leedback for managers
Muluple [obs
ÞercenLage of companles

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 89
3.3 CN-1nL-IC8 Ck CII-1nL-IC8 1kAINING
key I|nd|ngs
• 1he preferred meLhod of Lralnlng wlll depend on Lhe group belng Lralned. MosL
manufacLurers sLlll prefer Lhelr apprenLlces Lo recelve Lhelr formal Lralnlng away from
Lhe workplace, whlle producLlon employees are more commonly Lralned aL work.
• Some Lralnlng provlders flnd lL dlfflculL Lo cusLomlse Lhelr Lralnlng Lo Lhe needs of Lhe
workplace for a range of reasons, such as lnflexlble lnLernal pracLlces, Lhe lncreased
cosLs assoclaLed wlLh smaller numbers, or Lhe complexlLles of cusLomlslng Lhelr Lralnlng
producLs. Many Lralnlng provlders need asslsLance Lo change Lhelr pracLlces.
• ManufacLurlng companles are ofLen noL aware of how Lhe Lralnlng sysLem works, and
consequenLly don'L know LhaL alLernaLlve meLhods of Lralnlng dellvery LhaL beLLer meeL
Lhelr needs mlghL be avallable.
Introduct|on
1he quesLlon of wheLher on-Lhe-[ob or off-Lhe-[ob Lralnlng ls more effecLlve and efflclenL has
been debaLed for many years, and Lo some exLenL Lhe answer ls LhaL Lhe sulLablllLy of Lhe
Lralnlng locaLlon depends on a number of facLors and Lhls ls noL an 'elLher or' proposlLlon.
ln-house Lralnlng can provlde Lralnlng LhaL ls dlrecLly LargeLed aL an enLerprlse's lmmedlaLe
needs, aL a Llme and place LhaL sulLs LhaL enLerprlse. Cff-slLe Lralnlng allows for cross-polllnaLlon
beLween workplaces, exposure Lo besL pracLlce, and a deLachmenL from Lhe proxlmlLy of Lhe
workplace LhaL allows for a greaLer concenLraLlon on Lhe Lralnlng lLself.
An effecLlve Lralnlng soluLlon for an lndlvldual enLerprlse, or for an lndusLry as a whole, musL
embrace Lhe besL of boLh sysLems, and accommodaLe Lhe learnlng needs of a workforce LhaL ls
Lruly dlverse.
Def|n|t|ons
lL ls lmporLanL LhaL Lhere ls a clear undersLandlng of whaL consLlLuLes on-Lhe-[ob and off-Lhe-[ob
Lralnlng, because Lhe Lerms can mean dlfferenL Lhlngs Lo dlfferenL people. lL ls also necessary Lo
dlfferenLlaLe beLween formal and lnformal Lralnlng, as boLh Lypes of Lralnlng have Lhelr place ln
developlng Lhe skllls of Lhe workforce.
Cn-the-[ob tra|n|ng
Cn-Lhe-[ob Lralnlng can mean Lralnlng provlded durlng producLlve work, or Lralnlng conducLed aL
Lhe workplace buL away from Lhe Lralnee's work sLaLlon. 1ralnlng durlng producLlve work could
be demonsLraLlng a 'llve' Lask Lo an apprenLlce on Lhe facLory floor, and Lhls ls whaL ls
undersLood by Lhe Lerm 'on-Lhe-[ob Lralnlng'. 1ralnlng away from Lhe work sLaLlon could be
Lheory-based Lralnlng dellvered ln a Lralnlng room aL Lhe enLerprlse's premlses. 1hls ls beLLer
called off-Lhe-[ob Lralnlng dellvered aL Lhe workslLe.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
90 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Cff-the-[ob tra|n|ng
Cff-Lhe-[ob Lralnlng can be deflned as Lralnlng where Lhe leaner ls Laken away from producLlve
work for Lhe duraLlon of Lhe Lralnlng. 1hls could be aL Lhe enLerprlse's premlses, e.g. ln a Lralnlng
room, or away from Lhe workslLe alLogeLher, for example aL a 1AlL lnsLlLuLe.
Iorma| and |nforma| tra|n|ng
lormal Lralnlng can be deflned as Lralnlng LhaL ls sLrucLured, and lnvolves an evaluaLlon of Lhe
skllls or knowledge derlved from Lhe Lralnlng. 1he publlcly funded Lralnlng sysLem, whlch enrols
lndlvlduals ln quallflcaLlons and Lralns and assesses Lhem agalnsL compeLency sLandards, slLs
wlLhln Lhls deflnlLlon. lormal Lralnlng can be dellvered or assessed on-Lhe-[ob or off-Lhe-[ob.
All [obs lnvolve some degree of lnformal Lralnlng. 1hls can Lake Lhe form of an lnducLlon process,
a demonsLraLlon of a new Lask, or a vendor demonsLraLlng Lhe use of a new machlne or a new
plece of sofLware. 1he publlcly funded Lralnlng sysLem doesn'L dlrecLly concern lLself wlLh
lnformal Lralnlng, however when recognlslng Lhe skllls of lndlvlduals underLaklng a formal
Lralnlng program, Lhose skllls Lhey have prevlously acqulred Lhrough some form of lnformal
Lralnlng program need Lo be Laken lnLo accounL.
lormal and lnformal Lralnlng are represenLed ln Lhe dlagram below.
114

What 1ra|n|ng |s Þreferred?
Al Croup has conducLed a large amounL of research lnLo Lhe way enLerprlses Lraln Lhelr
employees. 1he World Class Skllls for World Class lndusLrles reporL ln 2006 surveyed companles
abouL Lhe Lypes of learnlng Lhey used for skllllng Lhelr workforce. MosL lndlcaLed LhaL Lhey
employed a range of meLhods.


114 Skllllng Lhe LxlsLlng Workforce, AusLrallan lndusLry Croup, 2008, p. 16

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 91
Chart 44: 1ypes of |earn|ng opportun|t|es, Austra||an compan|es, 200S
11S


ln Aprll 2008, Al Croup released deLalls of a survey of 492 CLCs enLlLled 5klllloq fot looovotloo.
1hls survey examlned sLraLegles buslnesses use Lo lncrease Lhe skllls of currenL employees and
Lhe percelved success of Lhese measures. 1he sLudy found LhaL whlle lnformal Lralnlng was Lhe
mosL common meLhod of Lralnlng, formal ln-house Lralnlng and menLorlng
are regarded as Lhe mosL hlghly valuable meLhods of upskllllng.
Chart 4S: Methods of upsk||||ng by sector



113 wotlJ closs 5kllls fot wotlJ closs loJosttles, AusLrallan lndusLry Croup, 2006
27
44
48
38
60
73
73
73
88
88
89
0 10 20 30 40 30 60 70 80 90 100
Cn-llne (web based learnlng)
Shadowlng senlor sLañ
!ob sharlng
!usL-as-needed learnlng
More formal Lralnlng/quallñcauons
!ob roLauon
MenLorlng
ShorL courses
lnformal lnsLrucuon
ln-house Lralnlng
lnformal coachlng
Þer cenL of sample agreelng
77.3
34.8
30.2
42.4
19.3
76.1
81.3
68.3
36.3
41.3
74.3
62.7
36.9
41.2
29.4
0 10 20 30 40 30 60 70 80 90
lnformal ln-house Lralnlng
LxLernal formal Lralnlng
lormal ln-house Lralnlng
MenLorlng
vendor Lralnlng
ÞercenLage of respondenLs
ManufacLurlng Servlces ConsLrucuon
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
92 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 46: Success of upsk||||ng methods by sector
116


An enLerprlse's preference beLween on- or off-Lhe-[ob Lralnlng can be llnked Lo Lhe Lype of
employee. CfLen, manufacLurlng flrms wlll prefer Lo send Lhelr apprenLlces off-slLe Lo a 1AlL
lnsLlLuLe for Lhelr formal Lralnlng, whlle producLlon employees wlll generally recelve any formal
Lralnlng ln Lhe workplace. 1he reasons for Lhls are dlscussed below.
Apprent|ce tra|n|ng
ApprenLlceshlp Lralnlng ls a crlLlcal parL of meeLlng skllls needs ln manufacLurlng. ÞlanL and
machlnery needs Lo be malnLalned and repalred, and lL ls generally Lradespeople who carry ouL
Lhls work. 1he only paLhway Lhrough whlch a Lradesperson can be developed ls Lhrough Lhe
apprenLlceshlp sysLem. Many manufacLurlng flrms have a long hlsLory of employlng apprenLlces
- lndeed, many senlor execuLlves ln Lhose flrms commenced Lhelr own careers as apprenLlces -
and Lhey wlll ofLen have a LradlLlonal vlew of how apprenLlces should be Lralned.
1he long-sLandlng arrangemenL of sendlng an apprenLlce off Lo Lrade school one day a week, or
one week a monLh, and sLrucLurlng Lhelr workplace Lralnlng around LhaL, ls well accepLed by Lhe
lndusLry. Many ln Lhe lndusLry also value Lhe opporLunlLles apprenLlces have Lo mlx wlLh oLhers
commenclng Lhelr Lrade. 1hey share ldeas, galn an appreclaLlon of Lhe broader lndusLry, and
develop a camaraderle wlLh fellow Lradespeople. All of Lhese aspecLs fosLer Lhe developmenL of
a well-rounded Lradesperson of value Lo Lhe lndusLry as a whole.
lor Lhese manufacLurlng companles, lL lsn'L a quesLlon of chooslng beLween off- or on-Lhe-[ob
Lralnlng, buL how well Lhe formal Lralnlng sysLem responds Lo Lhelr needs as Lhe cusLomer. lor
example, many apprenLlces are now recrulLed from Lhe facLory floor, reflecLlng Lhe dlfflculLy Lhe
lndusLry has ln aLLracLlng good candldaLes. 1hese apprenLlces already possess a level of maLurlLy
and a level of sklll LhaL should reduce Lhe amounL of Lralnlng Llme needed Lo compleLe Lhelr
apprenLlceshlp. An 81C should assess Lhese apprenLlces early and glve Lhem credlL for Lhe skllls
Lhey already have, Lhereby reduclng Lhe amounL of Lralnlng Llme needed off-slLe. 1hls ls a

116 Skllllng for lnnovaLlon, AusLrallan lndusLry Croup, 2008
39.9
33.4
29.6
24.3
30.0
33.7
40.0
22.8
24.7
12.3
33.1
30.0
29.3
20.0
20.8
0 3 10 13 20 23 30 33 40 43
lormal ln-house Lralnlng
MenLorlng
lnformal ln-house Lralnlng
LxLernal formal Lralnlng
vendor Lralnlng
ÞercenLage of responses
ManufacLurlng Servlces ConsLrucuon

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 93
requlremenL of Lhe AusLrallan CuallLy 1ralnlng lramework, wlLh whlch all 81Cs musL comply,
however lL ls ofLen overlooked ln pracLlce.
As anoLher example, mosL apprenLlces need formal Lralnlng comblned wlLh exLended pracLlce
operaLlng machlnery or compleLlng Lasks. Some flrms wlll Lraln Lhelr apprenLlces Lo underLake
cerLaln Lasks regularly aL work before Lhe sub[ecL commences wlLh Lhe Lralnlng provlder. A good
81C would look aL whaL an apprenLlce ls learnlng aL work, Lalk Lo Lhe apprenLlce's supervlsor
abouL Lhelr level of sklll, and glve exempLlons or credlLs as approprlaLe.
1hese examples are noL so much abouL conducLlng Lhe Lralnlng ln Lhe workplace, buL recognlslng
LhaL skllls developmenL does occur aL work, and maklng approprlaLe ad[usLmenLs Lo Lhe formal
Lralnlng program ln recognlLlon of Lhls. lL ls unforLunaLe LhaL few 81Cs lnvolved ln Lralnlng
apprenLlces can demonsLraLe Lhls level of flexlblllLy or cusLomer servlce.
1here are of course excepLlons Lo Lhe common pracLlce of sendlng apprenLlces off-slLe Lo
Lralnlng. Some manufacLurlng companles have all of Lhelr apprenLlces Lralned aL Lhelr workplace.
1hey Lend Lo be large manufacLurers, wlLh subsLanLlal numbers of apprenLlces. 1helr slze enables
Lhem Lo dlcLaLe Lerms Lo 81Cs, so LhaL Lhey geL Lhe Lralnlng servlce Lhey wanL. 1helr slze also
allows Lhem Lo provlde apprenLlces wlLh exposure Lo Lhe full range of Lasks needed Lo round off
Lhelr Lrade skllls. 1he beneflLs Lhese companles clLe for dolng Lhls are belng able Lo cusLomlse
Lhe Lralnlng Lo sulL Lhelr needs and belng able Lo conLrol Lhe Llmes Lhelr apprenLlces are engaged
ln formal Lralnlng.
Þroduct|on tra|n|ng
ÞroducLlon employees are Lralned for a varleLy of reasons:
• Lo learn skllls assoclaLed wlLh operaLlng machlnes, producLlon llnes or producLlon
processes,
• Lo learn abouL manufacLurlng sysLems, such as lean manufacLurlng, or
• Lo learn people managemenL skllls, such as supervlslon or Lralnlng.
Some producLlon Lralnlng ls compllance relaLed, buL generally lL relaLes Lo lmprovlng
performance on Lhe facLory floor, and lL ls Lhls dlrecL relevance Lo Lhe workplace LhaL suggesLs
producLlon Lralnlng ls besL conducLed aL work. Many buslnesses appreclaLe Lhe broad skllllng
needs of apprenLlces, buL belleve Lhelr producLlon employees need hlghly LargeLed Lralnlng
dlrecLly relevanL Lo Lhelr currenL workplace.
1he needs of Lhe lndlvldual learner are also more relevanL Lo producLlon employees. Many are
older workers, ofLen wlLh low academlc achlevemenL, and wlll noL necessarlly have a poslLlve
aLLlLude Lowards formal Lralnlng.
Al Croup conducLed a naLlonal pro[ecL ln 2007-08 LlLled 'Skllllng Lhe LxlsLlng Workforce', whlch
focused on ldenLlfylng and beLLer undersLandlng how Lhe skllllng needs of exlsLlng workers
are belng addressed, and how currenL workplace pracLlces mlghL be bullL upon Lo achleve
acceleraLed ouLcomes for enLerprlses and lndlvlduals. 1he pro[ecL lncluded a background
research paper, followed by lndusLry consulLaLlons, Lhe Lrlalllng of dlfferenL approaches Lo
workplace skllllng, and a flnal evaluaLlon. 1he reporL, whlch lncluded conslderaLlon of
lnLernaLlonal research on Lhe sub[ecL, noLed LhaL parLlclpaLlon ln Lralnlng decllnes wlLh age.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
94 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
lL also noLed
'. evldence of relucLance Lo parLlclpaLe ln skllls developmenL by employees where Lhey
feel Lhey already have Lhe skllls Lo do Lhe [ob, where Lhey feel compeLlng pressures from
work and famlly obllgaLlons, and where Lhey do noL see a llkely reLurn on Lhelr
lnvesLmenL of Llme and money.'
117

1he reporL wenL on Lo conclude LhaL Lhe workplace ls becomlng an lncreaslngly lmporLanL
learnlng slLe. lL found LhaL Lralnlng provlders should undersLand Lhe broader buslness needs and
drlvers of enLerprlses, and Lhe skllls needs whlch flow from Lhese drlvers. 1ralnlng provlders
should also be able Lo provlde skllls recognlLlon and Lralnlng Lo meeL Lhose needs ln a way LhaL
has leasL lmpacL on cosL and producLlvlLy.
All of Lhe above suggesLs Lhe workplace ls Lhe preferred locaLlon for Lralnlng producLlon
employees, because:
• lL reduces Llme away from work, and hence lmpacLs less on producLlvlLy,
• by belng enLerprlse speclflc, lL can be cusLomlsed Lo Lhe lndlvldual workslLe, focuslng on
speclflc work processes and pracLlces, and
• by belng conducLed ln famlllar LerrlLory, lL can be less lnLlmldaLlng for relucLanL learners.
Some Lralnlng for producLlon employees, however, can sLlll be preferred off-slLe. lormal Lralnlng
ln supervlslon, workplace Lralnlng and assessmenL, and occupaLlonal healLh and safeLy ls
rouLlnely conducLed away from Lhe workplace, and manufacLurlng enLerprlses regularly send
employees Lo Lhese programs. 1here ls lmpllclL acknowledgemenL ln sendlng employees Lo Lhese
programs LhaL Lhey are progresslng wlLhln Lhe organlsaLlon, and perhaps Lhls demonsLraLes a
recognlLlon LhaL Lralnlng for career developmenL ls dlfferenL, and LhaL oLher conslderaLlons are
of less concern.
Conc|us|ons
1ralnlng conducLed aL Lhe workplace, and Lralnlng conducLed off-slLe boLh have Lhelr place. Cn
Lhe whole, lL remalns Lhe manufacLurlng lndusLry's preference LhaL apprenLlces aLLend formal
Lralnlng away from Lhe workplace, buL some companles prefer Lhe alLernaLlve of havlng Lhem
aLLend formal Lralnlng aL work. lL ls generally preferred LhaL producLlon employees are Lralned aL
work, buL professlonal developmenL Lralnlng ls ofLen conducLed off-slLe.
1he common denomlnaLor for all of Lhese conslderaLlons ls LhaL Lhe Lype of Lralnlng should meeL
Lhe needs of Lhe cusLomer. 81Cs should Lake lnLo conslderaLlon a range of facLors when devlslng
Lralnlng soluLlons, such as:
• Lhe learnlng needs of Lhe lndlvldual(s),
• Lhe producLlon needs of Lhe enLerprlse,
• how cusLomlsed Lhe Lralnlng should be, and
• whaL skllls already developed ln Lhe workplace can be recognlsed before Lralnlng occurs.

117 Skllllng Lhe LxlsLlng Workforce, llnal Þro[ecL 8eporL, AusLrallan lndusLry Croup, 2008

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 93
Some 81Cs are very skllled aL meeLlng Lhe needs of Lhelr cllenLs. 1hey can develop hlghly
cusLomlsed Lralnlng, dellvered aL any Llme and place Lhe cusLomer wanLs. CLhers are less
flexlble, and subscrlbe Lo Lhe LradlLlonal pracLlce of seLLlng Lhelr LlmeLables and walLlng for Lhe
cusLomer Lo come Lo Lhem. lL ls ofLen Lhe publlcly owned 81Cs LhaL fall lnLo Lhe Lrap of
lnflexlblllLy. 1hey can be resLrlcLed by regulaLory sysLems, by an agelng workforce reslsLanL Lo
change, and by lndusLrlal agreemenLs abouL work pracLlces.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
96 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
3.4 1nL IMÞAC1 AND INILULNCL CI CCMÞAN¥ SI2L CN 1kAINING
key I|nd|ngs
• Small buslnesses Lraln less, and employ fewer apprenLlces, Lhan larger companles,
for a range of reasons, lncludlng noL belng aware of whaL ls avallable, a bellef LhaL lL ls
Loo cosLly and Llme consumlng Lo lnvesL ln Lralnlng, and noL belng able Lo access
speclallsed Lralnlng.
• Small buslnesses can be encouraged Lo Lraln more, and Lo lmprove reLenLlon raLes for
apprenLlces and Lralnees, by belng provlded wlLh supporL, such as lndependenL advlce,
brokerage servlces, and professlonal developmenL Lo lmprove supervlslon and
recrulLmenL of apprenLlces.
Introduct|on
nlneLy-slx per cenL of all buslnesses ln vlcLorla are consldered small buslnesses. ln Lhe
manufacLurlng secLor, 90° of Lhe 106,030 buslnesses ln vlcLorla employ fewer Lhan 20 people.
118

1hls secLlon dlscusses how Lhe slze of a company lmpacLs on lLs Lralnlng needs and how Lhese
needs are addressed. Avallable evldence suggesLs LhaL small Lo medlum enLerprlses lnvesL less
on Lralnlng Lhelr workforce Lhan larger companles, engage less wlLh Lhe formal Lralnlng sysLem,
and employ fewer apprenLlces and Lralnees.
1he facts
Lvery Lwo years, nCvL8 researches employers' use of Lhe vL1 SysLem, lncludlng Lhe upLake of
Lralnlng and employmenL of apprenLlces and Lralnees by employer slze. 1he laLesL reporL relaLes
Lo 2009 flgures.
119

Chart 47: Use of tra|n|ng |n 2009 by emp|oyer s|ze



118 A8S, CounLs of AusLrallan 8uslness, lncludlng LnLrles and LxlLs, CaL 8163.0, 1he vlcLorlan ManufacLurlng Labour lorce, ull8u,
CcLober 2010
119 Lmployers' use and vlews of Lhe vL1 SysLem, nCvL8, 2009
49°
43°
72°
12°
73°
72°
89°
1°
97°
93°
93°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
Lmployers uslng Lhe vL1
sysLem
Lmployers uslng
unaccredlLed Lralnlng
Lmployers uslng lnformal
Lralnlng
Lmployers provldlng no
Lralnlng
Small Medlum Large

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 97
Small employers are deflned as havlng beLween 1 and 9 employees, medlum have beLween 10
and 99 employees, and large employers have 100 or more employees. AlmosL all employers Lraln
Lhelr sLaff Lo some exLenL, buL subsLanLlally more large employers use formal Lralnlng programs
Lhan do small employers. 1he flgures are even more dlsparaLe regardlng employmenL of
apprenLlces and Lralnees, and Lhe use of naLlonally recognlsed Lralnlng.

Chart 48: Use of the VL1 system |n 2009 by emp|oyer s|ze

naLlonally recognlsed Lralnlng relaLes Lo all Lralnlng LhaL ls accredlLed by a SLaLe 1ralnlng
AuLhorlLy or Lhe naLlonal CuallLy Councll.
120
All publlcly funded Lralnlng ls naLlonally recognlsed.
Clearly, smaller buslnesses make less use of formal Lralnlng, and employ fewer people ln Lralnee
poslLlons, buL Lhe sLaLlsLlcs lndlcaLe LhaL Lhey sLlll have Lhe same need for skllled employees.
1he same survey asks employers abouL wheLher Lhey have [obs LhaL requlre a quallflcaLlon.
8egardless of employer slze, abouL Lwo-Lhlrds replled ln Lhe afflrmaLlve.
1he flnal graph Laken from Lhe nCvL8 survey comes from a quesLlon for Lhose companles LhaL
used non-accredlLed Lralnlng, and asked lf Lhere had been comparable naLlonally recognlsed
Lralnlng avallable.


120 1he naLlonal CuallLy Councll ls a CommlLLee of Lhe MlnlsLerlal Councll for 1erLlary LducaLlon and LmploymenL and ls responslble
for, among oLher Lhlngs, endorslng naLlonal 1ralnlng Þackages.
26°
20°
43°
41°
40°
72°
68°
78°
93°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
Lmployers wlLh apprenuces/Lralnees Lmployers uslng nauonally recognlsed
Lralnlng
Lmployers uslng unaccredlLed Lralnlng
Small Medlum Large
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
98 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 49: Ava||ab|||ty of nat|ona||y recogn|sed tra|n|ng

Clven LhaL buslnesses of any slze are llkely Lo have slmllar Lralnlng requlremenLs, Lhese
responses lndlcaLe LhaL smaller companles are less llkely Lo be aware of whaL naLlonally
recognlsed Lralnlng ls avallable. 1hese responses also ralse anoLher lssue LhaL Lhls reporL wlll
Louch on laLer: companles LhaL operaLe ln hlghly speclallsed flelds ofLen have dlfflculLy accesslng
naLlonally recognlsed Lralnlng because Lhe markeL ls Loo Lhln for Lralnlng provlders Lo be
lnLeresLed ln servlclng. 1hese companles are predomlnanLly small ln slze.
Why Sma||er 8us|nesses 1ra|n Less
Much research has been conducLed lnLo why smaller buslnesses make less use of Lhe Lralnlng
sysLem. Skllls AusLralla noLes LhaL:
'CfLen small flrms do noL see Lhe need for Lralnlng, and lack Lhe flnanclal resources, Llme
and experLlse Lo manage lL. 1hey dlsllke Lhe bureaucracy lL enLalls . Small flrms Lend noL
Lo employ funcLlonally separaLe human resources sLaff, and Lhe role ls ofLen underLaken,
lf aL all, by Lhe owner or manager. As a resulL, Lhelr capaclLy for Lhe sourclng, plannlng
and managemenL of Lralnlng ls llmlLed.'
121

nCvL8 suggesLs LhaL smaller buslnesses Lend Lo make use of naLlonally recognlsed Lralnlng Lo
meeL regulaLory requlremenLs, raLher Lhan for lmprovemenL purposes.
122
ln oLher words, a small
buslness wlll use formal Lralnlng when lL has Lo.


121 Skllls AusLralla, AusLrallan Workforce luLures: A naLlonal Workforce uevelopmenL SLraLegy, 2010
122 8easons for Lralnlng: Why AusLrallan employers Lraln Lhelr workers, nCvL8, 2009
13
68
20
17
63
18
32
33
16
0
10
20
30
40
30
60
70
80
90
100
?es, comparable nauonal recognlsed
Lralnlng avallable
no, comparable nauonal recognlsed
Lralnlng noL avallable
uld noL lnvesugaLe avallablllLy
Þ
e
r
c
e
n
L
a
g
e

Small Medlum Large

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 99
lnnovaLlon & 8uslness Skllls AusLralla (l8SA)
123
provldes a useful summary of Lhe slLuaLlon for
small buslness when reporLlng on consulLaLlons LhaL conLrlbuLed Lo lLs 2011 LnvlronmenLal Scan:
'lL was a consLanL refraln LhaL small buslnesses have a greaLer burden, wlLh less
resources, Lhan larger buslnesses and LhaL many of Lhe complexlLles across Lhe Loplcs
dlscussed cannoL be accommodaLed by a large percenLage of small buslnesses ln
AusLralla. 1oplcs lncluded addresslng workplace language, llLeracy and numeracy (LLn)
lssues, conslderlng buslness and envlronmenLal susLalnablllLy and, Lhe use of skllls for
exlsLlng and new Lechnology, when we conslder LhaL small buslnesses provlde
employmenL for almosL 4.8 mllllon people as aL !une 2009, accounLlng for around 48 per
cenL of prlvaLe secLor employmenL, dlsengagemenL wlLh small buslness omlLs a large
secLlon of Lhe workforce and LhaL needs Lhe aLLenLlon of governmenLs.'
124

Spec|a||sed 1ra|n|ng
A number of manufacLurlng buslnesses ln vlcLorla operaLe ln hlghly speclallsed flelds whlch
make lL dlfflculL for Lhem Lo access sulLable Lralnlng. Lxamples are foundrles, armaLure wlnders,
blacksmlLhs, meLal splnners, elecLroplaLers and shlpwrlghLs. 1hese buslnesses are ln secLors
whlch have a sLrong LradlLlon of Lralnlng apprenLlces, buL because Lhe secLors are so small, Lhe
LoLal numbers of apprenLlces are low, and Lralnlng provlders are relucLanL Lo servlce Lhem.
Case study: Armature w|nd|ng
A recenL example ls Lhe armaLure wlndlng lndusLry ln vlcLorla. ArmaLure wlndlng ls Lhe
rewlndlng and repalr of elecLrlc moLors. 1he lndusLry as a whole Lyplcally employs abouL a dozen
new apprenLlces each year ln vlcLorla, buL Lhe number can dlp below LhaL level. ln 2010 only
seven were Laken on, and Lhe sole Lralnlng provlder (a publlcly funded 1AlL) announced LhaL lL
was no longer vlable for Lhem Lo enrol new apprenLlces. 1he vlcLorlan ManufacLurlng Skllls and
1ralnlng 1askforce funded a pro[ecL Lo flnd a soluLlon for Lhe lndusLry, and Lhls ls progresslng
well, buL wlLhouL LhaL lnLervenLlon lL ls llkely LhaL apprenLlceshlp Lralnlng for Lhe lndusLry would
have ceased ln Lhls sLaLe. 1he Lwo ma[or companles (boLh SMLs) would have devlsed Lhelr own
lnLernal programs Lo Lraln new enLranLs, and Lhe resL of Lhe lndusLry would have been lefL
wlLhouL a formal Lralnlng opLlon.
1he soluLlon for Lhe armaLure wlndlng lndusLry, as lL was for Lhe foundry and paLLernmaklng
secLors some years ago, has been Lo develop Lralnlng resources LhaL wlll enable apprenLlces Lo
be Lralned aL work. A Lralner/assessor vlslLs Lhe apprenLlces aL work, glves Lhem research Lo do
and pro[ecLs Lo underLake, checks Lhelr progress wlLh Lhelr supervlsor, and conducLs progresslve
assessmenLs. lL lsn'L an ldeal soluLlon as Lhe broader beneflLs Lo apprenLlces and Lhelr employers
of Lhe apprenLlces aLLendlng off-Lhe-[ob Lralnlng are noL accesslble, buL aL leasL lL provldes a
conslsLenL, naLlonally recognlsed sLrucLure for apprenLlces ln Lhe lndusLry.
1he need Lo develop new approaches Lo Lralnlng workers ln speclallsed lndusLrles ls llkely Lo
become more common over Llme as more manufacLurlng sub-secLors reduce Lhe numbers of
people Lhey employ. 1he approach used for Lhe armaLure wlnders ls one opLlon, and oLhers
need Lo be explored. AlmosL by deflnlLlon, vlrLually all of Lhe buslnesses LhaL flnd Lhemselves ln
Lhls slLuaLlon are small Lo medlum enLerprlses.


123 l8SA ls a naLlonal lndusLry Skllls Councll whlch provldes lndusLry skllls advlce Lo governmenL and develops naLlonal 1ralnlng
Þackages for lLs lndusLry secLors.
124 l8SA, LnvlronmenL Scan - 2011, 8uslness Servlces lndusLry, 2011
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
100 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he Ava||ab|||ty of 1ra|n|ng |n Genera|
8egardless of Lhe speclallsed naLure of Lhe Lralnlng needed, smaller buslnesses generally fare
worse ln negoLlaLlng sulLable Lralnlng ouLcomes wlLh Lralnlng provlders, and Lhls may also
conLrlbuLe Lo less use of Lhe Lralnlng sysLem. Al Croup employs Lwo LducaLlon and 1ralnlng
Advlsers ln vlcLorla who are funded by Lhe CommonwealLh CovernmenL Lo help member
companles access Lhe Lralnlng sysLem and deal wlLh problems. 1he LducaLlon and 1ralnlng
Advlsers reporL LhaL much of Lhelr Llme ls spenL helplng smaller buslnesses obLaln Lhe Lralnlng
ouLcome Lhey are seeklng. 8eglsLered 1ralnlng CrganlsaLlons are generally open Lo cusLomlslng
Lhelr offerlngs for larger companles, boLh ln Lerms of Lralnlng conLenL and dellvery
arrangemenLs, because Lhey brlng economles of scale wlLh Lhem. Smaller buslnesses wlLh
speclflc needs are usually offered a 'one slze flLs all' soluLlon.

wbot compooles woot ftom tbe ttololoq system tbey coo bove - lt´s jost oboot oll Jo-oble. 8ot
tbete´s o qop lo loJostty/1Alí commoolcotloo. compooles Joo´t koow wbot tbey coo osk fot ooJ
tbey Joo´t koow wbot tbey posb fot.
keqloool fooJ ptocessloq compooy
Apprent|ce Comp|et|on kates
1he LxperL Þanel commlssloned by Lhe CommonwealLh CovernmenL Lo advlse on reform opLlons
for Lhe AusLrallan ApprenLlceshlp sysLem found LhaL smaller companles had poorer apprenLlce
compleLlon raLes Lhan larger companles.
1ab|e 21: Comp|et|on rates by trades and s|ze of emp|oyer
Number of apprent|ces
1 2-10 11-2S 26-S0 S0-100 100+
Lng./lC1/sclence 0.333 0.643 0.673 0.721 0.694 0.684
AuLomoLlve 0.491 0.309 0.363 0.603 0.61 0.399
ConsLrucLlon 0.309 0.317 0.343 0.323 0.317 0.493
LlecLroLechnology 0.342 0.369 0.64 0.698 0.722 0.736
lood Lechnlclans 0.238 0.299 0.337 0.402 - 0.344
Anlmal/horLlculLural 0.332 0.368 0.638 0.633 - 0.646
CLher Lrades 0.446 0.436 0.33 0.384 0.377 0.346
Source: NCVLk keport 2 "#$%#&$' () *++%$,-&.$/0&+ *,1 -%*&,$$/0&+ &,/-&-2-&(,*3 /-%2.-2%$/4 5676
12S




123 A shared responslblllLy: ApprenLlceshlps for Lhe 21sL CenLury, LxperL Þanel Þaper, !anuary 2011

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 101
1he reporL makes Lhe polnL LhaL employer slze ls only one of a number of facLors LhaL conLrlbuLe
Lo apprenLlce compleLlon raLes, buL noLes LhaL small Lo medlum enLerprlses on Lhe whole fare
slgnlflcanLly worse Lhan larger companles.
ÞarL of Lhe reason for Lhls ls LhaL larger buslnesses have sLrucLures ln place Lo supporL
apprenLlces aL work, such as roLaLlonal pollcles Lo provlde exposure Lo dlfferenL aspecLs of Lhelr
Lrade, sLaff dedlcaLed Lo overseelng apprenLlces, and Lralnlng programs for supervlsory sLaff Lo
help Lhem coach and menLor apprenLlces. Much research has been conducLed over Lhe years
lnLo Lhe reasons for poor apprenLlce compleLlon raLes, and lL ls noL necessary Lo revlslL lL here,
however dlssaLlsfacLlon wlLh Lhe work and noL geLLlng on wlLh oLhers aL work are Lwo reasons
frequenLly clLed, and such measures can help address Lhese reasons.
Larger companles are also able Lo dedlcaLe more resources Lo Lhe lnlLlal recrulLmenL of
apprenLlces. 1hey may have speclallsed recrulLmenL sLaff, seL apLlLude LesLs, and conducL Lours
of Lhe workplace. All of Lhls helps Lo ensure Lhe lndlvldual ls beLLer maLched Lo Lhe vacancy, and
hence more llkely Lo sLay. 8ecrulLmenL of apprenLlces can be a dlfflculL exerclse for smaller
manufacLurlng companles. Lnglneerlng apprenLlceshlp vacancles always sLruggle Lo aLLracL good
appllcanLs, and a Llme-pressed manager wlLh oLher prlorlLles may noL be able Lo spend Lhe Llme
LhaL good recrulLmenL requlres.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
102 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Þo||cy In|t|at|ves
1he vlcLorlan CovernmenL has recognlsed Lhe speclal needs of SMLs ln accesslng Lhe Lralnlng
sysLem by lmplemenLlng Lhe Skllls for CrowLh program. Skllls for CrowLh funds free,
lndependenL skllls advlce Lo SMLs wlLh fewer Lhan 200 employees. Workforce plannlng and
Lralnlng speclallsLs help SMLs Lo:
• underLake a sLraLeglc buslness dlagnosLlc assessmenL,
• ldenLlfy buslness goals and ob[ecLlves,
• assess Lhe skllls needs of Lhe buslness and lLs employees,
• Lallor a workforce Lralnlng and developmenL plan for Lhe buslness, and
• place sLaff lnLo accredlLed Lralnlng.
126

1he Skllls for CrowLh program has proved popular overall wlLh Lhe program achlevlng hlgher
Lhan anLlclpaLed resulLs. 1he resulLs for manufacLurlng are parLlcularly lnLeresLlng, 13.3° of Lhe
buslnesses parLlclpaLlng ln Skllls for CrowLh are manufacLurlng buslnesses - 804 Lo 30 Aprll
2011. 1he A8S ldenLlfles LhaL buslnesses ln manufacLurlng make up 8.23° of buslnesses ellglble
for Lhe program l.e. buslnesses employlng beLween 1 and 200 sLaff. More Lhan 4,400 Lralnlng
placemenLs have been made ln manufacLurlng buslnesses whlch represenLs 28.6° of all program
placemenLs lnLo accredlLed Lralnlng.
1hese sLaLlsLlcs demonsLraLe Lhe sLrong lnLeresL of small and medlum-slzed manufacLurlng
companles ln Lralnlng when LhaL Lralnlng ls consldered as parL of Lhe overall sLraLeglc dlrecLlon of
Lhe flrm and furLher lllusLraLes LhaL when SMLs have supporL Lo source and negoLlaLe Lralnlng, as
Lhey do Lhrough Lhls program, Lhey have slgnlflcanL Lake-up raLes.
1he vlcLorlan CovernmenL has funded oLher programs ln Lhe pasL LhaL were deslgned Lo address
Lhe dlfflculLles small buslnesses can have ln ldenLlfylng Lhelr skllls needs and accesslng sulLable
Lralnlng. Lxamples are lndusLry Skllls Advlsers and lndusLry Llalson Cfflcers. 1hese programs no
longer operaLe.
1he vlcLorlan CovernmenL has also developed an ApprenLlceshlp SupporL Cfflcer program Lo
provlde pasLoral supporL for all young apprenLlces, aged 13 Lo 24, ln Lhe flrsL year of Lhelr
apprenLlceshlp. 1hls has been developed ln recognlLlon LhaL apprenLlces are aL Lhelr mosL
vulnerable and Lherefore more llkely Lo leave Lhelr apprenLlceshlp, ln Lhe flrsL 12 monLhs. 1he
program ls avallable for apprenLlces employed ln buslnesses of all slzes, however lL ls usually
smaller buslnesses LhaL are noL already ln a poslLlon Lo provlde Lhls level of supporL. 1he
program commenced on 1 !anuary 2011 so no evaluaLlon has yeL been made.
1he CommonwealLh CovernmenL recognlses Lhe dlfflculLles small buslnesses can have ln
meeLlng Lhe cosL of Lralnlng by Lhe way some programs are sLrucLured. lor example, Lhe
LnLerprlse 8ased ÞroducLlvlLy Þlaces Þrogram, whlch co-funds Lralnlng for buslnesses ln general,
and Lhe CrlLlcal Skllls lnvesLmenL lund, whlch co-funds Lralnlng for buslnesses ln selecLed
lndusLry secLors lncludlng mlnlng, consLrucLlon and renewable energy, boLh offer a Llered
fundlng sysLem dependlng on Lhe slze of Lhe buslness. 8oLh programs fund 30° of Lhe cosL

126 hLLp://www.skllls.vlc.gov.au/for-buslness/skllls-advlce/workforce-plannlng-and-Lralnlng-speclallsLs, accessed Aprll 2011

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 103
of Lralnlng for buslnesses wlLh 200 or more employees, rlslng Lo 90° buslnesses wlLh fewer Lhan
100 employees.
1he 2011-12 CommonwealLh 8udgeL lncluded $101 mllllon over four years for Lhe
Appteotlcesblp Meototloq pockoqe whlch wlll fund 144 advlsors Lo gulde people lnLeresLed ln an
apprenLlceshlp lnLo Lhe rlghL Lrade and provlde LargeLed menLorlng and asslsLance. 1he
CovernmenL esLlmaLes LhaL around 10,000 apprenLlces wlll be asslsLed by approxlmaLely 330
menLors. 1he supporL wlll be LargeLed Lo skllls shorLages areas and dellvered by key provlders of
apprenLlceshlp servlces and peak lndusLry groups. 1he needs of apprenLlces and Lhelr employers
ln manufacLurlng are expecLed Lo be well recognlsed ln Lhe roll-ouL of Lhls program.
Conc|us|ons
1here can be varlous reasons why smaller buslnesses Lraln less, and have poorer apprenLlce
compleLlon raLes:
• Lhey may be less aware of whaL Lralnlng ls avallable Lo meeL Lhelr skllls needs,
• Lhey may feel LhaL Lhey do noL have Lhe Llme Lo lnvesLlgaLe opLlons,
• Lhey may percelve LhaL Lralnlng carrles wlLh lL unnecessary bureaucraLlc demands,
• Lhey may belleve LhaL Lralnlng ls Loo expenslve,
• Lhey may noL be able Lo source hlghly speclallsed Lralnlng,
• Lhey may noL have Lhe skllls ln Lhelr workforce, or Lhe Llme needed Lo supporL
apprenLlces aL work, and
• Lhey may noL be good aL recrulLlng apprenLlces and oLher long-Lerm employees worLh
Lhe lnvesLmenL ln Lralnlng.
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
104 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
3.S LI1LkAC¥ AND NUMLkAC¥ SkILLS
key I|nd|ngs
• uaLa from Lhe AdulL LlLeracy and Llfe Skllls (ALLS) Survey
127
shows 46° of adulL
AusLrallans (13-64) have prose llLeracy skllls aL levels below Lhe level consldered
necessary Lo funcLlon aL work and ln socleLy. llfLy-Lhree per cenL of adulL AusLrallans
have numeracy skllls below Lhe level consldered necessary Lo funcLlon aL work and ln
socleLy.
• 1he ALLS resulLs show manufacLurlng performs worse when compared Lo Lhe all lndusLry
resulLs and LhaL, when conslderlng Lhe overall llLeracy and numeracy resulLs for Lhe
SLaLes and 1errlLorles, vlcLorla ls noL one of Lhe leadlng [urlsdlcLlons ln Lhls area.
• More Lhan 71° of vlcLorlan manufacLurers respondlng Lo an Al Croup survey reporLed
LhaL Lhelr buslness was affecLed by low levels of llLeracy and numeracy.
• Labourers and process workers were Lhe occupaLlonal group mosL affecLed by low levels
of llLeracy and numeracy accordlng Lo survey respondenLs, Lhough Lhe llLeracy and
numeracy dlfflculLles were noL llmlLed Lo Lhls group.
• 1he Al Croup survey found 34° of labourers and process workers employed ln vlcLorlan
manufacLurlng had low levels of llLeracy compared Lo 43° of Lhls occupaLlonal grouplng
ln Lhe full survey resulLs drawn from across AusLrallan lndusLry. 1hls resulL lndlcaLes LhaL
Lhe skllllng challenge for vlcLorlan manufacLurlng ls even greaLer Lhan LhaL of Lhe
broader AusLrallan workforce as llLeracy and numeracy skllls underpln upskllllng and
reskllllng.


127 1he 2006 AdulL LlLeracy and Llfe Skllls Survey measured llLeracy compeLence ln four domalns: prose llLeracy, documenL llLeracy,
numeracy and problem solvlng. 1he resulLs were ranked on a scale from Level 1 (lowesL) Lo Level 3 (hlghesL). Level 3 was consldered
Lhe mlnlmum level requlred Lo meeL Lhe lncreaslngly complex demands of a knowledge socleLy.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 103
Introduct|on
LlLeracy and numeracy skllls are key componenLs of human caplLal, whlch ls an lmporLanL drlver
of economlc growLh. lL was esLlmaLed LhaL an lmprovemenL ln llLeracy and numeracy skllls from
Level 1 Lo Level 3 (from a very baslc sklll level Lo Lhe level consldered necessary Lo be compeLenL
ln Lhe workplace) would lncrease Lhe llkellhood of labour force parLlclpaLlon by 13 percenLage
polnLs for women and flve percenLage polnLs for men and lncrease hourly wage raLes by abouL
23 and 30° for women and men respecLlvely.
128

LlLeracy and numeracy are Lhe essenLlal bulldlng blocks of employablllLy skllls, for example
problem solvlng ls dlfflculL lf you are unable Lo read Lo a sufflclenLly hlgh level Lo undersLand Lhe
SLandard CperaLlng Þrocedures, plannlng and organlslng are Lasks made more complex when
ldeas can'L be summarlsed lnLo a wrlLLen plan Lo share wlLh oLhers, and pursulng opporLunlLles
for furLher Lralnlng can be llmlLed by readlng ablllLy.
loundaLlon skllls are noL [usL enLry level skllls as Lhey wlll need Lo be developed - broadened and
deepened - over Lhe course of a worklng llfe. 1hls need for Lhe ongolng developmenL of
foundaLlon skllls wlll be lmporLanL for employees ln Lhe vlcLorlan manufacLurlng secLor as Lhe
number of unskllled [obs conLlnues Lo reduce and as Lhe secLor requlres lncreaslng numbers of
people wlLh hlgher-level skllls.
LxlsLlng workers aL all levels ln Lhe workforce requlre ongolng access Lo reLralnlng and effecLlve
work-based learnlng Lo address skllls shorLages and sklll requlremenLs broughL abouL by new
Lechnology, new work processes, changed compllance obllgaLlons and quallLy assurance so Lhey
can conLrlbuLe Lo producLlvlLy lmprovemenLs and lnnovaLlon. Plgh levels of language, llLeracy
and numeracy are requlred Lo underpln Lhls.
luncLlonal llLeracy
129
and numeracy skllls enable workers Lo successfully perform Lhelr currenL
[obs whlle hlgher-level llLeracy and numeracy skllls enable workers Lo do more Lhan Lhelr currenL
[ob requlres. 1hls ls especlally lmporLanL ln perlods of [ob redeslgn when workers are requlred Lo
adapL Lo changes ln Lhe workforce and ln Lhe lndusLry.
L|teracy and Numeracy Stat|st|cs
uaLa from Lhe ALLS survey
130
showed LhaL, ln Lerms of llLeracy, 46° of adulL AusLrallans (13-64)
had prose llLeracy skllls aL Levels 1 and 2, whlch ls below Lhe level consldered necessary Lo
funcLlon aL work and ln socleLy. llfLy-Lhree per cenL of adulL AusLrallans had numeracy skllls aL
Levels 1 and 2, whlch ls below Lhe level consldered necessary Lo funcLlon aL work and ln socleLy.
SevenLy per cenL of adulL AusLrallans had problem solvlng skllls aL Levels 1 and 2, agaln below
Lhe level consldered necessary Lo funcLlon aL work and ln socleLy.
Level 3 on Lhe ALLS survey ls consldered Lo be Lhe mlnlmum requlred for successful compleLlon
of a vocaLlonal CerLlflcaLe lll whlch ls generally held Lo be a Lrade level quallflcaLlon.


128 Shomos, A., lloks 8etweeo lltetocy ooJ Nometocy 5kllls ooJ loboot Motket Ootcomes, ÞroducLlvlLy Commlsslon, 2010
129 luncLlonal llLeracy ls deflned as Lhe ablllLy Lo undersLand and employ prlnLed lnformaLlon ln dally acLlvlLles, aL home, aL work
and ln Lhe communlLy Lo achleve one's goals, and Lo develop one's knowledge and poLenLlal - CLCu 2000, lo ltoJoctlvlty
commlssloo. lloks betweeo lltetocy ooJ Nometocy 5kllls ooJ loboot Motket Ootcomes, 2010, p. 9
130 1he 2006 AdulL LlLeracy and Llfe Skllls Survey measured llLeracy compeLence ln four domalns: prose llLeracy, documenL llLeracy,
numeracy and problem solvlng. 1he resulLs were ranked on a scale from Level 1 (lowesL) Lo Level 3 (hlghesL). Level 3 was consldered
Lhe mlnlmum level requlred Lo meeL Lhe lncreaslngly complex demands of a knowledge socleLy.
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
106 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart S0: Þroport|on of Austra||an adu|ts at each sk||| |eve|

1hese resulLs are largely unchanged from Lhose achleved ln Lhe prevlous survey 10 years prlor.
1he ALLS resulLs are also avallable by labour force and lndusLry and across Lhe measures
manufacLurlng performs worse when compared Lo Lhe all lndusLry resulLs, as shown ln Lhe charL
below.
Chart S1: Comparat|ve percentage of manufactur|ng sk|||ed workers to a|| workers

1he overall llLeracy and numeracy resulLs for Lhe SLaLes and 1errlLorles show vlcLorla ls noL one
of Lhe leadlng [urlsdlcLlons ln Lhls area wlLh AC1, SouLh AusLralla and WesLern AusLralla
conslsLenLly ouLperformlng vlcLorla.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 107
Chart S2: Þercentage of popu|at|on at Leve| 3 and above on prose ||teracy sca|e







Chart S3: Þercentage of popu|at|on at Leve| 3 and above on document ||teracy sca|e


34°
31°
34° 33°
36°
31°
33°
68°
34°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
nSW vlC CLu SA WA 1AS n1 AC1 nA1lCnAL
33°
31°
33°
34°
36°
49°
34°
68°
33°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
nSW vlC CLu SA WA 1AS n1 AC1 nA1lCnAL
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
108 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart S4: Þercentage of popu|at|on at Leve| 3 and above on numeracy sca|e








Chart SS: Þercentage of popu|at|on at Leve| 3 and above on prob|em so|v|ng sca|e


48° 46°
48°
49° 49°
44°
43°
63°
47°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
nSW vlC CLu SA WA 1AS n1 AC1 nA1lCnAL
30° 29° 29° 30°
31°
27°
28°
46°
30°
0°
10°
20°
30°
40°
30°
60°
70°
80°
90°
100°
nSW vlC CLu SA WA 1AS n1 AC1 nA1lCnAL

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 109
1he |mpact of age on ||teracy and numeracy
1he agelng proflle of Lhe vlcLorlan manufacLurlng secLor ls relevanL when looklng aL llLeracy
levels. As Lhe charL below shows, llLeracy Lends Lo decrease - or depreclaLe - wlLh age, wlLh
hlgher proporLlons of people ln Lhe older age groups aLLalnlng sklll scores lower Lhan Level 3.
1he excepLlon Lo Lhls ls Lhe 13-19 years age group, whlch had lower levels of llLeracy Lhan Lhe
20-24 year age group. Cf Lhose aged 13-19 years, 32° aLLalned sklll scores lower Lhan Level 3
on Lhe prose scale, 47° on Lhe documenL scale and 37° on Lhe numeracy scale, compared Lo
37° on boLh prose and documenL scales and 43° on Lhe numeracy scale for Lhose aged 20-24
years.
131

As CharL 36 (below) shows, low levels of llLeracy and numeracy are also an lssue for new
enLranLs Lo Lhe workforce. Cne parLlcular area of concern ls apprenLlces. ApproxlmaLely 23°
of employers respondlng Lo Lhe Al Croup survey
132
reporLed LhaL apprenLlces were adversely
affecLed by low levels of llLeracy and numeracy, especlally ln Lhe englneerlng Lrades. numeracy
ls reporLed as belng Lhe maln area of dlfflculLy, wlLh employers reporLlng LhaL apprenLlces and
oLher school leavers sLruggle wlLh Lhe numeracy requlremenLs of boLh Lralnlng and Lhe
workplace, and dlsplay a very llmlLed ablllLy Lo problem solve wlLhouL Lhe ald of a calculaLor.
Chart S6: Þroport|on at sk||| Leve| 1-2 by age



131 AJolt lltetocy ooJ llfe 5kllls 5otvey, AusLrallan 8ureau of SLaLlsLlcs, 2006
132 Notloool wotkfotce lltetocy ltoject, AusLrallan lndusLry Croup, 2010
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
110 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Learn|ng part|c|pat|on and ||teracy and numeracy
1here were approxlmaLely 13.4 mllllon people who reporLed parLlclpaLlng ln learnlng ln Lhe
12 monLhs prlor Lo Lhe ALLS survey. 'Learnlng' ln Lhls conLexL lncludes formal learnlng whlch
lnvolves parLlclpaLlon ln an educaLlonal program Lo obLaln a formal quallflcaLlon and also
lnformal learnlng (noL as parL of a course) whlch lnvolves acLlvlLles such as vlslLlng Lrade falrs,
professlonal conferences or expos, aLLendlng lecLures, semlnars or workshops, readlng manuals
or reference books or uslng compuLers or Lhe lnLerneL. lor Lhe prose, documenL and numeracy
scales, people who parLlclpaLed ln learnlng ln Lhe 12 monLhs prlor Lo Lhe survey were more llkely
Lo achleve scores aL Level 3 or above Lhan Lhose who dld noL parLlclpaLe. lor boLh prose and
documenL llLeracy, 38° of people who had parLlclpaLed ln learnlng ln Lhe 12 monLhs prlor Lo Lhe
survey achleved scores aL Level 3 or above. ln comparlson, for people who had noL parLlclpaLed
ln any form of learnlng ln Lhe 12 monLhs prlor Lo Lhe survey, 19° and 18° achleved scores aL
Level 3 or above for prose and documenL llLeracy respecLlvely. Cn Lhe numeracy scale, 32° of
people who had parLlclpaLed ln learnlng ln Lhe 12 monLhs prlor Lo Lhe survey achleved scores aL
Level 3 or above compared Lo 14° of Lhose who had noL parLlclpaLed.
Looklng aL formal learnlng, of Lhe 6.7 mllllon people who underLook a course leadlng Lo an
educaLlonal quallflcaLlon ln Lhe prevlous 12 monLhs, 69° achleved scores aL Level 3 or above for
boLh prose and documenL llLeracy, 61° for numeracy and 42° for problem solvlng. ln conLrasL,
of Lhe people who dld noL underLake such a course ln Lhe prevlous 12 monLhs, 42° achleved
scores aL Level 3 or above for prose llLeracy, 41° for documenL llLeracy, 37° for numeracy and
20° for problem solvlng.
1hese flndlngs polnL Lo Lhe sLrong relaLlonshlp beLween keeplng ln Louch wlLh learnlng and
achlevlng llLeracy and numeracy levels sufflclenL Lo funcLlon effecLlvely ln Lhe workplace. lL ls
lnLeresLlng Lo noLe Lhe lmporLance of boLh formal and non-formal learnlng ln Lhese flndlngs.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 111
Industry V|ew
ln 2009, Al Croup commenced Lhe naLlonal Workforce LlLeracy Þro[ecL. 1hls pro[ecL found LhaL
more Lhan 73° of employers surveyed reporLed LhaL Lhelr buslnesses were affecLed by low
levels of llLeracy and numeracy. Low levels of llLeracy and numeracy were noL llmlLed Lo low-
skllled employees. Lmployers reporLed Lhe lmpacL of low llLeracy and numeracy skllls lncluded:
• poor compleLlon raLes of workplace documenLs,
• Llme wasLlng Lhrough work needlng Lo be repeaLed,
• maLerlals wasLage due Lo lncorrecL calculaLlons or mlslnLerpreLed lnsLrucLlons,
• ln[urles,
• poor workplace relaLlons due Lo poor communlcaLlon skllls,
• relucLance Lo underLake Lralnlng,
• reslsLance Lo workplace change, and
• lnablllLy Lo beneflL from workforce developmenL opporLunlLles.
íxomple
we too o competltlve mooofoctotloq cootse fot elqbt people wbete tbey boJ to come op wltb
solotloos to pteseot to tbe CM bot tbete wos too mocb feot of pteseotloq Joe to tbelt
commoolcotloo skllls. 1be wbole tosk wos seeo os too blq ooJ ovetwbelmloq fot tbem - lt wos
obooJooeJ ooJ so wos tbe lJeo of lottoJocloq competltlve mooofoctotloq ptloclples loto tbot
pott of tbe wotkploce.
ln May 2010 Al Croup released Lhe resulLs of lLs flrsL employer survey on workplace llLeracy and
numeracy. lor Lhls reporL, ln Aprll 2011 Lhe resulLs of Lhe survey were revlewed and Lhe daLa
speclflc Lo vlcLorlan manufacLurers exLracLed and analysed.
Compan|es by s|ze
1he survey generaLed responses from 96 vlcLorlan manufacLurlng companles whlch employed
14,716 employees and had a LoLal annual Lurnover of $2.921 bllllon.
1he largesL number of responses was from small-slzed enLerprlses of up Lo 23 employees,
represenLlng 42° of all respondenLs. Medlum-slzed flrms of 26 Lo 100 employees accounLed for
27° of respondenLs, whlle large-slzed flrms (more Lhan 100 employees) conLrlbuLed 22° of
responses. nlne per cenL of respondenLs dld noL lndlcaLe Lhe number of people employed.
Lxtent of the prob|em
1o flnd ouL abouL Lhe lmpacL of low levels of llLeracy and numeracy on buslness and skllllng
efforLs, companles were asked Lo lndlcaLe Lhe exLenL Lo whlch low levels of llLeracy and
numeracy were affecLlng Lhelr buslness.
More Lhan 71° of respondenLs reporLed LhaL Lhelr buslness was affecLed by low levels of llLeracy
and numeracy. 32° of respondenLs reporLed LhaL Lhelr buslness ls hlghly or moderaLely affecLed.
1hese levels of lmpacL are sllghLly beLLer Lhan Lhe resulLs of Lhe full survey whlch found 73° of
vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
112 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
all companles affecLed by low levels of llLeracy and numeracy and 39° of companles reporLlng
LhaL Lhelr buslness ls hlghly or moderaLely affecLed.
Chart S7: Impact on bus|ness

Impact on bus|ness by s|ze
1he lmpacL of Lhe lssue on enLerprlses changed accordlng Lo Lhe slze of Lhe buslness:
• 33° of respondenLs from large enLerprlses reporLed LhaL Lhelr buslness ls hlghly or
moderaLely affecLed by low levels of llLeracy and numeracy,
• 38° of respondenLs from medlum-slzed enLerprlses reporLed LhaL Lhelr buslness ls
hlghly or moderaLely affecLed by low levels of llLeracy and numeracy, and
• 23° of respondenLs from small enLerprlses reporLed LhaL Lhelr buslness ls hlghly or
moderaLely affecLed by low levels of llLeracy and numeracy.

1°
27°
39°
24°
8°
0° 3° 10° 13° 20° 23° 30° 33° 40°
unsure
noL añecLed
SllghLly añecLed
ModeraLely añecLed
Plghly añecLed

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 113
Chart S8: Impact by enterpr|se s|ze

Cccupat|ona| groups affected
8uslnesses were asked Lo commenL on whlch occupaLlonal groups represenLed Lhose mosL
affecLed by low levels of llLeracy and numeracy. llndlngs lndlcaLe LhaL all occupaLlonal caLegorles
llsLed were affecLed Lo some exLenL.
Chart S9: Cvera|| |mpact by occupat|ona| groups


3°
19°
18°
19°
33°
38°
42°
48°
38°
19°
19°
3°
0° 10° 20° 30° 40° 30° 60° 70° 80° 90° 100°
Small
Medlum
Large
Plghly añecLed ModeraLely añecLed SllghLly añecLed noL añecLed unsure
0
10
20
30
40
30
60
Labourers 1echnlclans Clerlcal and
admln
Apprenuces l1 CLher
professlonals
Lnglneers Managers
Þ
e
r
c
e
n
L
a
g
e

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
114 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Labourers and process workers were Lhe occupaLlonal group mosL affecLed by low levels of
llLeracy and numeracy, accordlng Lo survey respondenLs:
• 34° of respondenLs consldered LhaL labourers and process workers were affecLed by
low levels of llLeracy and numeracy,
• 22° of respondenLs reporLed LhaL apprenLlces were affecLed by low levels of llLeracy
and numeracy, and
• 23° of respondenLs reporLed LhaL Lechnlclans were affecLed by low levels of llLeracy and
numeracy.
1hese flgures allgn closely wlLh Lhe resulLs from Lhe full survey excepL for Lhe occupaLlonal group
of labourers and process workers where Lhe overall resulLs found 43° of Lhls grouplng were
affecLed compared Lo 34° of labourers and process workers employed ln vlcLorlan
manufacLurlng lndlcaLlng LhaL Lhe skllllng challenge for vlcLorlan manufacLurlng ls even greaLer
Lhan LhaL of Lhe broader AusLrallan workforce.
Þreferred Measures for Improv|ng L|teracy and Numeracy
Lmployers ldenLlfy a range of measures used for lmprovlng llLeracy and numeracy skllls wlLh
workplace-based approaches generally favoured.
Chart 60: Þreferred measures for |mprov|ng ||teracy and numeracy sk|||s


4°
16°
17°
26°
26°
32°
34°
39°
48°
0° 10° 20° 30° 40° 30° 60°
CLher
LlL/num lnLegraLed
SLand-alone llL/num
LlL/num Lralnlng oñ-slLe
LlL/num developmenL ln-house lnducuon
Ad[usLmenL of expecLauons
LlL/num developmenL lndusLry speclñc
LlL/num developmenL ln workplace
8edeslgn of documenLs
ÞercenLage of Companles

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 113
1he survey found:
• 48° of respondenLs consldered Lhe redeslgn of workplace documenLs and
communlcaLlon sysLems Lo be Lhe mosL effecLlve measure for addresslng llLeracy and
numeracy needs. 1hls ls much hlgher Lhan Lhe full survey resulLs where 29° of
respondenLs nomlnaLed Lhls opLlon,
• 39° of respondenLs consldered LhaL llLeracy and numeracy sklll developmenL ln Lhe
workplace wlLh supporL from co-workers was an effecLlve measure for addresslng
llLeracy and numeracy needs, and
• 32° of respondenLs consldered LhaL ad[usLlng expecLaLlons and responslblllLles for some
employees ls an effecLlve measure for addresslng llLeracy and numeracy needs.
Al Croup ls conducLlng a serles of Lrlals explorlng opLlons for bulldlng Lhe llLeracy and numeracy
skllls of exlsLlng workers. lL ls clear LhaL Lhe besL resulLs flow from learnlng LhaL ls work-based
and work relevanL and Lhls ls Lhe approach preferred by employers and employees.
Austra||an Government |n|t|at|ves
1he CommonwealLh ueparLmenL of LducaLlon, LmploymenL and Workplace 8elaLlons funds Lwo
adulL language, llLeracy and numeracy programs:
• Workforce Lngllsh Language and LlLeracy program (WLLL) ls a work-based program
deslgned Lo asslsL organlsaLlons ln Lralnlng workers ln Lhe Lngllsh language, llLeracy and
numeracy skllls requlred Lo funcLlon effecLlvely aL work. ln 2009-10, 16,300 workers
compleLed WLLL Lralnlng, and
• 1he naLlonal Language, LlLeracy and numeracy Þrogram whlch ls focused on asslsLlng
[obseekers by addresslng Lhelr language, llLeracy and numeracy skllls needs.
1he 2011-12 CommonwealLh 8udgeL lncluded an addlLlonal 13,190 places ln Lhe WLLL program,
aL a cosL of $20 mllllon over four years, and addlLlonal fundlng of $19.7 mllllon for Lhe
ApprenLlceshlp Access Þrogram Lo help prospecLlve apprenLlces Lo obLaln baslc skllls.
1he CommonwealLh ueparLmenL of lmmlgraLlon and ClLlzenshlp funds Lhe AdulL MlgranL Lngllsh
program whlch provldes up Lo 310 hours of Lngllsh language Lralnlng for new mlgranLs. ln 2008 -
09 Lhls program provlded language Lralnlng for 32,720 cllenLs.

vlcLorlan manufacLurlng lndusLry skllllng perspecLlves
_______________________________________________________________________________
116 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
V|ctor|an Government |n|t|at|ves
1he vlcLorlan Skllls Commlsslon has responslblllLy for provldlng lnformaLlon Lo Lhe MlnlsLer
regardlng skllls and Lralnlng needs ln vlcLorla. 1he vSC's vlslon ls ºA vlcLorlan workforce wlLh Lhe
mlx and enhanced level of quallflcaLlons, skllls and knowledge requlred Lo meeL currenL and
emerglng needs of employers, employees, lndusLry and Lhe communlLy."
1he vSC's ob[ecLlves lnclude Lo 'sLlmulaLe demand for Lralnlng':
• sufflclenL Lo meeL Councll of AusLrallan CovernmenLs (CCAC) ob[ecLlves ln respecL of
lncreased quallflcaLlons, overall and aL parLlcular levels, lncludlng llLeracy and numeracy,
• lnfluence and monlLor access Lo skllls developmenL opporLunlLles for all lndlvlduals Lo
develop and enhance Lhelr poLenLlal skllls and employablllLy, and
• provlde sysLemlc opporLunlLles for exlsLlng workers Lo aLLaln skllls and bulld Lowards
hlgher quallflcaLlons.
1he vlcLorlan 1ralnlng CuaranLee whlch provldes governmenL subsldles for Lralnlng applles Lo
people wlshlng Lo underLake a foundaLlon skllls course.
noLwlLhsLandlng Lhe CommonwealLh and vlcLorlan CovernmenL work ln Lhls area, Lhere remalns
much Lo be done and Lhe pace of change needs Lo be acceleraLed Lo reflecL Lhe scale of Lhe
challenge.

_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 117
4. WCkkICkCL SkILL kLÇUIkLMLN1S - A MLDIUM-1LkM ÞLkSÞLC1IVL
key I|nd|ngs
• lL ls expecLed LhaL ln Lhe medlum Lerm, skllllng wlll remaln a shared responslblllLy
beLween governmenL, enLerprlses and lndlvlduals.
• WlLh sLrong concern from enLerprlses and lndusLry abouL enLrenched skllls shorLages
ln crlLlcal skllls areas, Lhere ls a sLrong call for governmenL Lo Lake more acLlve sLeps
Lo ensure LhaL Lhe manufacLurlng secLor has Lhe skllled workforce ls wlll need Lo remaln
compeLlLlve.
• Plgher-level Lechnlcal skllls, LogeLher wlLh hlgher-level concepLual skllls such as
lnnovaLlon, are consldered Lo be key Lo a producLlve fuLure.
• 1echnology ls expecLed Lo fundamenLally change manufacLurlng ln vlcLorla, wlLh
lmpllcaLlons for workforce skllls and also for how Lralnlng ls dellvered.
Introduct|on
1hls secLlon looks aL Lhe key drlvers affecLlng workforce skllls requlremenLs ln Lhe medlum Lerm
ln Lhe maln manufacLurlng secLors. 1hls secLlon draws on Lhe advlce of ManufacLurlng Skllls
AusLralla whlch has Lhen been revlewed and ad[usLed by vlcLorlan lndusLry Lralnlng bodles
Lo presenL a vlew LhaL ls dlrecLly relaLed Lo Lhe vlcLorlan economlc envlronmenL. 1he followlng
vlcLorlan bodles were consulLed: loresLWorks, MLSA8, 1exLlle, CloLhlng, looLwear and LeaLher
lndusLry Advlsory 8oard and Lhe vlcLorlan AuLomoLlve Chamber of Commerce. 1he vlcLorlan
sklll needs ln 2011: A sommoty of loJostty lotelllqeoce reporL has also been consldered ln Lhe
developmenL of Lhls secLlon
133
. llnally, Lhe vlcLorlan manufacLurlng companles consulLed ln Lhe
course of preparlng Lhls reporL were asked Lo commenL on fuLure skllls needs, and Lhelr vlews
are reflecLed below.


133 uelolLLe Access Lconomlcs and Skllls vlcLorla, Melbourne, 2011
Workforce Sklll requlremenLs - a medlum-Lerm perspecLlve
_______________________________________________________________________________
118 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
4.1 kL¥ DkIVLkS ICk 1nL MANUIAC1UkING SLC1Ck
1aklng a whole of vlcLorlan manufacLurlng vlew, Lhe followlng key drlvers are conslsLenLly
menLloned ln Lhe research and by enLerprlses:
• 1he hlgh AusLrallan dollar, whlch ls maklng lL very dlfflculL for manufacLurers Lo
compeLe. Companles are - agaln - evaluaLlng Lhe merlLs of movlng Lhelr producLlon
overseas and scallng back Lhelr local operaLlons. 1hls wlll reduce local skllls requlremenLs
and also change requlremenLs, for example lL wlll place more welghL on quallLy
assurance and conLracL managemenL skllls.
• 1he mlnlng boom mark ll, whlch ls aLLracLlng skllled, seml-skllled and unskllled workers.
1he shorL-Lerm lmpllcaLlons are clear, buL companles are also concerned LhaL ln Lhe
medlum Lerm Lhe senlor Lechnlcal sLaff and Lhe manufacLurlng managers of Lhe fuLure
won'L be avallable because Lhey have noL been developlng Lhelr skllls and experlence ln
Lhe lndusLry.
• 1he lnLroducLlon of new Lechnologles, brlnglng wlLh lL a number of skllllng challenges
now LhaL are expecLed Lo conLlnue well lnLo Lhe medlum Lerm. new Lechnologles resulL
ln new sklll mlxes, ofLen pushlng some sklll requlremenLs hlgher and some lower, as
Lhe Lechnologles requlre, for example, lncreased compuLlng skllls buL Lake ouL many
mld-level skllls. Whlle Lhls ls happenlng now ln large and medlum-slzed flrms, small flrms
wlll be adopLlng Lhese new Lechnologles ln Lhe medlum Lerm and so are noL yeL feellng
Lhe full effecLs.
• 1he need Lo bulld producLlvlLy, parLlcularly by upskllllng supervlsors and mld-level
managers. Companles spoke of Lhe exLenslve skllllng LhaL has been underLaken wlLh
shop floor and Lechnlcal sLaff, and clLed supervlsory sLaff as Lhe group wlLh Lhe mosL
poLenLlal Lo drlve fuLure producLlvlLy growLh Lhrough upskllllng.
• 1he posslblllLy of an emlsslons Lradlng scheme furLher erodlng Lhe lnLernaLlonal
compeLlLlveness of manufacLurers.
• 1he agelng workforce and young people movlng ouL of reglonal areas.
• 8educLlons ln Lhe LoLal numbers of people comlng lnLo LradlLlonal manufacLurlng Lrades,
maklng whaL were once malnsLream Lrades now nlche occupaLlons.
ln conslderlng skllls needs lnLo Lhe medlum Lerm, organlsaLlons called for governmenL Lo Lake
acLlon now Lo plan for and encourage Lhe developmenL of skllled Lradespeople and noL Lo walL
unLll Lhe only opLlon was skllled mlgraLlon.


_______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 119
4.2 kL¥ DkIVLkS, CCCUÞA1ICNS AND SkILLS 8¥ MANUIAC1UkING SU8-SLC1Ck
1he followlng secLlon looks aL key manufacLurlng sub-secLors, Lhe key drlvers Lhey expecL
Lo face ln Lhe medlum Lerm and Lhe lmpllcaLlons for skllls. lL ls based on Lhe advlce of
ManufacLurlng Skllls AusLralla, Lhe naLlonal lndusLry Skllls Councll, as revlewed and added Lo
by Lhe relevanL vlcLorla lndusLry skllls advlsory bodles.
Many occupaLlons llsLed wlll noL Lraln speclflcally ln a slngle lndusLry or secLor buL requlre
upskllllng Lo meeL a parLlcular lndusLry's sklll need requlremenLs. 1hls upskllllng wlll be an
ongolng requlremenL LhaL can be achleved ln a relaLlvely shorL Llme frame, for lnsLance Lralners,
pro[ecL managers, CnC programmers, operaLors and seLLers.
Cn Lhe oLher hand, occupaLlons LhaL requlre an exLenslve sklll developmenL Llmeframe Lhrough
an apprenLlceshlp or cadeLshlp paLhway - such as drafLspeople, malnLenance flLLers, dlesel
flLLers, cablneL makers, bollermakers and alrcrafL malnLenance Lradespeople - presenL a
medlum-Lerm lndusLry skllls problem LhaL requlres plannlng ln Lhe shorL Lerm.
Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
120 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Aerospace
key |ssues
• 1he lnLroducLlon of new llcenslng requlremenLs for general avlaLlon, whlch wlll requlre
new skllls and revlewed Lralnlng producLs and Lralnlng dellvery. Around 6,000 Llcensed
AlrcrafL MalnLenance Lnglneers wlll be affecLed, many wlll need skllls assessmenL and
gap Lralnlng.
• Cngolng lnLroducLlon of flbre composlLes.
• lncreased lnLegraLlon of mechanlcal and elecLrlcal/elecLronlc componenLs and sysLems.
Med|um-1erm Sk|||s Needs - Aerospace
Industry sub-sector Sk|||s needs
Aerospace
• AlrcrafL malnLenance Lrades - mechanlcal and avlonlcs (AMLs and workshop
Lechnlclans)
• Llcensed alrcrafL malnLenance englneers
• 1hrough-llfe loglsLlcs skllls, lnclude malnLenance managemenL
• 1echnlcal Lralners
• AML sLrucLures (sheeL meLal/composlLes workers)
• llLLers and Lurners
• MalnLenance managers


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 121
Automot|ve
key |ssues
• keeplng abreasL of and skllllng for Lechnologlcal changes, whlch requlres ongolng access
Lo professlonal developmenL and upskllllng. lour Lechnology-based, long-Lerm
opporLunlLles have been ldenLlfled by Lhe AuLoC8C: vehlcle elecLrlflcaLlon, gaseous fuels,
llghL welghLlng, and advanced daLa and communlcaLlon sysLems.
• LnvlronmenLal and safeLy compllance and performance LargeLs are also drlvlng fuLure
skllllng needs.
• lncreased Lechnology ls resulLlng ln Lhe need for sales sLaff Lo have a greaLer
undersLandlng of Lhls Lechnology Lo be able Lo explaln feaLures Lo cusLomers.
• 1echnology ls movlng so rapldly lL ls dlfflculL for Lralnlng provlders Lo dellver Lralnlng
LhaL has lndusLry currency.
Med|um-1erm Sk|||s Needs - Automot|ve
Industry sub-sector Sk|||s needs
AuLomoLlve
• LlecLrlc drlve deslgners/englneers
• LlecLrlc drlve Lechnlclans and Lradespeople
• 8aLLery deslgners and Lechnlclans
• Plgh-level malnLenance Lechnlclans
• urafLspeople
• Managers and supervlsors
• 1ralners
• CompeLlLlve manufacLurlng speclallsLs
• ÞroducLlon and assembly workers
• MaLerlals handlers
• labrlcaLors and vehlcle body makers
• LlecLronlc sysLems (drlve-by-wlre) workers ln servlces, repalr, dlagnosLlc and
sysLems recallbraLlon
• uaLa acqulslLlon and analysls speclallsLs (vehlcle dlagnosLlcs)
• lleld dlagnosLlcs, servlces and repalr speclallsLs
• Peavy vehlcle sysLem rebullders
• Þanel beaLers
• vehlcle palnLers
• ulesel flLLers
• MoLor mechanlcs
• Welders
• 1ool repalr Lechnlclans
• ÞarLs lnLerpreLers

Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
122 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Iurn|sh|ng
key |ssues
• 1he hlgh AusLrallan dollar ls affecLlng compeLlLlveness lnLo Lhe medlum Lerm and
encouraglng furnlLure manufacLurers Lo look Lo overseas producLlon - lf noL wholly
overseas produced, Lhen ln parL. 1hls ls pushlng Lhe furnlshlng secLor down Lhe supply
chaln lnLo assembly and lnsLallaLlon.
• very LlghL marglns means Lhere are concerns abouL forecasL lncreased energy cosLs and
mld-Lerm vlablllLy.
• 1he posslble lmpacL of a carbon emlsslons Lradlng scheme ls feared Lo furLher erode Lhe
compeLlLlve poslLlon.
• Skllls lmpllcaLlons lnclude Lhe need for Lradespeople Lo have sLronger cusLomer servlce
skllls and sLronger quallLy assurance skllls. Also, Lhe need for lmproved managemenL
skllls Lo respond Lo Lhe myrlad challenges faclng Lhe furnlshlng lndusLry.
• A number of LradlLlonal Lrades are becomlng nlche Lrades as Lhls lndusLry conLracLs,
for example glazlers, floor coverers, upholsLerers, furnlLure makers and people worklng
ln sofL furnlshlng.
Med|um-1erm Sk|||s Need s - Iurn|sh|ng
Industry sub-sector Sk|||s needs
lurnlshlng
• 1eachers/Lralners
• ArchlLecLural glass deslgners and consLrucLors
• CAu deslgners
• LeadllghL assembllng speclallsLs
• Supervlsors
• Managers
• klLchen and baLhroom lnsLallers, manufacLurers and deslgners
• CablneL makers
• CnC programmers
• Wood machlnlsLs
• lloor flnlshers/pollshers
• CarpeL/vlnyl layers
• upholsLerers
• lndusLrlal palnLers
• lurnlLure flnlshers
• Þro[ecL managers
• Solld wood Lradespeople
• SofL lurnlshlng Workers
• 8llnds and Awnlngs Makers
• SecurlLy Screens and Crllles Makers
• lurnlshlng ueslgn Supervlsors and Managers
• lurnlshlng ÞroducLlon Supervlsors and Managers
• 1echnlcal Managers
• CnC CperaLors
• SLalned Class and Lead LlghL 1echnlcal Managers
• Clazlers



______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 123
Meta|s and Lng|neer|ng
key |ssues
• MeLals and Lnglneerlng ls a dlverse secLor whlch covers people who concelve, deslgn,
manufacLure, assemble, lnsLal, commlsslon, repalr, package, sell and malnLaln
manufacLured producLs. 1hey work - and ofLen move - across many lndusLry secLors,
lncludlng manufacLurlng.
• 1here are ongolng concerns abouL Lhe capaclLy Lo compeLe globally and Lhe sLrengLh
of Lhe AusLrallan dollar.1here are also domesLlc concerns abouL Lhe ongolng aLLracLlon
of people wlLh Lhese skllls Lo Lhe resources secLor, whlch ls expecLed Lo conLlnue lnLo
Lhe medlum Lerm.
• 1rend from AusLralla's largesL resources and lnfrasLrucLure companles Lo lncreaslngly
have preassembled componenLry manufacLured overseas, wlLh flow-on lmpllcaLlons
for skllllng ln Lhe shorL Lerm and lmpllcaLlons for Lhe skllls plpellne ln Lhe medlum Lerm.
• lncreased use of Lechnology wlll lead Lo lncreased demand for hlgher-level Lechnlcal
skllls, and skllls shorLages ln core areas are expecLed Lo conLlnue.
• lncreaslngly, LradlLlonal meLal and englneerlng Lrades are becomlng nlche Lrades.
Med|um-1erm Sk|||s Needs - Meta|s and Lng|neer|ng
Industry sub-sector Sk|||s needs
MeLals and Lnglneerlng
• labrlcaLlon Lrades, lncludlng bollermakers, sheeLmeLal workers and welders
aL base and advanced Lrades level
• lndusLrlal meLallurglsLs
• Mechanlcal Lradespersons aL base and advanced Lrades levels, lncludlng:
• MalnLenance flLLers
• Mechanlcal flLLers
• Advanced Lrades speclallsLs ln hydraullcs and pneumaLlcs
• ÞlanL and heavy LransporL dlesel mechanlc
• MachlnlsLs
• LocksmlLhs
• 8efrlgeraLlon and alr-condlLlonlng Lradespeople
• lnsLrumenL Lechnlclans
• LlecLrlcal Lradespeople aL base and advanced Lrades levels and advanced Lrades,
lncludlng:
• Pv/uC moLor conLrollers
• lndusLrlal elecLrlclans
• CperaLors, seLLers and programmers for advanced manufacLurlng sysLems
• Þrocess conLrol speclallsLs
• Lnglneerlng deslgners, lncludlng CAu modelllng speclallsLs
• ueslgn drafLlng
• Lnglneerlng Lechnlcal offlcers
• Lnglneerlng managers
• Þro[ecL managers
• Schedulers
• non uesLrucLlve 1esLlng (nu1) Lechnlclans


Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
124 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Þrocess Manufactur|ng
key |ssues
• 1he sklll developmenL needs ln Lhls area are focused on chemlcal, hydrocarbons and
reflnlng, manufacLured mlneral producLs and polymer processlng (plasLlcs, rubber and
cablemaklng).
• As process manufacLurlng ls a suppller Lo oLher lndusLrles lLs forLunes are llnked Lo Lhe
overall buoyancy of Lhe economy - and slgnlflcanLly Lo Lhe sLrengLh of Lhe resources
secLor.
• llbre composlLes are an ldenLlfled growLh area.
• 1he lnLroducLlon of new Lechnologles wlll call for hlgher-level skllls and more flexlblllLy ln
quallflcaLlons Lechnologles converge across LradlLlonal boundarles.
Med|um-1erm Sk|||s Needs - Þrocess Manufactur|ng
Industry sub-sector Sk|||s needs
Þrocess ManufacLurlng
• ÞroducLlon process englneers
• Lnglneers
• CemenL speclallsLs ( producLlon and operaLlons managers)
• SafeLy offlcers
• 8elL repalrers
• l1/englneerlng speclallsLs
• lndusLrlal chemlsLs
• 1ermlnal operaLors


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 123
1ext||es, C|oth|ng and Iootwear
key |ssues
• lrom yarn developmenL Lhrough Lo garmenL producLlon, Lhere's now only a handful of
companles lefL ln each caLegory and Lhey're predomlnanLly SMLs. 1hey're usually under
resourced and Lhe low barrlers Lo enLry mean Lhere's sufferlng up and down Lhe supply
chaln as Lhey expecL Lo geL Lhelr knowledge for free by asklng oLhers how Lo solve Lhelr
problems.
• Large governmenL Lenders are whaL helps Lo keep Lhe lndusLry golng.
• 1here ls sLrong lnLeresL ln Lhe secLor ln susLalnable and eLhlcal manufacLurlng.
• 1echnlcal LexLlles ls where Lhe lndusLry ls aL Lhe cuLLlng edge buL young people aren'L
enLerlng Lhls area - Lhe maln aLLracLlon conLlnues Lo be fashlon - and Lhe secLor ls noL
dolng a good enough [ob of promoLlon.
• ueep and susLalned sLafflng reducLlons ofLen mean LhaL Lhe people who managed Lhe
cosLs are no longer employed and Lhls ls becomes yeL anoLher CLC responslblllLy.
CompuLer sysLems need Lo be beLLer uLlllsed Lo asslsL wlLh plannlng and producLlon
managemenL.
• Companles wanL Lo lncrease Lhelr use of Lechnology buL caplLal ls dlfflculL Lo access and
Lhere ls ofLen noL sufflclenL fundlng Lo be able Lo afford Lhe supporLlng vendor Lralnlng.
• LlLeracy remalns a slgnlflcanL lssue for Lhls secLor and low levels of llLeracy comblned
wlLh a lack of avallable, flexlble llLeracy Lralnlng wlll llmlL upskllllng opporLunlLles.
Med|um-1erm Sk|||s Needs - 1ext||es, C|oth|ng and Iootwear
Industry sub-sector Sk|||s needs
1exLlles, CloLhlng and looLwear
• Skllled apparel machlnlsLs
• LeaLher goods makers
• 1Cl mechanlcs
• Apparel cuLLers
• Apparel paLLernmakers/graders
• uressmakers/Lallors
• Canvas goods makers
• Ceneral fooLwear Lradespersons


Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
126 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Iood
key Issues
• A slgnlflcanL percenLage of food processlng ls underLaken ln reglonal and rural areas and
Lhese areas are challenged by Lhe lmpacLs of cllmaLe change and a loss of confldence ln
Lhe long-Lerm fuLure of Lhe area whlch exacerbaLes Lhe ongolng drlfL of people lnLo Lhe
clLles. 1he lack of avallablllLy of a sulLable workforce wlll force planL movemenLs closer
Lo populaLlon cenLres. CllmaLe change wlll also lmpacL on Lhe vlablllLy of food processlng
enLerprlses who source lngredlenLs LhaL wlll be negaLlvely affecLed by droughL, rlslng
LemperaLures and oLher cllmaLe change lmpacLs, parLlcularly mllk, meaL, vlLlculLure, frulL
and vegeLables, nuLs, gralns and Lhe avallablllLy of waLer.
• lnnovaLlon skllls wlll be a key conLrlbuLor Lo Lhe secLor's fuLure as Lhese are Lhe skllls
needed Lo maxlmlse susLalnablllLy, Lo fully uLlllse Lechnology, and Lo ldenLlfy and acL on
opporLunlLles. luLure success wlll rely on hlgher-level sklll seLs and managers who are
compeLlLlve wlLh Lhelr global managemenL counLerparLs. ueslgnlng hlgh demand
producLs and markeLlng lnLo Lhe rlghL overseas locaLlons ls parL of Lhls mlx.
• 1he n8n wlll provlde opporLunlLles and Lhls secLor musL be acLlvely poslLlonlng lLself Lo
Lake advanLage of Lhls new Lechnology, especlally as reglonal vlcLorla ls lncluded for
early roll-ouL. lor example, access Lo speclallsL skllls wlLhouL needlng Lo have Lhe person
on slLe.
• ConLracLlng wages, especlally for Lhose occupaLlons whlch are physlcally demandlng buL
had been relaLlvely well pald, are resulLlng ln a shlfL lnLo oLher less Laxlng occupaLlons -
resulLlng ln skllls shorLages ln unaLLracLlve work such as abaLLolr slaughLerpersons.
• CusLomer quallLy, food safeLy and eLhlcal sLandards conLlnue Lo rlse ln Lhe food
processlng lndusLry and are seen as a source of compeLlLlve advanLage. Closely allled ls
Lhe lncreaslng emphasls on susLalnable producLlon. 1o dellver Lhese sLandards cosLs Lhe
food lndusLry conslderably Lo adopL and malnLaln processes and audlLlng, Lraln new
sLaff, reLraln exlsLlng sLaff and adhere Lo Lhe numerous quallLy sysLems and measures
demanded by cusLomers (supermarkeLs, food servlce, eLc.)
• Changes wlLhln Lhe supply chaln are pushlng lncreased packaglng requlremenLs back Lo
Lhe food processors wlLh less packaglng belng done by reLallers. As a resulL food
processlng companles need Lo aLLracL and reLaln Lhe Lechnlcal skllls Lo uLlllse advanced
packaglng Lechnologles and 'wear' Lhe CPS and agelng workforce cosLs assoclaLed wlLh
Lhe lncreased manual labour on Lhelr slLes.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 127
• 1hls sub-secLor ls employlng an lncreaslngly eLhnlcally and llngulsLlcally dlverse
workforce whlch ls ofLen locaLed ln reglonal areas wlLh llmlLed Lralnlng opLlons ln
language, llLeracy and numeracy. 1hls employmenL ls ofLen seasonal whlch makes
longer-Lerm skllls developmenL dlfflculL.
Med|um-1erm Sk|||s Needs - Iood
Industry sub-sector Sk|||s needs
lood
• 8akers
• ÞasLry cooks
• 8uLchers - reLall, slaughLerers, boners/sllcers
• MeaL lnspecLors
Þr|nt|ng*
key |ssues
• new and emerglng Lechnologles are havlng a profound effecL on Lhe prlnLlng lndusLry,
reshaplng Lhe LradlLlonal occupaLlons. 1he prlnLlng Lrades wlll conLlnue Lo decllne ln
numbers ln Lhe medlum Lerm and malnLenance work wlll be lncreaslngly ouLsourced.
• Cngolng and lnLenslfylng compeLlLlon from new medla ls anLlclpaLed wlLh a shlfL away
from prlnL on paper Lo dlglLal prlnL and publlshlng.
• new buslness models and opporLunlLles are expandlng Lhe lndusLry lnLo relaLed (Lhough
non-manufacLurlng) flelds such as lnformaLlon managemenL, deslgn, markeLlng and
mulLl-medla.
• Þrepress work - composlLlon and deslgn - wlll be needed and wlll become more
dynamlc, as more of Lhe work ls done elecLronlcally and documenLs are lncreaslngly
becomlng more personallsed.
• lncreased capaclLy for personallsaLlon resulLs ln mosL sLaff havlng hlgher levels of
cusLomer lnLeracLlon and requlrlng a new sklll seL as a resulL.
• 1he prlnLlng lndusLry ls focuslng on lmprovlng Lhe envlronmenLal susLalnablllLy of lLs
operaLlons.

Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
128 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Med|um-1erm Sk|||s Needs - Þr|nt|ng
Industry sub-sector Sk|||s needs
ÞrlnLlng
• 8lnders and flnlshers
• ueslgners
• 8uslness developmenL, Sales and MarkeLlng Managers
• ulglLal ÞrlnLers/ulglLal Þress CperaLors
• ÞrlnL ÞroducLlon/MachlnlsLs (lncludlng dlglLal)
• ÞroducLlon Managers
* 1he shorL Llmellnes for Lhls pro[ecL meanL lL was noL posslble for Lhe represenLaLlves of Lhe
relevanL sLaLe l1A8 Lo make commenL on Lhese medlum-Lerm skllls needs. 1he lnformaLlon
provlded ls drawn from Lhe naLlonal lndusLry Skllls Councll's annual envlronmenLal scan whlch
was endorsed by all of Lhe key lndusLry parLles.
4.3 SkILLS DLVLLCÞMLN1 kCLLS AND kLSÞCNSI8ILI1ILS IN 2020
ko|es and kespons|b|||t|es
Companles anLlclpaLe LhaL skllllng wlll conLlnue Lo be a shared responslblllLy beLween
lndlvlduals, enLerprlses and governmenL. Many of Lhe companles consulLed also spoke of Lhe
role lndependenL groups such as lndusLry assoclaLlons and lndusLry Lralnlng advlsory bodles play.
Companles ln Lhe manufacLurlng secLor are 'dolng lL Lough' and are crylng ouL for addlLlonal
governmenL asslsLance and conslder help ln Lhelr skllllng efforLs Lo be a poslLlve demonsLraLlon
of LhaL supporL and a valldaLlon of Lhe lmporLance of Lhe secLor.
ºWe need more governmenL asslsLance Lo Lraln sLaff. Cur whole workforce wenL Lhrough a
Lralnlng program wlLh CommonwealLh CovernmenL asslsLance. nlneLy-elghL per cenL of people
Look up Lhe offer, our supervlsors wenL for hlgher cerLlflcaLes. As parL of Lhelr course Lhey
looked aL how processes could be changed Lo lncrease efflclencles. 1hey developed a new floor
plan whlch Lhey esLlmaLed would cosL beLween $30 and $60,000. 1hey esLlmaLed a 3-7°
lncrease ln producLlon would resulL. A workgroup of 60 supervlsors and facLory floor people
worked hard Lo make Lhe changes - Lhe 8Cl was dramaLlc and producLlvlLy lncreased by
beLween 20 and 22°. 1ralnlng - l'm a blg bellever ln lL.
º8uL we can'L afford Lo lnvesL heavlly ln Lralnlng every year. 1he program wlLh CommonwealLh
CovernmenL supporL was done when Lhe oLher alLernaLlve we had was Lo shuLdown and move
producLlon overseas. 1haL was a few years ago now - and lL's 100° back on Lhe Lable. We're Lhe
largesL employer ln our lndusLry (1Cl sub-secLor) buL we're looklng aL becomlng [usL a buylng
cenLre here. 8uL we'll go down swlnglng - we work so hard Lo malnLaln our compeLlLlve
advanLage and we're lnLeresLed ln do more work Lo lmprove Lhe skllls of our supervlsors. Cur
leaders need Lhe besL skllls Lhey can geL."
And from anoLher flrm: ºlndusLry and governmenL boLh have a role. lndusLry needs Lo deLermlne
how Lo go abouL developlng Lhese skllls. CovernmenL needs Lo conLrlbuLe Lo Lhe cosL, because lL
lsn'L posslble for lndusLry Lo fund Lhe Lralnlng lLself and sLlll remaln compeLlLlve."
lndusLry accepLs lL needs Lo do lLs share. ºlndusLry needs Lo Lake responslblllLy for Lhls
(developlng skllls), buL governmenL can help by removlng some of Lhe polnLless resLrlcLlons lL
puLs ln place for Lralnlng people, e.g. a focus on quallflcaLlons when only a sklll seL ls needed, or
a fundlng sysLem LhaL makes lL unvlable for an 81C Lo cusLomlse Lralnlng for an SML."

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 129
Þ|ann|ng for the Med|um 1erm Needs to Start Now
Companles expressed Lhe vlew LhaL geLLlng Lhe pollcy seLLlngs rlghL for 2020 needs Lo sLarL now
and Lhelr vlews on roles and responslblllLles are shaped by Lhe changes Lhey conslder necessary
Lo successful skllllng ln Lhe medlum Lerm.
1he suggesLlon from one company ls LhaL governmenL's approach Lo 2020 soluLlons should
commence wlLh knowledge bulldlng: º1he flrsL Lhlng governmenL (Lhe people maklng declslons)
should do ls geL Lo know whaL lL Lakes Lo run a manufacLurlng buslness, and know how dlfflculL lL
ls. 1oo many people ln governmenL have no ldea abouL runnlng manufacLurlng."
1he |mpact of techno|ogy
Many companles see a fuLure whlch lncreaslngly relles on Lechnology and Lhls wlll have an
lmpacL on LradlLlonal [ob roles. Cne of Lhe lmpllcaLlons of such a change ls Lhe need Lo for
employees Lo operaLe more flexlbly. ºÞeople wlll need Lo be more flexlble ln Lerms of Lhe
breadLh of Lasks Lhey can do. 1he lndusLry wlll sLlll need LradlLlonal manufacLurlng skllls such as
englneerlng, mechanlcal, plannlng, eLc buL people wlll need Lo be able Lo more mulLlskllled lf Lhe
lndusLry ls Lo remaln compeLlLlve."
AnoLher organlsaLlon sald, º(Looklng ahead Lo 2020) 1he company wlll need people able Lo
acqulre a broader range of skllls, underLake mulLlple Lasks, learn qulckly and work flexlbly."
lor many Lhere wlll be mlxed sklll lmpacLs. º1he man/machlne lnLerface wlll be a key drlver.
Some hlgh-end operaLors wlll need upskllllng, and key malnLenance sLaff wlll need Lechnlclan
level skllls Lo malnLaln and operaLe more complex machlnery.
ºlor non-core areas, Lhere wlll be more conLracLlng ouL of servlces. lor example hlghly skllled
malnLenance Lechnlclans wlll be reLalned as permanenL sLaff, buL base level Lradespeople wlll
come ln as conLracL labour only when needed."
Companles recognlse LhaL Lhey need Lo do more Lo promoLe Lhelr secLor Lo Lry Lo overcome Lhe
generally negaLlve vlews of manufacLurlng. Many ldenLlfled areas of growLh ln hlgh Lech
processes and were confldenL LhaL Lhls would be of lnLeresL parLlcularly Lo young people buL felL
Lhey hadn'L done enough Lo 'geL Lhe word ouL'. 1hls ls a challenge for boLh lndlvldual enLerprlses
and lndusLry assoclaLlons. Cne of Lhe unlons consulLed sald º.all of our reporLs on
manufacLurlng are full of bad news. We need Lo puL Lhe poslLlves ouL Lhere."
1he use of Lechnology Lo dellver Lralnlng lnLo workplaces and Lo provlde ouL-of-hours Lralnlng
opporLunlLles was ldenLlfled as an opporLunlLy for Lhe fuLure buL wlLh Lhe recognlLlon LhaL Lhls
wlll requlre slgnlflcanL fundlng supporL Lo converL and updaLe Lralnlng resources and Lo develop
maLerlal for use on llne whlch ls engaglng Lo Lhe person belng Lralned. 1here ls an expecLaLlon
LhaL Lhere wlll be governmenL fundlng supporL Lo make Lhe shlfL Lo more onllne dellvery.
1he agelng workforce ls an lssue of ongolng concern Lo companles and wlLh people worklng
longer Lhe conLlnual need Lo upsklll, mosLly Lhrough sklll seL Lralnlng.

Workforce sklll requlremenLs - A medlum-Lerm perspecLlve
_______________________________________________________________________________
130 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Sk||||ng pathways need to be |mproved and made more f|ex|b|e
An exLenslon of Lhe need Lo supporL people comlng Lo Lralnlng perlodlcally over Lhelr worklng
llves and noL [usL Lralnlng aL enLry level ls seen ln Lhe call for lmproved Lralnlng paLhways.
ºunlverslLles need Lo allow a paLhway from an apprenLlceshlp lnLo advanced englneerlng
sLudles. We would llke Lo have a paLhway wlLh exlL polnLs: flrsL exlL polnL Lrade quallflcaLlon,
second exlL polnL Lnglneerlng ulploma, and Lhlrd exlL polnL Lnglneerlng uegree. 1he concepL ls
geLLlng on Lhe paLhway and geLLlng off aL one of Lhe exlL polnLs, raLher Lhan dolng one sLep, may
be followed by Lhe nexL and Lhen anoLher." 8uL Lhese paLhways are noL seen as golng [usL from
vocaLlonal educaLlon and Lralnlng lnLo hlgher educaLlon. Companles are crlLlcal of Lhe
employablllLy skllls of graduaLes and see Lhe vocaLlonal educaLlon and Lralnlng secLor as offerlng
a soluLlon. ºunlverslLy are good aL Lhe foundaLlon skllls buL Lhere ls a gap (a slgnlflcanL gap).
CraduaLes are noL ready for work. 1here needs Lo be a mlx beLween unlverslLy and vL1. 1here
needs Lo be a ºpaLhway back lnLo vL1" afLer a person has graduaLed from unlverslLy. 1he
sLrengLh of boLh educaLlon sysLems need Lo be comblned."
1he sk||||ng system rema|ns comp|ex
1hls suggesLlon, and many oLhers, of approaches whlch are elLher already avallable or under
developmenL lndlcaLes LhaL Lhe Lralnlng secLor needs Lo do a beLLer [ob of communlcaLlng laLesL
developmenLs and pollcles changes.
Companles are concerned abouL Lhe red Lape lnvolved ln Lralnlng º1he sysLem can geL Loo
complex and Loo resLrlcLlve Lo geL lnvolved. lor example, Lhe company Look on a school-based
apprenLlce a few years ago for alLrulsLlc reasons, buL Lhe amounL of work lnvolved Lo puL lL
LogeLher made lL so dlfflculL we are unllkely Lo do lL agaln."
lrom anoLher flrm whlch had been an 81C ln Lhe pasL buL no longer ls º1he vL1 sysLem has
become Loo blg and complex, wlLh Loo many regulaLlons for us Lo remaln an 81C."
And from anoLher: º1he vL1 sysLem ls okay for provldlng a base level of skllls. (8uL) Lhe
paperwork burden ls ouL of conLrol and needs Lo be sLreamllned."
1ra|n|ng prov|ders
Many companles spoke of Lhe dlfflculLles assoclaLed wlLh accesslng Lhe Lralnlng Lhey need. 1he
followlng ls Lyplcal º1he company ls currenLly uslng a prlvaLe 81C Lo dellver formal Lralnlng aL
Lhe workplace, whlch ls golng well. We have used 1AlL before buL have found Lhem lnflexlble."
lrom anoLher company º1AlL ls Loo rlgld ln lLs dellvery for us Lo use. 1helr focus ls on enrolllng
ln a unlL or a quallflcaLlon, noL on helplng Lhe company address lLs needs. Sub[ecLs are usually
noL avallable when Lhey are needed, l.e. LlmeLabllng lssues."
1hese companles and oLhers wenL on Lo recognlse LhaL whlle Lhe 1AlL sysLem provlded very
good servlce ln many areas ofLen Lhe reasons behlnd Lhelr dlfflculLles ln provldlng Lhe Lralnlng
opLlons companles were seeklng were noL of Lhelr own maklng buL Lhe resulL of Lhelr
admlnlsLraLlve and governance arrangemenLs.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 131
Conc|us|on
ln conslderlng key skllllng drlvers from a medlum-Lerm perspecLlve a number of lssues were
common across sub-secLors lncludlng: Lhe hlgh AusLrallan dollar and lLs lmpacL on
compeLlLlveness, Lhe sLrengLh of Lhe mlnlng boom and lLs aLLracLlveness Lo skllled workers ln
manufacLurlng, Lhe lnLroducLlon of new Lechnologles and Lhe lmpacL on skllls avallablllLy and
sklll mlxes, Lhe need Lo bulld producLlvlLy, parLlcularly by upskllllng supervlsors and mld-level
managers, and Lhe agelng workforce and young people movlng ouL of reglonal areas.
CrganlsaLlons consulLed ln Lhe developmenL of Lhls medlum-Lerm perspecLlve were largely
expecLlng currenL skllls shorLages Lo conLlnue and ldenLlfled a number of addlLlonal areas of
lnLeresL/concern. Cne conslsLenL feaLure ls Lhe expecLaLlon across group of more Lrades
becomlng nlche Lrades over Lhls Llme perlod.
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
132 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
S. MLL1ING 1nL WCkkICkCL AND SkILLS DLVLLCÞMLN1 NLLDS CI
VIC1CkIA'S MANUIAC1UkING INDUS1k¥
S.1 1nL CUkkLN1 AND LkÞLC1LD CAÞACI1¥ CI 1nL 1Lk1IAk¥ LDUCA1ICN S¥S1LM 1C
MLL1 1nL VIC1CkIAN MANUIAC1UkING SLC1Ck'S NLLDS
key I|nd|ngs
• Lnglneerlng ls crlLlcal Lo vlcLorla's economy, securlLy, healLh and envlronmenL, and ls
a key componenL of Lhe sLaLe's lnnovaLlon sysLem. Powever, manufacLurlng lndusLry
employers reporL a chronlc shorLage of workers wlLh adequaLe professlonal-level
englneerlng skllls. 1hls resulLs ln lncreased pro[ecL cosLs and pro[ecL delays, whlch wlll
lncreaslngly consLraln Lhe sLaLe's efforLs Lo develop lnfrasLrucLure, respond Lo cllmaLe
change, harness new manufacLurlng Lechnologles and explolL our naLural resources.
• 1he shorLage of englneerlng skllls ls llkely Lo worsen as demand for naLlonal and
vlcLorlan englneers lncreases, large numbers of englneers reLlre and lnLernaLlonal
compeLlLlon for englneerlng professlonals lncreases.
• 1he domesLlc supply of new englneerlng graduaLes ls noL keeplng pace wlLh demand.
ln recenL years, Lhe number of domesLlc (AusLrallan) sLudenLs commenclng englneerlng
courses has lncreased only sllghLly. 1he maln growLh has been ln overseas sLudenLs and
Lhey Lend noL Lo work here afLer Lhey graduaLe. 1he currenL rellance on overseas-Lralned
englneers ls noL susLalnable.
• 1he maln reason for Lhe weak domesLlc supply ls LhaL sLudenL demand ls noL sLrong
enough Lo flll Lhe avallable places ln englneerlng courses, malnly due Lo fewer senlor
sLudenLs dolng maLhemaLlcs and physlcs as preparaLlon, as well as a decllne ln youLh
lnLeresL ln sclence, educaLlon and Lechnology sLudy and careers. lnLeresLlng young
women ln an englneerlng career conLlnues Lo be a dlfflculLy.
• 1he naLlonal graduaLlon raLe from 8achelor of Lnglneerlng degrees ls well below LhaL of
all undergraduaLes, malnly because sLudenLs flnd Lhe maLhemaLlcs and Lhe workload Loo
hard, and Lhe salarles noL as good as oLher opLlons.
• Several ma[or sLudles back Lo 1996 have ldenLlfled Lhe key reasons for Lhe chronlc
shorLage of englneerlng skllls and proposed soluLlons. A key 2011 sLudy ldenLlfled many
lnlLlaLlves LhaL had successfully addressed Lhe lssues and recommended furLher acLlon
based on Lhem. 1wo successful vlcLorlan lnlLlaLlves are Swlnburne unlverslLy's AssoclaLe
uegree ln Lnglneerlng and lLs dlscovery cenLre for secondary sLudenLs.
• 1he AusLrallan naLlonal Lnglneerlng 1ask lorce ls well placed Lo engage wlLh lndusLry
sLakeholders Lo ldenLlfy sLaLe-based lnlLlaLlves Lo furLher lmplemenL Lhe
recommendaLlons of Lhe 2011 sLudy. 1hese would lnclude lnlLlaLlves Lo lmprove and
faclllLaLe Lhe use of paLhways beLween vL1 and hlgher educaLlon quallflcaLlons, and Lo
upgrade Lhe skllls of Lhe exlsLlng workforce wlLh hlgher educaLlon quallflcaLlons.

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 133
Introduct|on
Cf all manufacLurlng sklll needs aL Lhe professlonal level, Lhe mosL menLloned need ln surveys
and sLudles ls for englneerlng, sclence and relaLed skllls. 1here ls no shorL-Lerm soluLlon Lo Lhe
perslsLenL shorLage experlenced by employers of skllled englneerlng professlonals - and Lhe
shorLage ls common Lo all sLaLes and LerrlLorles of AusLralla.
Lnglneerlng ls crlLlcal Lo vlcLorla's economy, securlLy, healLh and envlronmenL, and ls a key
componenL of Lhe sLaLe's lnnovaLlon sysLem. Lnglneers concelve, creaLe and malnLaln processes,
sysLems and asseLs LhaL saLlsfy human and economlc needs.
AusLralla's hlgher educaLlon secLor provldes enLry-level educaLlon for professlonal englneers,
englneerlng LechnologlsLs and englneerlng offlcers, as well as advanced-level educaLlon and
englneerlng research. 1he englneerlng educaLlon sysLem, lnvolvlng educaLors, professlonal
bodles and employers, en[oys good lnLernaLlonal sLandlng.
1he Shortage of Lng|neers |n V|ctor|a
1he shortage |s expected to worsen
CommonwealLh and sLaLe governmenL revlews, lndusLry surveys and englneers Lhemselves
reporL LhaL professlonal englneers, englneerlng LechnologlsLs and englneerlng offlcers have for
many years been ln shorL supply ln many lndusLrles lncludlng Lhe consLrucLlon, road, rall, power
generaLlon, local governmenL, waLer, elecLrlcal and bloLechnology lndusLrles. Whlle shorLages
vary across quallflcaLlon levels, speclallsaLlons and Llmeframes, lL ls clear LhaL shorLages are
chronlc raLher Lhan cycllcal.
8espondenLs Lo Lhe Al Croup's 2010 Notloool cíO 5otvey sLaLed LhaL Lhey expecLed englneerlng
professlonals Lo be Lhe second hardesL occupaLlon Lo employ ln 2011. ConslsLenLly, employers ln
Lhe vlcLorlan manufacLurlng lndusLry as well as Lhelr counLerparLs ln oLher sLaLes and LerrlLorles
say LhaL Lhelr buslnesses are held back by a shorLage of englneers.
1he consequences of shorLages are delayed and hlgher cosL pro[ecLs, and losL opporLunlLles. A
2006 reporL esLlmaLed LhaL 43° of surveyed pro[ecLs valued over $1 bllllon were lnadequaLely
scoped and LhaL one quarLer of pro[ecLs over $1 bllllon had a cosL overrun of more Lhan $200
mllllon because of lnadequacles ln scope documenLs, prlmarlly because of dlfflculLles engaglng
englneers. AlLhough Lhls daLa refers Lo clvll englneerlng, lL ls probable LhaL slmllar delays, hlgh
pro[ecL cosLs and losL opporLunlLles are occurrlng ln Lhe vlcLorlan manufacLurlng lndusLry.
Skllls AusLralla, Lhe naLlonal 8esources SecLor LmploymenL 1askforce and Lnglneers AusLralla
reporL LhaL shorLages of professlonal englneers are a serlous consLralnL Lo developlng
lnfrasLrucLure, lncreaslng AusLralla's exporLs of commodlLles, respondlng Lo cllmaLe change and
harnesslng new Lechnologles, lncludlng for manufacLure.
uemand for englneerlng skllls ls lncreaslng. Whlle many englneerlng relaLed occupaLlons ln
demand and/or wlLh a crlLlcal skllls shorLage need vL1 raLher Lhan hlgher educaLlon
quallflcaLlons, pressure wlll conLlnue for employees Lo have bachelor degrees, dlplomas and
posLgraduaLe quallflcaLlons.
Compared Lo, for example, Lhe uk, vlcLorla's manufacLurlng workforce ls poorly quallfled. ln
2009, an esLlmaLed 17° of Lhe vlcLorlan manufacLurlng workforce had a bachelor degree,
graduaLe dlploma or posLgraduaLe degree. 1he remalnder had a lower quallflcaLlon or no posL
school quallflcaLlons. ln 2007, 26.7° of employees ln Lhe uk manufacLurlng secLor had hlgher
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
134 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
educaLlon/degree-level quallflcaLlons. AL Lhe same Llme, Lhe proporLlon of workers ln Lhe uk
manufacLurlng secLor wlLh no naLlonal vocaLlonal quallflcaLlons ln 2007 was 13.3°, compared Lo
43° wlLh no posL school quallflcaLlons ln vlcLorla.
Whlle lL ls Lrue LhaL Lhe resurgenL mlnlng boom ls aLLracLlng workers from vlcLorla Lo WesLern
AusLralla and Cueensland, Lhe broader reallLy ls LhaL demand ls sLrong across Lhe counLry. Cur
exLenslve manufacLurlng acLlvlLles, developmenL and explolLaLlon of vlcLorla's and 8ass SLralL's
gas reserves, exLenslon of Lhe sLaLe's gas neLwork and pressure Lo reduce Lhe cllmaLe lmpacL of
vlcLorla elecLrlclLy generaLlon wlll creaLe ma[or demand for englneerlng skllls ln our sLaLe.


1he shorLage of englneerlng skllls ls llkely Lo worsen as large numbers of englneers reLlre ln Lhe
nexL decade, wlLh serlous consequences. As one englneer sald:
´1be few temololoq koowleJqeoble ooJ skllleJ eoqloeets bove to toke oo locteosloq
tespooslbllltles ofteo tesoltloq lo sloqle polots of koowleJqe. 1bete ls oo ooe to poss
koowleJqe to os oo soccessloo ploooloq exlsts. 5evete loss of cotpotote koowleJqe ls
lmmloeot os mooy eoqloeets wlll tetlte lo tbe oext 5 yeots.´
1he shortage |s not be|ng met by graduate supp|y
1here are 90 bachelor courses ln Lhe englneerlng fleld of sLudy ln vlcLorla, offered by seven
unlverslLles. 1hls does noL lnclude CerLlflcaLe lvs, dlplomas or advanced dlplomas offered by
1AlL lnsLlLuLes.
1he skllled vacancles lndex caLegorlses englneers as: clvll, elecLrlcal, elecLronlcs, mechanlcal,
producLlon or planL, mlnlng, peLroleum, maLerlals, aeronauLlcal, chemlcal and lndusLrlal. 1hese
caLegorles are broadly ln llne wlLh Lhe more deLalled AusLrallan SLandard ClasslflcaLlon of
CccupaLlons. 1he manufacLurlng lndusLry ls prlmarlly concerned wlLh all Lhese, excepL clvll and
mlnlng. uLLW8 commencemenL and compleLlon daLa Lo dlfferenLlaLe Lhe dlfferenL Lypes of
englneers ls noL freely avallable. unless oLherwlse sLaLed, Lhe followlng sLaLlsLlcs and
observaLlons are for all Lypes of englneer.
ln recenL years, Lhe domesLlc supply of new englneerlng graduaLes has noL kepL pace wlLh
demand for englneers, and supply ls predlcLed Lo fall shorL of requlremenLs ln vlcLorla Lhrough
Lo 2022.
8eLween 2002 and 2010, naLlonal appllcaLlons for undergraduaLe englneerlng courses lncreased
sLeadlly ln almosL all years (+28° over Lhe perlod), offers lncreased by a slmllar percenLage
(+23.6°). 1he offer raLe ln 2010 was 87.8°, well above Lhe naLlonal average (81.1°). 1he
healLhy offer raLe suggesLs LhaL lack of places ls noL an lssue, and Lnglneers AusLralla noLes LhaL
governmenL pollcles Lo deal wlLh shorLages have lncreased Lhe number of new fully funded
englneerlng places ln unlverslLles and 1AlLs. Cn Lhe oLher hand, Lnglneers AusLralla also noLes
LhaL unlverslLles are closlng down Lechnology courses Lhrough lack of demand, and Lhere has
been a slgnlflcanL cuLback ln clvll englneerlng hlgher educaLlon places over Lhe lasL 13 years.
Powever, acLual commencemenLs are far weaker, and much more so for domesLlc sLudenLs Lhan
for overseas sLudenLs. naLlonal commencemenLs of englneerlng and relaLed Lechnologles
bachelor courses lncreased (+11.2°) from 2001-08. uomesLlc sLudenL numbers lncreased only
sllghLly (from 10,786 Lo 11,294, +4.7°), wlLh mosL of Lhe lncrease comlng from lncreased
overseas sLudenL enrolmenLs (+32.3°, Lo 4,463). 1he plcLure was slmllar for commencemenLs
ln all englneerlng courses, where Lhe number of domesLlc sLudenLs was almosL sLaLlc (from
14,024 Lo 14,680) over Lhe perlod, wlLh Lhe maln growLh belng ln overseas sLudenLs (from 3,280
Lo 8,391).

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 133
More broadly, Lhe proporLlon of domesLlc sLudenLs ln sclence, englneerlng and Lechnology
courses across all educaLlon and Lralnlng secLors remalned sLaLlc or decllned ln AusLralla over Lhe
decade Lo 2006. 1hls was parLlcularly so for enabllng sclences, whlch lnclude advanced and
lnLermedlaLe maLhemaLlcs, physlcs and chemlsLry. Cver Lhe decade, overseas sLudenLs formed
an lncreaslng proporLlon of sLudenLs enrolled ln Lhese courses.
lrom 2001-08, LoLal naLlonal bachelor enrolmenLs by domesLlc sLudenLs lncreased by [usL 1,862,
whlle all bachelor enrolmenLs lncreased, from 47,210 Lo 34,333 (an lncrease of 7,343, +13.6°).
uurlng Lhe perlod, bachelor compleLlons remalned almosL Lhe same (around 6,030), whlle
bachelor compleLlons by overseas sLudenLs lncreased greaLly (+33°). 8eLween 2004 and 2009,
vlcLorla had close Lo one-Lhlrd of all hlgher educaLlon englneerlng graduaLes naLlonally.
uomesLlc sLudenL graduaLe numbers remalned vlrLually Lhe same (2,464 as compared Lo 2,309)
buL overseas sLudenL graduaLe numbers grew (from 4,033 Lo 4,337).
1here ls llLLle evldence LhaL AusLralla ls adequaLely uslng Lhe skllls of graduaLe englneers who
were formerly lnLernaLlonal sLudenLs: Lhose who wanL an englneerlng [ob ln AusLralla are less
successful Lhan domesLlc sLudenLs ln flndlng one. AL Lhe same Llme, ln 2009 skllled mlgranL
englneers accounLed for more Lhan half of Lhe supply of newly quallfled englneers. Clven global
compeLlLlon from englneers, rellance on offshore recrulLmenL and former overseas sLudenLs
ls unllkely Lo be a successful longer-Lerm sLraLegy.
1he prlmary reason for Lhe weak enrolmenL numbers explalned above ls LhaL sLudenL demand
has noL been sLrong enough naLlonally Lo flll Lhe avallable places ln englneerlng courses. Many
CLCu counLrles are also experlenclng decllnes ln Lhe sclence, englneerlng and Lechnology (SL1)
share of hlgher educaLlon enrolmenLs. 1hls ls aLLrlbuLed malnly Lo:
• fewer senlor sLudenLs dolng maLhemaLlcs and physlcs as preparaLlon (whlch, as
explalned laLer, also conLrlbuLes Lo Lhe aLLrlLlon raLe), and
• a decllne ln youLh lnLeresL ln SL1 sLudy and careers, lncludlng conLlnulng dlfflculLles ln
lnLeresLlng young women ln an englneerlng career.
Slnce 2001, Lhe percenLage of ?ear 12 sLudenLs sLudylng Lhe lmporLanL enabllng sub[ecLs for
englneerlng courses (maLhemaLlcs, chemlsLry and physlcs) ln AusLralla has fallen. lndusLry,
hlgher educaLlon and vL1 represenLaLlves are of Lhe vlew LhaL many sLudenLs leavlng school are
lll prepared for LerLlary sLudy and employmenL ln SL1 flelds, and LhaL Lhls ls ln parL due Lo
AusLralla lacklng enough sulLably quallfled secondary school sclence Leachers.
1here ls also concern abouL a lack of quallLy SL1 careers advlce and Lhe presence of negaLlve
communlLy percepLlons of SL1 careers and research. 1o address Lhls, Lhe AusLrallan Councll of
Lnglneerlng ueans ln 2008 recommended acLlons Lo lncrease Lhe publlc undersLandlng of
englneerlng and Lhe work of englneers, parLlcularly ln schools.
Women make up only 16° of undergraduaLe commenclng englneerlng sLudenLs and 9.3° of
Lhose wlLh LerLlary quallflcaLlons ln englneerlng worklng ln englneerlng or relaLed occupaLlons.
1here ls no reason Lo Lhlnk Lhe plcLure ls lmprovlng: women's commencemenLs ln bachelor
degrees were hlgher ln 2001 (1,638) Lhan ln 2008 (1,397).
A ma[or and ongolng concern ls Lhe lnsufflclenL percenLage of women ln englneerlng courses.
Whlle women's lnvolvemenL ln englneerlng has lncreased over Lhe pasL 30 years (from an
exLremely low base), female parLlclpaLlon remalns very low compared Lo Lhelr whole workforce
parLlclpaLlon raLe, wlLh culLural and flexlblllLy lssues causlng conLlnulng concern. lor example,
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
136 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Lhree-quarLers of female englneerlng respondenLs Lo a 2010 survey felL LhaL worklng parL Llme ln
Lhelr currenL [ob has had (or would have) deLrlmenLal lmpacLs on Lhelr career. AbouL 70° also
felL LhaL Laklng maLernlLy leave would be deLrlmenLal Lo Lhelr career. MosL respondenLs were
concerned wlLh work-llfe balance and Lhe lack of women's access Lo senlor roles. 1o address
Lhese facLors, ln 2011 Lhe AusLrallan Learnlng and 1eachlng Councll recommended developlng
gender-lncluslve currlcula, wldenlng admlsslons crlLerla, lnvesLlng ln sLaff developmenL and
relnLroduclng Women ln Lnglneerlng programs.
134

Lnglneers AusLralla noLes LhaL all Lhe above facLors make lL lncreaslngly dlfflculL Lo aLLracL
sLudenLs wlLh Lhe approprlaLe enLry sLandards ln maLhemaLlcs and sclence, whlch exLends back
Lo lssues wlLh prlmary and secondary schoollng.
Weak demand for englneerlng courses wlll become lncreaslngly lmporLanL as AusLralla conLlnues
Lo move Lo a demand-drlven hlgher educaLlon sysLem.
n|gh attr|t|on rate among eng|neer|ng students
CharL 61 compares Lhe number of sLudenLs commenclng and compleLlng all englneerlng and
relaLed Lechnologles quallflcaLlons from 2001-08. AlLhough successlve years are noL dlrecLly
comparable (commencemenL and compleLlon daLes for lndlvldual sLudenLs belng many years
aparL), lL does show graphlcally Lhe exLenL of aLLrlLlon LhaL occurs over Llme.
Chart 61: Lng|neer|ng and re|ated techno|og|es h|gher educat|on commencements
and comp|et|ons, Austra||a, 2001-08
13S



134 Codfrey, L. & klng, 8. (2011) ºcottlcolom speclflcotloo ooJ soppott fot
eoqloeetloq eJocotloo. ooJetstooJloq otttltloo, ocoJemlc soppott, tevlseJ competeocles, potbwoys ooJ
occess´ avallable aL hLLp://www.alLc.edu.au/resource-englneerlng-quallflcaLlon-currlculum-uLs-2011

133 'All sLudenLs commenclng' comes from 1able 2.3 and 'All sLudenLs compleLlng' from 1able 2.11 ln kaspura, A., 1be íoqloeetloq
ltofessloo A 5totlstlcol Ovetvlew, 7
Lh
LdlLlon, Lnglneers AusLralla, 8arLon AC1, 2010
0 5,000 10,000 15,000 20,000 25,000
2001
2002
2003
2004
2005
2006
2007
2008
Y
e
a
r
Number of students
All students completing
All students commencing

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 137
Whlle esLlmaLes of Lhe acLual aLLrlLlon raLes from englneerlng programs vary slgnlflcanLly, a
comprehenslve 2006 sLudy esLlmaLed a naLlonal average graduaLlon raLe from 8achelor of
Lnglneerlng degrees around 63°, compared Lo a graduaLlon raLe for all undergraduaLes of
89.3°. lL also found LhaL mosL aLLrlLlon occurs over Lhe flrsL Lwo years of sLudy, lncludlng a small
percenLage of sLudenLs swlLchlng Lo non-englneerlng programs wlLhln Lhelr lnsLlLuLlon, and LhaL
englneerlng sLudenLs Lake longer Lo graduaLe Lhan expecLed. 1hls plcLure ls broadly slmllar Lo
sLudles ln Lhe uk and uS. lacLors whlch conLrlbuLe Lo Lhe low compleLlon raLe are:
• lnsufflclenL maLhemaLlcs ablllLy, maklng Lhe workload much more dlfflculL Lhan
expecLed,
• Lhe relaLlvely hlgh workload and a hlgh number of conLacL hours, boLh maklng lL hard for
sLudenLs Lo work parL Llme Lo supporL Lhemselves, and
• salarles ln commerce and law looklng more aLLracLlve, wlLh englneers' salarles reachlng
a plaLeau early ln a career.
1he lmporLance of provldlng maLhemaLlcs supporL was shown by a Cueensland unlverslLy of
1echnology pro[ecL ln 2002 LhaL offered such supporL Lo flrsL-year sLudenLs. SLudenLs who used
Lhe supporL were Lwlce as llkely Lo compleLe Lhelr course as Lhose who dld noL. 1he pro[ecL also
found LhaL sLudenLs who sLarLed Lhelr englneerlng course wlLh only core maLhemaLlcs or
equlvalenL from hlgh school had lower compleLlon raLes and hlgher dlsconLlnuaLlon raLes Lhan
sLudenLs who came wlLh advanced maLhemaLlcs.
A ma[or revlew of maLhemaLlcs educaLlon for englneerlng sLudenLs ln 2008 noLed LhaL Lhe
maLhemaLlcal compeLence of lncomlng sLudenLs ls lncreaslngly varlable, LhaL maLhemaLlcs ls less
LaughL Lhan 20 years ago, and LhaL a four-year 8achelor of Lnglneerlng graduaLe wlll noL be as
well Lralned ln maLhemaLlcs as ln Lhe pasL.
lmprovlng Lhe course compleLlon raLe ls self-evldenLly lmporLanL Lo lncreaslng Lhe supply of
graduaLes. Also, AusLrallan CovernmenL pollcy followlng Lhe recommendaLlons of Lhe naLlonal
8evlew of Plgher LducaLlon (8radley 8evlew) ls Lo lncrease Lhe proporLlon of 23 Lo 34 year olds
wlLh bachelor-level degree quallflcaLlons from 29° now Lo 40° by 2023 and Lo lmprove Lhe
currenL average graduaLlon raLe across all flrsL degree programs. Lnglneerlng ls well behlnd
oLher dlsclpllnes ln meeLlng Lhls goal.
Inst|tut|ons and profess|ona| bod|es understand the |ssues
All Lhe above lssues are very well undersLood by Lhe professlonal bodles and by governmenLs.
1he Carrlck lnsLlLuLe's 1996 kevlew of íoqloeetloq, cbooqloq tbe coltote reporL ldenLlfled many
of Lhe lssues and led Lo subsLanLlal changes ln hlgher educaLlon provlslon, lncludlng changes Lo
Lhe englneerlng program accredlLaLlon process, lmprovemenLs ln currlculum deslgn and dellvery
(lncludlng pro[ecL, problem, and workplace-based learnlng), and lncreased emphasls on
susLalnablllLy.

MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
138 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he CommonwealLh CovernmenL's 2006 AoJlt of scleoce, eoqloeetloq & tecbooloqy skllls also
ldenLlfled Lhe lssues ouLllned above, lncludlng Lhe need Lo lmprove:
• Lhe lmage of englneerlng among sLudenLs, parenLs, lndusLry and
Lhe communlLy,
• senlor secondary courses, lncludlng Lhe malnLenance of an adequaLe supply
of well-quallfled sclence and maLhemaLlcs Leachers, and
• sLaff reLenLlon sLraLegles, especlally for older workers.
136

Several sLudles have found a need Lo re-examlne how englneerlng ls presenLed Lo school
sLudenLs, and Lo promoLe lLs beneflLs. lor example, a survey of male and female englneerlng
sLudenLs found LhaL Lhey were aLLracLed by Lhe opporLunlLles Lo work overseas, Lo conLrlbuLe
Lo socleLy, Lo help people lmprove Lhelr llves, and Lo beneflL from professlonal developmenL
programs and Lhe avallablllLy of menLors.
ln 2008, Lhe AusLrallan Councll of Lnglneerlng ueans' AJJtessloq tbe sopply ooJ poollty of
eoqloeetloq qtoJootes fot tbe oew ceototy reporL provlded a comprehenslve, 10-year roadmap
for developlng AusLralla's englneerlng educaLlon sysLem.
137
1he reporL was subsequenLly
updaLed and dlsLrlbuLed Lo all englneerlng schools ln full and summary forms, under Lhe LlLle
íoqloeets fot tbe lotote. 8ecommendaLlons from Lhese Lwo reporLs were addressed by Lhe
subsequenL AusLrallan Learnlng and 1eachlng Councll pro[ecL cottlcolom speclflcotloo ooJ
soppott fot eoqloeetloq eJocotloo, whlch made 23 recommendaLlons for reduclng aLLrlLlon,
based on evldence drawn from successful lnLervenLlons. 1hese lnclude changes Lo admlsslons
processes, lmprovemenLs Lo flrsL-year currlcula, brldglng paLhways, peer menLorlng and Lhe
lncreaslng deploymenL of acLlve learnlng ln beLLer deslgned spaces.
1he AusLrallan naLlonal Lnglneerlng 1ask force ls a parLnershlp beLween Lhe AssoclaLlon of
Þrofesslonal Lnglneers, SclenLlsLs and Managers AusLralla (AÞLSMA), Lnglneers AusLralla,
Lhe AssoclaLlon of ConsulLlng Lnglneers AusLralla (ACLA), Lhe AusLrallan Councll of Lnglneerlng
ueans (ACLu) and Lhe AusLrallan Academy of 1echnologlcal Sclences and Lnglneerlng (A1SL). lL ls
currenLly seeklng Lo develop a naLlonal sLraLegy for AusLralla's currenL and fuLure englneerlng
workforce and ls also conducLlng research Lo:
• model capaclLy and skllls shorLages ln Lhe roads and rall lnfrasLrucLure secLors, and
• lnvesLlgaLe currenL paLhways beLween vL1 and hlgher educaLlon provlders and Lhe
effecLlveness of exlsLlng models Lo amelloraLe Lhe skllls blockage.
1he varlous reporLs above and Lhelr recommendaLlons provlde a wealLh of acLlon ldeas and
proposals, lncludlng:
• examlnlng wheLher a more sLrongly dlfferenLlaLed seL of quallflcaLlons more closely
relaLed Lo occupaLlonal needs mlghL beLLer meeL sklll shorLages and reduce aLLrlLlon
raLes,
• worklng wlLh schools Lo develop besL-pracLlce englneerlng educaLlon, and

136 AudlL of sclence, englneerlng & Lechnology skllls, ueparLmenL of LducaLlon, Sclence and 1ralnlng, !uly 2006
137 Codfrey, L. & klng, 8. (2008) ºAJJtessloq tbe sopply ooJ poollty of eoqloeetloq qtoJootes fot tbe oew ceototy´

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 139
• clarlfylng educaLlonal ouLcomes and sLandards requlred for pracLlce aL all lnLernaLlonally
recognlsed levels of englneerlng.
Act|on |s occurr|ng
1he 2011 flnal cottlcolom speclflcotloo ooJ soppott fot eoqloeetloq eJocotloo pro[ecL reporL
provldes a comprehenslve overvlew of sLraLegles and acLlons occurrlng Lo address Lhe lssues
ralsed above, lncludlng:
• 23 recommendaLlons for reduclng aLLrlLlon, based on evldence drawn from successful
lnLervenLlons (lncludlng admlsslons processes, lmprovemenLs Lo flrsL-year currlcula,
brldglng paLhways, peer menLorlng, and Lhe lncreaslng deploymenL of acLlve learnlng ln
beLLer deslgned spaces),
• supporL for englneerlng academlcs,
• collaboraLlon beLween Lhe academlc and professlonal englneerlng communlLles
Lo revlse Lnglneers AusLralla's compeLency sLandards for Lhe Lhree accredlLed
englneerlng quallflcaLlons, and
• a collaboraLlon beLween nlne unlverslLles Lo revlew Lhe wlde - and growlng - range
of paLhways Lo englneerlng quallflcaLlons, wlLh examples of besL pracLlce Lo supporL
Lhe 14 recommendaLlons.
WlLh respecL Lo Lhe lasL polnL, a 2009 reporL for Lhe vlcLorlan CovernmenL noLed Lhe usefulness
of assoclaLe degrees (LhaL provlde for smaller class slzes and more supporL from academlc sLaff)
ln helplng sLudenLs LranslLlon from school Lo unlverslLy. AL Swlnburne unlverslLy, for example,
Lhe AssoclaLe uegree ln Lnglneerlng provldes a broad-based polnL of enLry lnLo employmenL as
a paraprofesslonal englneer, and a paLhway for graduaLes Lo arLlculaLe lnLo an undergraduaLe
englneerlng degree course. 1he course provldes an lnLroducLlon Lo Lhe foundaLlon sLudles of
clvll, mechanlcal and elecLrlcal englneerlng, LogeLher wlLh englneerlng managemenL and a range
of vocaLlonally orlenLed sub[ecLs, whlch are lnLended Lo prepare sLudenLs for employmenL ln a
dynamlc and changlng workforce.
A number of pro[ecLs are also underway or compleLed and lnvolve vlcLorlan unlverslLles ln
lmprovlng Leachlng and assessmenL pracLlce (for example, Leachlng and assessmenL of ma[or
aLLrlbuLes ln englneerlng: ldenLlfylng, developlng and dlssemlnaLlng good pracLlce ln 2009).
Cne such example ls Swlnburne unlverslLy's dlscovery cenLre and vL1 Leachlng rooms, currenLly
belng bullL ln WanLlrna, ln Lhe knox reglon. Some 6,000 sLudenLs wlll use Lhe cenLre. ?ears 7-9
sLudenLs wlll underLake deslgn, manufacLurlng, susLalnablllLy and producL llfe cycle sLudles fully
lnLegraLed lnLo Lhelr currlculum whlle ?ears 11 and 12 sLudenLs wlll do vL1 programs.
1he cenLre resulLed from a collaboraLlon of slx schools ln Lhe knox reglon, coordlnaLed by Lhe
CuLer LasLern MeLropollLan 8eglon offlce of Lhe ueparLmenL of LducaLlon and Larly Chlldhood
uevelopmenL. Lach school had been ellglble under Lhe CommonwealLh CovernmenL's 1rade
1ralnlng CenLre lnlLlaLlve Lo apply for $1.3 mllllon, Lhe schools declded Lo pool Lhelr fundlng Lo
apply for Lhe cenLre.
1he cenLre alms Lo fosLer lnLeresL ln maLhs and physlcs ln Lhe early secondary years, bulld
lnLeresL and capablllLy Lhrough Lhe mlddle and senlor secondary years, and Lo make sLudenLs
aware of manufacLurlng careers.
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
140 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Local parLnershlps wlLh buslnesses Lhrough Lhe CuLer LasLern Local Learnlng and LmploymenL
neLwork (LLLn) are developlng lnLernshlp and sLrucLured lndusLry learnlng opporLunlLles sLarLlng
aL ?ear 9, whlle Swlnburne ls also developlng flexlble paLhways lnLo hlgher sLudles. lor example,
Lhere ls an englneerlng paLhway from CerLlflcaLe lll Lo bachelor sLudles Lhrough exLenslon
programs open Lo hlgh achlevlng vL1 sLudenLs from Lhe seven schools.
lL ls also essenLlal Lo acknowledge Lhe role LhaL hlgher educaLlon lnsLlLuLlons can play ln
upgradlng Lhe skllls of Lhe exlsLlng workforce. 1he 2008 Al Croup's 5klllloq tbe íxlstloq wotkfotce
reporL noLed LhaL developlng Lhe skllls of Lhe exlsLlng workforce should be a ma[or prlorlLy for
manufacLurlng enLerprlses. 1he hlgher educaLlon secLor can also bulld brldges, wlLh Lhe vL1
secLor Lo provlde beLLer and more seamless skllllng servlces for enLerprlses. vlcLorla, wlLh lLs
dual-secLor lnsLlLuLe LradlLlon, ls well placed Lo do Lhls.
1he 2011 cottlcolom speclflcotloo ooJ soppott fot eoqloeetloq eJocotloo reporL examlned ln
deLall arLlculaLlon paLhways Lo enLry quallflcaLlons and professlonal englneerlng, lncludlng
arLlculaLlon from vL1 quallflcaLlons, hlgher educaLlon assoclaLe degree programs, foundaLlon
programs, Lhe Lhree-year 8achelor of Lnglneerlng 1echnology program, and from oLher
undergraduaLe degrees. lL made 14 recommendaLlons for lmprovlng paLhways, supporLed by
besL pracLlce examples. As graduaLes of Lhese programs are more llkely Lo have chosen
englneerlng as a career Lhan have secondary school sLudenLs, Lhey would appear Lo be a
promlslng pool of poLenLlal enrolees for hlgher educaLlon quallflcaLlons.
Conc|us|on
Lnglneerlng ls crlLlcal Lo Lhe vlcLorlan economy and Lhe vlcLorlan manufacLurlng secLor ln
parLlcular. Powever, manufacLurlng lndusLry employers reporL a chronlc shorLage of workers
wlLh adequaLe professlonal-level englneerlng skllls. 1he shorLage of englneerlng skllls ls llkely Lo
worsen as demand for naLlonal and vlcLorlan englneers lncreases, large numbers of englneers
reLlre, and lnLernaLlonal compeLlLlon for englneerlng professlonals lncreases.
1he domesLlc supply of new englneerlng graduaLes ls noL keeplng pace wlLh demand. 1he maln
reason for Lhe weak domesLlc supply ls LhaL sLudenL demand ls noL sLrong enough Lo flll Lhe
avallable places ln englneerlng courses, malnly due Lo fewer senlor sLudenLs dolng maLhemaLlcs
and physlcs as preparaLlon, as well as a decllne ln youLh lnLeresL ln sclence, educaLlon and
Lechnology sLudy and careers. ConLlnulng dlfflculLles ln lnLeresLlng young women ln an
englneerlng career are also a ma[or concern.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 141
S.2 1nL IMÞCk1ANCL AND CAÞACI1¥ CI SkILLLD MIGkA1ICN
key I|nd|ngs
• 8eLween 2007-08 and 2009 -10, decreaslng numbers of skllled mlgranLs came Lo work ln
Lhe vlcLorlan manufacLurlng secLor under Lhe buslness long sLay vlsa (437 vlsa).
• 1he lmporLance of skllled mlgraLlon Lo vlcLorlan manufacLurers ranges ln lmporLance
from vlLal Lo unlmporLanL.
• LnLrenched sklll shorLages mean LhaL lndusLry sub-secLors LhaL haven'L prevlously made
use of skllled mlgraLlon are now acLlvely pursulng Lhls opLlon.
Introduct|on
vlcLorlan companles are commlLLed Lo Lralnlng and Al Croup research has found LhaL more Lhan
a quarLer of employers unable Lo flll skllled vacancles respond by upskllllng Lhelr exlsLlng
workforce. noLwlLhsLandlng Lhls commlLmenL, lL ls clear LhaL Lhe skllls shorLages ln Lhls secLor
cannoL be meL by Lhe Lralnlng of our domesLlc workforce alone.
lor Lhe purposes of clarlLy, when referrlng Lo skllled mlgraLlon we are speclflcally referenclng:
• letmooeot mlqtotloo ptoqtoms: 1he Ceneral Skllled MlgraLlon Þrogram/lndependenL
Skllled MlgraLlon whlch ls for professlonals and oLher skllled mlgranLs who are noL
sponsored by an employer and who have skllls llsLed on AusLralla's Skllled CccupaLlon
LlsL (SCL). 1here ls also a range of sponsored permanenL vlsa opLlons LhaL asslsL
employers brlng sulLably quallfled workers Lo AusLralla under a sponsorshlp
arrangemenL: SLaLe Sponsored MlgraLlon, Lhe Lmployer nomlnaLlon Scheme and Lhe
8eglonal Sponsored MlgraLlon Scheme.
• 1empototy mlqtotloo ptoqtoms: 1he mosL slgnlflcanL program under Lhls caLegory ls Lhe
buslness long-sLay vlsa (a 437 vlsa) under whlch people are sponsored by an employer ln
need of Lhelr skllls. 1here ls also a smaller program for people who are granLed a
buslness skllls vlsa Lo esLabllsh and manage a buslness. 1he focus here ls on people who
come Lo Lhls counLry under a 437 vlsa.

MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
142 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
now Important |s Sk|||ed M|grat|on L|ke|y to 8e to the Iuture of Manufactur|ng |n Austra||a?
Skllled mlgraLlon has been a feaLure of Lhe vlcLorlan manufacLurlng secLor LhroughouL lLs hlsLory
and lL ls expecLed Lo conLlnue Lo have a role supplemenLlng vlcLorla's Lralnlng efforLs. 1he
archeLypal mlgranL sLory was one of mlgranLs fllllng Lhe low-sklll, producLlon [obs ln
manufacLurlng, largely concenLraLed ln Lhe 1Cl secLor. CurrenLly more Lhan a Lhlrd of Lhe
vlcLorlan manufacLurlng workforce ls made up of mlgranL workers and Lhls proporLlon has been
Lrendlng upward over Lhe Lhree years 2006-08.
138

1he numbers of people comlng lnLo vlcLorlan manufacLurlng on a permanenL basls has been
rlslng ln recenL years, Lhough Lhere has been a drop off ln 'onshore' mlgranLs slnce 2008 -09.
Much of Lhe growLh ln permanenL addlLlons for manufacLurlng occupaLlons ls Lhe resulL of
people comlng Lhrough Lhe skllled sLream - skllled lndependenL, sLaLe sponsored and employer
sponsored.
Whlle sLaLe-sponsored and employer-sponsored vlsas wlll conLlnue Lo be lmporLanL
conLrlbuLors, decreaslng numbers of mlgranLs are now able Lo access Lhe lndependenL skllled
sLream as a resulL of CommonwealLh CovernmenL pollcy changes.
noLwlLhsLandlng Lhe overall lncreases, drawlng on ueparLmenL of lmmlgraLlon flgures, Lhe
numbers of people who come lnLo Lhe secLor vla Lhe long sLay buslness vlsa (437 vlsa) has been
decllnlng ln recenL years:
• 2007-08: 1,210 people, comprlslng 10° of Lhe LoLal number of 437 vlsas granLed,
• 2008-09: 830 people, comprlslng 7.8° of Lhe LoLal number of 437 vlsas granLed,
• 2009-10: 310 people, comprlslng 6.0° of Lhe LoLal number of 437 vlsas granLed.
1here are a number of posslble reasons for Lhe decllnlng numbers, lncludlng recenL changes Lo
Lhe scheme whlch requlre mlgranLs Lo recelve Lhe same remuneraLlon as local employees. 1here
has also been Lhe lnLroducLlon of a requlremenL LhaL lnLendlng sponsorlng employers musL be
able Lo demonsLraLe Lhelr commlLmenL Lo local Lralnlng whlch may have dlssuaded some
manufacLurers from pursulng Lhls opLlon. 1here ls also anecdoLal advlce LhaL some companles
have sLruggled wlLh Lhe culLural flL of new arrlvals - who are ln some lnsLances noL well
supporLed ln Lhe communlLy - and Lhe skllled mlgraLlon opLlon has proved Lo be, ln cerLaln
clrcumsLances, a more dlfflculL and Llme consumlng exerclse ln Lerms of workplace lnLegraLlon
Lhan orlglnally expecLed by Lhe sponsorlng company.
Sk|||ed m|grat|on and the age|ng workforce
1he manufacLurlng workforce ls agelng and Lhls has lmpllcaLlons for fuLure vlablllLy. 1he age of
AusLralla's skllled mlgranL lnLake ls much younger Lhan Lhe populaLlon as a whole. Cf Lhe skllled
mlgranLs arrlvlng ln AusLralla ln 2009 - 10, nearly 70° were under 33 years of age. 1hls compares
wlLh Lhe vlcLorlan manufacLurlng workforce ln 2009 where Lhls group comprlsed around one-
Lhlrd. ln broad Lerms Lhe lower age proflle of mlgranLs helps Lo slow Lhe agelng of Lhe workforce.
ln Lhe shorL Lerm, mlgraLlon can provlde Lhe rlghL workers ln Lhe rlghL place aL Lhe rlghL Llme,
and boLh Lemporary and permanenL mlgraLlon schemes have a role Lo play. 1hls moblllLy has
clearly been beneflclal Lo Lhe vlcLorlan manufacLurlng secLor, parLlcularly ln Lhe area of food
processlng whlch has seen a marked lncrease ln Lhe dlverslLy of Lhe eLhnlclLy of lLs rural and

138 Skllls vlcLorla, 2010

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 143
reglonal workforce. 8eLralnlng and hlgher parLlclpaLlon raLes among adulLs wlll provlde parL of
Lhe answer, buL so Loo wlll lmmlgraLlon. AlLhough many facLors lnfluence where people declde
Lo seLLle, overseas mlgraLlon ls generally more responslve Lo economlc clrcumsLances Lhan
lnLernal mlgraLlon. CharL 62 shows LhaL whlle sLaLes wlLh low unemploymenL aLLracL hlgher
levels of lnLernal and overseas mlgraLlon, Lhe relaLlonshlp ls sLronger for overseas mlgranLs,
overseas mlgranLs are more llkely Lo move where Lhe [obs are Lhan Lhe domesLlc populaLlon.
Chart 62: Cverseas m|grants go where the [obs are
139

D|fference between state and nat|ona| m|grat|on rates (|s a state gett|ng more m|grants or
|ess) as a funct|on of the d|fference between state and nat|ona| unemp|oyment rates
Net Overseas Migration Net Interstate Migration

Note: Each dot represents the experience of one state, in one of the years from 1990 through to 2009.
MlgranLs' superlor labour moblllLy offers beneflLs Lhrough lmproved maLchlng [ob vacancles and
people as Lhe more expedlLlous fllllng of labour shorLages leads Lo fewer wage blow-ouLs.
140
Also,
research lndlcaLes LhaL counLrles Lend Lo Lrade and lnvesL more wlLh counLrles from whlch Lhey
have recelved more mlgranLs. 1hls relaLlonshlp appears Lo be sLronger where lnformaLlon
barrlers llke dlsLance and language would oLherwlse more greaLly lnhlblL Lrade.
141
Skllled
mlgranLs brlng wlLh Lhem knowledge and experlence wlLh oLher Lechnologles and managemenL
know-how - all of whlch has Lhe poLenLlal Lo beneflL employlng organlsaLlons beyond Lhe
lmmedlaLe sklll gap belng fllled by Lhe mlgranL.


139 A8S caL. no. 6401.0, clLed ln Lhe ÞroducLlvlLy and ÞrosperlLy Advlsory Þanel 8eporL, 2010
140 Pughes, 8., º1he uv ulsplacemenL", Aosttolloo 8olletlo of loboot, vol. 1, number 3, March 1973, pp. 39-76
141 ClLed ln uolman, 8., Mlqtotloo, 1toJe ooJ lovestmeot, SLaff Worklng Þaper, ÞroducLlvlLy Commlsslon, 2008
-2
-1
0
1
2
-2 0 2
Lower
unemploymenL
Plgher
unemploymenL
More
mlgrauon
Less mlgrauon
-2
-1
0
1
2
-2 0 2
Lower
unemploymenL
Plgher
unemploymenL
More
mlgrauon
Less mlgrauon
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
144 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he capac|ty and respons|veness of the sk|||ed m|grat|on program to de||ver sk|||s |n
occupat|ons that are domest|ca||y not ava||ab|e |n the short term
letmooeot mlqtotloo ptoqtoms
Changes Lo Lhe Ceneral Skllled MlgraLlon Þrogram/lndependenL Skllled MlgraLlon Þrogram wlll
make lL more dlfflculL for appllcanLs wlLh Lrade skllls - lncludlng Lhose ln demand ln Lhe
manufacLurlng secLor - Lo successfully apply as lndependenL skllled mlgranLs. 1he blggesL barrler
wlll be Lhe hlgher language requlremenLs, Lo be lnLroduced from 1 !uly 2011, whlch wlll seL Lhe
Lhreshold aL lnLernaLlonal Lngllsh Language 1esLlng Score (lLL1S) 6. Whlle appllcanLs are
accepLed aL Lhls Lhreshold level lL aLLracLs no polnLs. 1o achleve Lhls level a score of aL leasL 6
needs Lo be achleved ln each of Lhe LesLlng componenLs of speaklng, readlng, wrlLlng and
llsLenlng.
Cnly Lradespeople wlLhln Lhe 23-32 age brackeL LhaL granLs Lhem 30 polnLs who hold an
offshore recognlsed apprenLlceshlp and who have aL leasL 8 years' work experlence and are
belng sponsored for a reglonal area, wlll obLaln Lhe pass mark of 63 polnLs. All oLhers wlll slmply
noL quallfy.
1he Lngllsh language requlremenL for Lhe Lmployer nomlnaLlon Scheme ls an lnLernaLlonal
Lngllsh Language 1esLlng Score of 3 across Lhe four LesL componenLs, and users of Lhe reglonal
scheme (8SMS) only need Lo score an average of lLL1S 4.3 - meanlng only people who choose
Lo come Lo AusLralla as lndependenL skllled mlgranLs need Lo meeL Lhe hlgher Lngllsh language
requlremenL.
1empototy mlqtotloo ptoqtoms
1he 437 vlsa program ls uncapped so Lhls program has Lhe capaclLy Lo dellver Lhe skllls needed
assumlng LhaL Lhere are sufflclenL numbers of people wlLh Lhe requlslLe skllls lnLeresLed ln
comlng Lo vlcLorla. 1he ueparLmenL of lmmlgraLlon and ClLlzenshlp advlses (May2011) LhaL 90°
of 437 appllcaLlons are granLed and LhaL Lhe naLlonal medlan processlng Llme for a 437 buslness
vlsa ls 22 calendar days, meanlng lndusLry demands for labour ls belng acLloned qulckly.
1he 437 vlsa requlres an lnLernaLlonal Lngllsh Language 1esLlng Score of 3 - conslderably more
achlevable Lhan Lhe requlremenL for permanenL mlgranLs of 6.
Industry v|ews on sk|||ed m|grat|on
1he vlews of lndusLry on skllled mlgraLlon reflecL Lhe dlverslLy of Lhe secLor. 1hey range from
ºSkllled mlgraLlon ls very lmporLanL Lo our company" Lo ºSkllled mlgraLlon ls noL a prlorlLy".
A company's response Lo skllled mlgraLlon ls noL always dlrecLly llnked Lo Lhelr experlences of
skllls shorLages - many companles wlLh skllls shorLages are noL overly lnLeresLed ln skllled
mlgraLlon. lor some lL ls ºnoL Lhe rlghL Lhlng Lo do" and Lhey would raLher employ Lhe local
person wlLh Lhe besL flL and Lraln Lhem up, almosL lrrespecLlve of Lhe skllls gap, raLher Lhan seek
Lhe skllls offshore.
CLhers Lake a Lwo-pronged approach and when Lhey are unable Lo flll a skllled vacancy recrulL
hlghly skllled sLaff from overseas and concurrenLly puL on apprenLlces Lo esLabllsh a fuLure sklll
base.
ln some lndusLry areas skllled mlgraLlon ls newly belng vlewed as a posslble skllls soluLlon. ºln
our lndusLry (furnlshlng) we've only [usL sLarLed looklng aL skllled mlgraLlon. We haven'L needed
lL ln Lhe pasL buL now wlLh skllls shorLages Lhe lndusLry needs Lo look aL all opLlons."
Many of Lhe larger vlcLorlan manufacLurlng companles are parL of global enLerprlses wlLh whaL

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 143
Lhey conslder Lo be a global workforce. lncreaslngly Lhls means movlng people lnLo and ouL of
dlfferenL parLs of Lhe buslness across dlfferenL counLrles for varylng perlods of Llme. As such
Lhey are lnLeresLed Lo ensure LhaL Lhelr ln-house 'skllled mlgraLlon' processes can work
effecLlvely and efflclenLly as Lhls becomes a sLandard way of accesslng boLh Lhe professlonal and
Lechnlcal skllls needed.
V|ctor|an Government ro|e
1he vlcLorlan CovernmenL ls a 8eglonal CerLlfylng 8ody, wlLh dlscreLlon Lo approve/refuse
nomlnaLlon appllcaLlons for Lhe 8eglonal Sponsored MlgraLlon Scheme. 1hrough Lhls role, lL
plays an acLlve role ln deLermlnlng whaL occupaLlons are ln shorLage and approvlng nomlnaLlons
for overseas workers Lo flll Lhose vacancles. ln fulfllllng Lhls responslblllLy, lL ls lmporLanL LhaL Lhe
vlcLorlan CovernmenL ls aware of Lhe conLemporary skllls lssues faclng manufacLurlng.
lurLher, under Lhe SLaLe MlgraLlon Þlan, Lhe vlcLorlan CovernmenL offers vlsa sponsorshlp Lo
skllled mlgranLs wlLh an occupaLlon on one of Lhe SLaLe Sponsorshlp LllglblllLy LlsLs. 1hese
occupaLlons change over Llme and lL ls lmporLanL LhaL Lhe needs of Lhe manufacLurlng secLor are
accuraLely represenLed on Lhese llsLs.
Conc|us|on
Skllled mlgraLlon wlll remaln a feaLure of Lhe vlcLorlan manufacLurlng secLor Lhough lL wlll be of
varylng lmporLance across Lhe lndusLry sub-secLors and across geographlc areas.

MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
146 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
S.3 INCkLASING 1nL DIVLkSI1¥ CI 1nL WCkkICkCL
key I|nd|ngs
• More Lhan a Lhlrd of Lhe vlcLorlan manufacLurlng workforce ls made up of mlgranLs
and Lhls flgure ls Lrendlng upwards.
• Less Lhan a quarLer of Lhe vlcLorlan manufacLurlng labour force comprlses women,
compared Lo Lhe LoLal AusLrallan labour force where women make up over 43°.
• 1he vlcLorlan manufacLurlng workforce ls agelng, workers aged 43 years and over
lncreased by 13,000 beLween 1996 and 2010, whlle workers aged less Lhan 24 years
halved Lo around 24,000 over Lhe same perlod.
Introduct|on
lnLernaLlonal mlgraLlon and globallsaLlon have resulLed ln an AusLrallan socleLy LhaL ls culLurally
dlverse and generally accepLlng of dlverslLy. 1radlLlonally, Lhe Lerm dlverslLy has been applled Lo
race, eLhnlclLy and gender. lndusLry and buslnesses generally vlew workforce dlverslLy as
deslrable and many organlsaLlons publlcly commenL on Lhe lmporLance of Lhelr workforce
reflecLlng Lhe makeup of Lhe socleLy Lhe buslness serves. 1hls secLlon explores Lhe lssue of
dlverslLy ln manufacLurlng and, speclflcally, how lL can be lncreased.
DIVLkSI1¥ AND 1nL VIC1CkIAN MANUIAC1UkING INDUS1k¥
Lthn|c D|vers|ty
MlgranLs have been a feaLure of Lhe vlcLorlan manufacLurlng secLor LhroughouL lLs hlsLory and
mlgraLlon ls expecLed Lo conLlnue Lo have a role provldlng skllled workers Lo supplemenL
vlcLorla's Lralnlng efforLs. 1he archeLypal mlgranL sLory was one of mlgranLs fllllng Lhe low-sklll,
producLlon [obs ln manufacLurlng, largely concenLraLed ln Lhe 1Cl secLor. CurrenLly more Lhan a
Lhlrd of Lhe vlcLorlan manufacLurlng workforce ls made up of mlgranL workers and Lhls
proporLlon has been Lrendlng upward over Lhe Lhree years 2006-08.
142

1he numbers of people comlng lnLo vlcLorlan manufacLurlng on a permanenL basls has been
rlslng ln recenL years, Lhough Lhere has been a drop off ln 'onshore' mlgranLs slnce 2008 - 09.
Cverall, eLhnlc dlverslLy has noL been an lssue for Lhe manufacLurlng secLor.


142 Skllls vlcLorla, 2010

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 147
Gender D|vers|ty
ManufacLurlng Skllls AusLralla, Lhe naLlonal lndusLry skllls councll, has revlewed A8S daLa and
publlshed lnformaLlon on Lhe numbers of women worklng ln manufacLurlng across Lhe SLaLes
and 1errlLorles.
143
1he daLa lncluded ln Lhe charL below shows LhaL ln Lerms of Lhe LoLal number
of women employed ln Lhe secLor vlcLorla ls behlnd new SouLh Wales. When women are
consldered as a proporLlon of Lhe manufacLurlng workforce vlcLorla ls placed Lhlrd (aL 23.39°)
behlnd new SouLh Wales (26.31°) and WesLern AusLralla (26.37°). AL Lhe Llme Lhese flgures
were calculaLed women made up 43.36° of Lhe AusLrallan labour force. 1here are slgnlflcanL
varlaLlons ln Lhe levels of employmenL of women across Lhe manufacLurlng sub-secLors, LexLlles,
cloLhlng and fooLwear has LradlLlonally been Lhe hlghesL employer of women wlLh a female
workforce of 61° buL as we have seen elsewhere ln Lhls reporL Lhls ls a workforce wlLh overall
numbers ln sharp ln decllne.
144
1ab|e 22: Women |n manufactur|ng
State Ma|es Iu|| t|me Ma|es Þart t|me Iema|es Iu|| t|me Iema|es Þart t|me ¼ of emp|oyees
New South Wa|es 164,000 19,000 48,000 18,000 26.31
V|ctor|a 133,000 12,000 33,000 18,000 23.39
Çueens|and 111,000 8,000 21,000 14,000 22.72
South Austra||a 40,000 4,000 6,000 3,000 16.98
Western Austra||a 63,000 4,000 14,000 10,000 26.37
1asman|a 9,000 1,000 1,000 0 9.09
Northern 1err|tory 3,000 0 1,000 0 23.00
Austra||an Cap|ta|
1err|tory
1,000 0 0 0 0
1hese flgures also show LhaL women are much more llkely Lhan men Lo be employed on a parL-
Llme basls. 1he new naLlonal LmploymenL SLandard relaLlng Lo flexlble worklng agreemenLs for
parenLs lncludes a requlremenL for employers Lo conslder requesLs for flexlble worklng hours
from employees who are parenLs wlLh chlldren under school age or who have a chlld under 18
wlLh a dlsablllLy. llexlble worklng arrangemenLs supporL women seeklng employmenL who need
Lo balance parenLlng responslblllLles. 1hls wlll llkely have Lhe effecL of lncreaslng Lhe number of
women ln Lhe manufacLurlng workforce and also lncreaslng Lhe proporLlon who work parL-Llme.
CLher publlc pollcy lnlLlaLlves llkely Lo lncrease Lhe employmenL of women are pald maLernlLy
leave, chlld care asslsLance and changes Lo welfare paymenL ellglblllLy.
1he followlng graph
143
lllusLraLes Lhe employmenL of women ln manufacLurlng compared Lo
women across all secLors of Lhe AusLrallan economy.


143 Women ln lndusLry, ManufacLurlng Skllls AusLralla, 2010
144 Women ln lndusLry, ManufacLurlng Skllls AusLralla, 2010
143 LCWA lndusLry SnapshoLs: ManufacLurlng, Lqual CpporLunlLy for Women ln Lhe Workplace Agency, 2011
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
148 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Chart 63: Iema|e workforce part|c|pat|on |n LCWA report|ng organ|sat|ons 2010
146


ln all buL one caLegory - parL-Llme managers - women are less well represenLed ln
manufacLurlng Lhan oLher secLors of Lhe economy. AL Lhe mosL senlor levels, as full-Llme
managers and CLCs, women ln manufacLurlng are represenLed aL comparaLlvely lower levels. ln
some secLors Lhls has been due Lo Lhe hlsLorlcally low numbers of women applylng for poslLlons
due Lo Lhe non-LradlLlonal, physlcal or unaLLracLlve naLure of Lhe work and Lhe long hours and
early sLarLs. ln oLher secLors where women have hlgh workforce parLlclpaLlon raLes, however,
a lack of equal developmenL and promoLlonal opporLunlLles and flexlble worklng arrangemenLs
are also llkely Lo be conLrlbuLlng facLors.
A number of manufacLurlng companles reporL LhaL Lhe naLure of Lhe work ln Lhelr lndusLry
makes lL unaLLracLlve or even unsafe for women. ln some cases Lhls was backed up by CP&S or
WorkCover sLrengLh requlremenLs or resLrlcLlons on pregnanL women performlng Lhe work.
Where Lechnologles exlsL LhaL would reduce Lhe sLrengLh requlremenLs of cerLaln [obs, some
companles have been prevenLed from lnLroduclng Lhese by flnanclal consLralnLs.
Age D|vers|ty
1he vlcLorlan manufacLurlng workforce ls agelng, Lhe LoLal number of workers aged 43 years and
over has lncreased by around 13,000 beLween 1996 and 2010. Cver approxlmaLely Lhe same
perlod Lhe LoLal number of people aged less Lhan 24 years has halved Lo [usL over 24,000 ln
2010.


146 LCWA 8eporLlng uaLa, 2009-10
10.8°
32.4°
80.6°
46.8°
47.2°
34.2°
76.6°
37.0°
2.7°
21.7°
86.8°
36.4°
26.3°
22.1°
74.0°
42.1°
0° 10° 20° 30° 40° 30° 60° 70° 80° 90° 100°
lemale CLCs
lemale managers LoLal
ÞarL-ume female managers
Casual female managers
lemale employees LoLal
lull-ume female employees
ÞarL-ume female employees
Casual female employees
manufacLurlng all LCWA reporung organlsauons

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 149
Chart 64: Manufactur|ng emp|oyment |n V|ctor|a by age, 199S-2010
147


Cne of Lhe challenges Lhls Lrend presenLs relaLes Lo Lhe developmenL of fuLure leaders - wlLh
fewer young people comlng lnLo Lhe lndusLry, companles are concerned abouL where Lhelr
leaders of Lhe fuLure wlll come from.
loJostty vlew
1be molo lmpoct ls felt ot tbe sopetvlsot/moooqemeot levels, becoose tbese skllleJ (yoooqet)
people comloq lo woolJ be tbe oext qeoetotloo of ptoJoctloo moooqets, soles moooqets etc.
kectoltloq fot tbese seolot posltloos ftom ootslJe tepoltes o lot mote ttololoq.
ltlotloq compooy
Manag|ng D|vers|ty |n Manufactur|ng
8esearch on dlverslLy managemenL pracLlces ln AusLrallan manufacLurlng ls llmlLed. A 2008
SouLh AusLrallan sLudy examlned how manufacLurlng employees percelved dlverslLy
managemenL pracLlces. 1he sLudy found LhaL Lhe manufacLurlng secLor demonsLraLed a general
lack of appreclaLlon of dlverslLy and an overall fallure Lo reap Lhe full beneflLs of dlverslLy. Some
beneflLs of dlverslLy ldenLlfled by focus groups lncluded Lhe comparaLlvely sLrong levels of
commlLmenL of eLhnlc employees and lncreased lnnovaLlon and beLLer soluLlons Lo
organlsaLlonal problems dellvered by dlverse Leams.
148

8esearch conducLed by Lhe Lqual CpporLunlLy for Women ln Lhe Workplace Agency found LhaL
manufacLurlng companles had recognlsed LhaL a workforce ln whlch Lhere ls a sLrong
represenLaLlon of women ls good for buslness, and Lhese companles were explorlng new ways of
aLLracLlng women Lo [obs LhaL had LradlLlonally been Lhe preserve of men. lnlLlaLlves belng used
Lo aLLracL and reLaln female employees lncluded:

147 6291.0.33.001 Labour lorce, AusLralla, ueLalled - LlecLronlc uellvery, !une 2010, exLracLed 1he vlcLorlan ManufacLurlng Labour
lorce, ueparLmenL of lnnovaLlon, lndusLry and 8eglonal uevelopmenL, CcLober 2010, p. 23
148 ManufacLurlng Lmployees' ÞercepLlons of Puman 8esource ulverslLy ÞracLlces ln AusLralla, unlverslLy of SouLh AusLralla, 2008
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
130 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• merlL-based recrulLmenL Lo lncrease Lhe appolnLmenL of women and break down
sLereoLypes abouL women's capablllLles,
• lnlLlaLlves Lo lncrease Lhe avallable LalenL pool of women wlLh Lechnlcal and englneerlng
quallflcaLlons,
• proacLlve recrulLmenL drlves Lo lncrease Lhe number of women applylng for [obs,
• successlon plannlng and career paLh developmenL for women,
• redeslgn of physlcal [ob requlremenLs Lo reduce Lhe manual sLrengLh requlremenLs,
• redeslgn of shlfL rosLers and worklng hours Lo lnLroduce greaLer flexlblllLy,
• lnLroducLlon of pald parenLal leave,
• LranslLlonlng of casual employees Lo permanenL parL-Llme sLaLus,
• compeLency-based Lralnlng and developmenL, lncludlng acLlve sourclng of female
apprenLlces,
• language and llLeracy Lralnlng ln culLurally dlverse workplaces, and
• developmenL of women's neLworks Lo provlde supporL and menLorlng, parLlcularly
where professlonal lsolaLlon may be a facLor.
Increas|ng Women |n Manufactur|ng
ManufacLurers are experlenclng an overall shorLage of quallfled workers. A way Lo Lackle Lhe
problem of sLaff and skllls gaps ls by puLLlng more efforL lnLo recrulLlng, Lralnlng and reLalnlng
women.
1he lnLroducLlon of new Lechnologles ls boLh creaLlng and dlmlnlshlng opporLunlLles for women.
new roles are openlng up for women due Lo manual sLrengLh replacemenL Lechnologles and Lhe
assoclaLed new Lralnlng opporLunlLles. Powever, Lhe replacemenL of manual Lasks prevlously
performed by women by new Lechnologles ls also resulLlng ln downslzlng ln secLors such as food
and beverages manufacLurlng.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 131
Lqua| Cpportun|ty Strateg|c Intervent|ons
A range of Lqual CpporLunlLy (LC) sLraLeglc lnLervenLlons are belng underLaken by some
manufacLurers Lo reallse Lhe long-Lerm beneflLs of provldlng an lncluslve work envlronmenL for
all employees.
149
WhaL ls clear from Lhe llsL below ls LhaL lncreaslng Lhe numbers of women
across manufacLurlng requlres a sLraLeglc approach Lhrough whlch Lhls alm becomes an lnLegral
parL of how buslness ls done, compleLe wlLh measuremenL and evaluaLlon mechanlsms.
Strengthen|ng organ|sat|ona| capac|ty lncludes Lhe use of P8 meLrlcs Lo llnk LC wlLh lncreased buslness value, Lhe lnLegraLlon
of LC ob[ecLlves lnLo Lhe 8uslness SLraLegy, Lhe developmenL of new managemenL
pracLlces and Lhe proacLlve lmplemenLaLlon of LC recrulLmenL, Lralnlng and promoLlon
pollcles and sLraLegles
kemov|ng barr|ers to women's
part|c|pat|on
lncludes Lhe redeslgn of physlcal [ob requlremenLs Lo overcome CP&S barrlers,
resLrucLurlng Lhe organlsaLlon of work, lnLroduclng greaLer flexlblllLy and lnsLalllng
faclllLles for female sLaff
Deve|opment of women's sk|||s lncludes Lralnlng and developmenL llnked Lo promoLlon, Lhe sponsorlng of female
employees and apprenLlces ln non-LradlLlonal roles and Lhe offer of language and llLeracy
Lralnlng Lo all employees
Increas|ng the ut|||sat|on of women's
ta|ents
lncludes Lhe appolnLmenL of women Lo senlor or non-LradlLlonal roles, lncreaslng Lhe
pool of female candldaLes for new poslLlons and lmplemenLlng successlon plannlng
Lnhancement of women's
emp|oyment cond|t|ons
lncludes Lhe provlslon of pald parenLal leave, conducLlng pay equlLy and [ob-slze revlews,
LranslLlonlng casual employees Lo permanenL sLaLus and lmprovlng faclllLles and work
envlronmenLs
Cvercom|ng cu|tura| barr|ers lncludes Lhe promoLlon of poslLlve aLLlLudes Lo and a greaLer awareness of women ln
non-LradlLlonal areas, Lhe lmplemenLaLlon of culLure-change lnlLlaLlves and developlng
neLworks for female employees.
1rade apprent|cesh|ps and career pathways
1hls ls noL [usL an lssue employers are conslderlng. An arLlcle ln ManufacLurlng MonLhly,
13 CcLober 2008 reporLed, º1be Aosttolloo Mooofoctotloq wotkets uoloo (AMwu) bos totoeJ
to lts membets to belp floJ woys of lotloq mote womeo loto mooofoctotloq os o woy of
oJJtessloq tbe ootloool skllls sbottoqe. At lts two-Joy coofeteoce lo 8tlsbooe, tbe AMwu
btolostotmeJ o oombet of lJeos to otttoct womeo loto loJostty oppteotlcesblps, locloJloq
eocootoqloq mote qltls ot scbool ooJ tbe Jevelopmeot of mote oppottooltles fot womeo to tty
pottlcolot ttoJe.´
1wo slmple buL lmporLanL ldeas were ldenLlfled aL Lhe AMWu conference. 1he flrsL ls Lo flnd
ways Lo porLray Lhe manufacLurlng lndusLry as belng aLLracLlve especlally Lo young women whlle
Lhey are sLlll aL school. 1he second ldea ls Lo make lL worLhwhlle for women Lo become Lrade
quallfled. 8ecomlng Lrade quallfled provldes a skllled worker paLhway LhaL may lead Lo hlgher-
level quallflcaLlons and oLher career progresslon buL few women Lake up a Lrade occupaLlon.
1radlLlonal Lrade occupaLlons such as mechanlcal and fabrlcaLlon englneerlng Lradespersons,
and elecLrlcal and elecLronlc Lradespersons have exLremely low levels of parLlclpaLlon by women
(4° or less).
130

149 LCWA lndusLry verLlcals: ManufacLurlng, Lqual CpporLunlLy for Women ln Lhe Workplace Agency, 2003
hLLp://www.eowa.gov.au/lnformaLlon_CenLres/8esource_CenLre/LCWA_ÞubllcaLlons/lndusLry_verLlcals/LCWA°20ManufacLurlng
°20lv°202003.pdf
130 lmprovlng CommunlcaLlons ln Lhe Workplace, MLSA8, 2009
hLLp://www.mesab.com.au/LlnkCllck.aspx?flleLlckeL=?ec3v°2flv°2beM°3d&Labld=63
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
132 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he dlsclpllnes of sclence, Lechnology, englneerlng, and maLhemaLlcs (S1LM) are wldely
regarded as crlLlcal Lo be compeLlLlve ln Lhe global economy and Lhls lssue ls consldered aL some
lengLh ln an earller secLlon of Lhls reporL 1be cotteot ooJ expecteJ copoclty of tbe tettloty
eJocotloo system and so Lhe lssues wlll noL be revlslLed here. 8uL ln addlLlon Lo earller
commenLs, as Lhe AusLrallan naLlonal school currlculum ls belng lmplemenLed lL ls Llmely Lo flnd
ways Lo lnLegraLe manufacLurlng examples lnLo sclence, Lechnology and maLhs secondary school
sub[ecLs Lo demonsLraLe Lhe pracLlcal appllcaLlon of academlc prlnclples belng LaughL. 1he
consclous lncluslon of women ln Lhese examples wlll make a conLrlbuLlon Lowards glrls aL school
conslderlng Lhese sub[ecLs and so belng ln a poslLlon Lo pursue whaL can sLlll be referred Lo as
'non-LradlLlonal' occupaLlons, such as Lhose wldely found ln manufacLurlng.
Increas|ng young peop|e |n manufactur|ng
As compeLlLlon for young people lncreases, employers need Lo be lnnovaLlve Lo aLLracL Lhe
reduced supply of younger workers. 1he ManufacLurlng and Lnglneerlng Skllls Advlsory 8oard
(MLSA8) has promoLed manufacLurlng as a career opLlon Lo young people Lhrough varlous
programs such as 'Careers ln ManufacLurlng', '?oung lndusLry Ambassadors' and 'Clrls Make lL
Co!'
1he Careers ln ManufacLurlng program has been developed Lo promoLe Lhe exLenslve range of
career opLlons avallable Lo young people ln manufacLurlng (Lhe program ls funded on a perlodlc
basls wlLh currenL fundlng provlded unLll uecember 2011.) 1he program LargeLs ?ears 9 and 10
secondary school sLudenLs, glvlng Lhem an opporLunlLy Lo hear abouL, see and experlence
manufacLurlng. vlslLs Lo manufacLurlng operaLlons and lnformaLlve Lalks are key componenLs of
Lhe program.
ApprenLlces and graduaLes selecLed Lo be parL of Lhe ?oung lndusLry Ambassador Þrogram vlslL
schools and Lalk abouL Lhelr own career paLhway. 1hese ambassadors dellver a poslLlve message
from a youLh perspecLlve abouL career cholces avallable ln manufacLurlng. ?oung lndusLry
Ambassadors also hosL small groups of sLudenLs Lhrough Lhelr own workslLe.
1he Clrls Make lL Co! program comblnes Lhe elemenLs of Careers ln ManufacLurlng and ?oung
lndusLry Ambassadors programs buL focuses on glrls, ln parLlculars glrls aLLendlng secondary
schools locaLed ln areas where manufacLurlng buslnesses operaLe.
1he naLlonal lndusLry Skllls Councll, ManufacLurlng Skllls AusLralla, has commenced an lnlLlaLlve
Lo promoLe careers wlLhln manufacLurlng Lo women. 1hls lnlLlaLlve ls known as 'Women aL Work
- Maklng a ulfference sLudy award'. MSA offers a $3,000 sLudy award each year, LogeLher wlLh
Lhe opporLunlLy for Lhe reclplenLs Lo share Lhelr success sLorles Lhrough MSA's naLlonal
Conference, webslLe, e-newsleLLer and oLher lndusLry-focused publlcaLlons.
1he lnlLlaLlves ouLllned above have been well recelved by young people and by lndusLry buL lL ls
dlfflculL Lo measure Lhe full lmpacL of Lhls work, especlally as Lhe perlod from lnvolvemenL ln Lhe
program Lo enLerlng (or noL) Lhe manufacLurlng secLor can be over a number of years. 1here ls
exLenslve anecdoLal evldence abouL Lhe merlLs of Lhese programs and where Lhese programs
have conLlnued Lo recelve governmenL fundlng supporL lL ls clear LhaL momenLum bullds year on
year.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 133
Conc|us|on
Skllls shorLages and an agelng workforce lndlcaLe Lhe need Lo broaden Lhe pool from whlch
poLenLlal new employees can be drawn. 1he maln opporLunlLles for Lhls lncrease ln dlverslLy lle
ln lncreaslng Lhe numbers of women who are worklng across Lhe manufacLurlng secLor and ln
aLLracLlng more young people. Puman resource managemenL plays an lmporLanL role here ln Lhe
benchmarklng of Lhe beneflLs of dlverslLy and Lhe developmenL of supporLlng pollcles.

MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
134 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
S.4 ÞLkCLÞ1ICNS CI 1nL INDUS1k¥ AND 1nL IMÞAC1 CN kLCkUI1MLN1
key I|nd|ngs
• Whlle Lhere ls general publlc goodwlll Lowards manufacLurlng Lhe lndusLry conLlnues Lo
be percelved by many as 'dlrLy, dark and dangerous' wlLh an uncerLaln fuLure. 1hese
percepLlons negaLlvely lmpacL on Lhe aLLracLlveness of Lhe secLor Lo poLenLlal enLranLs.
• 1here ls a range of comprehenslve sources of advlce and guldance on careers ln
manufacLurlng whlch are sulLable for use by young people and also people looklng Lo
change lndusLrles or Lo re-enLer Lhe workforce.
• Careers advlce needs Lo be complemenLed by opporLunlLles for young people Lo
personally experlence conLemporary manufacLurlng workplaces.
Introduct|on
1he manufacLurlng lndusLry, conLlnues Lo suffer from Lhe general percepLlon LhaL lL ls 'dlrLy, dark
and dangerous'. lncreaslngly manufacLurlng [obs are hlgh Lech, and manufacLurlng workplaces
are clean and safe and lnclude mlnlmal or no manual handllng requlremenLs. CuLLlng-edge
Lechnologles drlve Loday's advanced manufacLurlng processes, and Lrade, Lechnlcal and
professlonal people ln Lhe lndusLry are reasonably remuneraLed wlLh recognlsed career paLhs.
1he parLlcular dlfflculLy for Lhe secLor ls LhaL ln addlLlon Lo faclng a largely ouLdaLed noLlon of
whaL worklng ln Lhe secLor lnvolves, Lhe overall decllne ln vlcLorlan manufacLurlng ls well known
Lhrough Lhe rounds of exLenslvely publlclsed reLrenchmenLs, redundancles and planL closures.
Þoor lmage and an uncerLaln fuLure comblne Lo undermlne confldence ln Lhe secLor's fuLure and
Lo dlssuade young people and Lhose who help Lo shape Lhelr posslble career fuLures from
enLerlng manufacLurlng. 1hese negaLlve percepLlons also have an lmpacL on people who are
conslderlng a career change or looklng Lo re-enLer Lhe workforce. ln Lhls conLexL lL ls dlfflculL Lo
geL Lhe 'cuL Lhrough' message ouL LhaL manufacLurlng remalns a very slgnlflcanL conLrlbuLor Lo
Lhe vlcLorlan economy ln Lerms of lncome generaLlon and employmenL. 1hls ls especlally
frusLraLlng for Lhose manufacLurlng sub-secLors whlch are performlng well and expandlng
employmenL ln [obs whlch offer good salarles and wages, good condlLlons, career progresslon
and safe work.
Þercept|ons of the Industry
noLwlLhsLandlng Lhese challenges, Lhere ls general goodwlll Lowards manufacLurlng and concern
over Lhe pllghL of Lhe secLor.
8uL holdlng Lhe lndusLry ln hlgh regard ls noL sufflclenL Lo overcome general reservaLlons abouL
manufacLurlng, as a recenL uS survey revealed.
131
1hls sLudy found Amerlcans sLlll belleve LhaL
manufacLurlng ls Lhe number one lndusLry for Lhe counLry's economlc prosperlLy, desplLe Lhe
lndusLry belng declmaLed ln recenL Llmes. 1he survey, whlch assessed publlc percepLlons and
undersLandlng of a wlde range of lssues relaLed Lo manufacLurlng, showed LhaL Lhe ma[orlLy of
respondenLs vlew manufacLurlng as very lmporLanL Lo malnLaln a sLrong naLlonal economy.
Powever, Lhe sLudy shows Lhere ls a wlde percepLlon gap beLween Lhe publlc's poslLlve vlews of

131 Made ln Amerlca? WhaL Lhe publlc Lhlnks abouL manufacLurlng Loday, uelolLLe/ManufacLurlng lnsLlLuLe, 2010
hLLp://www.delolLLe.com/asseLs/ucom-
unlLedSLaLes/Local°20AsseLs/uocumenLs/Consumer°208uslness/uS_ClÞ_Þubllc°20vlew°20on°20ManufacLurlng°20SLudy_8epo
rL_2010.pdf

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 133
manufacLurlng's conLrlbuLlons Lo Amerlca's economlc success and Lhelr negaLlve vlews abouL
pursulng a career ln manufacLurlng. ManufacLurlng ranks near Lhe boLLom of Lhe llsL of
lndusLrles where respondenLs would choose Lo sLarL Lhelr careers, and only 30° of parenLs sald
Lhey would encourage Lhelr chlldren Lo pursue [obs ln manufacLurlng. Cur vlew, based on
anecdoLal advlce, ls LhaL lf such a survey were Lo be carrled ouL ln vlcLorla Lhe flndlngs would be
very slmllar.
1ab|e 23: kank|ng by respondents of |ndustry preference |f they were
beg|nn|ng the|r career today
Industry kank
1echno|ogy Industry 1
Lnergy Industry 2
nea|thcare Industry 3
Commun|cat|ons Industry 4
I|nanc|a| Serv|ces Industry 3
Manufactur|ng Industry 6
keta|| Industry 7


Chart 6S: Þercentage of respondents who strong|y agree or agree w|th each statement

18°
22°
30°
0° 3° 10° 13° 20° 23° 30° 33°
My parenLs encouraged me Lo pursue a career ln
manufacLurlng
Cur school sysLem encourages sLudenLs Lo pursue careers ln
manufacLurlng
l would encourage my chlld Lo pursue a career ln
manufacLurlng
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
136 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Slmllar Lo AusLralla, Lhere ls sLlll an ouLdaLed lmage of manufacLurlng and Lhe career
opporLunlLles avallable ln Lhls lndusLry. Modern work pracLlces and Lechnology has Lransformed
manufacLurlng ln very slgnlflcanL ways. Many [obs now requlre posLsecondary educaLlon across
a broad range of [obs. 1he reallLy ls LhaL many manufacLurers offer compeLlLlve wages and
rewardlng careers for men and women.
Cne ma[or reason young people have avolded manufacLurlng careers ls Lhelr percepLlon of Lhe
workplace. 1he manufacLurlng lndusLry can con[ure up lmages of dark and dlrLy facLorles, where
workers face heavy physlcal demands and are requlred Lo work long hours. WlLh Lhls lmage, lL ls
no wonder LhaL manufacLurlng ls flndlng lL dlfflculL Lo recrulL new workers, especlally younger
workers.
ManufacLurlng compeLes Lo aLLracL englneers and Lradespeople wlLh oLher lndusLrles such as
clvll works, commerclal consLrucLlon and domesLlc bulldlng. 1hese beLLer known lndusLrles and
Lhe Lrades LhaL are parL and parcel of everyday llfe such as bullders, elecLrlclans and plumbers
are ofLen seen as provldlng a comparaLlvely deslrable llfe sLyle for young people agalnsL poorly
undersLood workplaces locaLed ln vasL lndusLrlal esLaLes whlch are rarely vlslLed by people
ouLslde Lhe secLor.
Cf course Lhe oLher magneL for young people and maLure age workers wlLh relevanL skllls ls Lhe
resources secLor and lLs promlse of hlgh wages.
Manufactur|ng Careers Informat|on
ln recenL years subsLanLlal efforL has been puL lnLo Lhe developmenL of accuraLe, conLemporary
and engaglng careers advlce for young people conslderlng manufacLurlng as a career opLlon.
myfuture webs|te - an |n|t|at|ve of the Commonwea|th, States and 1err|tor|es
1he CommonwealLh and SLaLe and 1errlLory CovernmenLs supporL Lhe myfuLure webslLe
www.myfuLure.edu.au, whlch provldes currenL career lnformaLlon, arLlcles, vldeos and llnks
Lo resources. A search for 'manufacLurlng' resulLed ln 283 maLches. 1o lllusLraLe Lhe lnformaLlon
avallable, we selecLed Lhe flrsL maLch - lood ÞroducL ManufacLurlng. under Lhls headlng,
17 occupaLlons are llsLed as belng relaLed Lo Lhls secLor. lrom Lhe llsL we selecLed 'lood
LechnologlsL', and lnformaLlon ls avallable under Lhe followlng headlngs:
• uuLles and Lasks • Culck facLs
• Work condlLlons • Þersonal requlremenLs
• 8elaLed lndusLrles • Labour markeL lnformaLlon
• vacancles • 8elaLed [obs
• Larnlngs • 8elaLed courses
• lurLher lnformaLlon • SLaLe-speclflc lnformaLlon
• 8elaLed occupaLlon vldeos.



______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 137
1he myfuLure webslLe slLe aLLracLs hundreds of Lhousands of hlLs per year so clearly Lhls ls a hlgh
proflle and popular slLe wlLh young people and Lhelr careers advlsors.
V|ctor|an Government |n|t|at|ves: Careers |n Manufactur|ng, ¥oung Industry Ambassadors and
G|r|s Make It Go!
1he ManufacLurlng and Lnglneerlng Skllls Advlsory 8oard (MLSA8) promoLes manufacLurlng as a
career opLlon Lo young people Lhrough varlous vlcLorlan CovernmenL funded programs such as
'Careers ln ManufacLurlng', '?oung lndusLry Ambassadors' and 'Clrls Make lL Co!'. 1hese
lnlLlaLlves, managed by MLSA8 ln close parLnershlp wlLh Lhe vlcLorlan Local Learnlng and
LmploymenL neLwork, demonsLraLe how Lhe manufacLurlng lndusLry has changed and conLlnues
Lo develop. More Lhan 12,000 vlcLorlan sLudenLs
132
from ?ears 9 and 10 have been exposed Lo
Lhe manufacLurlng lndusLry and had Lhe opporLunlLy Lo lnLeracL wlLh young people who are
worklng ln manufacLurlng now and Lo hear from Lhem abouL Lhelr [ob and Lhe career prospecLs
Lhe secLor offers. (More deLall on Lhese lnlLlaLlves ls lncluded ln Lhe secLlon LlLled locteosloq tbe
Jlvetslty of tbe wotkfotce.)


132 Careers ln ManufacLurlng Þro[ecL 8eporL, ManufacLurlng and Lnglneerlng Skllls Advlsory 8oard, 2010
hLLp://www.mesab.com.au/LlnkCllck.aspx?flleLlckeL=3LlmzlkrlCA°3u&Labld=99
MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
138 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL


C|M Manufactur|ng]Çantas 1our for 8end|go Schoo|s
lourLeen sLudenLs from four 8endlgo secondary schools
Look advanLage of a unlque opporLunlLy Lo vlslL Lhe CanLas
Peavy MalnLenance faclllLy and an apprenLlce Lralnlng
hangar aL Melbourne AlrporL on Wednesday 26 May 2011.
8endlgo SouLh LasL Secondary College, CaLhollc College
8endlgo, 8endlgo Senlor Secondary College and kallanna
Speclal School offered Lhls Lo sLudenLs avallable lnLeresLed ln
careers ln avlaLlon.
As Lhe AusLrallan Socceroos were belng farewelled ln anoLher hangar, Lhe sLudenLs were able Lo
galn valuable lnslghLs lnLo apprenLlceshlp Lralnlng and oLher opporLunlLles.
ÞresenLaLlons and gulded Lours by sLaff from CanLas Lnglneerlng and Lhe kangan lnsLlLuLe of
1AlL were mosL lnformaLlve.
SLudenLs saw malnLenance belng done on a plane, saL ln Lhe cockplL of a servlng aeroplane, and
spenL a slgnlflcanL amounL of Llme aboard acLual aeroplanes.
Some were lnvlLed Lo vlew elecLronlcs work belng underLaken on a blackbox whlle oLhers moved
cockplL conLrols, ad[usLlng wlngs and englnes for landlng.
1he smlles, lnLeresLed quesLlons from Lhe sLudenLs, and poslLlve lnLeracLlon among sLaff from
8endlgo and Lhose aL Lhe alrporL made lL a mosL en[oyable day.
!udlLh Craham of Careers ln ManufacLurlng, supporLed by Lhe Coldflelds Local Learnlng and
LmploymenL neLwork, arranged Lhe Lour.
Careers ln ManufacLurlng have been runnlng such evenLs for some years LhroughouL vlcLorla,
however Lhls was one of Lhe flrsL ln 8endlgo.
ºWe look forward Lo developlng a more regular lnvolvemenL Lo provlde Coldflelds sLudenLs wlLh
Lhese eye-openlng, hands-on evenLs ln Lhe fuLure," sald Chrls Coughlan, of Lhe Coldflelds LLLn
Leam. º1he more our sLudenLs can geL lnLo real llfe
workplace slLuaLlons Lhe beLLer."
1he example above lllusLraLes how Lhe lnlLlaLlve works and
also hlghllghLs Lhe lmporLanL polnL LhaL, desplLe havlng
been run for some years, Careers ln ManufacLurlng ls sLlll
exLendlng lLs reach lnLo reglonal areas. 1he Chlef LxecuLlve
of MLSA8 ls of Lhe vlew LhaL Lhere are areas of unmeL
demand ln reglonal vlcLorla for Lhls lnlLlaLlve - Lhe
emphasls of any expanslon would be on Lhose areas wlLh
an exlsLlng manufacLurlng base.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 139
1he |mpact on recru|tment of mature age workers
1he agelng of Lhe workforce and Lhe general expecLaLlon of Lhe exLenslon of worklng llves
comblned wlLh Lhe llmlLed numbers of young people enLerlng manufacLurlng means LhaL lL ls
lmporLanL Lo conslder recrulLmenL noL [usL from Lhe perspecLlve of young people enLerlng, buL
also maLure age people looklng Lo change lndusLry secLors or needlng Lo re-enLer Lhe workforce.
1he myfuLure webslLe conLalns relevanL lnformaLlon for Lhls group buL lL ls more llkely LhaL Lhls
group wlll be looklng elsewhere for guldance and advlce. 1he naLlonal manufacLurlng lndusLry
skllls councll ManufacLurlng Skllls AusLralla, has esLabllshed Lhe MAkL l1! manufacLurlng careers
webslLe www.makelL.neL.au.
1hls webslLe conLalns lnformaLlon on over 130 [obs avallable wlLhln 13 manufacLurlng lndusLry
secLors. lL ls sulLed Lo anyone lnLeresLed ln manufacLurlng careers, and lncludes resources such
as Lhe MSA ManufacLurlng Careers lnfoSheeLs, as well as llnks Lo many oLher webslLes lncludlng
www.zoomplus.algroup.asn.au Lhe lnLeracLlve resource hlghllghLlng Lhe dlverse career
opporLunlLles avallable ln manufacLurlng developed ln recenL years by Al Croup.
MAkL I1! caters to seven ma|n groups:
• S1Ak1ING CU1 ls for young people conslderlng Lhelr fuLure career
• CnANGING IC8S ls for Lhose who mlghL be looklng aL a career change
• kL1UkN 1C WCkk ls for Lhose reLurnlng Lo Lhe workforce, young or old
• CAkLLk ADVISLkS ls for career professlonals and counsellors
• ÞAkLN1S ls for parenLs and carers guldlng career cholces for young people
• LMÞLC¥LkS ls for ManufacLurlng lndusLry employers
• k1CS & 1kAINLkS ls for Lralnlng organlsaLlons and lndlvlduals
lL provldes lnformaLlon abouL Lhe quallflcaLlons LhaL are appllcable Lo Lhe dlfferenL [obs and
provldes a paLhways slmulaLor whlch allows Lhe user Lo see whaL poLenLlal career paLhways
mlghL be followed.
(1he young people who Look parL ln Lhe Careers ln ManufacLurlng vlslL Lo CanLas menLloned
above could look aL Lhe paLhways slmulaLor flnd ouL Lhe quallflcaLlons Lhey need for one of Lhe
roles Lhey were exposed Lo - for example AlrcrafL MalnLenance Lnglneer (Mechanlcal) and Lhen
explore Lhe paLhways up Lhe career ladder and lnLo dlfferenL manufacLurlng secLors from Lhls
occupaLlonal poslLlon.)

MeeLlng Lhe workforce and skllls developmenL needs of vlcLorla's manufacLurlng lndusLry
_______________________________________________________________________________
160 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Cther Sources of Manufactur|ng Careers Adv|ce
Whlle web-based lnformaLlon ls conLlnulng Lo galn ln popularlLy, many schools conLlnue Lo rely
on educaLlonal lnsLlLuLlons such as unlverslLles and 1AlLs as Lhelr maln focus of careers
acLlvlLles, generally ln Lhe form of open days and Lhe provlslon of speakers.
Work experlence conLlnues Lo be a slgnlflcanL avenue for Lhe provlslon of careers educaLlon,
Lhough Lhls ls noL wlLhouL lLs challenges on boLh sldes of Lhe acLlvlLy - l.e. ln flndlng sulLable hosL
employers ln Lhe rlghL place and aL Lhe rlghL Llme for sLudenLs and ln Lerms of employers flndlng
sulLable acLlvlLles for sLudenLs when Lhey are Lhere. noLwlLhsLandlng Lhls hlgh-quallLy work
experlence, whlch ls sLrucLured and relevanL, ls a valuable means of educaLlng young people
abouL career opLlons ln manufacLurlng.
Conc|us|on
1he manufacLurlng secLor conLlnues Lo be vlewed as an unaLLracLlve lndusLry wlLh an uncerLaln
fuLure alLhough lL ls held ln hlgh regard and consldered Lo be economlcally lmporLanL.
Conslderable efforL has gone lnLo developlng lnformaLlve and engaglng resources for young
people, and people conLemplaLlng changlng careers lnLeresLed ln flndlng ouL more abouL
manufacLurlng. 8eal world experlences and lnformaLlon from peers are effecLlve meLhods of
provldlng conLemporary advlce whlch resonaLes wlLh young people.

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 161
6. ÞCLIC¥ IMÞLICA1ICNS
6.1 LLSSCNS IkCM LkLMÞLAk¥ NA1ICNAL AND CVLkSLAS GCVLkNMLN1 INI1IA1IVLS
AIMLD A1 LNnANCING 1nL SkILLS CAÞACI1¥ AND CAÞA8ILI1¥ CI 1nL WCkkICkCL
key I|nd|ngs
1he Lwo maln caLegorles of governmenL lnlLlaLlves Lo enhance workforce skllls are sLraLeglc and
acLlon plannlng, and servlce dellvery on Lhe ground. 1he sLraLegles LhaL appear mosL llkely Lo be
successful are Lhose LhaL were generaLed wlLh Lhe acLlve lnvolvemenL of Lhe full range of
sLakeholders and Lhose LhaL clearly llnk recommendaLlons Lo evldence and analysls, clearly
demonsLraLlng why acLlons are llkely Lo resulL ln Lhe requlred ouLcomes. SLraLegles are also mosL
llkely Lo achleve ouLcomes lf Lhey lnclude:
• clearly arLlculaLed acLlons, prlorlLlsed lf necessary,
• ldenLlfled lead and supporLlng agencles,
• resourclng arrangemenLs,
• performance lndlcaLors, and
• monlLorlng and evaluaLlon arrangemenLs.
Lqually, Lhe mosL effecLlve acLlvlLles on Lhe ground appear Lo be Lhose LhaL are lnformed by Lhe
research and analysls LhaL underlles sLraLeglc and acLlon plannlng.
lL follows Lherefore LhaL exemplary lnlLlaLlves wlll be Lhose LhaL [oln up sLraLeglc dlrecLlons
(lncludlng Lhe research and plannlng LhaL underplns Lhem) wlLh naLurally occurrlng organlc
acLlvlLy Lo leverage boLh ln order Lo achleve [olnLly agreed ouLcomes.
Introduct|on
1here are an almosL endless number of examples of naLlonal and overseas governmenL
lnlLlaLlves almed aL enhanclng Lhe skllls capaclLy and capablllLy of Lhe workforce, lncludlng
Lechnlcal skllls.
AL Lhe hlghesL level, governmenLs, worklng wlLh lndusLry sLakeholders, produce sLraLeglc and
acLlon plans. 1hese lnclude:
• mulLlnaLlonal skllls sLraLegles (such as Lhe Luropean unlon's 2010 New 5kllls fot New
Iobs. Actloo Now reporL),
• naLlonal sLraLegles for manufacLurlng lncludlng skllls developmenL sLraLegles and
lnlLlaLlves (such as Lhe uk's 2008 Mooofoctotloq. New cbolleoqes, New Oppottooltles
sLraLegy),
• reglonal or sLaLe sLraLegles (such as Lhe 2009 Mooofoctotloq 5ttoteqy & Actloo lloo fot
íoqlooJ´s Nottbwest and Cueensland's 2007 AJvooceJ mooofoctotloq sectot octloo
ploo), and
Þollcy lmpllcaLlons
_______________________________________________________________________________
162 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• secLor sLraLegles (such as Lhe 2008 vlcLorlan ueparLmenL of lnnovaLlon, lndusLry and
8eglonal uevelopmenL's vlctotloo ootomotlve mooofoctotloq octloo ploo).
1hls secLlon examlnes a number of examples drawn from AusLralla and overseas of lnlLlaLlves
lnLended Lo bulld workforce skllls and capablllLy.
Austra||an and Internat|ona| Lxemp|ars
SLraLegles vary ln Lhelr emphasls on manufacLurlng, skllls, analysls and acLlon. lor example, Lhe
Luropean unlon's 2010 New 5kllls fot New Iobs. Actloo Now reporL noLes Lhe need Lo 'bulld
sLronger brldges beLween Lhe world of educaLlon and Lralnlng and Lhe world of work', wlLh
reference Lo how changlng Lechnology wlll change manufacLurlng [obs, lLs 'acLlons' are of Lhe
mosL general klnd. 1he uk manufacLurlng sLraLegy addresses sklll acqulslLlon ln depLh and
lncludes Lhe raLlonale for lncreased skllls, currenL pollcy and acLlon lnlLlaLlves, requlred reforms
and proposed lnlLlaLlves. 1he norLhwesL manufacLurlng sLraLegy covers slmllar ground buL more
lnLenslvely. lL has a rlcher, secLoral evldence base, SWC1 and oLher analyses, and a
comprehenslve speclflcaLlon of proposed acLlons. ln conLrasL, Lhe Cueensland and vlcLorlan
plans menLloned above are shorL, general documenLs focuslng on pasL and proposed
governmenL expendlLures and lnlLlaLlves.
Loca| government
Whlle some local governmenLs have economlc developmenL sLraLegles (whlch may lnclude
acLlvlLles Lo develop manufacLurlng lndusLry), Lhelr manufacLurlng skllls developmenL acLlons
Lend Lo be 'organlc' raLher Lhan 'sLraLeglc'. As one local governmenL buslness developmenL
offlcer sald, 'Þeople ask, ºwhy do we have Lhese ma[or research lnsLlLuLlons and why ls lL hard
for buslnesses Lo geL ln Lhelr door and flnd ouL whaL's happenlng" . so buslness people and
researchers geL LogeLher and say, ºwhy don'L we do someLhlng abouL Lhls'?'
lor example, Lhe ClLy of klngsLon conducLs many acLlvlLles Lo bulld manufacLurlng skllls
lncludlng:
• brlnglng local manufacLurers LogeLher Lo conLrlbuLe Lo governmenL lnqulrles,
• faclllLaLlng roundLables of CLCS and 'rlslng sLars' Lo ldenLlfy and develop Lhe nexL
generaLlon of buslness leaders,
• conducL of a buslness menLorlng program, and
• workshops and semlnars for buslness developmenL and regulaLory compllance.
1he clLy ls parL of Lhe Melbourne 8uslness Awards whlch exposes Leachers and sLudenLs Lo
manufacLurlng lndusLry.
1he clLy ls also a member of Lhe SouLh LasL Melbourne lnnovaLlon ÞreclncL, lnvolvlng Lhe
klngsLon, CreaLer uandenong, Monash and knox local governmenL auLhorlLles, Monash
unlverslLy, CSl8C, AusLrallan SynchroLron, and Lhe Small 1echnologles ClusLer. SLMlÞ brlngs
LogeLher buslness and research lnsLlLuLlons Lo share knowledge, neLwork and ldenLlfy and
explolL commerclal opporLunlLles.
A second example of acLlon on Lhe ground ls Lhe ClLy of Pume. lL ls a member of nC81P Llnk
whlch llnks local governmenL, educaLlon and lndusLry Lo promoLe buslness neLworklng and
reglonal developmenL. nC81P Llnk ls hosLlng Lwo buslness advlsers employed under Lhe

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 163
CommonwealLh CovernmenL's LnLerprlse ConnecL program Lo work lnLenslvely wlLh a small
number of local enLerprlses across Lhe full range of buslness developmenL needs. Also, Lhe clLy's
8uslness Lfflclency neLwork helps buslnesses access educaLlon, Lralnlng and supporL Lo lmprove
Lhelr operaLlons, envlronmenLal efflclency and proflLablllLy. lL ls also formlng a [obs and skllls
councll, supporLed by Lhe sLaLe governmenL, Lo help reduce unemploymenL.
1he ClLy of Pume provldes one example of Lhls '[olnlng up': lL ls currenLly developlng an
economlc developmenL sLraLegy and accompanylng acLlon plan, whlch wlll address Lhe needs of
manufacLurlng lndusLry, Lo furLher leverage lLs conslderable on Lhe ground acLlvlLles.
CLML - London Uk
1here are some good examples of how small local lnlLlaLlves have been leveraged by reglonal
sLraLeglc plannlng Lo have a ma[or lmpacL on sklll shorLages. lor example, London's CenLre for
Lnglneerlng and ManufacLurlng Lxcellence ls a ma[or englneerlng, manufacLurlng and
Lechnology educaLlon and buslness park LhaL:
• hosLs a speclallsL educaLlon cenLre for schools, a prlvaLe Lralnlng provlder and a local
auLhorlLy learnlng and developmenL cenLre,
• lncludes a buslness lnnovaLlon cenLre, provldlng space and supporL for sLarL up
buslnesses ln Lhe Lechnology secLor, commerclal offlce space for larger organlsaLlons
and a conference and evenLs cenLre, and
• lncludes a chlld care cenLre and cafe.
1he cenLre says LhaL 'Lhls mlx of prlvaLe and publlc secLor acLlvlLles serves Lo creaLe an amazlng
offer for Lhe local communlLy: local school chlldren sLudy CCSLs, apprenLlces worklng ln local
companles and buslness delegaLes aLLendlng Lralnlng and semlnars ln Lhe conference cenLre'.
ÇMI So|ut|ons - Çueens|and Austra||a
AnoLher example ls CMl SoluLlons, a company formed by Lhe Cueensland governmenL and Lwo
Cueensland unlverslLles. 1he company:
• helps small and medlum enLerprlses lncrease Lhelr compeLlLlveness, growLh and
susLalnablllLy Lhrough lnnovaLlon,
• llnks SMLs Lo research and developmenL opporLunlLles, and
• provldes a range of servlces conslsLenL wlLh Lhese goals.

Þollcy lmpllcaLlons
_______________________________________________________________________________
164 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1he company conLalns Lhree dlvlslons:
letfotmooce & looovotloo ulvlsloo
1hls parL of Lhe organlsaLlon asslsLs companles lmprove Lhe upLake of proven pracLlces and
Lechnologles speclflcally helplng manufacLurers, parLlcularly SMLs, geL sLarLed and grow Lhrough
lnnovaLlon.
5kllls ulvlsloo
known as ManufacLurlng Skllls Cueensland (MSC), Lhls dlvlslon ls parL ls an lnlLlaLlve of Lhe
Cueensland CovernmenL's ueparLmenL of LducaLlon and 1ralnlng (uL1). As parL of Lhe
Cueensland Skllls Þlan, uL1 esLabllshed a number of CenLres of Lxcellence for Cueensland
lndusLry. MSC ls Lhe CenLre of Lxcellence for skllls developmenL ln Lhe manufacLurlng and
englneerlng lndusLry. lL ls a parLnershlp beLween lndusLry and governmenL Lo fosLer
coordlnaLlon and leadershlp from wlLhln lndusLry, and sLrengLhen Lhe role of employers ln
overcomlng skllls shorLages.
WlLh a focus on smarLer workforce managemenL, MSC ensures LhaL sklll needs are ldenLlfled aL
local, reglonal and sLaLe-wlde levels whlle deLermlnlng Lralnlng prlorlLles, sulLable Lralnlng
producLs and ldeal Lralnlng dellvery meLhods.
MSC encourages an lndusLry-owned and -drlven skllllng agenda Lo address Lhe key skllls
developmenL and formaLlon challenges faclng Cueensland manufacLurers. MSC Lhen helps Lhem
employ skllllng sLraLegles Lo sLrengLhen Lhe global compeLlLlveness of Lhe sLaLe's manufacLurlng
lndusLry.
copoblllty Jlvlsloo
known as lndusLry CapablllLy neLwork (lCn), Lhls dlvlslon ls parL of a naLlonwlde neLwork LhaL
asslsL lndusLry maxlmlse access Lo governmenL and prlvaLe secLor opporLunlLles, parLlcularly ln
ma[or pro[ecL lnfrasLrucLure and lndusLrlal pro[ecLs. lCn does Lhls by
• maxlmlslng opporLunlLles for local suppllers and enhanclng vlslblllLy Lo ma[or pro[ecL
procuremenL Leams,
• ldenLlflcaLlon and evaluaLlon of Cueensland and AusLrallan lndusLry capablllLy and
capaclLy for opporLunlLy access, local sourclng and buslness maLchlng for AusLrallan and
overseas purchasers,
• asslsLlng Cueensland and AusLrallan buslnesses ln accesslng global supply chaln and
exporL opporLunlLles, and
• malnLalnlng commerclally confldenLlal lnformaLlon whlle asslsLlng suppllers Lo comply
wlLh quallLy and Lechnlcal speclflcaLlons.
1he company has helped small and medlum enLerprlses dramaLlcally reduce [ob Lurnaround
Llmes and lncrease producLlon volumes, sLrucLure Lhelr plannlng processes, lmprove Lhelr
lnvenLory managemenL, lmprove quallLy and reduce sLaff Lurnover.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 163
Ch|cago Manufactur|ng kena|ssance Counc|| - USA
ln 2003, 12 buslness, communlLy, governmenL and labour groups formed Lhe Chlcago
ManufacLurlng 8enalssance Councll Lo help bulld Lhe skllls necessary Lo arresL Lhe sLeady decllne
ln manufacLurlng ln Lhe area slnce Lhe laLe 1970s.
1he councll ldenLlfles lLs key challenge as changlng Lhe lmage LhaL young people and socleLy
more generally have of manufacLurlng and bulldlng Lhe maLhemaLlcs and sclence skllls necessary
Lo work Loday ln Lhe lndusLry. ManufacLurlng ls wldely seen as endlng ln Lhe uSA as anLlquaLed
facLorles close and producLlon moves Lo Chlna. 1hls percepLlon ls noL correcL: manufacLurlng ls
allve and well, produclng 11° of Chlcago's (and Lhe uSA's) CuÞ and employlng 12 mllllon people.
Powever, ln Lhe lasL decade Lhe uSA has losL lLs compeLlLlve advanLage ln low-sklll
manufacLurlng, whlch has mosLly moved offshore. Companles LhaL have remalned ln Chlcago
have lncreaslngly shlfLed Lo maklng complex producLs buL have been unable Lo flnd an
adequaLely skllled and educaLed workforce for advanced producLlon. ManufacLurlng faces sLrong
headwlnds as Lhe educaLlon sysLem sLruggles Lo dellver Lhe skllls necessary Lo modernlse
manufacLurlng, Lhe economy suffers conLlnulng shocks from flnanclal speculaLlon, governmenL
asslsLance ls lneffecLlve, and youLh (and socleLal) culLure focuses on consumpLlon raLher Lhan
producLlon.
1he councll arLlculaLes a vlslon for advanced manufacLurlng as Lhe only secLor LhaL can bulld a
large mlddle class, end poverLy and address Lhe envlronmenLal crlsls.
lLs flrsL program (ln 2007) was Lo esLabllsh Lhe AusLln ÞolyLechnlcal Academy, a small publlc hlgh
school offerlng maLhs, sclence, Lngllsh, four years of pre-englneerlng and advanced machlnlng Lo
all sLudenLs. 1he school has 63 parLners (companles, colleges and unlverslLles) and offers
sLudenLs Lours, menLorlng, summer [obs and careers. 1he school wlll graduaLe lLs flrsL class ln
2011 and a slgnlflcanL number of graduaLes are expecLed Lo conLlnue Lo hlgher educaLlon
manufacLurlng and englneerlng courses.
1he councll has also developed a manufacLurlng Lralnlng cenLre for adulLs and has proposed a
renewable energy lnnovaLlon park. lL ls also helplng Lo develop a ManufacLurlng 8enalssance
Councll ln Lhe San lranclsco 8ay area and has plans for a naLlonal neLwork of counclls.
SML c|usters - Ita|y
Small and medlum enLerprlse (SML) clusLers and enLerprlse neLworks have galned lncreaslng
lnLernaLlonal aLLenLlon slnce flrsL belng ldenLlfled ln lLaly ln Lhe laLe 1970s. 1he lLallan experlence
was LhaL SMLs ln several secLors (such as LexLlle, leaLher, ceramlc Llles and furnlLure) LhaL
clusLered LogeLher grew rapldly, developed nlches ln exporL markeLs and offered new
employmenL opporLunlLles. MosL lmporLanLly, clusLers seemed Lo have Lhe capaclLy Lo lnnovaLe
Lhelr producLlon.
A key facLor ln Lhe success of clusLers ls Lhe hlgh degree of cooperaLlon among SMLs, whlch
dlvlde Lhe producLlon process lnLo dlsLlncL phases, wlLh separaLe SMLs responslble for dlfferenL
phases. ClusLers are also acLlvely supporLed by reglonal and munlclpal governmenLs.
A feaLure of clusLers LhaL has aLLracLed a greaL deal of lnLeresL ls Lhe self-help organlsaLlons Lhey
have generaLed. 8eferred Lo as buslness developmenL servlce cenLres, or real servlce cenLres,
Lhere are more Lhan 100 LhroughouL lLaly offerlng a wlde varleLy of flnanclal, promoLlonal,
research and Lralnlng, quallLy cerLlflcaLlon and consulLancy servlces. CenLres are usually publlcly
owned (for example, by producers' assoclaLlons, local governmenLs, SML supporL agencles or
parLnershlps among Lhem). Some examples are:
Þollcy lmpllcaLlons
_______________________________________________________________________________
166 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• Þromosedla, an exporL supporL agency [olnLly owned by some 100 chalr manufacLurers
from Lhe Manzano clusLer and Lhe local chamber of commerce,
• Lhe Consorzlo del ÞroscluLLo dl San uanlele, whlch underLakes quallLy and promoLlonal
acLlvlLles for Lhe proscluLLo lndusLry, and
• Acque del Chlampo, whlch began llfe as a consorLlum of Lownshlp admlnlsLraLlons
formed Lo reduce Lhe envlronmenLal lmpacL of leaLher manufacLurlng ln Lhe Chlampo
8lver valley and has gone on Lo be Lhe managlng enLlLy for Lhe whole valley basln.
ln Lhls lLallan example, lndusLry assoclaLlons appear Lo play a plvoLal role ln faclllLaLlng SMLs
Lo acL collecLlvely Lo lmprove Lhelr compeLlLlveness.
Cooperat|ve techno|ogy ach|evements - Dortmund, Germany
uorLmund ln Cermany once proudly descrlbed lLs lndusLrlal base as Lhe 'Lrlad of coal, sLeel and
beer'. 1he coal and beer lndusLrles are now gone, along wlLh Lhe 80,000 [obs Lhey provlded. So
ln 2000, Lhe clLy admlnlsLraLlon parLnered wlLh Lhe remalnlng sLeel producer, 1hyssenkrupp and
Mcklnsey, Lo develop a plan for a neLwork comprlslng Lhe admlnlsLraLlon, local companles and
research lnsLlLuLlons Lo esLabllsh new lndusLrles ln promlslng hlgh Lech areas.
1he plan's focus was Lo [oln up Lhe clLy's Lechnology cenLre wlLh Lhe unlverslLy of uorLmund
(esLabllshed ln 1968 for chemlcal and process englneerlng) and Lhe Max Þlanck lnsLlLuLe for
Molecular Þhyslology, Lo [oln skllls developmenL wlLh Lhe needs of lndusLry. As a resulL, Lhe
Lechnology cenLre has become one of Lurope's blggesL Lechnology parks, wlLh 280 enLerprlses
and more Lhan 8,300 employees. 1he Lechnology park ls also home Lo Lhe unlverslLy of
uorLmund's 8lomedlcal CenLre, a [olnL enLerprlse of Lhe clLy of uorLmund, Lhe unlverslLy, local
banks, and local chambers of lndusLry and commerce. 1he cenLre provldes lnLernaLlonally
recognlsed educaLlon and conducLs medlcal research focused on lndusLry needs.
1he Max Þlanck lnsLlLuLe for Molecular Þhyslology was orlglnally founded Lo deal wlLh dlseases
caused by worklng condlLlons ln Lhe 8uhr area's coal mlnes and sLeel works. under Lhe plan, lL
has moved heavlly lnLo sLrucLural blology, sysLems blology, physlcal blochemlsLry and chemlcal
blology. 1he lnsLlLuLe's Lead ulscovery CenLer works wlLh lndusLry Lo apply research resulLs Lo
lndusLrlal producL developmenL. uorLmund has also drawn Lhe headquarLers of Chem8lo1ec,
a Luropean neLwork for susLalnable bloLechnology comprlsed of 37 parLners from lndusLry and
academla.
Conc|us|ons
AlLhough Lhere are many examples of lnnovaLlve sLraLegles Lo develop and enhance Lhe
manufacLurlng secLor, very few have long-Lerm evaluaLlons LhaL can comprehenslvely show Lhe
llnk beLween Lhe sLraLegy and Lhe lnLended ouLcome. 1he acLlons ln many sLraLeglc plans
revlewed as parL of Lhls research are prlmarlly Lo consulL, research and plan. Whlle lmporLanL
acLlvlLy, Lhe ouLpuL ls ofLen furLher lnLellecLual properLy raLher Lhan change on Lhe ground,
whlch can make lL dlfflculL Lo esLabllsh LhaL ouLpuLs have resulLed ln lncreased and appllcable
manufacLurlng skllls.
'!olnlng up' can ofLen rely on personal relaLlonshlps wlLh lndlvlduals raLher Lhan sysLemlc
arrangemenLs, and when an lndlvldual leaves Lhelr poslLlon, relaLlonshlps can crumble. Local
acLlon Lends Lo have a sLraLeglc basls, and Lo be lnformed by naLlonal and sLaLe sLraLeglc

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 167
plannlng only Lo Lhe exLenL LhaL knowledgeable people are parL of Lhe local neLwork and can
Lhus conLrlbuLe learnlngs from sLraLeglc plannlng.
lundlng ls ofLen organlsed for lndlvldual programs raLher Lhan across mulLlple programs
conLrlbuLlng Lo ouLcomes, and may noL provlde Lhe longer-Lerm caplLal and recurrenL supporL
requlred for success. 1here ls evldenL goodwlll and experLlse on boLh sldes of Lhe [olnlng up
equaLlon. 8esearchers and planners usually wanL Lhelr work Lo lead Lo change. 8uslness people
and local governmenL offlclals commonly show a sophlsLlcaLed undersLandlng of Lhe maln lssues
of sLraLeglc lnLeresL, lf noL of Lhe [argon and frameworks of Lhe planners. 8oLh supporL Lhe
noLlon of sLronger and more effecLlve llnks.
1here are many local lnlLlaLlves occurrlng ln vlcLorla and around AusLralla LhaL are effecLlvely
enhanclng Lhe skllls capaclLy and capablllLy of Lhe workforce. Lqually, much sLraLeglc acLlon
plannlng has been conducLed by governmenL, lndusLry and Lhe educaLlon secLors abouL currenL
and fuLure sklll needs. WhaL ls needed ls an lncreaslng level of effecLlveness ln comblnlng Lhe
Lwo so LhaL agencles come lnLo belng provldlng lnnovaLlve, comprehenslve servlces - so LhaL
'Lhe whole ls greaLer Lhan Lhe sum of Lhe parLs'. Such faclllLles and servlces would be exemplary
lf Lhey used a deLalled undersLandlng of sLraLeglc frameworks Lo brlng mulLlple sLakeholders
LogeLher Lo leverage local acLlon and so achleve ouLcomes saLlsfylng mulLlple ob[ecLlves,
evldenced Lhrough lndependenL evaluaLlon.

Þollcy lmpllcaLlons
_______________________________________________________________________________
168 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
6.2 IMÞLICA1ICNS CI CCMMCNWLAL1n MANAGLMLN1 AND WCkkICkCL SkILLS
DLVLLCÞMLN1 ÞCLIC¥
Introduct|on
ln Lhls secLlon, Lhe ma[or CommonwealLh pollcy lnlLlaLlves are descrlbed and Lhelr lmpllcaLlons
for vlcLorla consldered.
Commonwea|th Þo||cy In|t|at|ves
Department of Innovat|on, Industry, Sc|ence and kesearch (DIISk) - Lnterpr|se Connect (LC)
1he CommonwealLh CovernmenL recognlses LhaL Lhe lmprovemenL of AusLralla's producLlvlLy
performance wlll depend ulLlmaLely on Lhe lnnovaLlon capaclLy and performance of flrms and
organlsaLlons. 1he pollcy focus of Lhe CommonwealLh CovernmenL ls Lo 'lmprove lnnovaLlon
skllls and workplace capablllLles, lncludlng managemenL and leadershlp skllls - bulldlng on
LnLerprlse ConnecL and Lhe LducaLlon 8evoluLlon.'
133
LnLerprlse ConnecL, now runnlng for
nearly four years, provldes buslness advlsory servlces Lo small and medlum-slzed flrms ln Lhe
manufacLurlng, creaLlve, defence, resources Lechnology and clean Lechnology lndusLrles across
AusLralla. 1hrough LnLerprlse ConnecL, Lhe governmenL supporLs and encourages Lhe
developmenL and deploymenL of managemenL capablllLles as bulldlng blocks and paLhways
Lo hlgher performance and susLalned lnnovaLlon ln AusLrallan manufacLurlng flrms.
DIISk - LC: Austra||an Management Þract|ces Þro[ect
1he CommonwealLh CovernmenL's recenL lnnovaLlon whlLe paper, lowetloq lJeos - Ao
looovotloo AqeoJo fot tbe 21
st
ceototy, conLends LhaL 'AusLralla's lnnovaLlon sysLem wlll need
Lo work beLLer lf we wanL Lo malnLaln Lhe way of llfe we value so much',
134
and noLes Lhe
lmpllcaLlon LhaL: 'Cne fuLure focus of Lhe AusLrallan CovernmenL's lndusLry and lnnovaLlon
pollcles wlll be on bulldlng lnnovaLlon capaclLy and performance aL Lhe enLerprlse level.'
133

1he lnvesLmenL ln Lhe research pro[ecL LlLled 'ManagemenL MaLLers ln AusLralla: !usL how
producLlve are we?' LhaL was commlssloned by ullS8 ls a sLraLeglc sLep Lowards bulldlng an
evldence base Lo make lnformed pollcy declslons Lo bulld lnnovaLlon capaclLy and performance
ln Lhe AusLrallan manufacLurlng secLor. 1hls AusLrallan ManagemenL ÞracLlces (AMÞ) research
pro[ecL was underLaken by a Leam from u1S, Lhe Macquarle CraduaLe School of ManagemenL
and Lhe SocleLy of knowledge Lconomlcs, and ls parL of a world-wlde sLudy led by Lhe London
School of Lconomlcs, SLanford unlverslLy and Mcklnsey & Co. 1hls research pro[ecL collecLed
managemenL pracLlce daLa from 439 medlum- and large-slzed
136
manufacLurlng flrms ln
AusLralla, ldenLlfled deLermlnanLs of hlgh managemenL performance and benchmarked
AusLrallan manufacLurlng flrms agalnsL Lhe global besL. 1here has noL been any such analysls on
a comparable scale ln AusLralla slnce Lhe comprehenslve 1993 karpln 8eporL on leadershlp and
managemenL skllls,
137
and an earller serles of AusLrallan workplace employmenL relaLlons
surveys.


133 Þowerlng ldeas - An Agenda for Lhe 21sL CenLury, CommonwealLh of AusLralla, Canberra, 2009, p. 6
134 Þowerlng ldeas - An Agenda for Lhe 21sL CenLury, CommonwealLh of AusLralla, Canberra, 2009, p. 3
133 Þowerlng ldeas - An Agenda for Lhe 21sL CenLury, CommonwealLh of AusLralla, Canberra, 2009, p. 44
136 LSL deflnes medlum flrms 100 Lo 3,000 employees, A8S deflnes small flrms as flrm slze less Lhan 20 employees, medlum slze
flrms from 20 Lo 199 employees, and large slze flrms wlLh employees 200 and greaLer. 1he small slze flrms ln AusLralla are noL ln
scope.
137 karpln 8eporL, LnLerprlslng naLlon, CommonwealLh of AusLralla, Canberra, 1993

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 169
DIISk - LC: Austra||an Management Þract|ces (AMÞ) Lxtens|on Þro[ect
1he AMÞ LxLenslon 8esearch based on Lhe orlglnal 2009 AMÞ pro[ecL was commlssloned by
ullS8. 1hls AMÞ exLenslon research pro[ecL had Lwo key alms:
1 1o galn deeper lnslghLs lnLo Lhe hlsLorlcal dynamlc capablllLy bulldlng wlLhln medlum-
slzed AusLrallan manufacLurlng flrms
2 1o examlne ln greaLer deLall Lhe area of human resource managemenL (P8M) wlLhln
medlum-slzed AusLrallan manufacLurlng flrms.
lL used a case-sLudy approach Lo sLudy Lhe besL pracLlces adopLed ln fosLerlng dynamlc
capablllLles ln a sample of besL performlng AusLrallan medlum-slzed manufacLurlng flrms based
on Lhe overall managemenL score aLLalned ln Lhe orlglnal 2009 AMÞ research. ueveloplng more
such case sLudles for vlcLorlan manufacLurlng flrms wlll help delve deeper and undersLand how
Lhese vlcLorlan flrms have lnculcaLed and fosLered skllls and capablllLles, developed
managemenL and leadershlp skllls, and also how Lhese llnk Lo susLalned performance,
compeLlLlveness and flrm success ln Lhelr conLexL.
WlLh an alm Lo beLLer undersLand Lhe maln reasons why AusLrallan medlum-slzed manufacLurlng
flrms lag behlnd oLher counLrles ln Lhe area of human resource managemenL (a key flndlng of
Lhe orlglnal 2009 AMÞ research), Lhe second parL of Lhe AMÞ exLenslon research on P8M was
based on groups of besL, average and worsL performlng manufacLurlng flrms ln Lhe area of
people managemenL, based on Lhe people managemenL scores aLLalned ln Lhe orlglnal 2009
AMÞ research. ueploylng such a pro[ecL for vlcLorlan manufacLurlng flrms can help provlde
lnformaLlon on Lhe P8M pracLlces adopLed by Lhese flrms and unearLh lnslghLs relaLlng Lo besL
pracLlces and areas of lmprovemenL ln Lhe area of LalenL managemenL ln vlcLorlan
manufacLurlng flrms.
DIISk - LC: Leadersh|p 21 - A nat|ona| |eadersh|p sk||| deve|opment program
Leadershlp 21 ls a Lallored SML leadershlp developmenL program lnlLlaLed by ullS8 almed aL
buslness owners and senlor managers of small and medlum enLerprlses (SML) naLlonally. 1hese
programs alm Lo provlde managemenL and leadershlp experlenLlal learnlng Lo LnLerprlse
ConnecL's SMLs Lo Lransform Lhelr callbre and enable Lhem Lo puL lnLo place plans for boLh Lhelr
personal developmenL and buslness progress. Leadershlp 21 wlll comblne baslc managemenL
Lheory wlLh pracLlcal lmplemenLaLlon pro[ecLs drawn from Lhe LnLerprlse ConnecL 8uslness
8evlew of parLlclpanLs and/or buslness pro[ecLs from non-LnLerprlse ConnecL cllenLs. 1he alm of
Lhe program ls Lo:
• lmprove managemenL and leadershlp skllls wlLhln AusLrallan SMLs,
• provlde AusLrallan SML owner/managers wlLh a seL of pracLlcal managemenL
frameworks and Lools LhaL Lhey can deploy and use ln Lhelr buslnesses,
• provlde AusLrallan SML owner/managers wlLh Lhe knowledge and skllls Lo supporL and
achleve growLh (encouraglng flexlblllLy, sLraLeglc focus and lnnovaLlon) and adapL Lo
change,
• provlde AusLrallan SML owner/managers wlLh Lhe skllls Lo develop neLworks Lo faclllLaLe
knowledge sharlng, collaboraLlon and supporL, and
Þollcy lmpllcaLlons
_______________________________________________________________________________
170 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• provlde AusLrallan SML owner/managers wlLh a poslLlve learnlng experlence LhaL wlll
make Lhem more open Lo furLher managemenL Lralnlng and educaLlon.
1he program ls almed Lo be slmllar Lo successful courses such as Lhe lCL 8rldge Owoet Moooqet
ltoqtomme ln new Zealand and LLAu, developed by LancasLer unlverslLy ln Lhe unlLed
klngdom, LhaL have conLenL and dellvery approaches speclflcally deslgned for SML owners and
senlor managers (reflecLlng Lhelr Llme consLralnLs and learnlng sLyles).
LnLerprlse ConnecL has ldenLlfled Lhe need for lnLenslve acLlon learnlng-based leadershlp
programs for lLs cllenLs. AL presenL, Lhls Leadershlp 21 program ls almed Lo be dellvered Lo Lhe
2000 buslness cllenLs of LnLerprlse ConnecL alone and some oLher SML owner-managers. 1hls
covers only a small proporLlon of all manufacLurlng SMLs ln AusLralla (and vlcLorla) as Lhe
manufacLurlng flrm crlLerla for ellglblllLy as a buslness cllenL of LnLerprlse ConnecL ls Lo have a
Lurnover of more Lhan $2 mllllon and under $100 mllllon ln Lhe currenL flnanclal year or one of
Lhe Lwo precedlng flnanclal years lf locaLed ln Melbourne, Sydney, Adelalde, ÞerLh or 8rlsbane,
and a Lurnover of more Lhan $1.3 mllllon and under $100 mllllon ln Lhe currenL flnanclal year or
one of Lhe Lwo precedlng flnanclal years, lf locaLed ln a reglonal area.
138
1he concepLs of Lhe
Leadershlp 21 program are appllcable Lo any SML Cwner-Manager, and Lhe dellvery of Lhese can
lead Lo lmproved producLlvlLy and performance ln vlcLorlan manufacLurlng SMLs, and ln Lurn
vlcLorla's lnnovaLlon and economlc prosperlLy noL covered by LC cllenL base, whlch ls very small
ln number as compared Lo Lhe LoLal SML's ln Lhe AusLrallan/vlcLorlan conLexL.
ÞracLlcal programs Lo bulld leadershlp and managemenL skllls such as Lhe LLAu program by
LancasLer unlverslLy ManagemenL School ln uk, lcePouse by Lhe unlverslLy of Auckland,
unlverslLy of 1oronLo's framework known as ueslgnWorks, and Lhe unlverslLy of ConnecLlcuL's
AcceleraLor programs could be lnLroduced ln supporL of all vlcLorlan manufacLurlng flrms wlLh
subsLanLlal subsldy from Lhe governmenL. 1he key feaLure of such programs ls Lo allow
owner/managers of flrms Lo hone Lhelr leadershlp and managemenL capablllLles Lhrough unlque
learnlng mechanlsms such as scenarlo plannlng, acLlon learnlng seLs, menLorlng, face-Lo-face
coachlng, and shadowlng and exchange programs.


138 ManufacLurlng and lnnovaLlon CenLres - ueflnlLlons & LllglblllLy CrlLerla, LnLerprlse ConnecL WebslLe,
hLLp://www.enLerprlseconnecL.gov.au/howLoapply/uocumenLs/LC_ueflnlLlon_and_LllglblllLy_CrlLerla.pdf

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 171
DLLWk kesearch Þro[ect on Leadersh|p, Cu|ture and Management Þract|ces for n|gh
Þerform|ng Workp|aces |n Austra||a
1he AusLrallan CovernmenL recognlses Lhe role of leadershlp, culLure and managemenL pracLlces
on workplace producLlvlLy and lnnovaLlon, as evldenL ln "...to ttoly oolock tbe ptoJoctlvlty of oot
ootloo.we oeeJ wotkploce leoJetsblp ooJ tbe tepolslte coltotes ooJ skllls tbot wlll bollJ opoo
tbe foooJotloos of tbe lolt wotk Act to eocootoqe looovotloo, employee eoqoqemeot ooJ
coopetotloo lo oot wotkploces."
139
AL Lhe wotkploces of tbe lotote lotom, research was
ldenLlfled as a flrsL lmporLanL sLep Lo unlocklng Lhe ºproducLlvlLy puzzle" and ºopenlng up Lhe
black box of managemenL".
1he research pro[ecL, LlLled ºLeadershlp, CulLure and ManagemenL ÞracLlces for Plgh Þerformlng
Workplaces ln AusLralla", was commlssloned by Lhe Workplace lnnovaLlon lund wlLhln Lhe
CommonwealLh CovernmenL's uLLW8 and Lhe SocleLy for knowledge Lconomlcs (SkL). 1he
research ls conducLed by a Leam of researchers led by Lhe unlverslLy of new SouLh Wales
(unSW) ln collaboraLlon wlLh Lhe AusLrallan naLlonal unlverslLy, Macquarle unlverslLy, and
Copenhagen 8uslness School. 1he ob[ecLlve of Lhe research ls Lo examlne Lhe aLLrlbuLes of hlgh
performlng workplaces ln AusLralla and Lhe role of leadershlp, culLure and managemenL
pracLlces ln llfLlng workplace performance.
Al Croup has also been funded by uLLW8 Lo underLake a naLlonal pro[ecL ln Lhls area. 1he alm of
Lhls pro[ecL ls Lo develop and LesL processes and Lools LhaL can be used by organlsaLlons Lo
lncrease producLlvlLy by creaLlng hlgh performlng workplaces wlLh hlgh uLlllsaLlon of workplace
skllls.
Slmllar research can help Lhe vlcLorlan CovernmenL ensure LhaL evldence-based pollcy ls
grounded ln rellable daLa abouL workplace performance, leadershlp, culLure and managemenL
pracLlces ln vlcLorlan flrms and Lhe assoclaLed producLlvlLy and lnnovaLlon lmpacLs Lhese
pracLlces have.
Conc|us|on
1here are developmenLs ln CommonwealLh managemenL and workforce skllls developmenL
pollcy whlch poLenLlally have lmpllcaLlons for vlcLorla ln pursulng sLraLegles Lo promoLe besL
pracLlce ln managemenL and buslness skllls developmenL.


139 Pon !ulla Clllard's speech aL Lhe 13Lh World Congress of Lhe lnLernaLlonal lndusLrlal 8elaLlons Work Congress, AugusL 24-27,
uarllng Parbour ConvenLlon CenLre, Sydney, 2009
Cverall 8esearch Concluslons
_______________________________________________________________________________
172 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
7 CVLkALL kLSLAkCn CCNCLUSICNS
MANAGLMLN1 AND WCkkICkCL SkILLS
1he research underLaken ln Lhe course of preparlng Lhls reporL shows LhaL managemenL and
workforce skllls are crlLlcal Lo Lhe fuLure compeLlLlveness of Lhe vlcLorlan manufacLurlng secLor.
8uL across manufacLurlng, companles are experlenclng skllls shorLages now and anLlclpaLe LhaL
many of Lhese skllls shorLages wlll conLlnue Lo be experlenced ln Lhe fuLure and LhaL new areas
of skllls need wlll evolve. 1he dlverslLy of Lhls need suggesLs LhaL a range of soluLlons musL be
applled.
MLL1ING 1nL WCkkICkCL SkILL NLLDS CI 1nL VIC1CkIAN MANUIAC1UkING SLC1Ck
Manufactur|ng Sk|||s Adv|sory Serv|ce
Companles faclng skllls shorLages opL Lo bulld Lhe skllls of Lhelr exlsLlng workforce as a prlorlLy
response Lo deallng wlLh Lhe shorLages Lhey are experlenclng. Companles would be slgnlflcanLly
asslsLed ln Lhelr efforLs lf Lhey had access Lo lndependenL skllllng advlsory servlces. Cur research
shows SMLs, ln parLlcular, need advlce on how Lhe skllllng sysLem works, lncludlng Lhe opLlons
Lo have Lralnlng cusLomlsed Lo sulL Lhelr needs. Advlsory servlces should noL be llmlLed Lo Lhe
provlslon of narrow advlce regardlng meeLlng lmmedlaLe Lralnlng needs. 1he lnLroducLlon of a
comprehenslve manufacLurlng skllls advlsory servlce presenLs an opporLunlLy Lo help poslLlon
manufacLurlng companles for a more producLlve fuLure. 1hls servlce could also llnk companles Lo
neLworks and collaboraLlons whlch would asslsL wlLh Lhelr skllllng efforLs and broader buslness
lssues.
Sk||||ng for New 1echno|og|es
A sLrong Lheme of Lhls research ls Lhe lmporLance of Lechnology Lo Lhe compeLlLlve fuLure of
vlcLorlan manufacLurlng. 8uL havlng made Lhe lnvesLmenL, companles ofLen sLruggle Lo access
Lhe Lralnlng needed Lo make Lhe besL use of new Lechnologles, and 81Cs are unable Lo provlde
Lhe skllllng soluLlons as Lhey are unable Lo engage Lralners wlLh Lhe necessary Lechnlcal skllls.
1hls Lralnlng gap reduces Lhe reLurn on Lhe caplLal lnvesLmenL. AsslsLance from governmenL
Lo supporL Lechnlcal upskllllng ln new Lechnology areas LhaL are noL covered by Lhe formal
Lralnlng sysLem would supporL Lechnology-drlven producLlvlLy lmprovemenLs.
Meet|ng the Need for N|che 1rades 1ra|n|ng
1he dlmlnlshlng slze of Lhe manufacLurlng secLor means many Lrades LhaL had employed large
numbers of workers ln Lhe pasL are now reduced Lo employlng smaller cohorLs, Lhough wlLhouL
any dlmlnuLlon of Lhe lmporLance of Lhe Lrade Lo Lhe effecLlve funcLlonlng of Lhe workplace. 1he
reduced number of [obs ln Lhese occupaLlons has resulLed ln reduced demand for Lralnlng. ln
Lhese lnsLances malnsLream Lralnlng has become nlche Lralnlng. 1he vlcLorlan Lralnlng sysLem ls
based on a demand-drlven model, and as demand reduces, 81Cs revlew Lhe vlablllLy of offerlng
Lhese quallflcaLlons. 1hls conslderaLlon may also be lnfluenced by Lhe avallablllLy of Lralnlng sLaff
as lL can be Lhe case LhaL Lhese Lechnlcal areas are only belng LaughL by older Lralners who are
on Lhe verge of reLlremenL. As a resulL of Lhese pressures, 81Cs wlLhdraw from Lralnlng and
companles are lefL wlLhouL a formal skllllng opLlon. 1hls developmenL ls noL new, buL lL ls
expecLed Lo grow, and Lhe numbers of Lrades - and companles - affecLed are expecLed Lo

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 173
lncrease ln number. ln Lhe pasL, small pro[ecLs have been funded by governmenL on a one-off
basls Lo address Lhls markeL fallure, and Lhese pro[ecLs have demonsLraLed LhaL lnnovaLlve
soluLlons can be found Lo secure Lralnlng for small cohorLs, lncludlng where Lhey are
geographlcally dlspersed. 1he lssue wlLh Lhls approach ls LhaL Lhe ad hoc naLure of Lhese
responses means Lhere ls general uncerLalnLy as Lo how soluLlons mlghL be found, Lhe
lnLervenLlon commences very laLe ln Lhe skllllng cycle and Lhe work Lends Lo be done ln lsolaLlon.
Improv|ng the Çua||ty of Sk||||ng
Skllllng quallLy ls an lssue of ongolng concern Lo lndusLry and enLerprlses. 1here are examples of
exemplary pracLlce buL excellenL servlce ls noL Lhe norm, and small and medlum-slzed
companles ln parLlcular have greaL dlfflculLy ln undersLandlng how Lhe sysLem works and ln
accesslng Lhe Lralnlng LhaL meeLs Lhelr needs. As a consequence, enLerprlses engage wlLh Lhe
vL1 sysLem less Lhan Lhelr skllls needs warranL, whlch ulLlmaLely has a deLrlmenLal effecL on
Lhelr buslness and on Lhelr workforce. 1here needs Lo be a renewed commlLmenL Lo provldlng
Lhe Lralnlng servlce LhaL lndusLry and enLerprlses need and provldlng lnformaLlon on 81C quallLy
Lo enLerprlses.
Attract|ng ¥oung Þeop|e |nto Manufactur|ng - 1rades and 8eyond
1here ls comprehenslve web-based advlce and guldance maLerlal on careers ln manufacLurlng
whlch ls sulLable for use by young people and also people looklng Lo change lndusLrles or Lo
re-enLer Lhe workforce. ln vlcLorla, Lhls lnformaLlon ls complemenLed by opporLunlLles for young
people Lo galn flrsLhand experlence of manufacLurlng Lhrough Lhe Careers ln ManufacLurlng
program and Lhe ?oung lndusLry Ambassadors program and Lhls has proved Lo be an engaglng
opLlon for young people and Lhelr schools. 1he program would beneflL from Lhe lnLroducLlon
of a sLrucLured evaluaLlon process Lo help supporL an expanslon of Lhe acLlvlLles, parLlcularly lnLo
reglonal areas wlLh hlgh levels of manufacLurlng whlch are sLruggllng Lo reLaln young people buL
whlch also experlence skllls and labour shorLages.
Attract|ng ¥oung Þeop|e |nto Manufactur|ng - Þrofess|ona| Lng|neers
1he domesLlc shorLage of new englneerlng graduaLes ls noL keeplng pace wlLh demand. 1he
maln reason for Lhe weak domesLlc supply ls LhaL sLudenL demand ls noL sLrong enough Lo flll Lhe
avallable places ln englneerlng courses, malnly due Lo fewer senlor sLudenLs dolng maLhemaLlcs
and physlcs as preparaLlon, as well as a decllne ln youLh lnLeresL ln sclence, educaLlon and
Lechnology sLudy and careers. ConLlnulng dlfflculLles ln lnLeresLlng young women ln an
englneerlng career are also a ma[or concern.
1he 2011 cottlcolom speclflcotloo ooJ soppott fot eoqloeetloq eJocotloo reporL ldenLlfled many
lnlLlaLlves LhaL had successfully addressed Lhe lssues and recommended furLher acLlon based on
Lhem. 1he AusLrallan naLlonal Lnglneerlng 1ask lorce ls well placed Lo engage wlLh lndusLry
sLakeholders Lo ldenLlfy sLaLe-based lnlLlaLlves Lo furLher lmplemenL Lhe recommendaLlons of
Lhe 2011 sLudy. 1hese would lnclude lnlLlaLlves Lo lmprove and faclllLaLe Lhe use of paLhways
beLween vL1 and hlgher educaLlon quallflcaLlons and Lo upgrade Lhe skllls of Lhe exlsLlng
workforce wlLh hlgher educaLlon quallflcaLlons.
Sk|||ed M|grat|on
Skllled mlgraLlon ls currenLly an opLlon of varylng lmporLance Lo vlcLorlan manufacLurers and
Lhere are lndlcaLlons LhaL a wlder range of companles are conslderlng Lhls as a fuLure soluLlon
Lo skllls needs. 1he mechanlsms are ln place for vlcLorlan manufacLurers Lo use Lhls avenue Lo
Cverall 8esearch Concluslons
_______________________________________________________________________________
174 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
access skllls, provlded Lhe governmenL ensures LhaL manufacLurlng skllls are glven approprlaLe
prlorlLy ln skllled mlgraLlon plannlng.
L|teracy and Numeracy
More Lhan 70° of vlcLorlan manufacLurlng flrms reporLed LhaL Lhelr buslnesses are affecLed by
low levels of llLeracy and numeracy. Whlle Lhe research lndlcaLed LhaL labourers and process
workers are Lhe occupaLlonal group mosL affecLed, Lhe problem ls noL conflned Lo Lhls group.
lor Lhe exlsLlng workforce, Lhe mosL effecLlve Lralnlng ls LhaL whlch llnks llLeracy and numeracy
developmenL Lo work pracLlces and lssues. 1here are CommonwealLh and vlcLorlan CovernmenL
llLeracy and numeracy programs ln place buL much more needs Lo be done Lo bulld Lhese baslc
skllls on whlch subsequenL skllllng relles.
Improved Data Co||ect|on and D|ssem|nat|on
8evlewlng publlcly avallable Lralnlng daLa for Lhls pro[ecL, lL ls clear Lhere are opporLunlLles Lo
lmprove provlslon whlch wlll supporL publlc pollcy developmenL. lull daLa ls needed from all
8eglsLered 1ralnlng CrganlsaLlons, publlc and prlvaLe, on Lralnlng dellvery Lo lnform governmenL,
lndusLry, enLerprlses and lndlvlduals. 1hls could be made a condlLlon of reglsLraLlon. lndusLry
Lralnlng advlsory bodles need Llmely access Lo up-Lo-daLe Lralnlng sLaLlsLlcs Lo lnform Lhelr work.
ln addlLlon, daLa ls needed from 81Cs where Lralnlng under Lhe vlcLorlan 1ralnlng CuaranLee
cannoL be Laken up by lndlvlduals because Lhe Lralnlng ls noL avallable, alLhough lL ls on Lhe
81C's scope of reglsLraLlon.
S|mp||f|cat|on of Aud|t|ng Systems
Cne of Lhe reasons why companles flnd lL dlfflculL Lo access Lhe Lralnlng Lhey need ls because
Lralners are unsure of Lhe fundlng and audlLlng processes and so shape Lhelr offerlngs around an
ouLdaLed undersLandlng of how Lhe fundlng and audlLlng arrangemenLs work. Whlle Lhe fundlng
sysLem makes lL clear LhaL 81Cs are funded accordlng Lo achlevemenL of compeLencles and
quallflcaLlons, audlLors sLlll look for evldence of aLLendance aL classes, maklng lL dlfflculL for
81Cs Lo accounL for workplace dellvery sLraLegles.
MLL1ING 1nL MANAGLMLN1 AND LLADLkSnIÞ SkILL NLLDS CI 1nL VIC1CkIAN
MANUIAC1UkING SLC1Ck
Strateg|c Iocus |n the Area of Management Sk|||s and 1a|ent W|th|n V|ctor|an
Manufactur|ng I|rms
ManagemenL skllls and LalenL conLrlbuLe Lo lnnovaLlon and compeLlLlveness ln Lhe vlcLorlan
manufacLurlng secLor. 8eLLer managemenL skllls and LalenL wlLhln Lhe vlcLorlan manufacLurlng
secLor wlll help susLaln a capable and moLlvaLed workforce, enhance employee saLlsfacLlon, and
lmprove producLlvlLy and performance, Lhereby faclllLaLlng robusL and susLalnable value creaLlon
ln Lhese enLerprlses. vlcLorlan manufacLurlng flrms need Lo lnvesL more ln a sLraLeglc focus and a
sLrucLured approach Lowards enhanclng managemenL callbre wlLhln Lhelr organlsaLlons.
SysLemaLlcally monlLorlng Lhe quallLy of managemenL pracLlces wlLhln manufacLurlng flrms and
maklng lmprovemenLs ls Lhe key. 1o achleve Lhls, flrms need Lo creaLe a corporaLe culLure LhaL
fosLers change and conLlnuous lmprovemenL ln managemenL capablllLles and workforce skllls.
CrganlsaLlonal lnnovaLlon ls an evoluLlonary process as Lhe organlsaLlon's buslness envlronmenL
ls ever-changlng, and Lhls ln Lurn means LhaL organlsaLlons need Lo consLanLly manage Lhelr skllls
and LalenL base.

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 173
vlcLorlan manufacLurlng flrms need Lo focus on formally ldenLlfylng and fosLerlng managemenL
skllls, and ensure Lhey allgn wlLh overarchlng sLraLeglc goals. lrom an operaLlonal perspecLlve,
Lhese flrms need Lo develop lnLernal pollcles, pracLlces, sysLems and processes Lo perlodlcally
monlLor Lhelr sLandlng on managemenL sklll levels agalnsL benchmarks, ldenLlfy performance
gaps, and deploy lmprovemenL measures as a ' way of llfe'. Whlle manufacLurlng flrms have
room Lo lmprove ln all areas of managemenL, parLlcular aLLenLlon should be pald Lo people
managemenL. 1hese flrms also need Lo lmplemenL Lralnlng and developmenL programs LhaL go
beyond Lechnlcal skllls, and focus on developlng leadershlp and managemenL skllls wlLhln Lhe
workforce.
Management Sk|||s Adv|sory and]or Consu|tancy Serv|ce
As parL of Lhe CommonwealLh managemenL and workforce skllls developmenL pollcy, ullS8 has
recenLly developed LnLerprlse ConnecL Lo provlde buslness advlsory servlces Lo small and
medlum-slzed flrms ln Lhe manufacLurlng, creaLlve, defence, resources Lechnology and clean
Lechnology lndusLrles across AusLralla. 1hrough Lhls servlce, whlch has now been runnlng for
nearly four years, Lhe governmenL supporLs and encourages Lhe developmenL and deploymenL
of managemenL capablllLles as bulldlng blocks and paLhways Lo hlgher performance and
susLalned lnnovaLlon ln AusLrallan manufacLurlng flrms. Slmllar sLraLegles Lo promoLe besL
pracLlce ln managemenL and buslness skllls developmenL wlLh a speclflc focus on Lhe vlcLorlan
manufacLurlng secLor would be hlghly beneflclal.
Leadersh|p and Management Sk||| Deve|opment Þrogram
Leadershlp 21 ls a Lallored SML managemenL and leadershlp developmenL program lnlLlaLed
by ullS8 and almed aL LnLerprlse ConnecL's buslness cllenLs and oLher owner-managers of
small and medlum enLerprlses (SMLs) naLlonally. AL presenL, Lhls Leadershlp 21 program
ls almed Lo be dellvered Lo Lhe 3,300 buslness cllenLs of LnLerprlse ConnecL alone and some
oLher SML owner-managers. 1hls covers only a small proporLlon of all manufacLurlng SMLs ln
AusLralla (and vlcLorla) due Lo Lhe sLrlcL manufacLurlng flrm crlLerla for ellglblllLy as a buslness
cllenL of LnLerprlse ConnecL.
160
1he concepLs of Lhe Leadershlp 21 program are appllcable
Lo any SML owner-manager, and Lhe dellvery of Lhese can lead Lo lmproved producLlvlLy
and performance ln vlcLorlan manufacLurlng SMLs. SupporL for vlcLorlan manufacLurlng flrms Lo
bulld and susLaln managemenL capablllLles Lhrough a focused leadershlp and managemenL sklll
developmenL program would be valuable.


160 ueflnlLlons & LllglblllLy CrlLerla, LnLerprlse ConnecL WebslLe,
hLLp://www.enLerprlseconnecL.gov.au/howLoapply/uocumenLs/LC_ueflnlLlon_and_LllglblllLy_CrlLerla.pdf
Cverall 8esearch Concluslons
_______________________________________________________________________________
176 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
kesearch Þro[ect on Management Capab|||t|es, Sk|||s and 1a|ent |n the V|ctor|an
Manufactur|ng Sector
ullS8 commlssloned Lhe AusLrallan ManagemenL ÞracLlces Þro[ecL and lLs LxLenslon 8esearch as
a sLraLeglc sLep Lowards bulldlng an evldence base Lo make lnformed pollcy declslons Lo bulld
lnnovaLlon capaclLy and performance ln Lhe AusLrallan manufacLurlng secLor. 1he research
pro[ecL, LlLled ºLeadershlp, CulLure and ManagemenL ÞracLlces for Plgh Þerformlng Workplaces
ln AusLralla" was commlssloned by Lhe Workplace lnnovaLlon lund wlLhln Lhe CommonwealLh
CovernmenL's uLLW8 and Lhe SocleLy for knowledge Lconomlcs (SkL), and conducLed by
researchers from Lhe unlverslLy of new SouLh Wales (unSW) ln collaboraLlon wlLh Lhe AusLrallan
naLlonal unlverslLy, Macquarle unlverslLy, and Copenhagen 8uslness School along wlLh oLher
lndusLry parLners. A vlcLorlan manufacLurlng cenLred research pro[ecL LhaL embraced
parLnershlps and collaboraLlons wlLh lndusLry, unlverslLy and oLher publlc secLor deparLmenLs
could be underLaken Lo encourage sharlng of knowledge and besL pracLlces, ln order Lo
undersLand, faclllLaLe and fosLer beLLer managemenL LalenL ln vlcLorlan manufacLurlng flrms.

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 177
8 AÞÞLNDICLS
AÞÞLNDIk 1 SUÞÞLLMLN1Ak¥ 1A8LLS
1ab|e I: kegress|on of management score on managers' |eve| of educat|on |n Austra||an f|rms
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
390 28.30 0.0000 0.0684 0.0660 .33262

ManagemenL Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
_cons 2.484834 .0998329 24.88 0.000 2.288314 2.681133
1ab|e II: kegress|on of management score on non-managers' |eve| of educat|on
|n Austra||an f|rms
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
269 12.83 0.0004 0.0439 0.0423 .33339

ManagemenL Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
non-
manager
uegree (log)
.1048644 .0292361 3.38 0.000 .0472624 .1624664
_cons 2.908314 .0633397 44.36 0.000 2.779434 3.037394
1ab|e III: kegress|on of management score on managers' |eve| of educat|on |n V|ctor|an f|rms
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 12.30 0.0006 0.0966 0.0888 .36238

ManagemenL Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
Manager
uegree
.013941 .0038977 3.31 0.001 0.0023439 .0.0091432
_cons 2.42.733346 0.0947741 29.07 0.000 2.367617 2.943073
Appendlces
_______________________________________________________________________________
178 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL

1ab|e IV: kegress|on of management score on non-managers' |eve| of educat|on
|n V|ctor|an f|rms
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 12.79 0.0003 0.1001 0.0923 .36473

ManagemenL Coef. SLd. Lrr. L Þ>•L• €93° Conf. lnLerval•
non-
manager
uegree
.013941 .0038977 3.38 0.001 .0062203 .0216613
_cons 2.921929 .0613411 47.48 0.000 2.800028 3.04383
1ab|e V: kegress|on of management score on f|rm s|ze |n V|ctor|an f|rms
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
121 7.62 0.0067 0.0602 0.0323 . 38007

ManagemenL Coef. SLd. Lrr. L Þ>•L• €93° Conf. lnLerval•
llrm slze
(log)
.1132107 .0630022 2.80 0.006 0.0331443 0.3103662
_cons 2.163103 0.3236434 6.68 0.000 1.322237 2.80393
1ab|e VI: Ana|ys|s of var|ance - mu|t|nat|ona|s vs. domest|c f|rms
Source SS df MS l Þrob > l
8eLween
groups
4.47307963 2 2.23633983 6.92 0.0014
WlLhln
groups
38.13173378 118 .323130472




______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 179
1ab|e VII: kegress|on of management score on overa|| autonomy |ndex
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
121 4.64 0.0332 0.0373 0.0294 .38701

ManagemenL Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
AuLonomy
lndex
.1923823 .0893938 2.13 0.033 .0133737 .3693909
_cons 3.037246 .0333661 37329 0.000 2.931376 3.162916
1ab|e VIII: kegress|on of management score on organ|sat|ona| h|erarchy
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 7.73 0.0063 0.0631 0.0330 .38734

ManagemenL Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
CrganlsaLlonal
hlerarchy
.21064434 .0736634 2.78 0.006 .0607688 .3603179
_cons 3.032734 .034304 36.22 0.000 2.943188 3.160319
1ab|e Ik: kegress|on of operat|ons management score on managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 7.42 0.0007 0.0606 0.0324 .70313

Cps
managemenL
Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
Manager
uegree
.0036874 .0020886 2.72 0.007 .0013314 .0098243
_cons 3.039714 .1187921 23.39 0.000 2.804409 3.273018


Appendlces
_______________________________________________________________________________
180 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1ab|e k: kegress|on of operat|ons management score on non-managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 7.42 0.0073 0.0606 0.0324 .70313

Cps
managemenL
Coef. SLd. Lrr. L Þ>•L• €93° Conf. lnLerval•
non-
manager
uegree
.0036874 .0020886 2.72 0.007 .0013314 .0098243
_cons 3.038714 .1187921 23.39 0.000 2.804409 3.273018
1ab|e kI: kegress|on of performance management score on managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 14.62 0.0002 0.1128 0.1031 .71633

Þerf
managemenL
Coef. SLd. Lrr. L Þ>•L• €93° Conf. lnLerval•
Manager
uegree
.0081132 .0021224 3.82 0.000 .0039112 .0123192
_cons 2.663719 .1207123 22.07 0.000 2.424611 2.902827
1ab|e kII: kegress|on of performance management score on non-managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 12.10 0.0007 0.0932 0.0873 .73062

Þerf
managemenL
Coef. SLd. Lrr. L Þ>•L• €93° Conf. lnLerval•
non-manager
uegree
.0173373 .0030426 3.48 0.001 .0073488 .0273238
_cons 2.911326 .0796192 36.37 0.000 2.733816 3.069236


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 181
1ab|e kIII: kegress|on of peop|e management score on managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 7.81 0.0061 0.0636 0.0333 .49933

Þeople
managemenL
Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
Manager
uegree
.0041337 .0014796 2.80 0.006 .001203 .0070664
_cons 2.49994 .0841324 29.71 0.000 2.33323 2.666629
1ab|e kIV: kegress|on of peop|e management score on non-managers' |eve| of educat|on
number of
obs
l(1, 437) Þrob>l
8-squared Ad[ 8-squared
8ooL MSL
117 10.39 0.0016 0.0829 0.0749 .49436

Þeople
managemenL
Coef. SLd. Lrr. L Þ>|L| [93° Conf. lnLerval]
non-manager
uegree
.0109994 0.0020886 2.72 0.007 .0013304 .0098243
_cons 3.039714 .1187921 23.39 0.000 2.804409 3.273018
1ab|e kV: 1-test summary - management scores - med|um vs. |arge f|rms
SLaLe Þr(|1|>|L) 1 sLaLlsLlc uegrees of freedom
ManagemenL 0.0038 2.9317 119
CperaLlons 0.0413 2.0632 119
Þerformance 0.0241 2.2849 119
Þeople 0.0001 3.9734 119
ÞroporLlon of managers wlLh degree 0.0030 2.8630 113
ÞroporLlon of non-managers wlLh degree 0.0393 2.0832 113


Appendlces
_______________________________________________________________________________
182 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
1ab|e kVI: 1-test summary - management scores - sma|| f|rms vs. rest of the cohort
SLaLe Þr(•1•>•L) 1 sLaLlsLlc uegrees of freedom
ManagemenL 0.0348 2.1333 119
CperaLlons 0.0162 2.4390 119
Þerformance 0.1923 1.3106 119
Þeople 0.0868 1.7269 119
ÞroporLlon of managers wlLh degree 0.0183 2.3928 113
ÞroporLlon of non-managers wlLh degree 0.6774 0.4171 113
1ab|e kVII: 1-test summary - management scores - 8kW-||sted f|rms vs. rest of the cohort
SLaLe Þr(•1•>•L) 1 sLaLlsLlc uegrees of freedom
ManagemenL 0.0934 1.6913 119
CperaLlons 0.0836 1.7336 119
Þerformance 0.0330 2.1371 119
Þeople 0.7333 0.3416 119
ÞroporLlon of managers wlLh degree 0.0006 3.3310 113
ÞroporLlon of non-managers wlLh degree 0.0648 1.8646 113


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 183
AÞÞLNDIk 2 INSIGn1S IkCM ANAL¥SIS CI ÞLCÞLL MANAGLMLN1 ÞkAC1ICLS CI
VIC1CkIAN MANUIAC1UkING IIkMS
Ana|ys|s I|nd|ngs
• CuallLaLlve analysls of Lhe lnLervlews wlLh Lhe Lwo flrms ln Lhe 'besL' performlng flrm
group and Lhe Lhree flrms ln Lhe 'worsL' performlng flrm group (based on Lhe people
managemenL score aLLalned ln Lhe orlglnal 2009 AMÞ research) provldes lnformaLlon on
Lhe P8M pracLlces adopLed by Lhese vlcLorlan manufacLurlng flrms, and how Lhey
lmpacL Lhe skllls and capablllLles ln vlcLorlan manufacLurlng flrms. Þeople managemenL
ls a managemenL area where vlcLorlan manufacLurlng flrms score leasL and hence have
maxlmum room for Lo lmprove.
• 1he P8M besL pracLlces LhaL have been adopLed by vlcLorlan manufacLurlng flrms across
dlfferenL dlmenslons - Managlng human caplLal, 8ewardlng hlgh performance, 8emoval
of poor performers, ÞromoLlng hlgh performers, ALLracLlng human caplLal, and 8eLalnlng
human caplLal are ldenLlfled. '8esL' P8M flrms ln vlcLorla employ upskllllng, Lralnlng and
developmenL pracLlces ln developlng human LalenL, and managers ln Lhese flrms fosLer
employee engagemenL and promoLe lnnovaLlve capablllLles Lo fosLer a hlgh-
performance workplace culLure. 1he sLudy also reveals where Lhe 'worsL' P8M flrms
ln vlcLorla lag behlnd besL P8M pracLlce, and hence presenL scope for lmprovemenL.
• Whlle Lhe 'besL' vlcLorlan flrms Lake a sLraLeglc ouLlook Lo fosLer good P8M pracLlces
wlLh an lnLenLlon of susLalnlng Lhem over Lhe long Lerm, Lhere does noL seem Lo be
adequaLe focus on creaLlng lasLlng P8M reforms and pracLlces ln Lhe 'worsL' vlcLorlan
flrms wlLh Lhese flrms Laklng a more LacLlcal approach Lo deploylng P8M pracLlces.
• 1he research lnvesLlgaLes Lhe drlvers of P8M besL pracLlces wlLhln Lhese flrms.
SLlmulaLlng facLors whlch acL as acLlvaLors of good P8M pracLlces ln vlcLorlan
manufacLurlng flrms wlll furLher supporL Lhe bulldlng of beLLer P8M envlronmenL ln
vlcLorlan manufacLurlng. Some poLenLlal lnhlblLors of P8M besL pracLlces LhaL may be
responslble for vlcLorla's underperformance ln P8 have been ldenLlfled. vlcLorlan
manufacLurlng flrms can beneflL by paylng speclal aLLenLlon Lo overcomlng Lhese hurdles
ln order Lo reap maxlmum beneflLs.
• As such good P8M pracLlces can aLLracL, fosLer, promoLe and reLaln skllls and LalenL,
Lhereby lncreaslng employee saLlsfacLlon and reLenLlon, creaLlng hlgh-performance
workplaces, and ln Lurn sLraLeglcally drlvlng flrm performance and lnnovaLlon ouLcomes.

Appendlces
_______________________________________________________________________________
184 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Introduct|on
LffecLlve people managemenL can ald ln creaLlng a hlgh-performance workplace by provldlng
Lwo slgnlflcanL advanLages - a human caplLal advanLage and an organlsaLlonal process
advanLage.
161
Puman caplLal advanLage ls creaLed on Lhe basls of an organlsaLlon's hlgher
performlng people as compared Lo Lhelr compeLlLors. Pence, lL ls cruclal for organlsaLlons Lo be
able Lo aLLracL, engage and reLaln Lhe besL employees. CrganlsaLlonal (process) advanLage ls
derlved from havlng more effecLlve ways of worklng Lhan compeLlLors. 1hese can be galned
Lhrough varlous P8M pracLlces such as effecLlve recrulLmenL, Lralnlng and upskllllng, appralsal
sysLems and efflclenL human resource processes.
Puman 8esource ManagemenL (P8M) ls known Lo play an lnLegral role ln developlng skllls and
capablllLles LhaL drlves hlgh performance ln organlsaLlons.
162
Whlle organlsaLlonal P8M funcLlons
do lncorporaLe Lechnlcal or operaLlonal pracLlces, lL ls crlLlcal for flrms Lo also pursue a hlgh
performlng workplace sLraLegy LhaL requlres a more sLraLeglc focus on P8M.
163

CuallLaLlve analysls of Lhe lnLervlews wlLh Lhe Lwo flrms ln Lhe 'besL' performlng flrm group and
Lhe Lhree flrms ln Lhe 'worsL' performlng flrm group (based on Lhe people managemenL score
aLLalned ln Lhe orlglnal 2009 AMÞ research) provldes lnformaLlon on Lhe P8M pracLlces adopLed
by Lhese vlcLorlan manufacLurlng flrms. 1he sLudy unearLhs lnslghLs relaLlng Lo how 'besL' P8M
flrms ln vlcLorla employ upskllllng, Lralnlng and developmenL pracLlces ln developlng human
LalenL, and how managers ln Lhese flrms fosLer employee engagemenL and promoLe lnnovaLlve
capablllLles Lo fosLer a hlgh-performance workplace culLure. lL also reveals where Lhe 'worsL'
P8M flrms ln vlcLorla lag behlnd besL P8M pracLlce, and hence presenLs scope for lmprovemenL.


161 8oxall, Þ., ºAchlevlng compeLlLlve advanLage Lhrough human resource sLraLegy: 1owards a Lheory of lndusLry dynamlcs",
nomoo kesootce Moooqemeot kevlew, vol. 8 lssue 3, 1998, pp. 263-89
162 karaml, A., Analou, l. and CusworLh, !., ºSLraLeglc human resource managemenL and resource-based approach: Lhe evldence
from Lhe 8rlLlsh manufacLurlng lndusLry", Moooqemeot keseotcb News, vol. 27, lssue 6, 2004
163 Lawler, L. and Mohrman, S. A., ºP8 as a SLraLeglc ÞarLner: WhaL uoes lL 1ake Lo Make lL Pappen?", nomoo kesootce lloooloq,
vol. 26, lssue 3, 2003, pp. 13-29

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 183
Ins|ghts from ana|ys|s of peop|e management pract|ces
nkM pract|ces adopted by the 'best' V|ctor|an f|rms
1he flrm demographlcs whlch lncludes flrm slze, ownershlp Lype, and manufacLurlng sub-secLor
of Lhe Lwo vlcLorlan companles ln Lhls group are shown ln 1able 20 below.
1ab|e 24: Company character|st|cs and peop|e management performance of the 'best' V|ctor|an f|rms
164

1he P8M pracLlces adopLed by Lhese vlcLorlan flrms are descrlbed based on Lhe slx dlmenslons
of human resource managemenL as ldenLlfled ln Lhe AMÞ research sLudy:
• Managlng human caplLal,
• 8ewardlng hlgh performance,
• 8emoval of poor performers,
• ÞromoLlng hlgh performers,
• ALLracLlng human caplLal, and
• 8eLalnlng human caplLal.
Manag|ng human cap|ta|
1he 'besL' vlcLorlan flrms currenLly manage human caplLal ln Lhe followlng ways:
• 1ralnlng and upskllllng ls an area of focus from Lhe hlrlng sLages of employmenL rlghL
Lhrough Lo Lhe end of an employee's career,
• 8esldes deslgnlng Lralnlng Lo upgrade people's Lechnlcal skllls, employees' 'sofL' skllls are
also addressed,
• 1ralnlng ls also lmparLed Lo malnLaln sLaff educaLlon ln fulfllllng work-relaLed legal and
sLaLuLory requlremenLs such as occupaLlonal healLh and safeLy,
• 1hese flrms ldenLlfy Lhe need for Lralnlng Lo be a conLlnuous process, oLherwlse
employees wlll noL consLanLly develop and conLrlbuLe beLLer value Lhrough Lhelr roles,
• Lmployee engagemenL and empowermenL ls a key lngredlenL ln Lhelr people
managemenL pracLlces,

164 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan medlum-
slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
noLe: 8elaLlve managemenL scores are presenLed so as Lo noL dlsclose Lhe absoluLe managemenL scores of flrms and malnLaln
confldenLlallLy of lndlvldual flrm daLa.
!" #$ &'$( !" #$ )" *( +,&(#-." / 012)34 567( 8'&9:'5;9#" &< -(5;6# =(6/> ( $<$; -56#(
!" #$ ? ?@A !'$">B CD 8'5." &(#B '&7 EF9" /$(&; 8'&9:'5;9#" &< G(-;
!" #$ C ?CH !'$">B C? !667I G(J(#'<( '&7 K6L'556 8'&9:'5;9#" &< G(-;
Appendlces
_______________________________________________________________________________
186 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• 1ralnlng ls Lallored Lo lndlvldual employee needs, collaboraLlvely ldenLlfled by engaglng
wlLh employees durlng performance revlews, and
• 1ralnlng ls also used as a managemenL Lool Lo culLlvaLe a poslLlve relaLlonshlp wlLh
employees, where employees feel nurLured as lndlvlduals.
1hus Lralnlng asslsLs Lhese flrms ln Lhree ways, as shown below ln CharL 66.
Chart 66: Dynam|cs of tra|n|ng |n bu||d|ng both sk|||s and pos|t|ve f|rm cu|ture
16S




163 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, Puman 8esource ManagemenL ÞracLlces ln
AusLrallan medlum-slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2011

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 187
keward|ng h|gh performance
1he followlng measures are adopLed by Lhe 'besL' vlcLorlan flrms ln rewardlng hlgh performance:
• 1he use of formal reward processes are llnked Lo performance of employees agalnsL
key Þerformance lndlcaLor (kÞl) LargeLs. 1hls kÞl revlew ls lnLegraLed wlLh Lhe annual
lndlvldual performance revlew,
• 1he use of performance reward sysLems ls consLanLly evaluaLed and Lallored Lo sulL Lhe
growlng needs of Lhe company, and of employees,
• 1hese flrms also effecLlvely use lnformal rewards llke movle LlckeLs, meal vouchers,
barbeques and such small Lokens of appreclaLlons, Lo moLlvaLe and provlde lncenLlve for
employees, and
• 1hese flrms [uxLapose lnformal and formal reward measures Lo reach an approprlaLe
balance ln Lhe conLexL of Lhelr organlsaLlon. 1hus Lhls comblnaLlon ls belleved Lo lead
besL pracLlce ln rewardlng hlgh performance.
kemov|ng poor performers
8emovlng poor performers ls an lmporLanL facLor ln P8M, as employees acL and reacL off each
oLher wlLhln Lhe work envlronmenL. 1he 'besL' vlcLorlan flrms manage underperformance
Lhrough Lhe followlng measures:
• 1he 'besL' vlcLorlan flrms recognlse Lhe need Lo ldenLlfy and deal wlLh poor performers,
• Cnce Lhe cause for underperformance ls ldenLlfled, Lralnlng and counselllng are used as
measures Lo overcome Lhe problem,
• uurlng Lhe process, managers monlLor Lhe progress made aL regular lnLervals durlng Lhe
agreed upon revlew Llmeframe, and
• Þoor performers are communlcaLed wlLh all along Lhe process.
Þromot|ng h|gh performers
1he 'besL' vlcLorlan flrms adopL Lhe followlng pracLlces wlLh respecL Lo promoLlng hlgh
performers wlLhln Lhelr company, Lhey:
• focus on promoLlng people from wlLhln based on performance, Lhus provldlng Lhelr
employees a paLhway for career growLh,
• ldenLlfy Lhelr Lop performers and poLenLlal candldaLes for promoLlon Lhrough Lhe
performance revlew process, and
• ldenLlfy candldaLes for promoLlon based on facLors such as employee needs, amblLlons,
level of drlve, and personal goal seLLlng.

Appendlces
_______________________________________________________________________________
188 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Attract|ng human cap|ta|
1he 'besL' vlcLorlan flrms demonsLraLe a range of lnlLlaLlves whlch recognlse Lhe lmporLance of
aLLracLlng human caplLal Lhrough sLraLeglc recrulLmenL (CharL 67). 1he key polnLs Lo noLe are:
• SLraLeglc recrulLmenL by allgnlng Lhe rlghL people wlLh Lhe rlghL roles,
• 1he flrsL sLage ls analysls of Lhe flrm Lo flnd gaps LhaL need Lo be fllled and Lhe 'Lype' of
person requlred Lo flll Lhese gaps. 1hls analysls provldes flrms wlLh Lhe crlLerla necessary
for prospecLlve employees leadlng Lo role allgnmenL, and
• AllgnmenL of employees Lo flrm values and culLure ls also consldered cruclal. P8
managers focus on sLraLeglcally recrulLlng employees who are noL only quallfled Lo fulfll
Lhe [ob roles and requlremenLs, buL also resonaLe wlLh and share Lhe culLure and values
of Lhe flrm.
Chart 67: Þrocess of strateg|c recru|tment
166




166 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, Puman 8esource ManagemenL ÞracLlces ln
AusLrallan medlum-slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2011

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 189
keta|n|ng human cap|ta|
lacLors LhaL conLrlbuLe Lo reLalnlng human caplLal ln 'besL' vlcLorlan flrms are:
• 1he fosLerlng of an organlsaLlonal culLure whlch values and nurLures employees,
• 1he adopLlon of four culLural aspecLs LhaL nurLure employees Lo creaLe a famlly feel
(CharL 68),
• Lmployee engagemenL and empowermenL ls keenly encouraged, resulLlng ln hlgher
employee moLlvaLlon and saLlsfacLlon, and
• lnculcaLlng flexlblllLy wlLhln Lhe work envlronmenL and fosLerlng a cerLaln level
of auLonomy.
Chart 68: keta|n|ng human cap|ta| through f|rm cu|ture
167




167 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, Puman 8esource ManagemenL ÞracLlces ln
AusLrallan medlum-slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch,
AusLralla, 2011
Appendlces
_______________________________________________________________________________
190 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
nkM pract|ces adopted by the 'worst' V|ctor|an f|rms
1he flrm slze, ownershlp Lype, and manufacLurlng sub-secLor of Lhe Lhree vlcLorlan companles ln
Lhls group are shown ln 1able 20 below.
1ab|e 2S: Company character|st|cs and peop|e management performance of the 'worst'
V|ctor|an f|rms
168

1he P8M pracLlces adopLed by Lhese vlcLorlan flrms are descrlbed based on Lhe slx dlmenslons
of human resource managemenL as ldenLlfled ln Lhe AMÞ research, wlLh an alm of
undersLandlng where Lhese flrms lag behlnd besL pracLlce and hence presenL scope for
lmprovemenL.
Manag|ng human cap|ta|
ln regards Lo managlng human caplLal, Lhe followlng characLerlsLlcs are evldenL from Lhe 'worsL'
vlcLorlan flrms:
• 'WorsL' flrms recognlse Lhe lmporLance of Lralnlng and developlng LalenL, however Lhe
exLenL Lo whlch Lhey have esLabllshed sysLems and processes Lo execuLe Lralnlng and
upskllllng ls noL as conslsLenL as ln Lhe 'besL' flrms,
• 1hese flrms prlmarlly ldenLlfy Lralnlng as belng necessary Lo fulfll legal requlremenLs and
enhance 'on-Lhe-[ob' skllls, raLher Lhan almlng for long-Lerm developmenL and beneflLs,
• 1hese flrms do noL show much evldence of employee engagemenL and empowermenL as
parL of human caplLal managemenL,
• 1here ls lack of sLrong and sysLemaLlc collaboraLlon wlLh employees durlng performance
revlew and Lralnlng acLlvlLles, and
• 1here ls no meLhodlcal measuremenL and revlew of human caplLal managemenL
acLlvlLles such as Lralnlng, developmenL and employee engagemenL.


168 uaLa from sample of vlcLorlan flrms from AMÞ LxLenslon 8esearch daLaseL, 8ulldlng uynamlc CapablllLles ln AusLrallan medlum-
slzed manufacLurlng flrms, 8ackground 8eporL, ueparLmenL of lnnovaLlon, lndusLry, Sclence and 8esearch, AusLralla, 2011
!" #$ &'$( !" #$ )" *( +,&(#-." / 012)34 567( 8'&9:'5;9#" &< -(5;6# =(6/> (
!" #$ ? @A =#"B';( CD =#" &;" &<E =9F> " -." &< '&7 G(56#7(7 8(7" ' H6#-;
!" #$ C ?CA =9F>"5 CI =(;#6> (9$E 46'> E 4.($" 5'> '&7 0--65 =#67 8'&9:'5;9#" &< H6#-;
!" #$ J KA =9F>"5 C? !667E L(B(#'<( '&7 M6F'556 8'&9:'5;9#" &< H6#-;

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 191
keward|ng h|gh performance
1he followlng aspecLs are evldenL ln Lhe 'worsL' vlcLorlan flrms wlLh respecL Lo rewardlng hlgh
performance:
• 1here ls no regular and sysLemaLlc use of performance appralsal sysLems ln Lhe 'worsL'
vlcLorlan flrms, Lhls area presenLs scope for lmprovemenL,
• ln flrms LhaL have a formal performance appralsal sysLem, Lhey are resLrlcLed Lo Lhe
managerlal cadre and do noL cascade down Lo Lhe shop floor employees, whose
performance ls assessed on a falrly ad hoc basls,
• 1hese flrms use formal reward pracLlces Lo an exLenL where rewards are mosLly flnanclal
ln naLure and are llnked Lo kÞls and performance, and
• 1hese flrms do noL seem Lo use non-flnanclal and lnformal rewards as a subsLlLuLe
measure for rewardlng hlgh performers.
kemov|ng poor performers
1he 'worsL' vlcLorlan flrms demonsLraLe Lhe followlng characLerlsLlcs when lL comes Lo removlng
poor performers:
• 1hese flrms do noL have well-esLabllshed processes Lo ldenLlfy and deal wlLh poor
performers,
• underperformance ls LoleraLed for lengLhy perlods as lL ls noL ln Lhe 'culLure' of Lhese
companles Lo flre employees,
• 1he resLrlcLlons lmposed by L8As ln Lhe process of removlng employees also conLrlbuLe
Lo Lhe relucLance of Lhese flrms ln confronLlng and deallng wlLh poor performers, and
• 1here ls noL sufflclenL use of remedlal processes and communlcaLlng wlLh employees
durlng Lhe enLlre process of deallng wlLh underperformers.
Þromot|ng h|gh performers
1he 'worsL' vlcLorlan flrms adopL Lhe followlng pracLlces wlLh respecL Lo promoLlng hlgh
performers wlLhln Lhelr company:
• 1he 'worsL' vlcLorlan flrms generally promoLe from wlLhln, buL Lhe number of promoLlon
opporLunlLles ls consLralned by Lhe slze of Lhe flrm,
• 1hese flrms do noL have clearly esLabllshed processes ln place Lo ldenLlfy Lhose
performers who deserve a promoLlon. Plgh performers are generally ldenLlfled on an
adhoc basls, and
• 1he 'worsL' vlcLorlan flrms do noL uLlllse Þerformance uevelopmenL Þlans (ÞuÞs) Lo
focus on Lhe Lralnlng and developmenL of good performers ln a sysLemaLlc manner.

Appendlces
_______________________________________________________________________________
192 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
Attract|ng human cap|ta|
1he followlng characLerlsLlcs are evldenL ln Lhe 'worsL' vlcLorlan flrms ln Lerms of how Lhey
aLLracL human caplLal:
• 1hese flrms vlew sLraLeglc recrulLmenL as an lmporLanL aspecL of LalenL managemenL
and make an efforL Lo allgn rlghL people Lo Lhe rlghL roles,
• 1hey also ensure allgnmenL of Lhe recrulLs wlLh flrm values and culLure, and welgh up
Lhe personallLy and aLLlLude of Lhe prospecLlve employees whlle aLLracLlng LalenL, and
• 1here ls, however, scope for lmprovemenL ln esLabllshlng formal sysLems and pracLlces
Lowards sLraLeglc allgnmenL of LalenL durlng Lhe recrulLmenL and selecLlon process.
keta|n|ng human cap|ta|
1he 'worsL' vlcLorlan flrms demonsLraLe Lhe followlng lnlLlaLlves whlch recognlse Lhe lmporLance
of reLalnlng human caplLal:
• vlcLorlan 'worsL' flrms use regular reLenLlon sLraLegles from Lhe recrulLmenL sLage.
SLraLegles ranglng from malnLalnlng employee lnLeresL Lo flnanclal lncenLlves such as
compeLlLlve remuneraLlon are conslsLenLly used by Lhese flrms,
• 1hese flrms make efforLs Lo undersLand Lhe reasons why employees leave Lhelr flrms,
and
• 1hese flrms have room for lmprovemenL ln Lerm of uLlllslng sLraLegles Lo fosLer LalenL
growLh such as Lralnlng and developmenL lnlLlaLlves Lo engage and reLaln employees.
Act|vators of adopt|ng nkM best pract|ces |n V|ctor|an manufactur|ng f|rms
1he followlng facLors sLlmulaLe Lhe adopLlon of P8M besL pracLlces ln vlcLorlan manufacLurlng
flrms:
• CovernmenL supporL and asslsLance boLh flnanclal and Lhrough oLher resources ls a
slgnlflcanL acLlvaLor especlally ln Lralnlng and developlng human caplLal and LalenL,
• 1hese flrms leverage 1AlL courses, as well as oLher Lralnlng and sklll developmenL
courses provlded by lndusLry groups. 1hese courses asslsL P8 by allowlng less company
resources Lo be Laken up for organlslng and provldlng Lralnlng as Lhls ls done exLernally,
• Company culLure ls seen as a key acLlvaLor, a close-knlL culLure helps bulld a
collaboraLlve work envlronmenL and encourage Leamwork,
• Plgh-quallLy and well-documenLed P8M sysLems, pollcles and procedures esLabllshed as
parL of flrm sLraLegy forms a solld foundaLlon for P8M besL pracLlces, and
• LeglslaLlon whlch proLecLs mlnorlLy groups such as equal opporLunlLy and afflrmaLlve
acLlon sLlmulaLe good P8M pracLlces.


______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 193
Inh|b|tors to adopt|ng nkM best pract|ces |n V|ctor|an manufactur|ng f|rms
1he followlng facLors acL as hurdles ln Lhe adopLlon of P8M besL pracLlces ln vlcLorlan
manufacLurlng flrms:
• 1he resource llmlLaLlon of a small company ls an lnhlblLor of besL pracLlce, as lL
consLralns Lhe company's ablllLy Lo dedlcaLe people Lo key P8 acLlvlLles, such as Lralnlng
and developmenL.
• ln small flrms, Lhe slze also lnhlblLs Lhe company's capaclLy Lo promoLe hlgh performers
and expand LalenL wlLhln senlor managemenL, maklng reLenLlon of employees more
dlfflculL.
• 1he shorLage of Lechnlcally skllled labour ln Lhe manufacLurlng lndusLry ls anoLher
lnhlblLor of LalenL aLLracLlon and reLenLlon. 1here ls a drasLlc decrease ln Lhe number of
apprenLlces ln manufacLurlng lndusLrles, as Lhe Lrade ls noL one LhaL appeals Lo Lhe
younger generaLlon.
• Ceographlcal locaLlon ln a non-meLropollLan area of AusLralla lnhlblLs pracLlces due Lo
Lhe lnablllLy Lo aLLracL skllled sLaff Lo Lhe area.
• lL seems LhaL lndusLrlal regulaLlons and leglslaLlons can acL as lnhlblLors of besL pracLlces.
1he resLrlcLlons lmposed by L8As ln Lhe process of removlng employees conLrlbuLes Lo
Lhe relucLance of flrms ln confronLlng and deallng wlLh poor performers. L8As can also
llmlL Lhe flexlblllLy Lo negoLlaLe conLracLs, whlch lnhlblLs Lhe companles from produclng
a falr and flexlble culLure lf only a few deparLmenLs requlre an L8A. 1hls poses problems
for Lhe company ln Lerms of adopLlng a change culLure and belng flexlble ln Lerms of
respondlng Lo compeLlLlve forces.
• 1he need Lo adhere Lo a myrlad of regulaLory and leglslaLlve requlremenLs places a
burden on flrm managers, for example, a flrm wlLh several manufacLurlng llnes requlres
vasLly dlfferenL acLlvlLles and hence needs Lo adhere Lo dlfferenL legal speclflcaLlons,
pracLlces and llcences.
• Work resLrlcLlons placed on some vlsas are anoLher lnhlblLor. Plrlng of sLaff on resLrlcLed
vlsas creaLes dlsadvanLage for flrms, as Lhey need Lo lnvesL ln Lralnlng and menLorlng for
Lhese sLaff unLll Lhey reach full poLenLlal, by whlch sLage Lhey are forced Lo leave Lhe
company due Lo vlsa llmlLaLlons.

Appendlces
_______________________________________________________________________________
194 A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL
• 1here ls a need for leadershlp and managemenL capablllLy developmenL. Whlle flrms are
enLrepreneurlally savvy, Lhey need more skllls ln Lerms of managlng and runnlng a
buslness. 1hus Lhere ls Lhe need Lo change flrm orlenLaLlon ln Lhe fuLure lf Lhe flrm
wanLs Lo survlve and grow wlLh envlronmenL changes and adapL Lo currenL needs of Lhe
envlronmenL.
• ComparLmenLallsaLlon ln deparLmenLs wlLhln flrms makes lL challenglng Lo sLandardlse
flrm pracLlces. Lach deparLmenL's manager focuses on Lhelr own Leam and Lhus
pracLlces ln place are dlfferenL and lnconslsLenL across deparLmenLs.
• Lack of sLandardlsed, sysLemaLlc and well-documenLed sysLems, pollcles and procedures
lnhlblLs conslsLency ln P8M pracLlces.

Summary
Whlle Lhe 'besL' vlcLorlan flrms Lake a sLraLeglc ouLlook Lo fosLer good P8M pracLlces wlLh an
lnLenLlon of susLalnlng Lhem over Lhe long Lerm, Lhere does noL seem Lo be adequaLe focus on
creaLlng lasLlng P8M reforms and pracLlces ln Lhe 'worsL' vlcLorlan flrms. 1hese flrms Lend Lo
Lake a more LacLlcal approach Lo deploylng P8M pracLlces and Lhe focus ls more on operaLlonal
lmplemenLaLlon, as opposed Lo Lhe rooL enablers of sLraLeglc P8M pracLlces.
Þeople managemenL ls a managemenL area where vlcLorlan manufacLurlng flrms score leasL and
have maxlmum room for lmprovemenL. AddlLlonally, Lhe research reveals facLors LhaL lnfluence
adopLlon of P8M besL pracLlces, and also lnvesLlgaLes whaL drlvers and lnhlblLors lmpacL Lhe
deploymenL of P8M besL pracLlces wlLhln Lhese flrms. SLlmulaLlng facLors whlch acL as acLlvaLors
of good P8M pracLlces ln vlcLorlan manufacLurlng flrms wlll furLher supporL Lhe bulldlng of
beLLer P8M envlronmenL ln vlcLorlan manufacLurlng. Some poLenLlal lnhlblLors of P8M besL
pracLlces LhaL may be responslble for vlcLorla's underperformance ln P8 have been lndlcaLed.
vlcLorlan manufacLurlng flrms can beneflL by paylng speclal aLLenLlon Lo overcomlng such
hurdles ln order Lo reap maxlmum beneflLs. As such, good P8M pracLlces can help aLLracL,
fosLer, promoLe and reLaln skllls and LalenL, Lhereby lncreaslng employee saLlsfacLlon and
reLenLlon, creaLlng hlgh-performance workplaces, ln Lurn drlvlng performance, lnnovaLlon and
compeLlLlveness ln flrms.

______________________________________________________________________________
A More CompeLlLlve ManufacLurlng lndusLry - ManagemenL and Workforce Skllls and 1alenL 193
AÞÞLNDIk 3 CCMÞAN¥ CCNSUL1A1ICNS LIS1
Company Manufactur|ng Industry sub-sector
SLramlL 8ulldlng ÞroducLs MeLal producLs
lans ulrecL Machlnery and equlpmenL manufacLurlng
Mackay ConsolldaLed lndusLrles 1ransporL equlpmenL manufacLurlng
1rlMas CorporaLlon AuLomoLlve parLs
nCl labrlcaLed meLal producL/polymer producL
Cryovac Sealed Alr Þolymer producLs
8lLzer lnLernaLlonal (8uffalo 1rldenL) labrlcaLed meLal producL
A8noLe ÞrlnLlng
labrlcaLed meLal producL company
- asked noL Lo be named

AusLrallan Þaper Þulp, paper and converLed paper producL
AgllenL 1echnologles Machlnery and equlpmenL
8onsLan MeLal producLs
Wllson 1ransformer LqulpmenL manufacLurlng
Murray Coulburn lood manufacLurlng
SÞC Ardmona lood manufacLurlng
Ma[or Lnglneerlng Machlnery and equlpmenL manufacLurlng
CzÞress MeLal sLampers
1oLal Wlndow ConcepLs 8llnd manufacLurers
Pazeldene's Chlcken larm lood manufacLurlng
Applled AusLralla Chemlcals

www.aigroup.com.au www.business.uts.edu.au
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Wayville SA 5034
Tel: 08 8394 0000
Fax: 08 8394 0099
Regional Offices
Albury/wodonga
560 David Street
Albury NSW 2640
PO Box 1183
Albury NSW 2640
Tel: 02 6021 5722
Fax: 02 6021 5117
Ballarat
1021 Sturt Street
Ballarat VIC 3350
PO Box 640
Ballarat VIC 3353
Tel: 03 5331 7688
Fax: 03 5332 3858
Bendigo
87 Wills Street
Bendigo VIC 3550
Tel: 03 5443 4810
Fax: 03 5444 5940
Newcastle
Suite 1, “Nautilos“,
265 Wharf Road
Newcastle NSW 2300
PO Box 811
Newcastle NSW 2300
Tel: 02 4925 8300
Fax: 02 4929 3429
Wollongong
Level 1, 166 Keira Street
Wollongong NSW 2500
PO Box 891
Wollongong East
NSW 2520
Tel: 02 4228 7266
Fax: 02 4228 1898
AFFILIATE
Perth
Chamber of Commerce & Industry
Western Australia
180 Hay Street
East Perth WA 6004
PO Box 6209
East Perth WA 6892
Tel: 08 9365 7555
Fax: 08 9365 7550
UNIVERSITY OF TECHNOLOGY,
SYDNEY
UTS Business School
PO Box 123 Broadway
NSW 2007 Australia
Tel: + 61 2 9514 3624
Fax: + 61 2 9514 3602
Ai GROUP OFFICES
AIG10438

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