Deliverable for Milestone 1b

1
IIGF Project Report
Training and Education Needs of the Printing
Industry Now and Into the Future
Deliverable for Milestone 1(b)
23 January, 2004
2
Contents for Data Phase Deliverable
3
Introduction
This document forms the first of 5 deliverables
of the PIAA led study into the Training and
Education Needs of the Printing Industry Now and
Into the Future. The final report for the
project is due on the 7th May 2004. As the first
deliverable, this document provides the following

• A listing and summary of the roles of key
  stakeholders in the education and training of
  printers
• Documentation of interviews held with
  stakeholders in the form of Gap Analyses
• Maps of the current system for printer
  training/education, showing the structures and
  interfaces between the key stakeholders,
  including those relating to policy development,
  funding and delivery
• An input/ output model, developed to dimension
  future printer tradespersons needs and the
  consequential printing industry demands for print
  apprentices
• An overview of printer training and education in
  major overseas countries
• A strategic SWOT based on the work completed above

4
The Completed Project will

• Recommend what needs to be done to meet the
  current and future training and education needs
  of the industry, including priorities in terms of
  training needs and resources required for
  implementation. The recommendations will have
  gone through a thorough industry consultation
  process and agreed with the Project Advisory
  Group.
• It will involve the following stages
• Collection of data on the existing skills base
  and future skills needs of the industry
• Predictions based on the data collected for the
  requirements of education and training into the
  future to enable the development of a vibrant and
  viable industry
• Test and review the predictions through detailed
  consultations with key stakeholders
• Produce an Action Plan for the future training
  needs of the printing industry

5
The Project Has Been Driven by the Print 21
Learnings

• Key industry trends
• The industry predominantly comprises small to
  medium size firms
• There is a high concentration of firms in
  regional Australia
• Value adding is declining
• Capacity utilisation is extremely low and profit
  margins are declining
• The strategic analysis of the industry highlights
  major weaknesses being
• Trade based industry image
• Excess capacity
• Failure of training structures to keep up with
  new and emerging technologies
• Poor management skills
• Lack of entrepreneurial focus
• Lack of understanding of customer needs
• Major findings in terms of threats
• Competing industries such as IT
• The trade/ craft based image of the industry
• Digitization
• Reducing relevance to customers

6
Revolution Model Adopted for the Conduct of this
Project
GAP
Desired Position
Current Position

• Underutilised VET and higher education by the
  industry

• Industry adequately educated and trained to adapt
  to rapidly changing market environment

Data

• SME focus upon short term viability and not
  skills development
• Under-developed management capabilities
• Trade based focus
• Apprenticeship concerns commitment duration
• Training delivery concerns
• Funding issue for adult learning
• Little industry knowledge of training package
• Changes to ITAB structure

Predictions
Implementation

• Next phase of the project

• To be determined after the completion of this
  project

Test

• After predictions and will primarily be
  conducted by workshops with key stakeholders in
  the education and training of printers

7
Project Methodology
PREDICT
REVIEW
TEST
CONCLUDE
DATA

• Identify the key stakeholders
• Establish the available data including other IIGF
  studies
• Via interviews identify data gaps
• Via interviews identify major issues and
  obstacles
• Map training and education facilities as well as
  structural interfaces
• Assessing local education/ training against
  worlds best practice

• Review predictions with industry and key
  training/ education bodies and make adjustments
• Hold seminars, focus groups and workshops to
  achieve wide spectrum of consultation/ input
• Decide whether more data needed or step to
  conclusion phase

• Draw conclusions
• Make recommendations
• Finalise report
• Conclude qualitative/ quantitative training needs
  over 10 years
• Articulate resources required for implementation
  and priorities for application of funds
• Final report to Advisory Group
• Include plan for printers roll out

• Recommend review process

• Develop scenarios for skills needs now and into
  the future
• Model the type of training/education required by
  skill type
• Develop a model for nationally consistent and
  effective training delivery
• Utilise wide industry and other stakeholder
  consultation together with workshops of key
  industry participants to develop straw men
  predictions

8
2nd Curve Thinking Identified in Print 21 as
Imperative for Developing New Value Added Growth
Education Training is Key to This

• 2nd curve
• New thinking/ products and services

• 1st curve
• Traditional printing industry life cycle

Printing Industry Revenue
Incremental thinking
Natural inertia
5 10 years out
Now
Time
9
Education Training to Underpin Growth from
Existing Products and Existing Markets
Products and Services
Future
Existing

• Printed product
• Print and hold services
• Pick and pack services
• Digital printing

• Variable imaging
• Digital file management
• Logistics services
• e-books

Existing
Markets

• Digital publishing
• Digital rights management
• Direct marketing
• Multi-media

Future

• 2nd curve industry growth

10
The US Printing Industry Benchmarking Study
Clearly Demonstrates that Profit Leading
Enterprises Commit More to Education Training
than Profit Challenged Enterprises
11
Australian Printers Benchmarking Study Shows that
there is a Positive Correlation Between
Commitment to Training and Company Performance
(Source IIGF Project A Benchmarking
Investigation in the Australian Printing
Industries)
12
Education and Training Pathways for the Printing
Industry
Advanced Diploma
Work Experience
Masters
Degrees
Diploma
C IV
C III
C II
Secondary
Manage-ment
Technical
Sales
Roles
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• The Vet and higher education availability is
  adequate to cater for the printing industrys
  current needs
• The issues with E T relate more to delivery
  approaches, industry attitudes to training and
  firms low profitability

13

• Deliverable 1.1 - Establish Training Needs Both
  Near Term and Into the Future
• Training needs by skill type, employment level,
  covering desired flexibility in delivery and
  duration of courses
• Skills needs 5 to 10 years out

14
Trade and Non Trade Industry Employee Numbers and
Areas of Particular Focus for this Study
Total Printing Industry Population 116,000 People
Non-trades focus
Screen Printers 5.3
Binders Finishers 11.9
Non-trades focus
Professionals
Managers
20
12
Graphic Prepress 17.6
Associate Professionals
Non-trades occupational trend
6
Newspaper printing publishing
Trades-people 21,000 100
2300
Printing Tradespeople
1070
18
Labourers
5
Press Operators 13,700 65.3
A focus of this report is for offset/
lithographic trades as this area is predominantly
occupied by the industrys SME population
Intermediate Production Transport
10330
Other Trades
13
Clerical Sales Service
4
22
(Source ABS Data, Census 2001)
Areas of particular focus
Print Machinists
Small Offset
15
Plot of all Apprentices Nationally and Trend Line
16
Plot of All Apprentices Numbers for Each State/
Territory (Prepress, Press, Binding Finishing,
Screen Printing)
17
Plot of Prepress Apprenticeship Numbers and Trend
Line
18
Plot of Printing Machinist Apprenticeship Numbers
and Trend Line
19
Plot of Binding Finishing Apprenticeship
Numbers and Trend Line
20
Plot of Screen Printing Apprenticeship Numbers
and Trend Line
21
Summary of Analysis of Future Trades Training
Numbers

• The 2003 2005 NPITC VET Plan suggested that the
  impacts of declining sales and increasing
  productivity would mean substantial decline in
  the need for new apprentices. This, together
  with the educators concerns about sufficient
  numbers to provide critical mass for training
  we thought it important to analyse the impact of
  this by way of a projection of trades needs based
  on an Input/ Output model for print tradespersons
• The interviews conducted and analysis of data
  available indicated the need to critically focus
  upon press tradespersons (small offset and print
  machinists), as there is a significant move away
  by the industry from employing tradespersons for
  prepress, post press and screen printing
• The data used for the development of the Input/
  Output Model utilises ABS and DEWR data,
  assumptions gleaned from previous industry
  reports together with advice from industry
  experts
• Our findings, even allowing for sensitivities,
  project an oversupply for print machinists

22
Supply of Press Operators Most Likely Case
23
With a Focus on Retraining the Average Age of the
Industry Still Doesnt Increase to a Perilous
Level
Printing Machinists Age Profile

• For full details refer Appendix A5 Input/
  Output Trade Employment Needs Analysis
• Average age excludes the 11.2 of the population
  falling into the 15 to 24 age group. We have
  deemed these to be apprentices/ trainees who are
  not yet trades qualified
• Number based upon Most Likely scenario (refer in
  Appendix A5 for Input/ Output Model)

24
Non-Print Services Will Quickly Become a
Significant Part of Printers Revenues
Assumes doubling of ancillary services every 5
years
Services Revenues
Services Revenues
Services Revenues
7
14
28
Print Revenues
Print Revenues
Print Revenues
Assumes US data reflects Australian situation
93
86
72
NOW
5 Years
10 Years
(Sources US GATF/PIA Benchmarking Study 2003,
Expert Opinions)
25
Life Cycle for Traditional Printing Industry is
in Decline Phase
Traditional total print products demand is
expected to increasingly fall over the next 10
years together with further printing workplace
automation and process integration will have a
negative impact on trade jobs and require
upskilling in computer interface for those on the
shop floor
Total Industry Revenue for Traditional Print


Greater adaptation of
Significant presence of

• More sophisticated/ quicker computer technology
  for make ready
• ERP elements
• Equipment self-diagnostics (press, bindery
  finishing
• Client to printer digital interface
• Significant CTP adoption

Penetration of

• Highly sophisticated computer technology for
  faster make ready (press, bindery finishing)
• End to end ERP
• Widespread CTP adoption
• Equipment self-diagnosis
• Wide band direct digital interface

• Quick make-ready technology (press, bindery
  finishing)
• CTP
• Some ERP elements
• Client to printer digital interface

Time
5 years
Now
10 years
26
The Skills Required to Adapt to the Changes
Taking Place in the Traditional Printing Area
will be Largely Determined by Technology Changes
and the Increasingly More Complex and Competitive
Business Environment
(Source Expert Interviews)
27
Traditional Print Skills Needs Summary

• Operatives
• The required skills to adapt to changes in the
  work environment has been identified in the
  previous slide
• The existing training packages have cover for
  training both new entrants and the upskilling of
  existing operatives in the areas required to
  increase the adaptability of operatives to
  changes into the future
• Areas of concern are
• The low awareness of owners/ managers to the need
  for upskilling
• The relatively low attractiveness of upskilling
  to operatives
• Management
• The new skills required have been identified in
  the previous slide
• The skill sets needed relate primarily to
  extracting the maximum profit from a business
  that resides within a declining margin industry
  holding on to volume and strategically engaging
  customers to get a greater share of customer
• There are adequate short courses as well as
  graduate and post graduate courses available by
  various delivery methods
• The economy has a suitably qualified pool of
  tertiary qualified persons to recruit from

28
The Growth and Progression in Ancillary Services
will Place Demands for New Skills Needs Both for
Management and Operatives
29
The Skills Required to Develop Ancillary Services
is Significantly Different to the Skills
Currently Held By Printer Managers and Operatives
30
Non-Traditional Ancillary Print Services E T
Needs Summary

• Operatives
• The key skill types have been identified in the
  previous slide
• The skill areas are different to the current
  print trades skills sets
• TAFE courses including the training package units
  cover the areas of skills required
• In these embryonic areas, there is little data
  showing employment levels nor historic data from
  which projections can be made as to future
  employment numbers
• The high level of IT literacy among the current
  student population, provides a sound platform for
  new employee recruitment in these areas
• Management
• The key skills have been identified in the
  previous slide
• These skill sets are required to facilitate print
  companies to grow into the new areas identified
• There is adequate graduate and post graduate
  courses available to meet the education needs
• There is a pool of suitably qualified persons in
  the workforce from which to recruit

31
Desired Flexibility in Delivery and Duration of
Courses

Source NAC Info Statistics
Note Apprenticeships shown in red

A more detailed analysis of delivery mechanisms
across States/ Territories is available on page
38 - VET Training for Apprenticeship/ Traineeship
Possibilities
32

• Deliverable 1.2 - Map the Current System for
  Printer Training/ Education Delivery
• A complete database of printing and graphic arts
  education and training deliverers
• Training packages
• Methods of delivery
• Assessment of course delivery flexibility

33
Summary of Registered Training Organisations
(RTOs) for Printing Qualifications
(Source National Training Information Service
www.ntis.gov.au)
(Refer Appendix A4 - Listing of Registered
Training Providers for the Printing and Graphic
Arts Training Package - for specific provider
details)
34
The Training Package Provides Common Course Units
for Multiple National Level Qualifications

• Recommended for Front Line Management training

• One unit needs to be completed for CIII and above

Other
A to E Units
5 Unit Levels Other

• Course options constrained by
• Prescribed qualification rules
• Contract negotiations
• Unit selections need to be relevant to both the
  student and the company
• Delivery availability of selected units

235 Course Unit Options for Printing and Graphic
Arts
Units can also be selected from within the other
84 industry Training Packages
35
National Printing Graphic Arts Industry
Qualifications
Certificate II in Printing Graphic Arts
Certificate III in Printing Graphic Arts
Certificate IV in Printing Graphic Arts

• Desktop Publishing
• Print Design

Graphic Prepress
Graphic Prepress
Graphics
Multimedia
Multimedia
Multimedia
Other
Ink Manufacture
Ink Manufacture
Ink Manufacture
Mail House
Mail Houses
Mail Houses
Mail Houses
Finishing
Print Finishing
Print Finishing
Advanced Diploma of Printing and Graphic Arts

• Small Offset
• Print Production Support

Diploma of Printing and Graphic Arts
Printing
Printing
Printing
Cardboard Box Container Carton
Cardboard Box Container Carton
Cardboard Box Container Carton
Carton
General Prevocational Entry
General
General
General
Certificate III in Engineering Graphic Arts
Service Technician
Services/ Merchants
Certificate III in Engineering Mechanical Trade
Graphic Arts Services
Screen Printing
Screen Printing
Screen Printing
Screen Printing
Note Direct Entry can been obtained through
Certificate II Certificate III. Direct Entry is
also obtained through Certificate IV Management/
Sales
Manage-ment
Management/ Sales
(Source NAC Info Service www.nacinfo.com.au)
36
The Major Area of Printing Industry VET Focus
Prime printing apprenticeship
(Source NAC Info Service www.nacinfo.com.au)
37
Public Sector Training Accounts for the Majority
of the Printing Industrys Usage
38
Certificate II and III Dominate Training Package
Delivery
Cert III in Print Finishing 6.7

Diploma of Multimedia 2
Cert III Screen Printing 2
Cert III in Graphic Prepress 14.5
Cert III in Printing 35.8
Training Package Usage
Cert II in Print Design 3
Cert II in Print Production 2
Cert II in Desktop Publishing 32
Certificate IIs 37
Certificate IIIs 57
Diploma 2
(Source National VET Plan 2003-2005, NPITC)
39
VET Training for Apprenticeship/ Traineeship
Possibilities
40
Assessment of Course Flexibility

• Courses/ Units for Study
• Whilst not promoted or well understood by
  printers, the Printing and Graphic Arts Training
  Package does provide a very broad and soundly
  based pool of units that courses can be
  structured from
• The course units available satisfy the range of
  qualifications spanning basic trade to Advanced
  Diploma levels. This is especially so
  considering the ability to leverage units from
  the other 84 industry sector training packages
• The rules applying to the structure of courses
  for apprentices and trainees (Government funded)
  do not impede course flexibilities
• Course Delivery
• Flexibility of ET delivery does not satisfy the
  needs of printers especially for the small
  printers who represent the bulk of the industrys
  businesses and who employ the majority of the
  industrys people
• Apprenticeships by and large are not being
  offered by the small firms in part because the
  potential apprentices cannot be released for
  off-site training
• There is industry interest to upgrade an
  apprenticeship to a Certificate IV level with a
  reduction in duration to 3 years
• There are issues of sufficient students to
  provide critical mass for traditional TAFE
  training delivery
• Consumer choice is constrained by the broad
  nature of single provider status

41

• Deliverable 1.3 - Map the Structures and
  Interfaces Between the Key Stakeholders Involved
  in the Policy Development and Delivery of
  Education/ Training of Printers
• Detailed documentation of the key stakeholders
  nationally, their roles, the key interfaces and
  the current issues/ obstacles
• Complete strategic SWOT of the current training/
  education infrastructure

42
Principle Stakeholder Relationships
Business enterprises
Federal Govt.
Federal Govt.
ANTA
ANTA
National ITABs
National ITABs
DEST
DEST
State Govt.
State ITABS
State Govt.
State ITABS
Assoc-iations
Assoc-iations
Unions
Unions
Universities
Universities
Suppliers
Suppliers
STAs
STAs
TAFEs
TAFEs
ACE
RTOs
ACE
RTOs
Teachers
Teachers
Secondary Schools
Secondary Students
Employees/ Trainees
Business Enterprises
43
Key Stakeholders
44
Key Stakeholders
45
National Training Structure
ANTA Ministerial Council
Replacing 29 National ITABS (Industry Training
Advisory Bodies)
Approvals, Funding
Recommendations
Industry Training Advice
Emerging New National Skills Councils (10)
Australian National Training Authority (ANTA)
Funding for Operations
Policy, Guidelines, Approvals Funds
Recommendations/ Applications
Consultation/ Assistance
Advisory
Industry Training Advice
State ITABS ITBS, Councils
State Training Authorities (normally State
Departments of Education and Training)
ADVICE AND PLANNING
DELIVERY
Funding for Operations
Policy, Guidelines, Approvals Funds
Applications
Skills Advice
Private Providers
Higher Education
TAFE
Schools
46
Major Responsibility for VET Training Funding
Rests with the States
Other
TAFE Institutes
Federal Govt.

• ANTA

Estimated 95 distribution
33 - Share of funding
Adult and Community Education
Departments of Education
Estimated lt 1 distribution
(Source NPITC VET Plan 2003-05 and State/
Territory Implementation Guides)
67 - Share of funding

• Excludes Higher Education which is Federally
  funded
• Excludes enterprise and student financial
  contributions
• Excludes Government incentives to enterprises

Private Providers
States/ Territories
Estimated lt 5 distribution
47
Education Training Provision Chart
E T Courses
Providers of E T
Users of E T
Higher Education (Universities)

• Post Grad Degrees
• Degrees

Enterprises
TAFE Institutes

• Advanced Diplomas
• Diplomas
• Certificates I - IV

Adult and Community Education

• Short courses in variety of areas

Individuals (Students)

• Advanced Diplomas
• Diplomas
• Certificates I IV
• Short courses

Private Providers (RTOs)
48
Synopsis of Stakeholder Interests
49
Synopsis of Stakeholder Interests
50
Strategic SWOT of the Current Training/ Education
Infrastructure
For Next Deliverable
For Next Deliverable
51
Deliverable 1.4 Establish International Best
Practice (Refer Appendix A3 Overseas
Training Review for details)
52
Contents for Deliverable 1.4

• 1.4.1 Country Delivering Best Practice Training
  Based on Agreed Criteria
• 1.4.2 Best Practice Training
• 1.4.3 Gaps Between the Australian System and Best
  Practice

53

• Deliverable 1.4.1 Country Delivering Best
  Practice Training Based on Agreed Criteria

54
Contents for Deliverable 1.4.1

• 1.4.1 (A) Country Delivering Best Practice E T
• 1.4.1 (B) Criteria for Best Practice E T

55
Deliverable 1.4.1 (A) Country Delivering Best
Practice E T

• The study scope for overseas best practice review
  was constrained essentially to web-based
  research. To improve our understanding of this
  research, interviews were conducted with people
  who have investigated, to varying degrees, the E
  T systems overseas
• The complexity and breadth of this subject matter
  requires at least one/ two weeks in-country
  research for each, to conduct a comprehensive
  comparative review
• The data collected in this essentially web-based
  research covers
• New Zealand
• United Kingdom
• United States
• Netherlands
• Germany
• Heidelberg International Print Media Academies
• Whilst a detailed assessment is not feasible,
  nevertheless there are important learnings that
  can be extracted

56
Deliverable 1.4.1 (B) Criteria for Best
Practice E T

• Recognised and strongly positioned lead industry
  body driving E T
• Government training environment that supports the
  adoption of best practice
• An established training framework, fully
  articulated from junior entry levels to tertiary
  education
• A national approach to policy, funding and
  delivery
• Strong value chain linkages between all the key
  industry stakeholders
• Easy access to training (e.g. affordability)
• Fully flexible mode of delivery to fit with
  firms needs
• Adequate supply of teachers and competency
  assessors of the right quality
• Courses and course units directly linked to
  firms E T needs
• Transportable qualifications

57

• Deliverable 1.4.2 Best Practice Training

58
Contents for Deliverable 1.4.2

• 1.4.2 (A) Context for Best Practice E T
• 1.4.2 (B) Content for Best Practice E T
• 1.4.2 (C) Practices and Procedures for Best
  Practice E T

59
Deliverable 1.4.2 (A) Context for Best Practice
E T

• The market situation both now and into the future
  has been articulated
• From (1) above the E T needs have been clearly
  identified
• There is an industry body that has accepted the
  responsibility and accountability for driving the
  E T needs of the industry
• The courses and the course units developed and
  offered are certified by the industry body that
  has the charter for the industry E T
• The modes of training delivery on offer, closely
  reflect the preferences of the industrys
  enterprises
• There are no obstacles for enterprises to access
  the E T
• E T offered is uniform nationally to provide a
  common national industry language and portability
  of industry people
• There is sufficiency of qualified, up to date
  teachers to cover the course units on offer and
  they are periodically reaccredited for teaching
• The Government is supportive of the industrys E
  T
• There is complete knowledge by the industrys
  enterprises of the importance of E T and what
  is offered
• There is a high level of cooperation between the
  key industry stakeholders for E T
• Changes to E T are driven by the industry via
  the responsible industry body and are
  implementable quickly
• The industry has developed a receptive culture
  for E T

60
Deliverable 1.4.2 (B) Content for Best Practice
E T

• The courses offered cover the articulated
  industry E T needs
• The course units and content are developed with
  active participation by industry experts
  nominated by the responsible industry body
• The course units have a direct correlation to the
  articulated industry E T needs
• The course content has a focus on workplace
  appliability
• The utility of the course content is high and the
  level acceptable by the industry

61
Deliverable 1.4.2 (C) Practices and Procedures
for Best Practice E T

• Course exit reviews are undertaken by all
  participants and their supervisors via
  questionnaires
• Periodic E T effectiveness are formally
  undertaken by the responsible industry body with
  questionnaires analysis forming a key input the
  review results are published on the industry
  website
• The responsible industry body is highly
  responsive to industry enterprises
• Interaction between the responsible industry
  body, the training bodies and the industry
  enterprises is cooperative, not complex and
  respectful of the enterprises
• The practices and procedures are documented, easy
  to understand and widely distributed and promoted

62

• Deliverable 1.4.3 Gaps Between the Australian
  System and Best Practice

63
Contents for Deliverable 1.4.3

• 1.4.3 (A) Key Learnings/ Features of Overseas E
  T for Print
• 1.4.3 (B) Key Gaps Between the Australian System
  and Overseas

64
Deliverable 1.4.3 (A) Key Learnings/ Features
of Overseas E T for Print

• The key industry bodies have taken charge of the
  E T agenda, in some cases, they have taken on
  an RTO role
• A philosophy towards minimising disruption to the
  workplace by delivering most of the training at
  the workplace
• A focus on promotion and marketing of the E T
  programs (e.g. videos on career opportunities in
  print distributed to schools)
• Significant attention given to upskill trade and
  management
• Greater formal involvement of the enterprise in
  apprenticeship training
• Enterprise flexibility in choice and control of
  the content and delivery of training
• Flexibility in media for delivery, e.g
• CD Rom
• Simulation software, e.g. prepress, press
  operation
• Provision of print management courses by testing
  institutions
• Major use made of short duration courses for
  trade and management

65
Deliverable 1.4.3 (B) Key Gaps Between the
Australian System and Overseas

• The Australian system doesnt have
• As clear and strong links between the industry
  and the training that is offered
• As many degrees of freedom in choice of E T
  provider
• The same flexibility in E T delivery modes
• As simple policy, funding and delivery decision
  making as compared to New Zealand
• The breadth and depth of industry tailored
  courses as compared to the United States
• As focused an approach to marketing and promotion
  for print E T
• The recognition given to the importance of
  upskilling E T

66
Deliverable 1.5 Strategic SWOT for Printing
Industry Education Training
67
SWOT from Perspective of Printing Enterprises
with Respect to E T
For Next Deliverable
68
SWOT from Perspective of Printing Enterprises
with Respect to E T
For Next Deliverable