Deliverable for Milestone 1(b)

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 Current Position Desired Position • Industry adequately educated and trained to adapt to rapidly changing market environment • Underutilised VET and higher education by the industry 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 TEST CONCLUDE REVIEW 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 world’s best practice • 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 • 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

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 Existing Future • 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 Work Experience Advanced Diploma Masters Degrees C II C IV Diploma C III Secondary Manage-ment Technical Sales Roles ● ○ ● ● ● ● ● ● ● ○ ● ● ● ● ○ ● ● ○ ● ● ○ ○ ● • The Vet and higher education availability is adequate to cater for the printing industry’s 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 industry’s 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 Doesn’t 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 Now 10 years 5 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 Diploma of Printing and Graphic Arts • Small Offset • Print Production Support 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. 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 Print Finishing Print Finishing Finishing • Small Offset • Print Production Support Printing Printing Printing Advanced Diploma of Printing and Graphic Arts Diploma of Printing and Graphic Arts • Other: • Multimedia • Mail House • Carton • General • Services/ Merchants • Screen Printing • Manage-ment Minimal interest in apprenticeships in this area Access to skills via non-trade provision due to technology The Major Area of Printing Industry VET Focus Prime printing apprenticeship (Source: NAC Info Service – www.nacinfo.com.au)

37. VET Training Private Sector Estimated at < 10% Reflect the use of the Training Package by the industry 32.8% Public Sector Substantially generic training outside of apprenticeships and traineeships 67.2% (Source: National VET Plan 2003-2005; NPITC) Public Sector Training Accounts for the Majority of the Printing Industry’s 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 E&T delivery does not satisfy the needs of printers especially for the small printers who represent the bulk of the industry’s businesses and who employ the majority of the industry’s 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. Business enterprises Federal Govt. ANTA Federal Govt. Training Bodies National ITABs State Govt. State ITABS Assoc-iations Unions Universities STAs TAFEs ACE RTOs Teachers Secondary schools Secondary students Employees/ Trainees Business enterprises 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 Training Authorities (normally State Departments of Education and Training) State ITABS – ITBS, Councils 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 < 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 < 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