Industry insights on skills needs
The Transport and Logistics IRC’s 2019 Skills Forecast identifies the top priority skills in the Transport and Logistics sector as:
- Health and safety
- Operational skills
- Compliance
- Digital skills.
The top priority industry and occupation skill is driving.
Additionally, the top five generic skills in order of importance are listed as:
- Language, Literacy and Numeracy (LLN) (Foundation skills)
- Managerial / Leadership
- Technology
- Learning agility / Information literacy / Intellectual autonomy and self-management (adaptability)
- Design mindset / Thinking critically / System thinking / Solving problems.
According to the job vacancy data, the top requested skills by employers were communication skills and planning skills. The most advertised Transport and Logistics occupations were Bus and Coach Drivers followed by Truck Drivers. The top employers for Transport and Logistics workers were Linfox and Qube Corporation.
Transport and Logistics IRC’s 2019 Skills Forecast identifies the following areas as experiencing a skills shortage, with more than 80% of employer respondents reporting a skills shortage in the last 12 months:
- Heavy vehicle drivers
- Drivers (general)
- Educators, trainers and assessors
- Warehousing
- Supervisors / managers.
The following were also indicated by employers as reasons for the skills shortages:
- Ageing workforce / current staff retiring
- Unattractive job / poor industry image
- Cost / time to achieve the required qualification
- Competition from other organisations
- Wages / salaries considered too low.
Three new industry workforce, skills developments or trends that emerged since the release of the Transport and Logistics IRC’s 2019 Skills Forecast are identified in the Transport and Logistics IRC’s 2020 Skills Forecast (abridged annual update). They relate to new technologies including automated logistics and warehouses, and digital supply chain. Artificial intelligence, machine learning and technologies such as LADAR or Contour Navigation, and robotics can minimise labour and optimise warehouse operations. Automated guided vehicles (AGVs) can be used to perform pallet transport, storage and retrieval and drones for stocktaking and inventory management. Internet of Things (IoT) technology is optimising fleet movement, and by combing with data analytics, logistics organisations can create virtual representations of their warehouses. Data analytics and artificial intelligence can assist organisations shift to data driven decision making by predicting orders based on previous customer behaviour, allowing them to determine the logistic services will be needed and the locations they will be required.
Building on the industry workforce, skills developments or trends identified in the previous two years, the Transport and Logistics IRC’s 2021 Industry Outlook (abridged annual update) highlights nine opportunities and challenges for the industry sector under the categories of supply chain, automation and autonomous vehicle technology, new technology and safety, mobile cranes, digital skills, industry-specific cyber security, mental health and fatigue, labour shortages and an ageing workforce, and integrated logistics in relation to naval shipbuilding:
- The supply chain is diversifying through the use of artificial intelligence, the Internet of Things, blockchain and data analytics to ensure its resilience. As customers use multiple channels for their shopping, omni-channel logistics is growing, and anticipatory logistics is allowing retailers to predict orders.
- A key challenge will be to upskill existing operators within the supply chain in the operation of semiautonomous and autonomous machines, as well as working in robotic warehouses to minimise workplace displacement.
- Autonomous vehicles (AVs) technology is increasing, and there are trials of fatigue management technologies being conducted with Transport Certification Australia releasing a protocol setting interoperability requirements for heavy vehicles with different telematics and fatigue management technologies. New South Wales is transitioning its bus fleet to zero emission by implementing electric buses which require specialized training to ensure full benefit of the technology is realised.
- Crane technologies and operations have undergone significant changes to improve efficiency and safety, and operators need to comply with regulatory requirements.
- The development of digital skills across the entire transport and logistics workforce will be required due to growth in the use of digital technologies. Consideration will need to be given to the backend of digital systems and networks as well as upskilling the existing workforce, for example drivers, at the front end.
- The increasing digitalisation of supply chain operations requires workforce skills to be progressively developed to minimise the risk of cyber-attacks and be capable of reinstating digital systems as quickly as possible if a cybersecurity incident occurs, including compliance with regulatory requirements.
- The issue of mental health in the Transport and Logistics industry has become more prominent recently and has been exacerbated by the increased workload within some sectors due to COVID-19. The industry needs to continue its focus on mental health issues and raising awareness within workforce. To effectively mitigate the risks associated with mental health, with cohesive and standard policies and regulations need to be introduced across all sectors. The IRC will consider the Cross-Sector Mental Health and Organisational Disruption Skill Set currently being developed by the Business Services IRC.
- The average age of the transportation workforce is 45 years old, and the average age of a truck driver is 47. The industry is competing with more high profile or fashionable industries for workforce talent. There is a risk the industry will have a workforce supply crisis within the next 10 to 15 years as the older workers retire.
- There is demand for enhanced technical skills for Integrated Logistics Support (ILS) for the Naval Shipbuilding and Transport and Logistics industries. The Transport and logistics Industry Reference Committee (IRC), on behalf of the Naval Shipbuilding IRC, lead the project to develop seven new Integrated Logistics Support (ILS) Units of Competency and three Skills Sets to meet the requirements of the naval shipbuilding industry.
The Tasmanian Transport and Logistics Industry Workforce Plan 2020-2023 lists a considerable number of workforce challenges including increased competition from other industry sectors for employment opportunities, ageing workforce, poor community understanding of the range of roles available within the sector, limited access to local training and education providers, multiple licensing requirements with underpinning unit of competency pre-requisites, shifting client needs and consumer expectations, emerging technologies, and a multi- layered regulatory environment with a high compliance standard. The plan states the challenges associated with attraction, recruitment, development, and retention of the workforce are compounded by the industry’s operations which can include shift work, long hours, high manual handling, low workforce diversity, increasing digital and literacy demands, and high personal accountability for compliance. With an ageing workforce, there is a high risk vital industry skills and knowledge will be lost.
A view from the top: current workforce challenges in supply chain and logistics identified skills gaps in eight areas and capability gaps in five areas. The skills gaps related to data analytics, truck driving, robotics, cyber security, risk, engineering, customs brokers, and marketing. The capability gaps were in connectedness, or ability to ‘marry’ the different parts of the supply chain, leadership at all levels, problem solving, emotional intelligence, and the ability to meet the challenge of sustainability and ethical demands (ESG). The report states the pace of change due to global influences and new technologies will require the constant upskilling of the workforce. Robotics is already improving the speed and accuracy of routine operations, particularly in warehousing, and there is significant growth in the demand for skills in artificial intelligence and machine learning. Data analytics is enabling businesses to access precise product information which is now key to staying on top of the distribution cycle and to accurately report to consumers the provenance and safety of the products.
The Logistics & Defence Industry Skills Council Road Transport Industry Profiles highlight shortages of Truck Drivers within the freight sub-sector, and taxi drivers and bus drivers for passenger transport. The 2021 Skills Priority List includes Truck Driver (General), Furniture Removalist, Tow Truck Driver and Storeperson under occupations not in national shortage, with strong future demand. Production Clerk, Purchasing Officer, Stock Clerk, Warehouse Administrator, Order Clerk, Despatching and Receiving Clerk, and Import-Export Clerk are included under occupations not in national shortage, with moderate future demand.
The wellbeing of truck drivers has been the focus of a research project led by Monash University. Driving Health is funded by the National Health and Medical Research Council, the Transport Workers Union, Linfox and the Centre for Work Health and Safety. The sixth report released is a survey of the physical and mental health of Australian professional drivers. Findings from the survey include that the physical health of truck drivers is poorer than the average for Australians, that 1 in 2 drivers surveyed reported some level of psychological distress, and that the proportion of truck drivers under 35 with severe psychological distress was almost double that of the average for Australian males in the same age bracket. The report also highlights the long hours reported by the survey respondents impact the ability to access fresh food and exercise which are the basis of the prevention of most chronic illnesses, and unpredictable shifts and working through the night create challenges to accessing a health professional.
