Web viewSource: ACIL Allen Consulting. Accredited training. There are currently two accredited training courses for the bicycle industry: Certificate II in Bicycle Mechanical

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C o n t e n t sExecutive summary vii

1 Project overview 1

1.1 Background 1

1.2 Methodology 1

1.3 This report 2

2 Overview of the bicycle retail sector in Victoria 3

2.1 Industry overview 3

2.2 Bicycle retail industry stakeholders 3

2.2.1 Bicycle industry firms 4

2.2.2 Industry associations 8

2.2.3 Consumer bodies 8

2.2.4 Training organisations 8

2.2.5 Government stakeholders 8

2.3 Industry growth and outlook 9

2.3.1 Recent industry performance 9

2.3.2 Industry outlook 11

2.3.3 Industry trends and their impact on skills needs 12

3 Skills needs and current training delivery in the bicycle industry 15

3.1 Workforce profile 15

3.1.1 Business size 15

3.1.2 Wholesalers 15

3.1.3 Demographics 16

3.1.4 Wages 16

3.1.5 Pathways into the industry 16

3.1.6 Staff turnover and future employment intentions 16

3.1.7 Skills shortages 17

3.2 Skills and training needs 17

3.2.1 Overview 17

3.2.2 Manufacturing / custom building 18

3.2.3 Assembly 18

3.2.4 Retail 19

3.2.5 Fitting 19

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3.2.6 Servicing and repair 19

3.3 Accredited training 20

3.3.1 Overview 20

3.3.2 Training providers 21

3.3.3 National enrolment numbers 21

3.3.4 History of accredited training in Victoria 23

3.3.5 The experience in other states 28

3.3.6 Training costs and viability 29

3.4 Non-accredited training 30

3.4.1 Industry association training 30

3.4.2 Wholesalers 30

3.5 Summary of the issues 32

4 Alternative training options 34

4.1 Summary of challenges for training delivery 34

4.2 Demand side options 35

4.3 Supply side options 37

4.4 Assessment of options 40

4.5 Clusters of options 42

4.6 The role for government 46

4.7 Conclusions 47

5 Recommendations 48

5.1 The prospects for sustainable industry-relevant training delivery 48

5.2 The recommended model for bicycle industry training delivery 49

5.3 Leadership from demand and supply side partners 50

5.4 A process for inviting and commissioning innovative delivery 51

5.5 Ensuring the financial viability of training 52

5.6 Other actions to be pursued 52

Appendix A Stakeholders consulted A-1

Appendix B Example discussion guide B-1

Appendix C Units in the Certificate III C-1

List of boxesBox 1 An overview of bicycle qualifications 20

Box 2 Industry driven accreditation – the UK model 36

Box 3 Return on investment in training proposition for employers 37

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List of figuresFigure 1 Employment and businesses in the bicycle retail sector 3

Figure 2 Bicycle industry stakeholders 4

Figure 3 The Victorian retail bicycle industry 5

Figure 4 Revenue streams and the industry value chain 6

Figure 5 Annual bicycle import quantity 9

Figure 6 Bicycle import growth 10

Figure 7 Bicycle and bicycle accessories import value 10

Figure 8 Monthly imports 11

Figure 9 Cycling participation in Victoria. 11

Figure 10 Retail store staff and the industry value chain 15

Figure 11 Skills and training needs 18

Figure 12 Certificate II in Bicycles, enrolments, selected states 22

Figure 13 Certificate III in Bicycles, enrolments, selected states 22

Figure 14 Certificate II and III enrolments in Victoria, by provider 23

Figure 15 Victorian VET course subsidy rate changes, 2012-2013 25

Figure 16 Current subsidy rates 26

Figure 17 Training needs and gaps 33

Figure 18 Demand and supply side issues for the viability of training in the bicycle industry 35

Figure 19 Assessment of options 41

Figure 20 Effort required and categories of options 42

Figure 21 Cluster 1: Imported industry-run training 44

Figure 22 Cluster 2: VET in schools program in conjunction with industry-driven information to prospective students and partnerships with employers 45

Figure 23 Cluster 3: Centralised workshop and training facility 46

Figure 24 Factors supporting the prospects for sustainable industry-relevant training delivery 49

List of tablesTable 1 National Certificate II enrolments by provider 21

Table 2 National Certificate III enrolments by provider 21

Table 3 Subsidy changes in Victoria 24

Table 4 Subsidy bands 24

Table 5 Revenue per SCH changes 25

Table 6 Subsidy expenditure based on different subsidy rates 26

Table 7 Subsidy and fees overview 27

Table 8 Potential RTO revenue 27

Table 9 Queensland training subsidies 29

Table 10 Revenue per student per annum 29

Table 11 Annual RTO costs 30

Table 12 Viable student number estimates 30

Table 13 Stakeholder consultation list A-1

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Acronyms

ABC Australian Bicycle Council

ABS Australian Bureau of Statistics

ACT Association of Cycle Traders (UK)

ANZSCO Australian and New Zealand Standard Classification of Occupations

BIA Bicycle Industries Australia

BTA Bicycle Training Australia

CPF Cycling Promotion Fund

GTO Group Training Organisation

NCVER National Centre for Vocational Education Research

NMIT Northern Melbourne Institute of TAFE

RCTA Retail Cycle Traders Australia

RPL Recognition of prior learning

RTO Registered Training Organisation

SCH Student contact hour

VET Vocational Education and Training

VETiS VET in schools

VTG Victorian Training Guarantee

BICYCLE INDUSTRY TRAINING IN VICTORIABICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORTFINAL REPORT

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AcknowledgementsThe project team would like to thank all those who participated in consultations and the workshop including employers, employees, industry and consumer associations, and training providers. All participants were welcoming and generous with their time, and provided useful and interesting insights into the industry and training options.

The project team would also like to thank the Steering Committee for its time, advice and support.


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Executive summary

Project overviewACIL Allen Consulting has been commissioned by the Department of Education and Early Childhood Development (DEECD) to examine the delivery of bicycle industry retail, service and repairs training in Victoria.

The impetus for this project was the decision by Northern Melbourne Institute of TAFE (NMIT) in February 2013 to cease the delivery of the bicycle industry training certificates II and III as NMIT found that the reduction in the subsidy rate for the two courses (as part of the Victorian Government’s Refocusing Vocational Training in Victoria reforms) made its delivery of the training uneconomical. Training was delivered under an auspicing arrangement with Bicycle Training Australia (BTA).

The NMIT decision means accredited bicycle training is no longer offered in Melbourne. There are three training organisations in regional Victoria offering the bicycle certificates with relatively low enrolment levels.

Project methodology

The project methodology had three parts. The first stage involved constructing a contemporary profile of the bicycle industry through a desktop review. The second stage developed a detailed history of the delivery of bicycle training in Victoria, including the underlying drivers of recent patterns in training delivery. This involved data analysis and consultations with employers, industry associations, training providers and learners in Victoria and other states.

In the final stage, and based on the desktop analysis and consultations, training delivery options were developed, including both on the demand and supply side. The options were then tested at a workshop attended by representatives from industry, training providers and Auto Skills Australia, and at a meeting of the Project Steering Committee. Feedback from these forums was used to revise the options and inform the implementation recommendations contained in this report.

Industry skills needs and current trainingBroadly speaking, the bicycle retail workforce falls into two categories – bicycle mechanics and retail staff. The industry has a variety of skills and training needs, as mapped relative to the industry’s value chain in Figure ES 1.


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Figure ES 1 Skills and training needs

Source: ACIL Allen Consulting

Accredited training

There are currently two accredited training courses for the bicycle industry:

Certificate II in Bicycle Mechanical Technology (AUR20312)

Certificate III in Bicycle Workshop Operations (AUR30212)

The Certificate II and III qualifications do not enjoy widespread industry recognition and only a small proportion of bicycle mechanics are estimated to have completed accredited training.

Enrolments in accredited bicycle mechanics training in Victoria have increased in recent years, due to the introduction of the Victorian Training Guarantee and the delivery of training by Bicycle Training Australia under the auspices of NMIT. Despite these increases, learner numbers were still relatively low, and training was difficult to deliver economically.

From 2013, as part of the Refocusing Vocational Training in Victoria reforms, the subsidy rate for the bicycle industry Certificate II and Certificate III were reduced from $11.48 and $10.95 (for a large TAFE) to $7.00 and $6.50 respectively.

After the subsidy change was announced in 2012, NMIT revised its revenue sharing agreement with BTA. The revised offer was considered by BTA to be too low a price to deliver the training and so the auspicing arrangement ended.

Consultations for this project included RTOs in other states delivering accredited bicycle industry training. While there are differences between states, RTOs in WA and Queensland also struggle with low enrolment numbers and associated costs, despite subsidy rates higher than the current Victorian rate.


viii


Non-accredited training

There is significant variety in the non-accredited training provided in the bicycle industry. In addition to the non-accredited training provided by BTA, wholesalers and retailers provide a variety of training.

Vendor provided training in the bicycle industry in Australia is relatively broad and is generally available to all retailers stocking the relevant vendors’ products. Retailers sometimes have to pay to attend the training. The vast majority of mechanics training provided by wholesalers presumes a reasonably high level of mechanical ability and experience.

Issues for the viability of training

There are a variety of skills needs in the industry corresponding to the industry’s value chain. Similarly there is a variety of on-the-job training and wholesaler training that aims to meet these skills needs. Some training needs are met by non-accredited and informal training, with the more technical training is carried out by vendors.

There are key training gaps in retail and sales, and in introductory to intermediate mechanics training. Training is needed at the more basic level, particularly for those starting out in the industry.

While the bicycle industry enjoys many factors that would potentially ensure sustainable industry-relevant training, the lack of training uptake and delivery to-date means that there are challenges for training delivery on both the demand and supply sides (Figure ES 2). In concert, these issues pose a significant challenge for the reestablishment of accredited training for the bicycle industry in Victoria.

Figure ES 2 Issues for the viability of training in the bicycle industry

Source: ACIL Allen Consulting, Advance TAFE 2013.


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Alternative training optionsGiven the issues on both the demand and supply sides, this report presents options that address on both sides that could be implemented to establish and secure sustainable high-quality training delivery for the bicycle industry.

Demand side options

Vendor-driven training – Vendors could see benefits in collaborating to adopt industry wide standards for bike assemblers and mechanics as has happened in other highly competitive sectors such as information technology and finance. This could facilitate greater growth in the industry, promote the industry’s reputation for product quality and safety, and reduce the costs associated with avoidable warranty claims and after sales service.

Consumer-driven training – Large bicycle user groups such as Bicycle Network could play a role in driving higher and more consistent skills amongst bicycle assemblers and mechanics through a concerted campaign to inform consumers of the variability in the skills of assemblers and mechanics in the marketplace and the impact that assemblers and mechanics can have on the performance and safety of bicycles. Consumer groups may go a step further and put in place a voluntary system of identifying bike shops that have qualified mechanics.

Industry-certified training tends to be the most common approach to certification and ensuring consistency of skills and competency within an industry. Industry-driven training requires the presence of a well-established and widely recognised industry group with a critical mass of membership, typically in the early days of the emergence of an industry. Given the decline of the Retail Cycle Traders Australia (RCTA), the industry’s ability to promote and drive industry standard training will depend on the influence and reach of the new association that takes its place.

Better public promotion of training – In many industries, training can be driven simply through better public promotion of training. Public promotion of training is most effective when appropriately targeted at those cohorts most interested in a career in the sector. In the case of the bicycle industry, opportunities for targeted public promotion would include through cycling magazines, club networks, major races and cycling events, and careers expos.

Highlight potential returns on investment in training to employers – In discussions with industry, two significant areas for improved information were identified: information on the potential revenue streams from servicing and repairs and information on the impact of highly competent and efficient staff on the potential revenue from both retail and repairs.

Supply side options

Development of VET in schools (VETiS) pathways delivery represents an ideal pathway into the industry given the high interest of young people in the bicycle industry broadly. VETiS delivery will be attractive to employers by making available a larger number of prospective young mechanics and retail workers who have a practical understanding of parts and technology, and who are not just interested in the sector but who have the potential to be immediately productive.

Development of an intensive industry entry course – Similar to VETiS delivery, an intensive entry course into the industry will be attractive to employers by making available a larger number of immediately productive mechanics, including career changers and new entrants. This would be largely consistent with the model adopted in the USA.


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Partner an international training organisation – Under any of the supply side options discussed, there is the potential to partner with an overseas organisation, in particular the UK Association of Cycle Traders (ACT) and UBI, Barnett or Park Tools in the USA. Partnering with a recognised international training provider could provide the catalyst required to change the culture of training in the industry.

Training/workshop model – There may be scope for a business to combine a workshop carrying out repairs and assembly, with a training program. This would provide learners with practical training and the business with two sources of revenue. Such a workshop, with a large stock of mechanics, could help retailers deal with peaks in demand for bicycle assembly and services and repairs by hiring out mechanics or receiving bicycles that need assembly or servicing.

Group training scheme – The group training model involves a group training organisation employing apprentices and trainees and places them with a host employer where they undertake their on-the-job training. The group training model would reduce the risk to bicycle industry employers of taking on a trainee and offer additional support to learners.

Further develop and adopt online teaching tools – The development of online teaching resources for the accredited bicycle training qualification would potentially assist in lowering the cost of training to the industry. The industry could work with Advance TAFE to bring these units to fruition, in exchange for ensuring that those units developed are more widely available to other training providers.

Improve the training package – Consultations with training providers and industry indicate that several units are too prescriptive, leading to the teaching of skills that are not widely needed in the industry. Stakeholders are also concerned that some of the assessment requirements are overly onerous, leading to higher training costs and learner disillusionment. The industry could work with Auto Skills Australia to modify units and assessment requirements as part of the continuous improvement of the training package.

In the Certificate II qualification, there are core units which contain the word ‘automotive’ in the title and description. This results in training requirements that are neither relevant nor reasonable for the qualifications in Bicycle Mechanical Technology. In the promotion of these qualifications, the inclusion of automotive units undermines the relevance and applicability of the qualification as a whole in the eyes of employers.

Reduce length of accredited training – At present the Certificate III in Bicycle Mechanical Technology is delivered as a 2 year traineeship. The Certificate II in Bicycle Mechanical Technology is often delivered as a 1 year traineeship or sometimes as part of a VET in schools program. Any possible reductions in the course length without compromising quality or outcomes would increase the attractiveness of the course from the perspective of the employers and the students.

Increase delivery of RPL – In other states, the delivery of recognition of prior learning has served to improve the viability of supply by providing an additional source of training income (alongside fee-for-service training delivery). In addition, RPL has the effect of quickly promoting accredited training in the industry by increasing the prevalence and general recognition on the qualification.

Change the ANZSCO classification of mechanics – The industry argues the current classification does not reflect the skill level needed to be a bicycle mechanic. Any changes to the classification of bicycle mechanics would likely need to wait for the next ANZSCO review.


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Re-examine subsidy rates – The subsidy rate does not appear to be the primary issue associated with the long-term lack of popularity or recognition of accredited training in the bicycle industry. That being said, the reduction in the subsidy rate precipitated the withdrawal of the remaining Melbourne-based RTO and will make re-establishing supply more difficult. The subsidy rate could be re-examined according to the Government's public value test, particularly in light of the recent growth of the bicycle industry and the potential for continued job growth.

Assessment of options

Figure ES 3 illustrates how the various options fall into four categories:

Big bets have a high expected impact but a low likelihood of success, and typically required significant effort – these options are generally promising but uncertain in nature;

Investments have a high impact as well as a higher likelihood of success but also require significant effort – these options are well worth pursuing but will require a degree of sustained effort before they come to fruition;

Fast results are characterised by a high likelihood of success but relatively low expected impact on long-term training delivery in the industry – given that most of these require relatively low effort, the five actions in this bottom right quadrant should be pursued regardless of whichever other options are contemplated; and

False hopes are generally expected to have a low impact and a low likelihood of long-term success in terms of stimulating and delivering long-term sustainable industry-relevant training for the bicycle industry and should not represent a key part of any strategy going forward.


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Figure ES 3 Categorisation of options


RecommendationsGiven the wide array of options available, it is important the bicycle industry develops an appropriate mechanism to pursue a wide range of options on both the demand and supply sides, including ongoing government facilitation, and a process for inviting and commissioning innovative delivery.

Recommendation 1

The recommended model for bicycle training delivery should comprise:

1. strong entry qualification pathways into entry level positions in the bicycle industry through VET in Schools (VETiS) delivery and an intensive training course; and

2. subsequent pathways into industry-recognised higher skill levels as embodied in the Certificate II and Certificate III traineeship qualifications, potentially based on an international training program.


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Recommendation 2

Building on the current project steering group, that the industry establishes a reference group to explore, assess and take forward the range of demand and supply side options for revitalising training delivery for the bicycle industry. Membership of the body could include:

Leading consumer organisations such as Bicycle Network;

Local Learning and Employment Networks;

Relevant government agencies; and

Past or prospective RTOs – although these RTOs would have to be excluded from the process to select the preferred training model.

Recommendation 3

That the industry reference group run an Expression of Interest process to develop, assess and commission the most sustainable approach to delivering the recommended model of bicycle training delivery.

Recommendation 4

That the industry reference group continue to assess the balance of government, industry and private contributions to ensure that a viable and preferred model of training is able to be implemented.

Recommendation 5

That the industry reference group pursue the range of actions that will lead to short-term results in particular:

Continue to work with Advance TAFE in the development of online units on the grounds that online units will be widely available to other RTOs and/or industry members

Pursue the reclassification of the skill level of bicycle mechanics under ANZSCO

Develop an evidence base to demonstrate the benefits of more highly skilled and qualified mechanics to bike shops

Recommendation 6

Industry to work closely with Auto Skills Australia to improve the design of the training package, specifically:

Reduce the skill level required under in the Certificate II to allow delivery of the qualification to school students as part of VET in schools

Introduce a pathway or industry entry qualification in the form of a Certificate I targeted at bicycle assembly and basic maintenance and servicing

Amending relevant units currently designed for automotive workshops to cater more appropriately to bicycle workshops


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1 Project overview

1.1 BackgroundACIL Allen Consulting has been commissioned by the Department of Education and Early Childhood Development (DEECD) to examine the delivery of bicycle industry retail, service and repairs training in Victoria.

The impetus for this project was the decision by Northern Melbourne Institute of TAFE (NMIT) in February 2013 to cease the delivery of the bicycle industry training certificates II and III as NMIT found that the reduction in the subsidy rate for the two courses (as part of the Victorian Government’s Refocusing Vocational Training in Victoria reforms) made its delivery of the training uneconomical. Training was delivered under an auspicing arrangement with Bicycle Training Australia (BTA).

The NMIT decision means accredited bicycle training is no longer offered in Melbourne. There are three training organisations in regional Victoria offering the bicycle certificates with relatively low enrolment levels.

Training for the bicycle industry is important as the industry continues to grow through increased participation in cycling in Victoria. Governments at all levels are also supporting this growth in cycling for health, to reduce traffic congestion and environmental reasons. Yet many in the industry are concerned there is a shortage of bicycle mechanics and properly trained retail staff.

This report examines the current and likely future needs of stakeholders for bicycle industry retail, service and repairs training. This involves examining the roles employers, training providers, learners, industry associations and the Victorian Government can play in future bicycle industry training and provides recommendations as the basis of future actions.

1.2 MethodologyA Project Steering Committee was formed as a reference point for this project. The Committee consisted of Departmental officials, members of the bicycle industry association, employers within the bicycle industry, and training providers. The Project Steering Committee met regularly with the project team to provide guidance on the project.

This project employed a three part methodology which was developed in discussions with DEECD and the Project Steering Committee.

The first stage involved constructing a contemporary profile of the bicycle industry through a desktop review. The profile includes employers, the workforce, industry history and outlook, and key stakeholders.

The second stage developed a detailed history of the delivery of bicycle training in Victoria, including the underlying drivers of recent patterns in training delivery. This involved analysis of training data from the National Centre for Vocational Education Research (NCVER) and DEECD at the state and provider level.

The project then undertook an extensive round of consultation with employers, industry associations, training providers and learners in Victoria and other states. The consultations


1


indicated the likely demand for bicycle-related training, and provided stakeholder views on the viability, content and delivery of options for training. A full list of the stakeholders consulted is at Appendix A and the discussion guide used in the consultations is at Appendix B.

In the final stage, and based on the desktop analysis and consultations, training delivery options were developed, including both on the demand and supply side. The manner in which these training options could be clustered to increase the chances of success was also examined.

The options and the clusters were then tested at a workshop attended by representatives from industry, training providers and Auto Skills Australia, and at a meeting of the Project Steering Committee. Feedback from these forums was used to revise the options and inform the implementation recommendations contained in this report.

1.3 This reportThe remainder of this report is structured as follows:

Chapter 2 provides an overview of the bicycle retail sector in Victoria;

Chapter 3 examines the skills needs of the industry and the supply of bicycle industry retail, service and repairs training to date;

Chapter 4 sets out supply and demand side options for future industry training ; and

Chapter 5 details recommendations to implement these training options.

Additional information is documented in the appendices.


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2 Overview of the bicycle retail sector in Victoria

2.1 Industry overviewThe bicycle industry in Australia is made up of retailers, importers, manufacturers and wholesalers. It is estimated that in 2011-12 financial year, the industry employed around 10,000 people (BIA, CPF & RCTA 2012).

There are around 925 specialist retail stores, up from 850 three years ago. More than a quarter of these stores are located in Victoria (Figure 1). In addition to these specialist retailers, large chain stores and sporting goods stores also sell bicycles and accessories.

Figure 1 Employment and businesses in the bicycle retail sector

Vic NSW Qld WA SA Tas ACT NT0

300

600

900

1200

1500

1800

0

50

100

150

200

250

300

Employment (LHS)No. of businesses (RHS)

Source: Auto Skills Australia 2013

Most specialist retailers employ bicycle mechanics to assemble bicycles and to repair or maintain bicycles. While there is accredited training for bicycle mechanics, most bicycle mechanics do not possess a relevant qualification (Auto Skills Australia 2013).

2.2 Bicycle retail industry stakeholdersThere are two major firm types within the bicycle industry – retailers and wholesalers. The industry also has a number of industry groups and associated consumer groups. In addition, there are a number of relevant government bodies with an interest in the bicycle industry. These stakeholders and their relationships are set out in Figure 2 and are detailed below.


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Figure 2 Bicycle industry stakeholders


2.2.1 Bicycle industry firms

The relationship between retailers and wholesalers in the bicycle industry has a significant effect on the way the industry operates. It also influences the training needs of the industry and the way in which some training is provided, as discussed in Chapter 3.

Retailers

In the retail bicycle sector, the value chain consists of six business activities:

Manufacturing / custom building. A small number of independent retailers make bicycles according to individual consumer specifications. This can often involve welding and spray painting.

Assembly. The vast majority of bicycles sold by retailers are delivered to the store in a box, partially assembled with retailers finishing the assembly of the bicycle. Some discount department stores do not assemble bicycles, preferring to sell bicycles still in their box.

Retail. Most retailers in the industry sell both bicycles and bicycle accessories. There are a small number of repair shops which only sell bicycle accessories.

Fitting. Both independent retailers and many large bicycle chains offer bicycle fitting services to customers

Service. Most bicycle shops, outside of the discount department stores, offer bicycle servicing which normally involves lubricating the chain, adjusting the wheels, brakes and gears and changing tyre and tubes.

Repair. Repair services are sometimes more complex than bicycle servicing and require diagnosis and parts replacement.

Figure 3 provides an overview of the retail bicycle industry according to this value chain, based on the average bicycle sale value of each industry segment.


4


Figure 3 The Victorian retail bicycle industry


As Figure 3 sets out, there are five major market segments in the bicycle retail sector:

Discount department stores. Stores such as Target and Big W sell relatively cheap bicycles, normally still in their box requiring customer assembly. Children’s bicycles are a large segment of bicycle sales from these stores.

Large bicycle chains. The large chains fall into two categories – shared corporate ownership, whereby one business owns all of the chain stories, or franchises, whereby only a small number of stores are owned by the head business with the rest owned and operated by franchisees.

Independent retailers. The majority (around 80 per cent) of bicycle stores are independent retailers and there is significant variety within this group. Some stores have exclusive arrangements with one wholesaler, others with only a few wholesalers, while some stock a wide variety of bicycle brands. Independent retailers can further be disaggregated into three groups:

Traditional retailers – offer services from assembly to repair and may have semi-exclusive arrangements with a wholesaler. These retailers are likely to stock a large number and type of bicycles, and generate a large portion of their revenue from bicycle sales.

Retail and repairs focus – these retailers stock a smaller number of bicycles (often as part of an exclusive arrangement with a bicycle wholesaler) and see the servicing and repair side of the business as more important that do traditional retailers.


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Custom builders – sell custom built bicycles to passionate and discerning customers. Stock levels in these retailers are likely to be very low, and servicing and repairs an important part of the revenue mix.

Electric bicycle shops. While the number of stores in this segment is small it is an emerging segment of the industry. Recent regulatory changes allowing higher powered electric bicycles and popularity among older consumers have contributed to this growth.

Repair shops. Often located in the inner city, particularly on popular bicycle routes, these shops specialise in bicycle repairs, while also selling accessories.

Retail business models

Bicycle shops generally have three revenue streams – bicycle sales, accessories sales and repairs and services. The relative importance of these revenue streams to different bicycle industry segments, and their relationship to industry’s value chain, are set out in Figure 4.

Figure 4 Revenue streams and the industry value chain

Valu

e ch

ain

Accessories salesRetail

Manufacturing / custom building

Assembly

Service

Repair

Fitting

Bicycle sales

Accessories sales

Repairs and

services

Traditional retailer*

Repairs and services

Repair shop*

Bicycle sales


Retail and repairs*

*Size of bubble represents the relative importance of each revenue stream

Bicycle sales

Accessories sales

Note: Revenue shares are approximations and are based on consultations and the 2013 BIA survey of the bicycle retail sector. Source: ACIL Allen Consulting and BIA 2013a.

As Figure 4 shows there is significant variation in the average size of each revenue stream between bicycle industry segments. As noted above, in traditional retailers bicycle sales are the most significant sources of revenue, with repairs and servicing playing a less important role in the business. Conversely, in repair shops the majority of revenue comes from repairs and servicing with the remaining revenue derived from accessories sales. In those stores with a retail and repairs focus, there is a more even balance between the three sources of revenue.


6


Bicycle sales

Bicycle sales face limited competition from the internet, although a few retailers argue some bicycle enthusiasts are increasingly looking to purchase bicycles from overseas online stores.

Most bicycles are sold fully assembled. Bicycles arrive at retail outlets partially assembled in their box, with employees completing the assembly.

Most retailers provide at least basic fitting services, ensuring the customer’s bicycle is the right size and that the seat is adjusted correctly. A small number of retailers employ bicycle fitting technology, normally an adjustable stationary bicycle with diagnostic equipment.

Accessories sales

Accessories sales revenue stream faces significant competition from online shopping as bicycle accessories are often light weight and thus cheap to ship, and large online retailers can offer an extensive range of products, often at lower prices to those found in Australia retail stores.


Repairs and services face no online competition and so can be expected to grow in importance for the industry as accessories sales, and to a certain extent bicycle sales, move online.

Conscious of competition from online sales and identifying it as a complementary service, some independent bicycle retailers have branched out, co-locating cafes within their retail stores. Some retailers also offer bicycle mechanics training to consumers focusing on basic bicycle servicing.

Wholesalers

Wholesalers (or vendors) play an important role in the sector. A relatively small number of bicycle wholesalers supply the industry in Australia, providing stock to retailers under exclusive or semi-exclusive arrangements. The largest wholesalers in Australia are Giant, Trek, Specialized, Avanti, Pinarello and Apollo.

Some more upmarket bicycle wholesalers, such as Specialized and Trek, provide significant support to associated retailers and are more likely to establish exclusive relationships with retailers. Support includes fitting equipment, business and mechanics training and sales support. Other bicycle wholesalers, normally under semi-exclusive arrangements, provide stock to retailers and offer limited support in the form of sales and mechanics troubleshooting.

In addition to the bicycle wholesalers, there are a smaller number of large bicycle component and accessories vendors such as Shimano, SRAM, Campagnolo and FOX.

These companies sell components to bicycle wholesalers as inputs into the bicycle manufacturing process, and parts and accessories to retail stores. Component wholesalers provide support to retail stores in the form of mechanics training and troubleshooting. The more high-end wholesalers of technical components also receive parts from retail stores to be repaired.

The training offered by bicycle and component wholesalers is discussed in further detail in the following chapter.


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2.2.2 Industry associations

Bicycle wholesalers are represented by Bicycle Industries Australia (BIA) – around 10 per cent of wholesalers in Australia are members. BIA provides industry research, networking events and lobbies government on areas such as electric bicycles regulation, the GST low value import threshold, the design and enforcement of Australian bicycle standards and training for industry.

The Cycling Promotion Fund (CPF) was established in 2000 and operates under BIA. The CPF aims to promote cycling and influence policymakers to make Australia more bicycle-friendly. It is funded by around 15 wholesalers and retailers.

Until late 2013, independent bicycle shops were represented by the Retail Cycle Traders Australia (RCTA). In October 2013, the members of RCTA began proceedings to close the organisation due to lack of interest from the industry. It is possible that some RCTA services will be delivered by BIA in the future.

2.2.3 Consumer bodies

Bicycle Network is the leading bicycle consumer body in Australia with around 47,000 members and approximately 60 permanent staff. The organisation is based in Melbourne and has been operating for 35 years, originally under the name Bicycle Victoria.

Bicycle Network is a not-for-profit organisation which advocates for cyclists and aims to increase cycling participation. In addition to consumer advocacy, the organisation manages a range of rider services and organises major events such as the Great Victorian Bike Ride.

The Amy Gillett Foundation is a not-for-profit organisation focused on reducing the incidence of death and injury of bike riders. It was established in 2006 and works with government and runs public education campaigns to improve bicycle safety.

2.2.4 Training organisations

As discussed in more detail below, there are a number of training organisations providing training to the bicycle industry in Victoria. These include registered training organisations such as Advanced TAFE, and other providers such as BTA.

2.2.5 Government stakeholders

All levels of government have an interest and an impact on the bicycle industry. In 1999 the Commonwealth Government established the Australian Bicycle Council (ABC) to implement the five-yearly Australian National Cycling Strategy. The 2012-2016 strategy sets out the ABC’s plans to work with state and local governments on bicycle infrastructure, promotion, research and safety.

The Victorian state government also has a cycling strategy – Cycling into the Future 2013-23 – which sets out priorities and processes for bicycle infrastructure, promotion research and safety improvements. The strategy is complemented by other Victorian Government planning including:

Victoria's Road Safety Strategy

The Victorian Public Health and Wellbeing Plan 2011-15

Cycle Tourism Action Plan 2011-15

The Victorian Trails Strategy


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The Department of Transport is the state government department responsible for cycling policy and funds cycling paths, bike cages and hoops, education and awareness campaigns and cycling events. The Victorian Government had also established the Victorian Bicycle Advisory Council which provides VicRoads strategic policy and program advice on cycling issues.

Local councils are also important stakeholders in the industry as they fund bicycle-related programs including infrastructure, sporting and recreational facilities and education campaigns.

2.3 Industry growth and outlook

2.3.1 Recent industry performance

Bicycle industry sales are estimated at around $1.1 billion annually (BIA, CPF & RCTA 2012). Almost all bicycles sold in Australia are imported and the number of bicycles imported has increased significantly over the last 15 years from 500,000 in 1998 to 1.4 million in 2012. Imports peaked in 2007, before falling at the time of the global financial crisis and recovering slightly since (Figure 5).

Figure 5 Annual bicycle import quantity

19981999200020012002200320042005200620072008200920102011201220130

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Annual bicycle imports

Source: ABS

Import growth has been volatile over the last decade and half (Figure 6). Such volatility is likely influenced by general economic conditions, such as the economic uncertainty in 2008 and 2009, the exchange rate, and more industry specific factors that drive the domestic demand for bicycles such as success by professional Australian cyclists.


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Figure 6 Bicycle import growth

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Annual bicycle import growth

Source: ABS

The value of bicycle imports has grown more steadily, as has imports of bicycle accessories such as tyres, tyre tubes and bicycle lights (Figure 7).

Figure 7 Bicycle and bicycle accessories import value

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$2

$4

$6

$8

$10

$12

$0

$40

$80

$120

$160

$200

$240Million, A$

Tyres (LHS)Tubes (LHS)Lights (LHS)Bicycles (RHS)

Million, A$

Note: Data converted from US dollars at annual average market exchange rates. Source: WTO COMTRADE database.

Import growth and volatility reflect stakeholder feedback gathered through this project. Retailers report that while the industry has been expanding strongly with significant growth in retail outlets, there is considerable churn with retailers regularly going out of business.

Industry sales are very seasonal with more sales taking place in the final quarter of each year in the lead up to summer and Christmas (Figure 8).


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Figure 8 Monthly imports

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

4 year band 4 year average

Source: ABS

2.3.2 Industry outlook

The outlook for the Victorian bicycle retail industry is generally strong. Cycling is an increasingly popular physical activity and means of transport. In addition, governments at all level (as detailed above) are keen to see further cycling growth and are increasingly investing in cycling infrastructure.

There has been a significant increase in the number of Victorians cycling regular from around 460,000 in 2001 to 600,000 in 2011 (Figure 9).

Figure 9 Cycling participation in Victoria.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

Victorian cycling par-ticipation rate

Source: Victorian Department of Transport 2013

Across Australia, cycling is now the third most popular physical activity, behind aerobics/gym/fitness and swimming and ahead of running, golf and tennis (ABS 2012). The


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large membership base of Bicycle Network and ridership in other developed countries also bode well for the Victorian industry.

2.3.3 Industry trends and their impact on skills needs

There are a number of trends likely to impact the bicycle industry into the future. These trends will also influence future demand for skills and training in the industry.

Changes to consumer preferences

Australians are buying more expensive bicycles due to increased interest in cycling, rising incomes and the higher Australian dollar. This is likely to have increased industry revenue and lead to the growth in specialist retailers of almost 15 per cent in the three years to 2011-12.

With more bicycles being sold, it is also likely that the demand for bicycle maintenance and custom bicycle construction has also increased. More expensive bicycles are often more complex and require additional, or higher cost, maintenance and repairs.

Online competition

Concurrently, and as noted above, the bicycle industry faces increased competition from online retailers. BIA estimates that online sales account for 7 to 16 per cent of the value of sales of bicycles and associated accessories in Australia (van Schaik 2013). Consumers identify price, convenience and a greater product range as reasons for shopping online (Halfpenny 2013).

The industry is increasingly embracing the internet – more than three quarters of Australian bicycle stores have an online presence, and 40 per cent have an online sales capacity (BIA 2013a).

Increased online competition puts a premium on retail stores offering consumers an experience they cannot get online. Retail skills of staff are particularly important in advising consumers on bicycle options and features, as are skills in fitting bicycle for customers.

The impact of online shopping on demand for bicycle mechanics is not clear. Online shopping could disrupt the relationship between a customer and retailer that may develop when a customer buys a bicycle from a local retailer and then has the bicycle serviced at the same retailer for the life of the bicycle.

Conversely, consumers purchasing parts and accessories online may still need assistance fitting these to their bicycles. Consultations with retailers carried out for this project indicated that some consumers are requesting mechanics use accessories and parts bought online.

Maintenance

Demand for bicycle mechanics is also influenced by the propensity of bicycle owners to carry out their own maintenance and repairs. In Victoria, a number of specialist bicycle retailers and organisations such as BTA offer non-accredited training in bicycle maintenance and repairs aimed at bicycle owners.

Increased internet usage may increase the proportion of bicycle owners servicing their own bicycles. Dedicated webpages and tutorial videos mean owners have greater access to the information needed to carry out their own maintenance.

A potential countervailing force to increased owner maintenance aided by increased internet usage is rising consumer wealth. This could see owners value their time more highly and


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thus be in more of a position to pay someone else to carry out the required bicycle maintenance.

Retailers consulted for this project were not concerned about demand for services and repairs being undermined by an increase in consumers carrying out their own maintenance.

Safety

Safety is an important issue for cyclists and the bicycle industry, but there is a lack of evidence than mechanical failure is a large contributor to bicycle accidents and injuries.

Monash Alfred Cyclist Crash Study surveyed 159 people who were patients at emergency departments due to injuries sustained from crashes while riding a bicycle. The leading causes of bicycle accidents were hitting or being hit by a car or another bicycle, striking an object on a carriageway (including tram tracks, potholes, grates and tree branches), and striking the opened doors of parked cars. Nine cyclists (6 per cent) crashed as a result of a bicycle malfunction, most commonly a dropped or broken chain (Biegler 2012).

Other research does not identify mechanical failure as a contributor to bicycle crashes. And there is no evidence that poor assembly of bicycles or poor servicing and repairs is a contributor to bicycle accidents.

According to consumer organisations such as the Amy Gillett Foundation, retailers can contribute to improving cyclists’ safety through educating consumers on the importance of lights and reflectors and safe riding techniques at the time of purchase.

Changes to bicycle technology

Bicycle technology has progressed significantly in recent years, and it appears likely to continue to improve. Electronic gears, hydraulic brakes and complex suspension systems are becoming more common as prices for these technologies fall and consumers become more discerning.

The increased popularity of power-assisted bicycles is also impacting the bicycle industry. There are two types of power-assisted bicycles currently on the market:

Pedelec – which has a motor which is only activated while pedalling; and

E-Bike – which has a motor activated by a handlebar throttle making it possible to cycle without pedalling.

In September 2012, the Victorian Government adopted the new Australian design rules and road laws on power-assisted pedal bicycles meaning bicycles up to 250 watts can now be used without being registered. This is likely to lead to greater use of power-assisted bicycles.

The impact of technological change on the bicycle industry has been varied. It has undoubtedly added to the complexity of bicycle mechanics’ work and therefore increased the value of highly skilled mechanics. Retail staff with up-to-date product knowledge are also becoming more valuable.

Conversely, some technological advancements have reduced the maintenance needs of some bicycles (for example hub gears need little maintenance as the gears are protected from the elements). While some recent technology is so advanced it requires specific equipment to repair, and so must be send back to the wholesaler for maintenance rather than being worked on in a retail outlet.


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Electric bicycles have helped older Australians who may have stopped cycling to continue to ride, thus expanding the bicycle market. While the increased use of power-assisted bicycles could lead to greater demand for professional servicing and repair as such bicycles are more complex, consultations indicate that that the electric components of power-assisted bicycles have a long life and when mechanical failure occurs the electric components are normally just replaced.

On net, however, recent and continued technological advancement in bicycle components is likely to require increased mechanical and retails skills in the bicycle industry in order to provide high quality advice and maintenance services.


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3 Skills needs and current training delivery in the bicycle industry

3.1 Workforce profileBroadly speaking, the bicycle retail workforce falls into two categories – bicycle mechanics and retail staff. As set out in Figure 10, there is considerable overlap in tasks that these two categories of employees carry out.

Figure 10 Retail store staff and the industry value chain


3.1.1 Business size

In the larger stores there is less overlap between the two categories of employees and more specialisation with retail staff working solely on fitting and retail and bicycle mechanics concentrating on tasks in the workshop. The larger retail outlets will employ a number of retail staff, often a mix of full- and part-time, and one or two mechanics.

Smaller, owner/operator businesses are likely to have less staff – often the owner, their partner and one retail worker or mechanic. As a result, there is likely to be less specialisation with mechanics expected to perform fitting and retail tasks, in addition to their workshop responsibilities.

3.1.2 Wholesalers

While they do not employ retail staff, it is estimated that 40 per cent of wholesalers employ bicycle mechanics. Mechanics working for wholesalers can have a number of roles including providing training to retail mechanics, repairing bicycles or parts when retail stockists do not have the necessary skills or tools, and providing troubleshooting advice, often over the phone, to retail mechanics.

Mechanics in the wholesaler sector normally have experience as mechanics in the retail sector.


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3.1.3 Demographics

Consistent with the general retail sector, employees in the retail bicycle industry are likely to be younger than the general workforce. The BIA (2013b) estimates the average age of bicycle mechanics is between 25 and 30 years old. The vast majority of employees and employers in the industry are men.

3.1.4 Wages

Minimum wages for retail employees are governed by the General Retail Industry Award 2010. The Award base rate depends on a variety of factors including the age of the employee, whether they are full-time, part-time or casual, the state or territory they are working in and the relevant pre-modern award. For example, for full time adult employees in the bicycle industry (under the pre-modern Victorian Shops Interim Award 2000) the base rate of hourly pay in Victoria is $17.98, or around $35,000 a year.

The BIA’s survey of retailers indicates most mechanics earn between $20.00 and $25.00 per hour. These figures are supported by retailers consulted as part of this project – annual wages for mechanics begin at around $40,000 and generally rise to about $55,000. There is little scope for wage progression past this level, apart from owning and operating a retail outlet or a specialist bicycle workshop.

3.1.5 Pathways into the industry

Interest in cycling and bicycles is an important motivation for retail workers and mechanics in the bicycle industry.

The pathway into the sector for retail workers is much the same as other parts of the retail sector, although employers do look for a passion for and knowledge of bicycles, in addition to general retail skills and experience. As noted in section 2.3.1, bicycle sales are seasonal with the majority of bicycles sold in the lead up to summer and Christmas. As a result, younger employees are often employed on a casual basis around this peak sales time.

Pathways for potential bicycle mechanics are more complex. Often a young person with an interest in bicycles finds a casual job in the retail and/or assembly operations of a bicycle retailer. After showing aptitude with assembly tasks, the employee begins to carry out basic repairs (such as tyre changes) to support the retailer’s mechanic. Experience in basic repairs and self-teaching outside of work hours then leads to a full-time mechanic position.

Other pathways include qualified tradespeople (such as motor mechanics) looking for a career change or ex-professional cyclists. In these cases, the mechanic will often establish a small retail outlet in which they will carry out most of the repairs and services.

There is also a traineeship model which provides a pathway into the industry through a structured program of accredited on- and off-the-job training (as discussed further below). However there is a low level of uptake of this model, and consultations indicate many retailers are unaware of its existence.

3.1.6 Staff turnover and future employment intentions

Due to characteristics highlighted above, such as limited wage progression and a younger workforce, staff turnover is relatively high in the bicycle retail industry. Employers report struggling to retain employees and that poaching of mechanics takes place.


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As noted, some employees, particularly mechanics, intend to go on to establish their own bicycle business – either a retail outlet or a specialist workshop. There is also scope for retail employees to move into the wholesale sector.

Many employees, however, see their work in the bicycle industry as enjoyable and challenging but relatively short-term. They may be interested in working in the industry while studying or in their 20s, but look for other opportunities for career progression as they get older. This is reflected in the younger age profile of the workforce.

3.1.7 Skills shortages

Auto Skills Australia (2013), based on industry surveys, contends that bicycle mechanics are in severe shortage, particularly Victoria and NSW. Auto Skills Australia estimates there is a nation-wide shortage of approximately 1000 bicycle mechanics in 2012-13.

The BIA’s survey of retailers indicates that half of stores surveyed advertised for a bicycle mechanic in 2012, with half of these stores unable to find a suitable candidate to employ.

Consultations support these findings with a number of retailers reporting difficulty finding skilled bicycle mechanics. There was, however, also a lack of interest in investing in a potentially promising mechanic through on-the-job training or a traineeship. This issue is discussed further in section 4.2.

In order to combat what it sees as a lack of suitably skilled mechanics, the industry has used the recent changes to the Certificate II and III to further promote mechanic training. A website has been developed (bicyclemechanics.com.au) which includes information on careers and training.

Bicycle retailers have also endeavoured to better define career paths in the industry demonstrating the link between bicycle mechanics and business ownership, and the degree to which skills can be transferred to other occupations.

3.2 Skills and training needs

3.2.1 Overview

The bicycle industry has a variety of skills and training needs, as mapped relative to the industry’s value chain in Figure 11.


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Figure 11 Skills and training needs


3.2.2 Manufacturing / custom building

As noted in section 2.2.1, a small number of retailers offer custom bicycle building services. These retailers will work with customers to design a unique bicycle that meets the technical and appearance requirements of the customer. The skills needed for this part of the value chain centre on design, welding and spray painting.

Accredited training is available for these areas in the form of a group of a small number of units called a skill set. For example, learners can undertake the Advanced Body Repair Welding Skill Set which includes the units ‘Apply heat-induction processes’, ‘Carry out gas metal arc welding procedures’ and ‘Carry out spot welding procedures’. Some RTOs also provide non-accredited welding training such as Victoria University’s ‘Welding for Beginners’ which involves 28 hours of tuition for $560.

Similarly, in the case of spray painting, learners can undertake accredited training in the single unit of competency ‘Apply paint by spray’ at a number of RTOs in Melbourne and regional Victoria.

3.2.3 Assembly

Assembly skills are needed to build bicycles from their box for display and sale. The level of technical skill needed to assemble a bicycle is much lower than for servicing and repairs as the bicycle comes partially assembled in the box. Consultations with bicycle retailers indicate that assembling a bicycle out of its box can take from 20 minutes to one hour, depending on the skills and experience of the assembler and the level of additional calibration and adjustment carried out.

The technical skills needed to assemble a bicycle are normally taught on-the-job in the bicycle industry. In many cases the bicycle assembler will also be the retail store’s bicycle mechanic. Where the assembler is employed solely for the role or is normally a retail


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employee and is relatively inexperienced, the bicycle mechanic will often carry out quality assurance to ensure the bicycle is in a suitable condition.

3.2.4 Retail

Retail skills in the bicycle industry include generic retail skills such as interpersonal skills and transacting purchases, and more industry-specific skills such as product knowledge and bicycle advice. Retail skills are becoming more important as stores seek to provide consumers an experience they cannot get online.

There are a number of accredited courses that provide retail training including Certificate I, II and III in Retail. Consultations with industry did not reveal any interest in these generic retail courses.

The bicycle industry Certificate II and III also include retail units such as ‘Establish relations with customers’ and ‘Work in a retail bicycle environment’.

Retail training for bicycle retail employees is provided by bicycle wholesalers, and, to a lesser extent, component wholesalers. Bicycle wholesalers often provide training on customer relations and sales, in addition to training on their own products to so that retail employees can advise customers on the features and uses of the most recent technology. Component wholesalers provide training on their products.

3.2.5 Fitting

Bicycle fitting practices vary from store to store. A small number of retailers employ bicycle fitting technology, normally an adjustable stationary bicycle with diagnostic equipment. In these cases, training is provided by the bicycle wholesaler, which has normally designed the diagnostic equipment.

Most retailers, however, provide fitting services based on conversations with the consumer and basic information such as consumer height and preferences. This is not a particularly technical skill and training for fitting often takes place on-the-job. Some high-end bicycle wholesalers, such as Specialized, offer training on fitting.

3.2.6 Servicing and repair

Along with custom bicycle building, servicing and repair are the most technical segments of the bicycle industry value chain. Most retail outlets have a dedicated bicycle mechanic to carry out service and repairs.

The skills needed for servicing and repair can vary considerably from relatively basic skills such as replacing a punctured tube or lubricating a bicycle chain, to servicing or repairing more complex components such as hydraulic suspension or electronic brakes. Some bicycle components are so complex or require such specific tools that they are normally sent to the wholesaler for repair or servicing.

Broadly, training needs for servicing and repair fall into two categories: introductory for those with limited experience but interested in a career as a bicycle mechanic; and training in more technical, often brand-specific components.

The latter is relatively well served by bicycle and component wholesaler training, provided to retail store employees where the store has an exclusive or semi-exclusive arrangement with the wholesaler. This training can focus on a particular brand of bicycle or component, and normally presumes an intermediate level of bicycle mechanics skill and experience.


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The former, training for bicycle mechanics new to the occupation, has generally been the purview of accredited training, which is discussed in the following section.

3.3 Accredited training

3.3.1 Overview

There are currently two accredited training courses for the bicycle industry:

Certificate II in Bicycle Mechanical Technology (AUR20312)

Certificate III in Bicycle Workshop Operations (AUR30212)

An overview of these courses is provided in Box 1. Both courses are in their first year of operation having replaced the Certificate II in Bicycles and Certificate III in Bicycles courses respectively.

Box 1 An overview of bicycle qualifications

Certificate II in Bicycle Mechanical TechnologyThis qualification covers the skills and knowledge required to perform a range of routine assembly and servicing tasks within the bicycle industry. It is suitable for entry into the bicycle retail, service and repair sector. The Certificate II requires 16 units of competency – 8 core units and 8 electives.The Certificate II in Bicycle Mechanical Technology is intended to prepare new employees or develop existing workers who are performing bicycle service tasks in the bicycle industry.Job roles related to this qualification include: bicycle assembler bicycle service technician assistant mechanic bicycle sales assistant.

Certificate III in Bicycle Workshop OperationsThis qualification covers the skills and knowledge required to perform a broad range of mechanical tasks on a variety of bicycles in the bicycle retail, service and repair sector. The Certificate III requires 28 units of competency – 16 core units and 12 electives.The Certificate III in Bicycle Workshop Operations is intended to prepare new employees or recognise and develop existing workers performing mechanical work in the bicycle retail, service and repair industry. The work may also include tasks related to the operation of the business, retail sales and/or the supervision of others.Employment outcomes targeted by this qualification include: bicycle repair technicians bicycle mechanics

Source: training.gov.au

In this recent refresh by the Auto Skills Australia Industry Skills Council, there were no changes to the employability skills required as determined in consultation with the bicycle retail, service and repair sector. However, the structure of the qualification changed with an increase in the number of core units to include more basic literacy, numeracy and technical skills. In addition, a number of contemporary skills sets were added to the list of possible electives at the Certificate III level (see below).


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3.3.2 Training providers

As set out in Table 1 and Table 2, there were nine RTOs providing bicycle qualifications in 2012 in Australia, with 143 learners enrolled in the Certificate II and 129 enrolled in the Certificate III. Most training providers had very low enrolment levels and three providers ceased bicycle training between 2011 and 2012.

Table 1 National Certificate II enrolments by provider

State 2011 2012Proportion of total enrolments (2012)

Northern Melbourne Institute of TAFE Vic 90 102 71%

Bacchus Marsh Community College Inc Vic 19 15 10%

CY O'Connor Institute WA 12 7 5%

Quality Automotive Training SA 2 5 3%

SkillsTech Australia Qld 16 4 3%

South West Institute of TAFE Vic 4 4 3%

Motor Traders Association of NSW NSW 5 3 2%

TAFE NSW NSW 3 3 2%

Advance TAFE Vic 14 0 0%

Gordon Institute of TAFE Vic 1 0 0%

Total 166 143Note: Covers AUR20311 - Certificate II in Bicycles and AUR20305 - Certificate II in BicyclesSource: ACIL Allen Consulting analysis of NCVER data

Table 2 National Certificate III enrolments by provider

Provider State 2011 2012Proportion of total enrolments (2012)

SkillsTech Australia Qld 87 66 51%

Northern Melbourne Institute of TAFE Vic 42 39 30%

Motor Traders Association of NSW NSW 17 13 10%

TAFE NSW NSW 5 7 5%

Advance TAFE Vic 2 3 2%

Quality Automotive Training SA 1 1 1%

Gordon Institute of TAFE Vic 1 0 0%

South West Institute of TAFE Vic 2 0 0%

The Skills Institute Tas 1 0 0%

Tropical North Qld Institute Of TAFE Qld 1 0 0%

Total 159 129Note: Covers AUR30211 - Certificate III in Bicycles, AUR30205 - Certificate III in BicyclesSource: ACIL Allen Consulting analysis of NCVER data

3.3.3 National enrolment numbers

Enrolments in accredited bicycle mechanics training in Victoria have increased in recent years. This trend is most clearly in the Certificate II courses which saw a massive increase in enrolments (Figure 12).


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Figure 12 Certificate II in Bicycles, enrolments, selected states

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100

120

140

New South Wales

Victoria

Queensland

Western Australia

Notes: Covers three courses: AUR20305 - Certificate II in Bicycles, AUR20311 - Certificate II in Bicycles, and AUR23099 - Certificate II in Bicycles (Services).Selected states: ACT had zero commencements over the period, Tasmania five, SA 17 and NT 19.Source: VOCSTATS

Certificate III enrolments have also increased in Victoria, but this increase has been more in line with enrolments in other states. In Victoria, Certificate III enrolments increased between 2006 and 2010, before falling slightly to 2012 (Figure 13). The state with the highest number of Certificate III enrolments is Queensland, although there has been a significant decrease in this state since 2010.

Figure 13 Certificate III in Bicycles, enrolments, selected states

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100

120

New South Wales

Victoria

Queensland

South Australia

Notes: Covers three courses: AUR30211 - Certificate III in Bicycles, AUR31999 - Certificate III in Bicycles (Mechanics), and AUR32099 - Certificate III in Bicycles (Sales).Selected states: ACT and WA had zero commencements over the period, Tasmania 11, and NT 13.Source: VOCSTATS


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3.3.4 History of accredited training in Victoria

As late of the 1960s, Victoria has a strong bicycle manufacturing sector (led by Malvern Star and retailers making their own bicycle frames), supported by relevant training. There are still a number of people in the industry who were trained at this time as mechanical apprentices, at Malvern Star in particular.

In the early 1990s mechanical training was downgraded from an apprenticeship to a traineeship, impacting the level of Commonwealth and state government support. Around the turn of the century, Kangan Batman TAFE established a bicycle mechanics course in Melbourne which gained little currency with the industry.

More recently, over the period 2008-2012, there were seven providers of accredited bicycle training in Victoria. The majority of these providers had very low enrolment numbers, with no provider’s annual enrolments rising above 20, aside from NMIT (Figure 14).

Figure 14 Certificate II and III enrolments in Victoria, by provider

2008 2009 2010 2011 2012 2008 2009 2010 2011 20120

20

40

60

80

100

120Certicate II enrolments Certicate III enrolments

NMIT Advance TAFE Bacchus Marsh College Gordon TAFE South West TAFE Echuca College University of Ballarat

Note: Covers AUR20305 - Certificate II in Bicycles, AUR20311 - Certificate II in Bicycles, and AUR23099 - Certificate II in Bicycles (Services); and AUR30211 - Certificate III in Bicycles, and AUR31999 - Certificate III in Bicycles (Mechanics).Source: DEECD

As shown in Figure 14, the vast majority of the increase in enrolments from 2009 occurred at NMIT, with some increase at Bacchus Marsh Community College with Certificate II enrolments. There are a number of factors which combined to lead to these enrolment increases.

Importantly, the Victorian Training Guarantee (VTG) was introduced in 2009. The VTG uncapped the number of training places providers could offer in each course and assured a government subsidised training place to all Victorians contingent on a number of criteria. The VTG led to significant growth in enrolments across the VET sector, and likely contributed to the increase in bicycle training.

The VTG subsidy rates for the bicycle courses were at the higher end – for a large TAFE the rate was $11.48 per student contact hour (SCH) for the Certificate II and $10.95 for the Certificate III. These rates were similar to those for automotive courses and trades such as carpentry.


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Significantly, BTA began delivering training in 2009 under an auspicing arrangement with NMIT. While NMIT previously delivered the training in-house, in some cases with the same trainers, the establishment of BTA appears to have led to a more concerted effort to promote the two bicycle industry courses, particularly with VET in Schools.

BTA was a relatively small operation, relying mainly on the efforts of its three person management team, and in particular its joint director / head trainer. The management team took on considerable risk to establish BTA and were motivated by a dedication to the bicycle mechanic vocation.

Finally, consultations indicate that shortly after the introduction of the VTG, two large bicycle chains began enrolling their mechanics in accredited training due to concerns about liability issues. According to stakeholders, consumers of the two chains purchased bicycles that suffered mechanical failure due to poor assembly. To reduce the chance of this occurring in the future and to better protect the two chains against insurance claims, accredited training was sought.

Subsidy rate changes

From 2013, as part of the Refocusing Vocational Training in Victoria reforms, the subsidy rate for the bicycle industry Certificate II and Certificate III were reduced from $11.48 and $10.95 (for a large TAFE) to $7.00 and $6.50 respectively. While before 2013 subsidy rates differed based on the type of training providers, under the Refocusing Vocational Training in Victoria reforms all providers receive the same subsidy rate (Table 3).

Table 3 Subsidy changes in Victoria

Qualification2012 subsidy New subsidy

Small TAFE Large TAFE Non-TAFE All RTOs Band

Certificate II $11.97 $11.48 $10.01 $6.50 C

Certificate III $11.26 $10.95 $10.01 $7.00 C

Source: DEECD

In Victoria, the subsidy rate is determined by two factors: the benchmark hourly rate for the level of qualification and a weighting for the course:

1. The Victorian Government sets higher benchmark hourly rates for foundation and apprenticeship qualifications, and lower rates for diplomas and above and to lower-level certificates where direct vocational benefit is lower.

2. The weighting for each course is set based on ‘its value to the economy (in terms of jobs or productivity) and the extent to which government investment is required to stimulate delivery of, and participation in, this training to meet industry needs’ (Victorian Government 2012b).

The bicycle industry certificates sit in subsidy Band C (Table 4).

Table 4 Subsidy bandsSubsidy band Subsidy range per hour of training delivery

Band A Greater than $10.00

Band B $7.50-$10.00

Band C $5.00-$7.00

Band D $2.00-$4.50

Band E Less than $2

Source: Victorian Government 2012b


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While the subsidy rates for the Certificate II and Certificate III have fallen 43 per cent and 36 per cent (based on the 2012 subsidy rates for a Large TAFE), due to the fact RTOs charge fees for these courses, revenue per SCH has only fallen 33 per cent and 26 per cent respectively (Table 5).

Table 5 Revenue per SCH changes

QualificationSubsidy rate Student

fees

Revenue per SCH

2012 New Change 2012 New Change

Certificate II $11.48 $6.50 -43% $3.50 $14.98 $10.00 -33%

Certificate III $10.95 $7.00 -36% $4.00 $14.95 $11.00 -26%

Note: 2012 subsidy rate is for a Large TAFE. Student fee per SCH is based on fees charged by Advance TAFE.Source: ACIL Allen Consulting, Advance TAFE 2013, DEECD.

To put the subsidy rate change in context, 17 per cent of courses received a larger subsidy cut as a proportion of the previous large TAFE rate than the bicycle Certificate II. 22 per cent of courses received a larger subsidy cut than the bicycle Certificate III. Figure 15 shows the frequency of subsidy rate changes for all VET courses in Victoria. The average subsidy change across the VET sector was -23 per cent (both median and mean).

Figure 15 Victorian VET course subsidy rate changes, 2012-2013

-85%

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-5%

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0

50

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250Number of courses

Bi-cycle Cert II

Bicycle Cert III

Note: 1718 courses. Percentage change between the subsidy rate for a large TAFE in 2012, and the subsidy rate in 2013 for all RTOs. Each column is the count of courses in the five percentage point band including and below the x axis label. The one course that received a 70 per cent subsidy increase is not displayed for formatting reasons. Source: ACIL Allen Consulting analysis of DEECD 2012, DEECD 2013.

While the bicycle industry certificates saw large subsidy falls, the current subsidy rate for the two courses is around the average for all courses in Victoria (both median ($7.00) and mean ($6.76)). Figure 16 shows the number of courses receiving each subsidy rate in Victoria.


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Figure 16 Current subsidy rates

$1.00

$1

.50 $2

.00 $2

.50 $3

.00 $3

.50 $4

.00 $4

.50 $5

.00 $5

.50 $6

.00 $6

.50 $7

.00 $7

.50 $8

.00 $8

.50 $9

.00 $9

.50

$10.0

0

$10.5

0

$11.0

0

$11.5

0

$12.0

0

$12.5

0 0

50

100

150

200

250

300

350Number of courses

Bicycle Cert III

Bicycle Cert II

Note: 2080 courses. Source: ACIL Allen Consulting analysis of DEECD 2013.

The rationale for the 2013 subsidy changes was to improve targeting of VET course subsidies and reduce the projected rate of growth in VET sector subsidies. The introduction of the Victorian Training Guarantee saw a much greater than anticipated number of VET enrolments, and thus government subsidy expenditure significantly exceeded budget forecasts. For example, when the VTG was introduced in 2008-09, the government forecast 2011-12 subsidy expenditure to be around $900 million; the actual expenditure was around $1.3 billion (Peake 2012).

Based on 2012 enrolments, the reduction in the bicycle training subsidy rates would lead to 42 per cent or around $120,000 less government expenditure annually (Table 6).

Table 6 Subsidy expenditure based on different subsidy rates

Qualification 2012 EnrolmentsSubsidy expenditure

Difference2012 subsidy rate New subsidy rate

Certificate II 116 $213,069 $120,640 -$92,429

Certificate III 41 $71,832 $45,920 -$25,912

Total 157 $284,901 $166,560 -$118,341Note: Enrolments based on actual 2012 figures. Expenditure based on an annual 320 hours of study.Source: ACIL Allen Consulting analysis of DEECD data.

NMIT and BTA

Under the auspicing arrangement between NMIT and BTA, BTA received $5.50 per SCH (regardless of the certificate). NMIT provided facilities for the training at its Fairfield campus and equipment, and covered the cost of utilities. NMIT also took responsibility for all administration of the courses and student marking. For this, NMIT received $5.98 per SCH for Certificate II learners and $5.45 for Certificate III learners, in addition to $3.00-$4.00 per SCH in student fees and $200-$300 in amenities and materials fees.

After the subsidy change was announced in 2012, NMIT revised the revenue sharing agreement and offered BTA $3.50 per SCH. BTA considered this too low a price to deliver the training and so the auspicing arrangement ended.


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Advance TAFE and BTA

In September 2013, Advance TAFE and BTA established an auspicing arrangement for the delivery of the Certificate II and III. Advance TAFE, in addition to having the training on scope and maintaining a low level of on-the-job delivery, had been developing an online tool to aid the delivery the Certificate II and III. Without the online tool, Advance TAFE may not have been interested in a partnership with BTA.

The online tool provides content and assessment for some units, and aids with administration of the course, marking across all units and identifying skills gaps. As a result, it reduces the amount of face-to-face training required and administration, and therefore reduces the cost of training delivery. The online tool was developed in part with a grant from the Victorian VET Development Centre.

Under the auspicing arrangement with Advance TAFE, BTA began delivering the Certificate II in late 2013 and planned to deliver the Certificate III in 2014. The training took place in workshop space provided rent-free by Alta Bicycle Share (the firm that operates the Melbourne Bike Share scheme); BTA pays the utility costs. The subsidy rate and student fees for the two Certificate courses are set out in Table 7.

Table 7 Subsidy and fees overview

QualificationGovernment subsidy per

SCH

Student fee per SCH

Number of SCHs

Materials feesTotal student

cost

Certificate II $6.50 $4.00 250 - 390 hours $40 $1,040 -

$1,600

Certificate III $7.00 $3.50 535 - 745 hours $60 $1,933 -

$2,668

Note: Student fee per SCH and material fees are based on fees charged by Advance TAFE.Source: Advance TAFE 2013, DEECD

In December 2013, BTA announced that it would withdraw from its agreement with Advanced TAFE. BTA reported that it was uneconomical to deliver the training, in particularly the associated administrative and compliance tasks, at the rate of funding provided by Advance TAFE.

While it is not clear exactly what the revenue sharing arrangement between Advance TAFE and BTA was, Table 8 sets out the overall revenue likely to be available to Advance TAFE, presuming around 30-40 student enrolments annually.

Table 8 Potential RTO revenue

QualificationRTO revenue per

SCHMinimum viable student numbers

Minimum viable SCHs

Total RTO revenue

Certificate II and III $10.50 30-40 ~15,000 $157,500

Note: Student fee per SCH is based on fees charged by Advance TAFESource: Advance TAFE, DEECD

Other BTA undertakings

In early 2013, BTA began exploring the option of becoming a registered training organisation. This would have removed the need to auspice under an RTO and to share the government subsidy funding. BTA were initially unsuccessful at meeting the requirements for RTO-status and decided that significant further, and ongoing, investment would be needed to become an RTO – resources BTA did not have.


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In addition to its delivery of accredited training in partnership with NMIT, BTA has offered a number of different non-accredited courses:

Introduction to Accredited Bicycle Mechanics. The course runs for 33 hours over 11 weeks and costs $550. Credit towards the accredited certificates was available under the NMIT auspicing arrangement.

Bicycle Assemblers Course. A three day training program offered in partnership with the RCTA, generally in September. The course is based on three nationally accredited competencies, and so under the NMIT auspicing arrangement provided credit for the Certificate II and III. The course also involves a number of days of work experience. It costs $100.

Short courses aimed at bicycle users. BTA offers three types of courses aimed at cyclists each around 15 hours long for between $79 and $399.

In 2013, BTA received a Social Enterprise Start Up grant from the City of Melbourne to support vocational education for disengaged learners. In late 2013, with the assistance of the grant BTA delivered a four week basic bike servicing program for two groups of students from Kensington Community School.

3.3.5 The experience in other states

Consultations for this project included RTOs in other states delivering accredited bicycle industry training. While there are differences between states, RTOs in WA and Queensland also struggle with low enrolment numbers and associated costs.

CY O’Connor (WA)

CY O’Connor, a public RTO with four campuses – the main campus is located 100km east of Perth. It offers courses in Business, Children’s Services, Aged Care, Disability Services, Education Support, Retail, Security, Agriculture, Agribusiness and Wool Handling.

In 2012, CY O’Connor was the largest provider of Certificate II bicycle training outside of Victoria. The RTO does not deliver bicycle industry training at the Certificate III level, but does carry out recognition of prior learning (RPL) for the Certificate III.

Certificate II enrolments average 10 learners per year and all training is delivered under a traineeship model and thus in the workplace, by a trainer who visits each learner about twice a year.

The Certificate II is funded by the Western Australian Government at similar rate to the pre-2013 Victorian rate. The cost of travel is cross-subsidised by the need to travel to deliver other courses such as forklift and automotive air conditioning training – around 20 per cent of the trainer’s time is spent on teaching the bicycle course. Despite the disbursement of the travel costs across a number of courses, the delivery of the Certificate II is just breaking even.

CY O’Connor reports that the WA Government subsidy rate for the Certificate II is around $12.00 per student contact hour. This rate may change in the near future due to VET reforms due to be implemented in WA.

SkillsTech Australia (QLD)

SkillsTech Australia is a large public RTO located in Brisbane. It delivers training to more than 20,000 learners annually across automotive, building and construction,


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electrotechnology, manufacturing and engineering, sustainable technologies and water, mining, gas and resources.

SkillsTech is the largest provider of Certificate III bicycle training in Australia with 87 and 66 students enrolled in 2011 and 2012 respectively. The training is delivered as part of a four year apprenticeship, in contrast to the Certificate III in Victoria which is a two year traineeship. Training at SkillsTech involves block release, online automotive units and projects. The RTO recently commenced training delivery to a large bike franchise – this training is delivered on-site to six learners.

The Certificate III is funded at a similar rate as to the pre-2013 Victorian subsidy, although this could change with VET reform in Queensland. The provision of the Certificate III is also supported by revenue from cyclist classes and RPL (15 to 20 students per year).

SkillsTech has explored interstate delivery of the Certificate III, but decided it was not feasible as it is difficult for RTOs to access subsidy funding outside of their home state.

In Queensland, the Government subsidies training on a per certificate basis, not per student contact hour (as is the case in Victoria). For the Certificate II this subsidy is $3,600 and for the Certificate III it is $8,310. The effective rate of subsidy per student contact hour varies depending on the number of hours students undertake, as set out in Table 9.

Table 9 Queensland training subsidiesQualification Total subsidy Subsidy per student contact hour

Lower bound contact hours

Median contact hours

Upper bound contact hours

Certificate II $3,600 $14.40 $11.25 $9.23

Certificate III $8,310 $15.53 $12.98 $11.15

Source: Queensland Government 2012.

3.3.6 Training costs and viability

This section sets out a simplified estimate of the revenue and costs faced by training organisations delivering the bicycle industry qualifications in Victoria under the 2012 subsidy and the new subsidy rates.

Table 10 details the annual revenue per student a training organisation could receive for delivering the two qualifications.

Table 10 Revenue per student per annum

QualificationHours per annum

Subsidy rate

Student fees

Revenue per SCH

Materials fees

Revenue per student

2012 subsidy

Certificate II 320 $11.45 $4.00 $15.45 $40 $4,984

Certificate III 320 $10.95 $3.50 $14.45 $40 $4,664

New subsidy

Certificate II 320 $6.50 $4.00 $10.50 $40 $3,400

Certificate III 320 $7.00 $3.50 $10.50 $40 $3,400

Note: 2012 subsidy rate is for a Large TAFE. Student fee per SCH and material fees are based on fees charged by Advance TAFE. Hours per annum are derived by taking the median of estimated hours for the two courses provided by RTOs. Source: Advance TAFE 2013, DEECD.

Table 11 estimates annual RTO costs in delivering the Certificate II and III, based on a TAFE model of costs.


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Table 11 Annual RTO costsTrainer costs Administration &

other overheadsReturn on investment

Total

RTO costs $115,000 $46,000 $7,475 $168,475

Note: ‘Trainer costs’ are estimated based on consultations with RTOs. ‘Administration & other overheads’ includes administration, materials and maintenance, rent and corporate contributions. Based on discussions with RTOs, this is estimated at 40 per cent of ‘Trainer costs’. Most RTOs look for a return on their business activities – based on discussions with RTOs, this is estimated at 6.5 per cent of ‘Trainer costs’. Source: ACIL Allen Consulting.

Finally, Table 12 combines the costs and per student revenue to derive the minimum number of students that an RTO would have to enrol in order to break even on the provision of the bicycle industry courses. The changes in the subsidy rate have increased the break even number of students from around 36 to approximately 50.

Table 12 Viable student number estimates

Costs Revenue per studentBreak even student

numbers

2012 subsidy $168,475 $4,664 36

New subsidy $168,475 $3,400 50

Note: Break even student numbers derived by dividing costs by revenue per student.Source: ACIL Allen Consulting.

3.4 Non-accredited trainingThere is significant variety in the non-accredited training provided in the bicycle industry. In addition to the non-accredited training provided by BTA detailed above, wholesalers provide a variety of training, and the RCTA used to organise informal talks.

3.4.1 Industry association training

The RCTA used to organise the Torqueing Bikes Seminar Series which saw seven seminars across 2010-2012, each delivered by a different technical expert on areas such as wheel building and suspension.

Currently there is no training provided by industry associations.

3.4.2 Wholesalers

Vendor provided training in the bicycle industry in Australia is relatively broad and is generally available to all retailers stocking the relevant vendors’ products. Retailers sometimes have to pay to attend the training.

Wholesalers approach to training can be summarised as follows:

Mid-range to upper-range bicycle wholesalers provide brand specific business training, but only some offer mechanical training

Mid-range to upper-range component wholesalers provide mechanical training on their components

Lower range wholesalers generally do not provide training

The vast majority of mechanics training provided by wholesalers presumes a reasonably high level of mechanical ability and experience. An overview of different wholesaler training is provided below. Wholesalers are generally unwilling to speak publically about the training they offer and so the below should not be considered comprehensive.


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Bicycle wholesaler-provided training

Specialized

Specialized is an American high-end bicycle wholesaler with exclusive or semi-exclusive arrangements with around 70 retailers in Australia. Specialized provides training in retail sales, merchandising, bicycle fitting and bicycle mechanics. Training is only available to retailers and their staff.

Significant retailing and merchandising training is delivered online with flash instructional content which includes product specifications, video segments, and instructional presentations on key technologies.

Specialized offers two mechanics courses at its large modern workshop in Melbourne. The more basic course is more popular and takes learners through how to service and repair Specialized bicycles. The advanced course covers brakes and suspension servicing in greater detail. Specialized also delivers fitting training to retailers so they can use the Specialized fitting process.

The Specialized mechanics courses run for a week and cost $800-$1600. Retailers normally pay this fee so their mechanics can attend the training.

Trek

Trek is a large, American high-end bicycle wholesaler with exclusive or semi-exclusive agreements with around 140 retailers in Australia. Trek provides business and retail training but no mechanical training.

TREK School is an online training delivery system focusing on retail and managerial training courses, including stock management and finance. The site also provides technical specifications and instructional diagrams for Trek products.

Every year, Trek invites all of its retailers to Canberra for the four-day Trek World where they can listen to presentations on store management and inspect new products.

Component wholesaler-provided training

Campagnolo

Campagnolo is an Italian high-end bicycle components wholesaler.

Campagnolo runs a five hour technical course for bicycle mechanics to attend, instructing on installation, diagnostics and repair on the gear systems. Once a mechanic has completed the training, their store receives a Campagnolo Pro-Shop certification, to be displayed in store, designed to demonstrate to the customer a high level of service expertise.

The pro-shop insignia also indicates that the retailer is ‘in close contact with Campagnolo through training courses, technical updates, communications and information on the new products and their proper maintenance.’ The window sticker has an annual stamp showing current validity. In Australia, 35 retailers are currently considered Pro-Shops by Campagnolo.

Shimano

Shimano is a Japanese wholesaler of bicycle components, fishing tackle, and rowing equipment. There is limited information available on Shimano training in Australia.


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In the US, Shimano run an S-TEC (Shimano Technology Education & Certification) program, which provides a comprehensive training and certification program designed for bicycle mechanics. The S-TEC also has an online element, focusing on sales and service employees to build retail knowledge and competence in brand promotion. Training modules take between 30 to 50 minutes, and require the employee to complete a quiz upon completion.

Employees who complete the entire program of training available are given the respective titles of ‘Shimano Product Expert’ or ‘Shimano Master Mechanic’, which is specific to the individual, not the store. Stores are listed as have ‘Shimano certified staff’ (Formosa 2011).

SRAM

SRAM is an American bicycle components wholesaler. SRAM operate a purpose built training facility in Dandenong, where they offer a three day course to bicycle mechanics on technical repairs and maintenance to SRAM products.

SRAM operates a similar facility, the SRAM Technical University, in Colorado Springs, Colorado. The university provides a four day training program including repair, maintenance, installation and tuning of a range of SRAM products designed for independent bicycle dealers to send mechanics for product specific training.

3.5 Summary of the issuesThis chapter has discussed industry skills needs and the current bicycle industry training landscape in Victoria. There are a variety of skills needs in the industry corresponding to the industry’s value chain. Similarly there is a variety of on-the-job training and wholesaler training that aims to meet these skills needs. Some training needs are met by non-accredited and informal training, with the more technical training is carried out by vendors.

But as set out in Figure 17 there are key training gaps in retail and sales, and in introductory to intermediate mechanics training. Training is needed at the more basic level, particularly for those starting out in the industry.


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Figure 17 Training needs and gaps


This training gap comes about due to both the supply and demand sides of the equation. And any policy response or industry approach must address both the lack of demand for training from employers and potential learners, and the lack of supply from registered and other training organisations.

Despite these issues, there are the building blocks and opportunities for relevant and successful training when compared to other industries. The factors supporting the prospects for sustainable training and alternative training options are discussed in the next chapter.


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4 Alternative training options

4.1 Summary of challenges for training deliveryWhile the bicycle industry enjoys many factors that would potentially ensure sustainable industry-relevant training, the lack of training uptake and delivery to-date means that there are challenges for training delivery on both the demand and supply sides. The challenges faced by the bicycle industry in securing sustainable high-quality training that meets industry needs are listed in Figure 18 below.

On the demand side, employers are yet to embrace accredited training as a standard requirement for entry into the industry; the traineeship pathway is not well understood, in large part because few employers themselves have had the personal experience of entering the industry through that pathway. The Certificate II and III qualifications do not enjoy widespread industry recognition and similarly employers have mixed views on the value of investing in training.

The lack of employer recognition of training leads directly to a lack of student demand for training. The wages of a bicycle mechanic are relatively low although there are reports of highly competent and efficient mechanics that are enjoying well above average rates of pay. In any case, training is not a factor in increased wage rates and for young people seeking to enter the labour market, the out of pocket costs may appear high relative to the short term returns.

Under current arrangements on the supply side, efficient delivery currently requires bicycle training to be delivered as an adjunct to automotive training centres or similar trade facilities. Trainers who are delivering bicycle training cannot do so exclusively and need to also be providing automotive training or similar programs to defray costs unless a provider was able to generate significant numbers for accredited and fee for service short courses as a specialised provider. The costs of workplace delivery models are prohibitive given the dispersed nature of the industry and the small average firm size.

Government revenue from bicycle training had previously been comparable to the subsidies for automotive courses but recent reductions in Victoria have made the delivery of bicycle training less attractive and certainly less viable at small scale, limiting potential entry to the market by new providers or the existing specialist provider becoming an RTO.

Furthermore, the cessation of training creates the non-trivial problem for any future RTO in that it will have to re-establish the pipeline of students while carrying the upfront and fixed costs associated with the introduction of a new training program.

Given the issues on both the demand and supply sides, the following sections identify the options on both sides that could be implemented to establish and secure sustainable high-quality training delivery for the bicycle industry.


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Figure 18 Demand and supply side issues for the viability of training in the bicycle industry

Source: ACIL Allen Consulting, Advance TAFE 2013.

4.2 Demand side options

Vendor-driven training

Vendor-driven training is exemplified by Automotive Manufacturing Technical Education Collaborative (AMTEC), a collaboration between automotive companies and technical and community colleges in the USA. Even in highly competitive markets, it is possible for major vendors/manufacturers to collaborate to ensure clear pathways into industry and consistent high quality training that is relevant across the industry. In the bicycle industry, inconsistent mechanic skills imposes a high cost on vendors through excessive/unwarranted after sales service which would otherwise be rectified by more competent assemblers and bike shop mechanics.

While many vendors (particularly high-end brands) see vendor-provided training as a competitive advantage in competing with other brands, none of the vendors offer basic mechanic or assembly training. Similarly basic mechanic and assembly competency is a requirement to become a retailer/stockist of any particular brands.

Vendors could see benefits in collaborating to adopt industry wide standards for bike assemblers and mechanics as has happened in other highly competitive sectors such as information technology and finance. This could facilitate greater growth in the industry, promote the industry’s reputation for product quality and safety, and reduce the costs associated with avoidable warranty claims and after sales service.

Consumer-driven training

At present, a large proportion of consumers generally do not demand or expect a high level of skill or competency amongst assemblers or bicycle mechanic. As such, the competency of staff is dictated by the standards of the shop owner, rather than the consumer.

Large bicycle user groups such as Bicycle Network could play a role in driving higher and more consistent skills amongst bicycle assemblers and mechanics through a concerted


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campaign to inform consumers of the variability in the skills of assemblers and mechanics in the marketplace and the impact that assemblers and mechanics can have on the performance and safety of bicycles. Consumer groups may go a step further and put in place a voluntary system of identifying bike shops that have qualified mechanics.

Industry-certified training

Industry-certified training tends to be the most common approach to certification and ensuring consistency of skills and competency within an industry. Examples include the Victorian Automobile Chamber of Commerce Licensed Motor Car Traders and approved mechanics.

Industry-driven training requires the presence of a well-established and widely recognised industry group with a critical mass of membership, typically in the early days of the emergence of an industry. For example, the Clean Energy Council established the accredited solar panel installer program at the time when solar panels were starting to be rolled out en masse with the support of government policies, and falling PV panel prices.

Given the decline of the RCTA, the industry’s ability to promote and drive industry standard training will depend on the influence and reach of the new association that takes its place.

Box 2 Industry driven accreditation – the UK model

Bicycle industry training in the UK is overseen by Cytech, the recognised training and accredited scheme for bicycle mechanics and outdoor pursuits retail staff in the UK. Cytech is owned by the Association of Cycle Traders (ACT) representing the UK Cycle Industry. The ACT is one of the UK’s largest cycling organisations.The Cytech training platform was developed over 20 years ago to create a national leading ‘brand’ of cycling training across mechanical and retail training. Industry remains closely involved in training development, management and promotion through the ACT, which creates desirable training packages representing industry needs. Cytech reports that leading UK bicycle distributors require technical staff to undertake Cytech training.Training is available in both the technical and retail elements of the bicycle industry. Training is delivered by ATG Training and PJCS Cycle Training. As these providers are the only two to have technical training contracts with ACT, they are the only bodies capable of granting Cytech qualifications to bicycle mechanics. Under this training delivery model Cytech has delivered 6,000 technical courses to 3,500 students. Over 2,000 Cytech qualified staff are actively employed in the UK bicycle industry. Cytech qualifications are Government QFC registered on the UK Office of Qualifications and Examinations Regulation’s Registered of Regulated Qualifications.Employers who employ staff with Cytech training are listed on the cycling experts website as ‘Cytech Accredited Shops’, which is designed to add weight to the value of the training by giving customers confidence in the advice and services they obtain from Cytech qualified personnel. The retail training qualification is recognised in the same way, with staff and their employer listed on the Cytech Retail Directory, provided that the store is a full member of the ACT.

Source: Cytech 2013

Better public promotion of training

In many industries, training can be driven simply through better public promotion of training. Such public promotion may be undertaken by government or government agencies, industry, major employers, employment agencies, or training providers.

Public promotion of training is most effective when appropriately targeted at those cohorts most interested in a career in the sector. In the case of the bicycle industry, opportunities for targeted public promotion would include through cycling magazines, club networks, major races and cycling events, and careers expos.


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Consistent with the promotion of careers in other industries, such information should cover pathways into the bicycle industry, immediate employment opportunities and longer-term career prospects including pathways into other industries or occupations.

Highlight potential ROIT to employers

For those industries where training is a high value proposition to employers who simply lack information on the likely returns on investment in training (ROIT), this may be addressed through the public promotion of training benefits to employers. As in the case of better public promotion of training, government or government agencies, industry, major employers, employment agencies, or training providers could play a role in highlighting the potential ROIT to bike shop owners and operators.

In the discussions with industry, two significant areas for improved information were identified:

3. Information on the potential revenue streams from servicing and repairs – in a market facing increased online retail competition, it would appear that many bike-shops have not been able to increase their revenue streams from servicing and repairs.

4. Information on the benchmark performance of bicycle assemblers and mechanics, and the impact of highly competent and efficient staff on the potential revenue from both retail and repairs.

An overview of how potential ROIT could be highlighted to employers is provided in Box 3.

Box 3 Return on investment in training proposition for employers

The ROIT proposition for employers in the bicycle industry should focus on gains that can be expected in: quality and efficiency.Training can be expected to improve the quality of mechanics’ work assembling and servicing and repairing bicycles. Improved quality in workmanship could lead to a better cycling experience for customers and thus repeat business.Training could also be expected to improve the efficiency of training recipients. Consultations indicate a wide range of efficiency levels – for example bicycle assembly can take 20 to 60 minutes depending on the skills of the assembler. Increasing the speed at which bicycle are assembled and serviced and repaired would contribute positively to retailer profitability.The ROIT of employing a trainee undertaking the Certificate III in the bicycle industry should also emphasis the incentive payments available to employers (i.e. a $1,500 commencement incentive for a full-time trainee that is a new worker and a $2,500 completion incentive). The minimum wage for trainees is also quite low (for example, $9.16 in the first year of the traineeship for a 18 year old school leaver who has completed Year 12), further increases the chances of employers receiving a positive return on their training investment.

Source: ACIL Allen Consulting.


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4.3 Supply side options

Development of VET in schools pathways

VET in schools (VETiS) delivery represents an ideal pathway into the industry given the high interest of young people in the bicycle industry broadly. The delivery of VETiS is more likely to be successful if it is taken up by clusters of schools that are already offering such programs and if those schools have trade training infrastructure following the significant recent investments in trade training colleges (TTCs). VETiS delivery will be attractive to employers by making available a larger number of prospective young mechanics and retail workers who have a practical understanding of parts and technology, and who are not just interested in the sector but who have the potential to be immediately productive.

Development of an intensive industry entry course

Similar to VETIS delivery, an intensive entry course into the industry will be attractive to employers by making available a larger number of immediately productive mechanics, including career changers and new entrants. This would be largely consistent with the model adopted in the USA. The development of an intensive entry course would seek to address the gap in training for mechanics who can competently and efficiently undertake bicycle assembly and routine servicing. The entry level course would be delivered in short timeframe at relatively low cost paid for by those seeking entry into the industry, and could include units from the Certificate II qualification. This would allow the course to be an entry pathway into the Certificate II and III qualifications, while reducing high costs to employers of taking on trainees without any prior training or experience.

Partner with an international training organisation

Under any of the supply side options discussed, there is the potential to partner with an overseas organisation, in particular the UK Association of Cycle Traders (ACT) and UBI, Barnett or Park Tools in the USA. Partnering with a recognised international training provider could provide the catalyst required to change the culture of training in the industry. It is understood that the ACT, operators of the successful Cytech model in the UK have previously offered its support to the RCTA. BikeNow in South Melbourne is one of just three Australian locations for Park Tool School.

Training/workshop model

There may be scope for a business to combine a workshop carrying out repairs and assembly, with a training program. This would provide learners with practical training and the business with two sources of revenue.

Such a workshop, with a large stock of mechanics, could help retailers deal with peaks in demand for bicycle assembly and services and repairs by hiring out mechanics or receiving bicycles that need assembly or servicing.

Group training scheme

The group training model involves a group training organisation (GTO) employing apprentices and trainees and places them with a host employer where they undertake their on-the-job training. The GTO deals with the administrative side of the apprenticeship/traineeship system, relieving host employers of this burden.


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The group training model would reduce the risk to bicycle industry employers of taking on a trainee. GTOs carry out screening of potential trainees and attempt to pair well suited trainees and employers. If the employer decides the trainee is not suited to their workplace or no longer has enough work for the trainee, the trainee returns to the GTO to be placed with another employer.

Further develop and adopt online teaching tools

The development of online teaching resources for the accredited bicycle training qualification would potentially assist in lowering the cost of training to the industry. The industry could work with Advance TAFE to bring these units to fruition, in exchange for ensuring that those units developed are more widely available to other training providers.

Improve the training package

Consultations with training providers and industry indicate that several units are too prescriptive, leading to the teaching of skills that are not widely needed in the industry. Stakeholders are also concerned that some of the assessment requirements are overly onerous, leading to higher training costs and learner disillusionment.

The industry could work with Auto Skills Australia to modify units and assessment requirements as part of the continuous improvement of the training package.

Address the title in units

In the Certificate II qualification, there are currently 4 core units and 1 elective unit in the current training package which contain the word ‘automotive’ in the title and description, for example AURASA2002 Apply safe working practices in an automotive workplace and AURAE2002 Apply environmental and sustainability best practice in an automotive workplace . This is both unnecessary and untenable:

In both the delivery and assessment of the qualification, these units of competency require “access to an automotive workplace or simulated environment that accurately reflects automotive workshop working conditions”. Such requirements are neither relevant nor reasonable for the qualifications in Bicycle Mechanical Technology.

In the promotion of these qualifications, the inclusion of automotive units undermines the relevance and applicability of the qualification as a whole in the eyes of employers. Even though the qualification has undergone a number of updates and the units appear to be highly value by those consulted, the inclusion go these units detracts from the marketability and credibility of the qualification.

Reduce length of accredited training

At present the Certificate III in Bicycle Mechanical Technology is delivered as a 2 year traineeship. The Certificate II in Bicycle Mechanical Technology is often delivered as a 1 year traineeship or sometimes as part of a VET in schools program. Any possible reductions in the course length without compromising quality or outcomes would increase the attractiveness of the course from the perspective of the employers and the students.

Increase delivery of RPL

In other states, the delivery of recognition of prior learning has served to improve the viability of supply by providing an additional source of training income (alongside fee-for-service


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training delivery). In addition, RPL has the effect of quickly promoting accredited training in the industry by increasing the prevalence and general recognition on the qualification.

Change the ANZSCO classification of mechanics

The Australian and New Zealand Standard Classification of Occupations (ANZSCO) places ‘Bicycle Mechanics’ in the Unit Group ‘8999 Other Miscellaneous Labourers’. The other occupations in this category are: Car Park Attendants, Crossing Supervisors, Electrical or Telecommunications Trades Assistants, Leaflet or Newspaper Deliverers, Mechanic's Assistants, Railways Assistants, Sign Erectors, Ticket Collectors or Ushers, Trolley Collectors and Road Traffic Controllers. The indicative skill level for this occupation group is Certificate I or compulsory secondary education.

The industry argues that this classification does not reflect the skill level needed to be a bicycle mechanic, and that this may impact government policy in the area.

The ANZSCO classifications were introduced in 2006 and reviewed by the Australian Bureau of Statistics and Statistics New Zealand in 2009 and 2013. Any changes to the classification of bicycle mechanics would likely need to wait for the next ANZSCO review. Changes to the ANZSCO classification would have a minimal impact on the provision of training.

Re-examine subsidy rates

The subsidy rate does not appear to be the primary issue associated with the long-term lack of popularity or recognition of accredited training in the bicycle industry. In other states where the subsidy rate remains at the level it was in Victoria pre-2013, providers still struggle to deliver the qualifications in an economically viable way due to low student numbers.

That being said, and while there are a range of factors discussed in this report which have meant that bicycle industry training has not been sustainable, the reduction in the subsidy rate precipitated the withdrawal of the remaining Melbourne-based RTO and will make re-establishing supply more difficult.

Stakeholders consulted as part of this project pointed to a discrepancy between the growth of the industry and the reduction in the subsidy rate. Industry stakeholders also expressed their frustration that the funding for the facilitation, analysis and other possible measures to address the cessation of bicycle industry training in Victoria could have been directed towards maintaining the previous rate of training subsidy. Some stakeholders argued that without the reinstatement of the old subsidy rate, there would be a lack of supply of accredited bicycle industry training.

The subsidy rate could be re-examined according to the Government's public value test, particularly in light of the recent growth of the bicycle industry and the potential for continued job growth.

Increase training fees

The financial attractiveness of training provision to RTOs is influenced by both the subsidy rate and the course fees RTOs charge (among other factors). As a result, an option to increase the supply of training is through greater student or industry contribution to the cost of training.

As noted above, RTOs currently charge fees of $1,000-$1,500 for the Certificate II and $1,900-$2,700 for the Certificate III. Consultations with industry and RTOs indicated that


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higher fees would likely reduce training demand significantly thus impacting the feasibility of training provision. In order to return per student revenue to what it would have been under the old subsidy rate, RTOs would have to raise student fees by $1,000-$3,000, depending on the Certificate.

4.4 Assessment of optionsThe demand and supply options listed above can be assessed on two dimensions.

First, the likelihood of success would need to take into account the historical experience with a given option, the extent to which the necessary actors are likely to commit to a given course of action, and potential risks and barriers to success.

Second, the expected impact of the option on the long-term delivery would be based primarily on an assessment of the appeal to employers or the effectiveness of the option in driving training uptake.

The following figure illustrates a qualitative assessment of the relative merits of the various options discussed in the preceding sections against these two dimensions.

Figure 19 Assessment of options



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In addition, the relative level of effort required to realise the potential options may also be considered as depicted in Figure 20 below. Some options such as vendor, consumer or industry driven training, or the development of VETiS and intensive short course pathways into the industry may require a relatively high level of effort whereas better public promotion of careers in the industry or the potential ROIT to bike shop owners may be more easily implemented at relatively low cost.

Figure 20 illustrates how the various options fall into four categories:

Big bets have a high expected impact but a low likelihood of success, and typically required significant effort – these options are generally promising but uncertain in nature;

Investments have a high impact as well as a higher likelihood of success but also require significant effort – these options are well worth pursuing but will require a degree of sustained effort before they come to fruition;

Fast results are characterised by a high likelihood of success but relatively low expected impact on long-term training delivery in the industry – given that most of these require relatively low effort, the five actions in this bottom right quadrant should be pursued regardless of whichever other options are contemplated; and

False hopes are generally expected to have a low impact and a low likelihood of long-term success in terms of stimulating and delivering long-term sustainable industry-relevant training for the bicycle industry and should not represent a key part of any strategy going forward.


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Figure 20 Effort required and categories of options


4.5 Clusters of optionsAs discussed in the previous section, the five options in the Fast results category which should be pursued regardless of which other options are contemplated comprise two demand side measures and three supply side measures namely:

1. Better public promotion of training;

2. Highlight potential ROIT to employers;

3. Reduce length of accredited training;

4. Develop and adopt online teaching tools; and

5. Improve the training package and address the misnomer of the automotive units.

In addition, three clusters of options have been identified which may be both more effective and more likely to succeed if several options are jointly implemented. These are:

Cluster 1: Imported industry-run training;

Cluster 2: VET in schools program in conjunction with industry-driven information to prospective students and partnerships with employers; and

Cluster 3: Centralised workshop and training facility including group training.


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Under each of these options there may be a case for additional government support in the first instance given the high degree of facilitation that may be required – this is discussed in detail in the following section.

Cluster 1: Imported industry-run training

An imported overseas program has the potential to attract a larger number of independent bicycle owner-operators to invest in training and is also more likely to be attractive to employees. However, there may be difficulties associated with importing the brand of training products – UBI, Barnetts, Park Tools or Cytec – to Australia by an independent bicycle shop or training provider. An industry run organisation is more likely to be successful in forging such a partnership, particularly since the operators of Cytec in the UK – the Association of Cycle Traders – has already offered its assistance to the RCTA in the recent past.

Employer support for such a program would be bolstered by a campaign to communicate the benefits and ROIT of such a course.

This approach has clear potential to be established as the industry’s pathway or passport qualification into the industry. There is a higher likelihood that aspiring young people looking to work in the bicycle industry will invest the cost of the course in order to gain entry into the sector.

In the first instance, the training program may take the form of a short intensive course targeted those seeking to commence in the industry. Key skills would include bicycle assembly, basic serving, and retail and customer service skills. The success of this model is premised on the potential demand for short intensive courses for bicycle mechanics that would be funded by individuals and employers on a fee-for-service basis.

Over time, the international qualification could be aligned with the Australian Training Package qualification. This would be an involved process but would allow teaching of the qualification to receive government support.


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Figure 21 Cluster 1: Imported industry-run training


Cluster 2: VET in schools program in conjunction with industry-driven information to prospective students and partnerships with employers

This cluster recognises the potential for a comprehensive approach to training in partnership with industry. As part of this cluster, innovative training partnerships and delivery models would be identified with an aim to stimulate market entry from RTOs operating in similar areas such as automotive repair.

In order for such a process to be successful, potential RTOs would have to be approached with sufficient incentives to participate and subsequently invest in their proposed approach. Incentives may include:

financial incentives in the form of pilot grants or seed funding from industry and/or government;

partial or full exclusivity in partnering with key industry and consumer organisations and/or;

additional support through the public promotion of training.

This approach would seek to build clear pathways into the industry including through VETiS programs and short training courses. In partnering with industry, the participating RTOs may seek to secure pathways into employment as well as the potential articulation into traineeships for the full Certificate II and III qualifications.

This cluster would most likely operate in conjunction with a Trade Training Centre. In some regions the Local Learning and Employment Networks will be well-placed to support the development of industry-school-RTO partnerships.

This model may be trialled initially at a regional level, in partnership with local bicycle stores and a VETiS cluster. Funding for such VETiS would be on the basis of current policy which


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allocates funding from the Student Resource Package and VET funding to support delivery with no out-of-pocket costs to the student.

While this cluster does not directly address the long term need for a more highly skilled workforce, the ‘push’ effect of larger numbers of young people entering the industry may be sufficient to:

generate both the immediate workforce of assemblers, junior mechanics and workshop assistants;

as well as the long-term pipeline of more experienced mechanics that will be developed through on-the-job learning, traineeships, and vendor-based non-accredited training.

Figure 22 Cluster 2: VET in schools program in conjunction with industry-driven information to prospective students and partnerships with employers


Cluster 3: Centralised workshop and training facility including group training

This cluster would see the combination of a bicycle mechanics workshop and training delivery. This could prove viable by providing the workshop business with two streams of revenue – from services and repairs, and from training. It would also provide practical training with current technology by supplying a steady stream of bicycles on which training in servicing and repairs can be undertaken.

This approach is more likely to succeed where an existing workshop owner/operator is a partner. The workshop would need to become an RTO, or more feasibly, partner with an RTO.


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This is the model used in many other areas such as hospitality and hairdressing where there is a capacity for trainees to deliver services to the public having achieved a minimum level of qualification attainment.

The workshop/training model would work well when combined with a group training scheme. The workshop, as a GTO, could employ trainees and place them with retailers to undertake on-the-job training. Retailers would pay the workshop for the trainees, thus generating further income for the workshop. As a training organisation and GTO with strong links to the industry, the workshop would also be well placed to offer RPL to existing bicycle mechanics.

Additional dimensions to this model could include the provision of qualified mechanics to bike shops on a contracted basis. Alternatively, a workshop of sufficient scale may work with a network of bike shops in the region that will deliver bicycles for servicing to a centralised workshop.

Figure 23 Cluster 3: Centralised workshop and training facility


4.6 The role for governmentMost of the demand and supply side options discussed in Sections 4.2 and 4.3 could be pursued independently by industry organisations, consumer organisations or RTOs, but as the clusters of options discussed in Section 4.5 has identified, there are synergies that can arise from pursuing multiple options in concert.

In order for these cluster approaches to be viable some level of government intervention may be required to overcome potential market failures which may see few or none of these cluster approaches being pursued.

First, there will be information asymmetries between the vendors, industry, consumers and RTOs and training providers. These information asymmetries will make it difficult for various


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parties to collaborate effectively, and will be particularly discouraging to new entrants that may be able to offer innovative solutions. Government has a role in ensuring that all parties have access to a common body of knowledge, including much of the analysis embodied in this report. It is worth noting that government participation in the process of assessing market issues and identifying options for sustainable training goes some way towards identifying the importance of the issue and the gap in the training market to RTOs.

Second, there are likely to be significant spillovers from collaboration; the benefits of collaboration will not be fully captured by the collaborating parties and it is likely that other external parties will also benefit. For example, investments made by a membership based organisation to develop training options and pathways for the industry will be of benefit to members but also spillover to non-members. As a result, such collaboration will less than is optimal, and possibly not at all. Government therefore has a role in either incentivising or facilitating such collaboration, or partially compensating successful collaborators for their investment.

Third, there are issues arising from potential first-mover disadvantage: any one RTO that makes the up-front investment to generate interest in training and to create a viable market for bicycle training may be unable to recoup that investment if competitors subsequently enter the market and capture the benefits having not borne any of the costs. RTOs will therefore be reluctant to make such investments. Some of the first-mover disadvantage may be ameliorated by the exclusive promotion of training by the investing RTO by the industry and other organisations (although this would require a high degree of collaboration). Government may therefore have a role to play in providing RTOs with a degree of market exclusivity in terms of their position in the market for a limited period of time. Alternatively, government could participate in an EOI type process and offer a “prize” in the form of a pilot grant or seed funding for innovative first movers seeking to enter and to establish the market.

4.7 ConclusionsGiven the wide array of options available, it is important the bicycle industry develops an appropriate mechanism to pursue a wide range of options on both the demand and supply sides. Based on the assessments above, the final chapter presents the recommended model for bicycle industry training delivery in Victoria, and the range of additional actions to be pursued. In particular, the following chapter recommends an appropriate mechanism for industry leadership to support such a model, including ongoing government facilitation, and a process for inviting and commissioning innovative delivery.


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5 Recommendations

5.1 The prospects for sustainable industry-relevant training delivery

The previous chapters have identified both the skills needs of the bicycle industry as well as the range of demand and supply options which have the potential to ensure sustainable industry-relevant training delivery.

It is important to recognise that despite the issues and challenges associated with training delivery discussed in the preceding chapters, the prospects for sustainable industry-relevant training delivery in the bicycle industry in Victoria are strong. Figure 24 below summarises the factors supporting training delivery in the bicycle industry, which would make it the envy of many other niche or declining industries faced with similar gaps in training supply.

The bicycle industry is growing, and it enjoys a positive image of being populated by individuals passionate about bicycles and cycling. The work of bicycle mechanic is easy to comprehend, primarily because bicycles are common everyday household items to which most people have considerable exposure from a young age.

While the technology continues to advance, the fundamental physics of bicycles have remained unchanged, and for the most part comprise accessible and observable mechanical parts. This makes the role of bicycle mechanics relatively easy to comprehend, which in turn can be problematic in perpetuating the impression that it is a low skilled role.

There are few barriers to training delivery and in particular, amongst the mechanical trades, the capital requirements are relatively low.

The industry benefits from the active growth of a highly visible and increasingly popular sport, with numerous high profile races and events held throughout the year in Australia and internationally. This in part would explain the relatively high levels of interest from young people seeking to enter the industry.

Given these factors, there is the potential demand for training if the training standards and qualifications are adopted by the industry and pathways into training can be established. The following sections outline recommended steps towards:

The recommended model for bicycle industry training delivery – which would establish a pool of initially trained and engaged people from VET in schools or an intensive training program, leading into a traineeship and finishing at a Certificate III level, which may also be based on an international program;

The leadership from demand and supply side partners – which will be required to support such a model, including ongoing government facilitation;

A process for inviting and commissioning innovative delivery – through an Expression of Interest process to elicit potential interest and secure investment and delivery by suitable Registered Training Organisations;

Ensuring the financial viability of training – to enable both the short-term recommencement of accredited training delivery and long-term sustainability of training supply; and


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The range of other actions to be pursued as identified in the previous chapter which have the potential to lead to short term results and also support longer-term outcomes.

Figure 24 Factors supporting the prospects for sustainable industry-relevant training delivery


5.2 The recommended model for bicycle industry training delivery

There appears to be strong interest from young people to work in the bicycle industry, particular upper secondary students and school leavers. At the same time there is a shortage of skilled and well-rounded bicycle mechanics in the industry that are able to assemble, service and repair increasingly complex bicycles while also being able to provide a high level of customer and retail service.

At present there is no recognised pathway into the industry and no pathway for the more limited number of candidates who may want to become highly skilled mechanics. Despite the strong interest, the absence of such pathways is a constraint on the number of workers flowing into the industry. The creation of such pathways will require the bicycle industry as a whole to more proactively adopt and promote the training standards and qualifications.

As identified in the previous chapter a range of options pursued in concert has the potential to have a significant impact on the availability of trained bicycle mechanics in the future.

There is a strong case for a clear pathway for school students, school leavers and other interested individuals to develop the necessary skills to be immediately productive in a bicycle shop – in a role focussed on bicycle assembly, basic servicing and the fitting of equipment, retail operations and customer service.

A clear pathway into the industry will provide a steadier pipeline of employees who are in a position to develop more technical skills over time through the Certificate II in Bicycle Mechanical Technology and the Certificate III in Bicycle Workshop Operations if they are so inclined.

In summary, the recommended model for bicycle industry training delivery should comprise:


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1. strong entry qualification pathways into entry level positions in the bicycle industry – The two key opportunities for entry pathways identified in Chapter 4 are through VET in Schools (VETiS) delivery and an intensive training course; and

2. subsequent pathways into higher skill levels as embodied in the Certificate II and Certificate III qualifications – as identified in Chapter 4, the delivery of industry-endorsed higher skill levels could adopt the characteristics of group training schemes, and models of training coupled with larger scale workshop operations.

The entry pathways are likely to be of interest to many young people however the overall success of the entry pathways will hinge on the quality and recognition of the subsequent pathways into higher level qualifications. As such the pathways into a traineeship and attainment of an accredited qualification at the Certificate III level, which could itself be based on an international program, will be critical.

At present, the level of training demand in Victoria cannot support more than one or two substantial training providers and it is likely that the RTO delivering the Cert II and III accredited qualifications will also be attracted to and well placed to deliver any VETiS programs.

Recommendation 1

The recommended model for bicycle training delivery should comprise:1. strong entry qualification pathways into entry level positions in the bicycle industry through

VET in Schools (VETiS) delivery and an intensive training course; and2. subsequent pathways into industry-recognised higher skill levels as embodied in the

Certificate II and Certificate III traineeship qualifications, potentially based on an international training program.

5.3 Leadership from demand and supply side partners

The range of individual demand and supply options, and clusters of options identified in the previous chapter are not mutually exclusive and many could be pursued concurrently according to the level of interest, commitment and support of the various parties.

Given the wide range of options – including potential options and partnerships that may not have been identified as part of this project – it is critical that the industry establishes an appropriate body or reference group to explore, assess and take forward the options for training delivery. For example, the assessments of expected impact, likelihood of success and effort required may be refined over time and additional clusters of options may be identified as prospective models.

The existing steering committee for this project provides the ideal starting point for an industry training group that can refine and finalise the elements of preferred training model. In addition, establishing, promoting and delivering the preferred model may be achieved with a range of other potential partners including interstate providers, overseas providers, other Victorian RTOs, Bicycle Network, and Local Learning Employment Networks. The active participation of relevant government agencies, in particular the ongoing support of the Market Facilitation Unit, would provide valuable expertise and weight to the exercise. To date, the existing steering committee has drawn heavily on the knowledge and expertise of the existing providers, in particular Bicycle Training Australia, as well as other interested


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RTOs. This depth of experience and expertise should be retained however the industry will also have to develop a governance structure which balances the need for such training delivery expertise with the need to ensure an objective assessment of options and models. To avoid obvious conflicts of interest, an appropriate process should exclude RTOs or would-be RTOs from the final decision making process to select the preferred training model.

Recommendation 2

Building on the current project steering group, that the industry establishes a reference group to explore, assess and take forward the range of demand and supply side options for revitalising training delivery for the bicycle industry. Membership of the body could include: Leading consumer organisations such as Bicycle Network; Local Learning and Employment Networks; Relevant government agencies; and Past or prospective RTOs – although these RTOs would have to be excluded from the

process to select the preferred training model.

5.4 A process for inviting and commissioning innovative delivery

To stimulate the demand for training and for training delivery the industry reference group should run an Expression of Interest (EOI) process to develop, assess and commission the most sustainable approach to delivering the recommended bicycle training delivery model describe above in Section 5.2.

The parameters for the EOI stage should describe the characteristics of the desired outcome, including:

High quality and industry-recognised training delivery;

Improved training recognition and industry demand;

Pathways into entry level qualifications through VET in Schools (VETiS) delivery and an intensive training course;

subsequent pathways into higher skill levels as embodied in the Certificate II and Certificate III qualifications; and

Partnerships with a variety of bodies which leverage networks and influence, and opportunities for more cost effective training delivery.

In pursuing any of the models of training delivery outlined in Chapter 4, the industry reference group should not preclude variations and innovations that could see increased demand for training, reduced delivery costs or improved revenue streams.

It is possible that the EOI process will lead to pilot programs that are centred on:

a specific geographic region comprising providers, schools, Trade Training Centres and bike shops in an area in partnership with a concentration of local bike shops; or

cooperation between a number of vendor, chains stores and/or large employers.

Approaches to delivery that are able to leverage a range of private, industry and government funding sources should be encouraged.

The EOI should provide interested parties with complete information on the background to the industry and the historical profile of training delivery, the challenges with training delivery


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to-date as identified in this report, and possible ideas for demand and supply side options and clusters of options discussed in Chapter 4.

Recommendation 3

That the industry reference group run an Expression of Interest process to develop, assess and commission the most sustainable approach to delivering the recommended model of bicycle training delivery.

5.5 Ensuring the financial viability of trainingTo provide sufficient incentives to potential training providers, the industry should make clear the advantages that would be conferred on the preferred provider. This could include:

The commitment and support of the industry organisation in the development, design and promotion of any training program;

The exclusive status of being the provider(s) of choice for the Victorian bicycle industry;

The opportunity to promote bicycle training as well as other accredited, fee-for-service programs and short courses through the industry association and other organisations; and

The potential to expand the program of training delivery to other states.

In addition, the industry reference group may be able to secure other incentives such as financial or in-kind support from vendors, industry members, philanthropists and the Victorian government.

Many of these benefits could contribute to a steady and commercially viable level of enrolments. However, it is important to note that at the current subsidy rate, the delivery of the Certificate II and Certificate III qualifications will require very high levels of enrolments by historical standards to be viable. Furthermore, it will take time for a new provider to ramp up delivery to sustainable levels. At present, the subsidy level has not been sufficient to maintain training delivery and is also unlikely to attract other RTOs into the market. The balance between government subsidies, industry contributions, and private out-of-pocket contributions, alongside the potential incentives described above, should therefore continue to be assessed to ensure that a viable future model of training delivery can be implemented.

For VETiS delivery, schools would need to allocate an appropriate proportion of funding received through the Student Resource Package funding and VETiS funding, in line with government policy.

Recommendation 4

That the industry reference group should continue to assess the balance of government, industry and private contributions to ensure that a viable and preferred model of training is able to be implemented.

5.6 Other actions to be pursuedThe previous chapter identified a range of actions that have the potential to lead to short-term results and also support longer-term outcomes. These actions include:

continuing to work with Advance TAFE in the development of online units on the grounds that online units will be widely available to other RTOs and/or industry members;


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pursuing the reclassification of the skill level of bicycle mechanics under ANZSCO; and

develop an evidence base to demonstrate the benefits of more highly skilled and qualified mechanics to bike shops.

These actions should be concurrently pursued as moderate priorities for the industry.

Recommendation 5

That the industry reference group pursue the range of actions that will lead to short-term results in particular: Continue to work with Advance TAFE in the development of online units on the grounds that

online units will be widely available to other RTOs and/or industry members Pursue the reclassification of the skill level of bicycle mechanics under ANZSCO Develop an evidence base to demonstrate the benefits of more highly skilled and qualified

mechanics to bike shops

Of greater importance is the work that needs to be undertaken in collaboration with Auto Skills Australia to:

Reduce the skill level required under the Certificate II to allow delivery of the qualification to school students as part of VET in schools;

Introduce a pathway or industry entry qualification in the form of a Certificate I targeted at bicycle assembly and basic maintenance and servicing; and

Amending relevant units currently designed for automotive workshops to cater more appropriately to bicycle workshops.

In addition, in the event that an international course or qualification is imported to Australia, the industry reference group would need to work with Auto Skills Australia to ensure that it is aligned with the Australian Training Package qualification (and vice versa) so that the imported training is eligible for government subsidies.

Recommendation 6

Industry to work closely with Auto Skills Australia to improve the design of the training package, specifically: Reduce the skill level required under in the Certificate II to allow delivery of the qualification to

school students as part of VET in schools Introduce a pathway or industry entry qualification in the form of a Certificate I targeted at

bicycle assembly and basic maintenance and servicing Amending relevant units currently designed for automotive workshops to cater more

appropriately to bicycle workshops


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ReferencesAdvance TAFE 2013, ‘2013 Fees and Charges’, available: http://www.advancetafe.edu.au/pages/courses/fees_and_charges.htm, accessed 22 November 2013.

Australian Bicycle Council 2011, Implementation Report 2011, Austroads, Sydney.

Australian Bureau of Statistics (ABS) 2012a, 1220.0 - ANZSCO - Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2, Canberra.

Australian Bureau of Statistics (ABS) 2012b, 5439.0 - International Merchandise Imports, Canberra.

Australian Bureau of Statistics (ABS) 2012c, Sport and Recreation: A Statistical Overview, Canberra.

Auto Skills Australia 2013, Automotive Environmental Scan 2013, Melbourne.

Bicycle Industries Australia (BIA) 2011, Submission to the Productivity Commission on the Economic Structure and Performance of the Australian Retail Industry, Melbourne.

Bicycle Industries Australia (BIA) 2013a, Annual Retail Survey Outcomes 2013, Melbourne.

Bicycle Industries Australia (BIA) 2013b, Australian Online Cycling Marketplace Report 2013, Melbourne.

Bicycle Industries Australia (BIA), Cycling Promotion Fund (CPF) and the Retail Cycle Traders Australia (RCTA) 2012, The Bicycle Industry in Australia 2011/12, Melbourne.

Bicycle Industries Australia 2011, Submission to the Productivity Commission on the Economic Structure and Performance of the Australian Retail Industry, Melbourne.

Biegler P, Newstead S, Johnson M, Taylor J, Mitra B, Bullen S 2012, MACCS Monash Alfred Cyclist Crash Study, Report No. 311, available: http://monash.edu/miri/research/reports/muarc311.pdf

Commonwealth of Australia 2013, AUR30211 - Certificate III in Bicycles (superseded, 21 June 2011 – 16 January 2013).

Commonwealth of Australia 2013, AUR30212 - Certificate III in Bicycle Workshop Operations (current, 17 January 2013).

Commonwealth of Australia 2013, AUR20311 - Certificate II in Bicycles (superseded, 21 June 2011 – 16 January 2013).

Commonwealth of Australia 2013, AUR20312 - Certificate II in Bicycle Mechanical Technology (current, 17 January 2013).

DEECD 2012, Funded Courses Report for Course Commencements to 30 June 2012, Melbourne.

DEECD 2013, 2014 Funded courses report as at 15 November 2013, Melbourne.

Formosa, N 2011, ‘Shimano Launches New Online Training Site’, Bicycle Retailer, available: http://www.bicycleretailer.com/north-america/2011/06/15/shimano-launches-new-online-training-site#.UwGnQ4XNkmF

Halfpenny, D 2013, ‘Aussie cyclists want it all! Cost + Convenience = Sales’, Bicycles Network Australia, Sydney.


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http://www.advancetafe.edu.au/pages/courses/fees_and_charges.htm


IBISWorld 2013, Industry Report: Sport and Camping Equipment Retailing in Australia, Melbourne.

Queensland Government 2012, Queensland 2012-13 User Choice Price List, Brisbane.

Peake, K 2012, Refocusing VET in Victoria, Welcome Address to VTA State Conference, DEECD, Melbourne.

Pucher, J, Garrard, J & Greaves, S 2010, ‘Cycling Down Under: A Comparative Analysis of Bicycling Trends and Policies in Sydney and Melbourne’, Journal of Transport Geography, Vol. 18.

van Schaik, J W 2013, ‘Australian Bike Market Valued at 760 Million Euro’, Bike Europe, The Netherlands.

Victorian Department of Transport 2013, Victorian Transport Statistics Portal, Melbourne.

Victorian Government 2012a, Refocusing vocational training – government subsidies, Melbourne.

Victorian Government 2012b, Cycling into the Future 2013–23, Victorian Government, Melbourne.


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Appendix A Stakeholders consulted

Table 13 Stakeholder consultation listOrganisation Name Role/title

Employers

Super Retail GroupSean Millard Workshop Trainer

David Smith Workshop mechanic

Bike ForceBill Gordin CEO

Beverly Lucas Operations Manager

Cannondale Michael O'Brien Operations Manager

Specialised Sam MonardoManaging Director for Specialized Australasia

Cecil Walker Cycles Anthony Cramer Owner/manager

Abbotsford Cycles Peter Moore Owner/manager

Commuter Cycles Huw Vellacot Owner/manager

E Bike Central Scott DickasonDirector – sales and marketing

99 Bikes Lizzi Clements Training manager

Pony Bikes Sasha Strickland Owner/manager

Shepparton Bike Hub Trevor Morris Owner/manager

Shaw Cycles Dennis Shaw Owner/manager

Cyclescape Matt Britton Owner/manager

Training providers

Advance TAFEFred Vanderslick

Manager, Trades & Work Safety

Shaun TomlinsonTrainer, Trades & Work Safety

Bicycle Training Australia (BTA)

Greg Hallihan Manager/trainer

Robyn Alexander Director

Phillip Watts Director

NMIT Phil Trip Manager

SkillsTech Australia Chris NaylorBusiness Manager, Metal Fabrication and Boilermaking

CY O'Connor Syd Woodvine Trainer, Automotive

Industry and consumer associations

Bicycle Industries Australia (BIA) Peter Bourke General Manager

Retail Cycle Traders Australia (RCTA) Graham Bradshaw Former Executive Officer

Bicycle Network Victoria (BNV)Craig Richards CEO

Iain Treloar Associate Editor, Ride On

Cycling Australia (CA) Victoria Mark Drehlich Development Manager

Others

Auto Skills Australia

Geoff Gwilym CEO

Peter Miller General Manager

Vince Panozzo Training Package Specialist

Steve Bletsos Research Analyst

VeloTech Services Brad Lawlor Mechanic

Monash University / Amy Gillett Foundation Marilyn Johnson

Research Fellow with the Institute of Transport StudiesResearch and Policy Manager at the Amy Gillett Foundation


1



2


Appendix B Example discussion guide Four different discussion guides were developed for consultations – one for each stakeholder group:

Employers

Training organisations

Industry associations

Consumer associations

The discussion guides were similar, but with different questions. The employer discussion guide is below.

Bicycle Industry Training ProjectDiscussion Guide

1. OverviewACIL Allen Consulting has been commissioned by the Department of Education and Early Childhood Development (DEECD) to examine bicycle industry retail, service and repairs training in Victoria.

This project will examine the supply and demand of bicycle industry retail, service and repairs training in Victoria. The final project report will form a basis for stakeholders to facilitate and support the delivery training in the bicycle industry.

In order to fully explore the bicycle industry training market, the project includes consultations with employers, industry representatives, training providers and user associations across metropolitan and regional Victoria.

ACIL Allen Consulting would like to explore the following areas with stakeholders:

the business and employment outlook for the bicycle industry;

the current and likely future needs of stakeholders for bicycle industry retail, service and repairs training; and

any problems the current training delivery model may have in meeting these needs, both in delivery method and in content (to aid this discussion, the units for the Certificate III in Bicycle Workshop Operations are listed at Appendix A).

This guide provides a brief explanation of the project and questions to guide these discussions.

2. BackgroundThere are two accredited training courses for bicycle retail, service and repairs in Australia:

Certificate II in Bicycle Mechanical Technology.

Certificate III in Bicycle Workshop Operations.

Prior to 2013, NMIT delivered the vast majority of accredited bicycle industry training in Victoria and was the only training provider in Melbourne.


1


In early 2013, NMIT announced it would no longer deliver the Certificate II and III. NMIT said the decision to cease training was a result of Victorian Government funding changes that made it uneconomic to offer the training.

This leaves Advance TAFE (located in East Gippsland) as the only provider of bicycle retail, service and repairs training in Victoria. While Advance TAFE and Bicycle Training Australia (BTA) have recently announced an MOU that could allow parts of the Certificate II and III to be delivered jointly at BTA premises in Melbourne, it is not yet clear whether such an arrangement will meet industry needs.

3. Key areas of interest and questions for discussion

Bicycle industry context How has the bicycle retail industry changed over the past 10 years?

Do you have trouble finding suitably skilled staff?

What kind of training is needed to satisfy the skill needs of your business?

In the bicycle industry, is there a clear pathway from training into employment?

Accredited training Have your employees enrolled in and/or completed accredited training?

Is current accredited training well suited to your business needs?

Are there issues or concerns regarding the relevance or currency of the content in the current training package?

Has the updated training package improved the relevance of the bicycle qualifications?

Has the delivery of accredited training been of a high quality?

Is the method of training delivery suitable (e.g. block release, online classes)?

Are the training facilities appropriate?

Other training Have your employees enrolled in and/or completed non-accredited formal training?

Did this training suit the needs of your business?

What kind of on-the-job training does your business provide to staff? Does the training cover bicycle mechanics and/or extend to other roles within the business (e.g. business administration, sales or customer service)?

Future training What would be your view of a model based on extensive training on the work site?

Would there be demand for training in qualifications and skill sets other than the Certificate II and III noted above?

Is cost a significant factor in the training you offer employees? Do you have any specific expectations about an acceptable cost for training related to bicycle retail, service and repairs training?

Do you have any suggestions regarding a viable training model that will meet industry needs?

What role could government and/or industry associations play?


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Appendix C Units in the Certificate IIIIn the stakeholder consultations, participants were shown the units from the Certificate III in Bicycle Workshop Operations to elicit feedback on the value of each part of the course. The units are listed below.


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No. UnitElective/Core

Of no value Of little valueOf some

valueOf high value

Of very high value

1 Establish relations with customers Elective □ □ □ □ □

2Apply environmental and sustainability best practice in an automotive workplace

Core □ □ □ □ □

3 Use numbers in an automotive workplace Elective □ □ □ □ □

4 Read in an automotive workplace Elective □ □ □ □ □5 Communicate effectively in an

automotive workplace Elective □ □ □ □ □6 Solve routine problems in an

automotive workplace Elective □ □ □ □ □7 Write routine texts in an automotive

workplace Elective □ □ □ □ □8 Adapt work processes to new

technologies Elective □ □ □ □ □9 Work effectively with others Elective □ □ □ □ □10 Communicate business information Elective □ □ □ □ □11 Contribute to quality work outcomes Elective □ □ □ □ □12 Inspect technical quality of work Elective □ □ □ □ □13 Maintain quality systems Elective □ □ □ □ □14 Apply safe working practices in an

automotive workplace Core □ □ □ □ □15 Work in a retail bicycle environment Core □ □ □ □ □16 Select and adjust bicycle to fit rider Elective □ □ □ □ □17 Conduct cycling proficiency training Elective □ □ □ □ □18 Assemble bicycles Elective □ □ □ □ □19 Assemble box bicycles for retail sale Core □ □ □ □ □20 Restore bicycles Elective □ □ □ □ □21 Identify and select components for

custom bicycles Elective □ □ □ □ □22 Provide mechanical support to cycling

events Elective □ □ □ □ □23 Service and repair bicycle mechanical

braking systems Core □ □ □ □ □24 Service bicycle hydraulic braking

systems Core □ □ □ □ □25 Repair bicycle hydraulic braking

systems Core □ □ □ □ □26 Service bicycle steering systems Core □ □ □ □ □27 Service bicycle suspension systems Core □ □ □ □ □28 Repair and overhaul bicycle steering

systems Core □ □ □ □ □


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valueOf high value

Of very high value

29 Repair and overhaul bicycle suspension systems Elective □ □ □ □ □

30 Remove, repair and fit bicycle tyres Elective □ □ □ □ □31 Service bicycle wheels and hubs Core □ □ □ □ □32 Design and build bicycle wheels Core □ □ □ □ □33 Repair and overhaul bicycle wheels

and hubs Core □ □ □ □ □34 Use and maintain specialised bicycle

repair tools Elective □ □ □ □ □35 Service bicycle drivetrain systems Core □ □ □ □ □36 Repair bicycle drivetrain systems Core □ □ □ □ □37 Service electric power assist bicycles Elective □ □ □ □ □38 Fit and adjust bicycle accessories Core □ □ □ □ □39 Service and repair bicycle frames Elective □ □ □ □ □40 Design and build bicycle frames Elective □ □ □ □ □41 Assess carbon fibre frames for repair Elective □ □ □ □ □42 Process customer complaints Elective □ □ □ □ □43 Present stock and sales area Elective □ □ □ □ □44 Apply sales procedures Elective □ □ □ □ □45 Sell products Elective □ □ □ □ □46 Promote products and services Elective □ □ □ □ □47 Carry out diagnostic procedures Elective □ □ □ □ □48 Use and maintain measuring

equipment in an automotive workplace Elective □ □ □ □ □49 Use and maintain workplace tools and

equipment Elective □ □ □ □ □50 Carry out soft soldering techniques Elective □ □ □ □ □51 Carry out manual metal arc welding

procedures Core □ □ □ □ □52 Carry out brazing procedures Elective □ □ □ □ □53 Carry out gas metal arc welding

procedures Elective □ □ □ □ □54 Carry out gas tungsten arc welding

procedures Elective □ □ □ □ □

55Carry out oxy acetylene welding, thermal cutting and thermal heating procedures

Elective □ □ □ □ □

56 Organise and complete daily work activities Elective □ □ □ □ □


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valueOf high value

Of very high value

57 Organise personal work priorities and development Elective □ □ □ □ □

58 Use power tools/hand held operations Elective □ □ □ □ □59 Perform stock control procedures Elective □ □ □ □ □60 Maintain and order stock Elective □ □ □ □ □61 Provide work skill instruction Elective □ □ □ □ □62 Receive and store stock Elective □ □ □ □ □

Source: training.gov.au


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Documents

Web viewSource: ACIL Allen Consulting. Accredited training. There are currently two accredited training courses for the bicycle industry: Certificate II in Bicycle Mechanical