DRIVER CPC An update of the situation in the UK: The Trainer

1. DRIVER CPCAn update of the situation in the UK:The Trainer Millbrook, 4th October 2012 Jason VALLINT Business Development Director AA DriveTech

2. Overview • About AADT • Market observations • Supply • Demand • Challenges • Future

3. About AADT • DriveTech 1989 • AA DriveTech 2009 • AA Driving Services 2012 – comprising: • AA and BSM Driving Schools • Intelligent Data Systems • Nationwide 4x4 • Peak Performance • Training volume >500,000 people p.a. (excl. Driving schools) • Approximately 500 ADI fleet registered trainers • 40 dedicated commercial and passenger vehicle trainers • National operation – England, Northern Ireland, Scotland, Wales

4. Driver CPC Training Market Observations • Driver CPC – Directive announced 2003 • 5 years (9 to date) to prepare the market – supply and demand • ‘Overnight ‘market creation - embryonic • Sluggish regulatory and industry governance intervention • ‘Laissez-faire’ policy • Limited investment into supporting infrastructure, information systems etc • ‘Awareness raising’ left to training providers, media etc • Poor publicly available market intelligence on driver statistics • No apparent compelling reason for operators to take action • Scepticism that DCPC a genuine requirement • General malaise (with exceptions) • Intangible consequences and penalties

5. Driver CPC Training Market Observations - Supply • Yet, 1,147 registered JAUPT approved training providers (2011/12) • 92% known to have delivered some sort of training • 4% (46) providers delivered 50% of the training to date • Supply driven by mixture of: • Early JAUPT registration • Acknowledgement of compliance requirement • Low barriers to training market entry – company and individual • A promise of ‘revenue opportunity’ • Initial demand from pioneers / early adopters with existing training partners • Substitution / conversion of existing training regimes to DCPC status • Tender opportunities from public and private sector • Supply chain contractual requirements with stipulated DCPC modules

6. Driver CPC Training Market Observations - Supply • Differences in Approach and Methodology have been developed for: • Mixed open courses • Dedicated company specific courses • Delivered by distinct supplier groupings: • In-house • Third party • Consortia • Wide choice but repetitive - some niche products • Market gradually finding pricing consensus – turbulence remains • Fundamental to the above remains the QUALITY of the training • TRAINER competence and ability to impart knowledge remains variable and questionable – often undetected until course audits • Given quality concerns, pricing of training will be at risk of commoditisation

7. Driver CPC Training Market Observations - Demand • Prejudices still remain: • ‘It will go away’ , ‘Non Applicable’ • Government /training company money making exercise • Typical buyer behaviours • Little guidance to determine: • How to choose training suppliers / partners • What training to specify • Prevalent ‘Tick the box’ compliance rationale • Early selection criteria primarily limited to PRICE alone • Limited benchmark or QUALITY threshold information • Poor planning and anticipation • Buying behaviour remains ‘promiscuous’ • But there is a slow, gradual improvement in buyer discernment ...

8. Challenges • Completing DCPC for all relevant drivers by the deadlines! • Converting DCPC into a positive, value adding experience • Achieved at both individual and corporate levels • It must be seen as a Return on Investment , NOT ‘box ticking’ • Reputation is paramount • QUALITY of training content, scope, depth, consistency, relevance • TRAINER skills improvement – convert knowledge holders into educators • Keeping track and monitoring of new drivers entering the market • Transition and evolution of DCPC • From a stand alone training compliance requirement, into integrated driver development programmes. • The elephant in the room - 2014 ‘cliff edge’

9. Looking to the Future • Is there enough training supply in the market? • Enough quality training supply? • Anticipated training market consolidation • Different forms of training provider • International competition • Higher levels of client expectations of: • Training provision and SERVICE • Choice and Flexibility • Innovation • Improved backbone infrastructure from DSA /DfT • DVLA ,DSA and VOSA data integration - NECESSITY and PRIORITY • Improved information flow to be facilitated for training providers • Improved statistics and data on eligible drivers, training volume trends etc

10. Looking to the Future • The purpose and fabric of Driver CPC must not be undermined • Market is still evolving • DCPC needs to be embraced and supported through regulatory stakeholders • DCPC compliance requires effective enforcement • No regulatory back-tracking on statements of intent • It must not be diluted to suit the needs of short-termism and convenience • Tick box attitude needs to change – driven by suppliers • UK DCPC must remain flexible and innovative • Mandating course content and annual hour quotas must be avoided • Use of technology / e-learning should be considered as viable optional • 7 hour training blocks? • Self regulating quality charter governed by practitioners, setting best practice and common standards • DfT to conduct an official, full review of Driver CPC developments post 2014 deadline

11. Thankyou jason.vallint@AAdrivetech.com www.AAdrivetech.com