DEFENCE INDUSTRY 1 SOUTH AUSTRALIA WORKFORCE … WS... · 2016-04-11 · 2 The DTC and its defence industry partners have identified that a combination of Must Win Projects that are

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DEFENCE INDUSTRY SOUTH AUSTRALIAWORKFORCE STRATEGY (DISA–WS)2014-2020

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The DTC and its defence industry partners have identified that a combination of Must Win Projects that are sufficiently supported by

Strategic Partners in Action to develop and invest in the Workforce After Next are the key ingredients to sustaining the defence and security

industry into the future.The purpose of the Defence Industry South Australia Workforce Strategy

(DISA-WS) is to develop and maintain a skilled defence and security industry workforce in South Australia that can meet the needs of

Defence and related industry projects and provide a basis for future-proofing its workforce.

THE DISA-WS:

Careful analysis of the key findings of this project, coupled with the priorities that have been set, have identified a clear need for greater

connection between future opportunities within the defence and security industry and the strategic partnerships required to enable their success,

all the while remaining ever mindful of the need to continue to equip our workforce of the future.

TAKING AIM

ASSESSES CURRENT/FUTURE

WORKFORCE NEEDS/ISSUES

IDENTIFIES RISKS AND GAPS

DETERMINES SOLUTIONS TO

ADDRESS ISSUES/GAPS

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HERE & NOWKEY DRIVERS

A number of key drivers have been considered as impacting on the South Australian defence industry and its workforce.

At a national level, workforce demand for skills and qualifications, linked to likely scenarios for the Australian economy, along with the impact of economic change in Asia,

highlights the need for industry to take advantage of domestic and global supply chain opportunities.

In a South Australian context, the defence industry together with government, is aiming for sustainable growth and sector strategic outcomes in maritime, systems and cyber, aerospace, land, science and technology. A focus is needed for advanced

manufacturing on innovation capability, a globalisation mind set, niching, building a highly skilled workforce, knowledge management, and an entrepreneurial approach to management.

Industry drivers focus on maintaining the pipeline of work to industry, designing workforce solutions to address critical capabilities and job roles.

CURRENT WORKFORCE PROFILE

Workforce data was drawn from a range of defence industry companies to form a sample workforce profile. These companies generally had a male-dominated ageing workforce. Some had better balanced age and duration of service profiles than others, although most were particularly vulnerable to older staff leaving.

The average age of workers within the sample set is just over 40 years, and the average duration of employment is relatively short at just under 5 years, with considerable variability across the companies.

86%14%

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Figure 1: Age distribution

There has been significant recent recruitment, with 13% (totaling some 105 employees) recruited in the past 12 months. Within the last 5 years there has been some active recruitment, with half of all staff recruited in this period. Some 14% of staff or 110 employees have been with their companies for over ten years.

The types of positions with staff close to, or of retirement

age consist of a mix of administrative, operational (professional and trades) and management roles. Avionic technicians and site supervisors are particularly vulnerable.

While employees who work in these companies live across all of metropolitan Adelaide, several postcodes have greater concentrations of employees, tending to be in urban fringe

suburbs such as Smithfield/Salisbury in the North and Trott Park/Hallett Cove in the South.

For Small and Medium sized Enterprises, the percentage of work in the defence sector is relatively small averaging between 10-15% indicating that these suppliers are already diversifying to manage risk; albeit, they are still keen to pursue new opportunities or markets.

Figure 2: Years of service

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WORKFORCE ISSUES AND GAPS

A desktop analysis of potential workforce gaps and issues at a Workforce Wide and Specific Capability level highlighted the following areas for concern:

Workforce Wide Issues

• Ageing workforce• Attraction and recruitment• Barriers to entry to the sector• Culture• Defence experience• Defence industry brand/narrative• Educated customer• Entry level jobs and workforce

participation

• Skills transferability• Skilled migration• Security clearance• Skills needs analysis• Regional strategies• Retention• Work Life Balance• Family Friendly• System level changes• Transition bridging from Australian

Defence Force to defence industry• Trade qualifications with defence

experience compared with civilian trade qualifications

• Workforce Diversity and Gender Equality.

Specific Capability Gaps

• Alliance• Asian Literacy• Commercial Bid Management (Risk

and Value Management)• Cyber Security• Digital Economy• Diversification across markets and

pipeline management• Innovation and Entrepreneurship• Leadership• Project Management• Science Technology Engineering and

Mathematics• Supply Chain• Workforce Planning and

Development.

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Figure 1: Age distribution

There has been significant recent recruitment, with 13% (totaling some 105 employees) recruited in the past 12 months. Within the last 5 years there has been some active recruitment, with half of all staff recruited in this period. Some 14% of staff or 110 employees have been with their companies for over ten years.

The types of positions with staff close to, or of retirement

age consist of a mix of administrative, operational (professional and trades) and management roles. Avionic technicians and site supervisors are particularly vulnerable.

While employees who work in these companies live across all of metropolitan Adelaide, several postcodes have greater concentrations of employees, tending to be in urban fringe

suburbs such as Smithfield/Salisbury in the North and Trott Park/Hallett Cove in the South.

For Small and Medium sized Enterprises, the percentage of work in the defence sector is relatively small averaging between 10-15% indicating that these suppliers are already diversifying to manage risk; albeit, they are still keen to pursue new opportunities or markets.

Figure 2: Years of service

0yr

2.5y

r

7.5y

r

10yr

12.5

yr

27.5

yr

25yr

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20yr

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20yr

25yr

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60yr

65yr

70yr

75yr

WORKFORCE ISSUES AND GAPS

A desktop analysis of potential workforce gaps and issues at a Workforce Wide and Specific Capability level highlighted the following areas for concern:

Workforce Wide Issues

• Ageing workforce;• Attraction and recruitment;• Barriers to entry to the sector;• Culture;• Defence experience;• Defence industry brand/narrative;• Educated customer;• Entry level jobs and workforce

participation;

• Skills transferability;• Skilled migration;• Security clearance;• Skills needs analysis;• Regional strategies;• Retention;• Work Life Balance;• Family Friendly;• System level changes;• Transition bridging from Australian

Defence Force to defence industry;• Trade qualifications with defence

experience compared with civilian trade qualifications;

• Workforce Diversity and Gender Equality.

Specific Capability Gaps

• Alliance;• Asian Literacy;• Commercial Bid Management (Risk

and Value Management);• Cyber Security;• Digital Economy;• Diversification across markets and

pipeline management;• Innovation and Entrepreneurship;• Leadership;• Project Management;• Science Technology Engineering and

Mathematics;• Supply Chain;• Workforce Planning and

Development.

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FILLING IN THE GAPSWorkforce wide issues include the ongoing challenge of attracting workers into the sector, risk management capability, technology utilisation and the need for more contemporary trade-based skills.

Future critical job roles are predicted to shift from those of a general occupation to specialised hybrid roles with greater skills depth and breadth. This will require tacit knowledge that will be gained through experience over time. In particular, the following job groups are critical:

Engineers (Electrical and Electronics, System/Software, Aircraft Maintenance, Aeronautical, Maritime, Civil, Mechanical, Radar, Test and Integration, and Structural)

Managers (Program, Project, Site, Commercial/Procurement, Supply-Chain)

Technicians (Systems, Avionics, Diagnostic, Programming, Data, Logistics)

Trades (Aircraft, Welding, Boiler Maker, Diesel Mechanic, Pipe Fitter, Electrical, Instrumentation, Machinist)

Bid/Production Support (Cost Analyst, Estimator, Planner/Scheduler, Production Maintenance, Compliance)

Domain Specialists (Electronic Warfare, Safety, Quality Assurance)

To overcome these workforce wide issues and best support future critical job roles, a range of system level changes will be required. The sourcing of skilled migrants with compatible skills and/or experience in the Defence Industry from other countries is considerably affected by restrictions such as International Traffic In Arms Regulations (ITAR) and Defence Security Clearance which is difficult to attain for non-Australian Citizens.

This highlights the importance of having a greater focus on STEM to produce local graduates.

The need for skilled education staff, with commercial experience is essential to being able to produce job-ready graduates. An overarching partnership between industry, research, education and Government will better support a long-term workforce strategy.

HAVING CONSIDERED THE CURRENT WORKFORCE EVIDENCE VERSUS THE FUTURE WORKFORCE PROFILE, NUMEROUS GAPS INCLUDING A RANGE OF WORKFORCE WIDE ISSUES, CRITICAL JOB ROLES AND SYSTEM LEVEL CHANGES NEEDED WERE IDENTIFIED.

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A CALL TO ACTION

#3THE DESIGN OF A DEFENCE INDUSTRY CAPABILITY FRAMEWORK THAT MEASURES AND PLANS THE GROWTH OF AN ADAPTIVE WORKFORCE IS

REQUIRED IN ORDER TO OUTLINE THE ESSENTIAL (MINIMUM) CAPABILITY THAT MUST BE RETAINED TO MAINTAIN A FUTURE INDUSTRIAL BASE.

This can be achieved through identifying and marketing:

• Core/common competencies required for critical job roles• Functional competencies relating to skills across multiple job roles or projects; and

• Job specific competencies• Increased uptake of opportunities within Global Supply Chains

THE SOUTH AUSTRALIAN DEFENCE INDUSTRY WILL SPECIFY ITS WORKFORCE PRIORITIES IN ORDER TO INFORM AND INFLUENCE CHANGES WITHIN STATE AND

FEDERAL GOVERNMENT POLICY AND FUTURE EDUCATIONAL PRIORITIES.

#1

This can be achieved through:

• Annual industry driven collaboration with State, Federal Government agencies and educational providers;• Alignment of strategies between industry and State, Federal Government agencies and

educational providers• Integration of industry requirements and needs in the design of educational programs and

STEM initiatives; and• Building and sustaining effective executive and working level relationships with Schools, Vocational

Education and Training (VET), and Higher Education.

SPECIFIC WORKFORCE DEVELOPMENT SOLUTIONS ARE REQUIRED FOR CURRENT AND FUTURE CRITICAL JOB ROLES, CONSIDERING POTENTIAL

GROWTH, DECLINE, AND TRANSFERABILITY OF SKILLS.

#2


• Monitoring of upcoming State Defence and Security policies• Consideration of cyclical nature of the flow of work• Prioritising of jobs and skills in demand or decline• Benchmarking against high performing industries

• Supporting the transfer of skills that underpin diversification across other sectors; and• Engaging with relevant partners in workforce initiatives and STEM activities.

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A CALL TO ACTION




• Global Supply Chain capabilities• Core/common competencies required for critical job roles;

• Functional competencies relating to skills across multiple job roles or projects; and• Job specific competencies



#1



educational providers;• Integration of industry requirements and needs in the design of educational programs and





#2


• Monitoring of upcoming State Defence and Security policies;• Consideration of cyclical nature of the flow of work;• Prioritising of jobs and skills in demand or decline; • Benchmarking against high performing industries;


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TARGETING SOLUTIONS

Through careful analysis of evidence gathered and a range of critical capabilities identified through workforce planning activities,

the following strategies are recommended to sustain the South Australian defence and security sector into the future:

THROUGH FIRM COMMITMENT AND CLOSE COLLABORATION BETWEEN INDUSTRY, EDUCATION, ACADEMIA AND GOVERNMENT, A BIENNIAL REVIEW AND

EVALUATION OF THE WORKFORCE STRATEGY WILL BE CONDUCTED OUT TO 2020.

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• Reconvening of the targeted steering and working groups• Consideration of State and national environmental changes and links to STEM; and

• Identification of continuous improvement strategies.

A GREATER FOCUS WILL BE PLACED ON SUPPORTING DIVERSIFICATION OF SMALL AND MEDIUM ENTERPRISES (SMES) WITHIN THE SOUTH AUSTRALIAN DEFENCE AND SECURITY INDUSTRY, TO ENABLE AN INCREASED UPTAKE OF

OPPORTUNITIES WITHIN LOCAL, NATIONAL AND GLOBAL SUPPLY CHAINS.

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• Streamlined support services through State and National industry and Government agencies• Fostering engagement in ‘Industry Cluster’ activities to build on Prime and peer relationships

• Innovation in approach to new markets; and

Strengthening the mechanism for SMEs that enables better:• Strategic planning

• Marketing; and• Export readiness.

CREATION OF A GREATER AWARENESS AND EDUCATION OF THE ‘DEFENCE INDUSTRY’ AS A BRAND.

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• Positive marketing of good news stories• Evidencing the capacity and capability of the industry to undertake major projects• Promoting the support given to Peace Keeping, Disaster Relief and Cyber Security

• Potential for jobs growth and career progression through future opportunities• Highlighting the significant effort invested in Alliance ‘Teaming’, SME/supplier capability

development, and Advanced Technology pathway and STEM related support.

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A CALL TO ACTION




• Global Supply Chain capabilities• Core/common competencies required for critical job roles;

• Functional competencies relating to skills across multiple job roles or projects; and• Job specific competencies



#1



educational providers;• Integration of industry requirements and needs in the design of educational programs and





#2


• Monitoring of upcoming State Defence and Security policies;• Consideration of cyclical nature of the flow of work;• Prioritising of jobs and skills in demand or decline; • Benchmarking against high performing industries;


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WORKFORCE PLANNING IN PRACTICEThe strategy was developed using an iterative approach of unpacking research documents and findings and workshopping key issues with stakeholders to provide a shared view and ownership of strategic actions.The overall project was conducted in three stages as follows:

• Stage one consisted of a ‘current state’ assessment to identify key factors and information that provide current and future workforce supply and demand trends, strategic directions, government policy and any other existing research.

• Stage two included a ‘future state’ assessment using a mix of methods including analysis of data and identifying critical job groups through conducting surveys/interviews and Labour Market Scans.

• Stage three involved the development of a strategy document that identifies the proposed actions to be taken and the process of reaching consensus on who will be responsible and accountable for them in the future.

Step 1: Context & Environment

• Timeframe, Methodology, Tools• Why? Strategic Objectives and

Scope• Internal / External Environment• Consultation and

Communication

Step 3: Future Workplace Profile

• Scenarios• Critical job roles, Demand vs

Supply• Skills and Competencies

Step 2: Current Workplace Profile

• Demographic• Skills and Competencies• Issues / Challenges• Critical job roles and gaps

Step 5: Review & Evaluation

• Outcomes of the plan• Evaluation and Implementation• Review and Monitoring

Step 4: Gap Analysis & Closing Strategies

• Areas for action – gaps and issues• Prioritise / Risk Rating• Workforce Develoment Strategies• Resources and responsibilities

WORKFORCE PLANNING AND DEVELOPMENT MODELAs a key partner within this project, Workforce BluePrint guided the workforce planning process through the following model:

A pragmatic approach to desktop research and analysis was undertaken with a summary of national, state, industry and local initiatives and discussion focusing on workforce implications and considerations for the DISA-WS. At each stage of the workforce planning and development process, workforce gaps and issues were identified and built upon for subsequent stages.

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PRIORITISING THE NEEDSWORKFORCE AFTER NEXTTo prioritise these workforce gaps and issues, and support the requirements of the workforce after next, a Centre of Gravity (COG) model was used to highlight critical capabilities and identify where to focus solutions.

A COG model focuses on the necessary characteristics that will guide the conduct of an entity or industry to be able to protect or exploit a capability to create a competitive advantage to maintain or increase market share. The COG clearly defines a strategic intent, operational requirements and tactical vulnerabilities.

Project partners and stakeholders worked together to apply a COG to the preferred workforce scenario, workforce issues and gaps resulting in the following statement of intent:

C.O.G = ABILITY TO PLAN, GENERATE AND SUSTAIN AN ADAPTIVE WORKFORCE WITH THE REQUISITE CAPABILITIES TO DELIVER ON FUTURE OPPORTUNITIES AND SECURE AN INCREASED SHARE OF THE GLOBAL SUPPLY CHAIN.Based upon this statement, a range of must-have critical capabilities are necessary to fulfill its intent. To win projects, we need to ensure that a pipeline of work is increased and balanced and that there is a minimum level of capability and tolerance level defined through effective forecasting and filling of critical job roles.

Strategic partners are needed to develop and invest in a long-term relationship with a commitment to

taking action to assist in Supplier (SME) diversification, gathering evidence to inform workforce priorities and quantifying future workforce needs.

This strategy is designed with an eye to the future to develop the workforce after next. Keeping ahead of technology, adapting to policy changes and client needs and influencing the education pipeline and its educators will best equip our future workforce.

Careful analysis of the key findings of this project, coupled with the priorities that have been set, have identified a clear need for greater connection between future opportunities within the defence industry and the strategic partnerships required to enable their success, all the while remaining ever mindful of the need to continue to equip our workforce of the future.

CENTRE OF GRAVITY

Supply Chain

Capability Development

Workforce Management

Change Management

Strategic Communication

Strategic Workforce Planning

Pipeline of Work

Technological Adaptation

Strategic Partnerships

Educational Pipeline

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MOVING IN TO THE FUTUREFUTURE VISION

This DISA-WS provides a vision out to 2020. Set by its partners and stakeholders, it identifies the following ‘Preferred Scenario’ that provides a likely future from which decisions and priorities can be based: South Australia has a capable and productive workforce to meet the requirements of Future Projects – Sea, Land, Air and Security

Whilst this list is known, in many cases the finer detail is not because requirements have not yet been released. This however has not prevented the identification of critical capabilities and job roles as they are based on what is known from past and current projects. This being said, the preferred scenario does require some educated forecasting and ongoing monitoring.

The future Frigate program will be 8 ships of a class larger than the ANZAC Class Frigates.

SEA 5000Unmanned Aerial Systems- the maintenance and overhaul of Australia’s future uninhabited systems, including the Triton maritime patrol aircraft.

UAS

JP 3024

Joint Project for replacement and upgrade of existing range systems to support test and evaluation of aircraft and weapons.

The expansion and upgrade of the Cultana Training Area into a modern amphibious training ground complete with fully networked range telemetry.

CULTANA Replacement vehicle (or set of vehicles) for the ASLAV, M113 and other medium weight fighting vehicles, fully digital and networked.

LAND 400

Future Submarine project – the successor to the Collins class submarines, the future submarine project will represent the next stage in Australia’s underwater capability.

SEA 1000

To extend the service life of the Collins Class Submarine fleet beyond its current lifecycle to bridge the capability gap before the introduction of the Future Submarine.

SLEP

MUST WIN PROJECTS

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The DISA-WS project was kindly funded by the South Australian Government through the Department of State Development (previously DFEEST).

This project has been guided by Workforce BluePrint as the facilitator who worked in conjunction with a joint Steering Group represented by ASC,

Mincham Aviation, Defence SA, DSD (formerly DFEEST, DMITRE) and DECD, RDB Adelaide, DIIC, DMO, TAFESA and Uni SA on behalf of Industry, Government, Education and Academia.

To better inform stakeholders of the critical job roles required to underpin our current and future defence industry, this

project worked with Babcock International, Nova Group, ASC, Raytheon, Lockheed Martin Australia, AWD Alliance, Australian Aerospace, Pelican Products, SAAB Australia, Smart Fabrication, GDLS, SAGE Automation, BAE Systems and J&H Williams representing the DTC Workforce Planning Group.

STRATEGIC PARTNERS IN ACTION

FUTURE WORKFORCE PROFILE

Figure 3 illustrates that over-riding the preferred scenario is a multi-dimensional challenge with decline in workforce numbers to 2017 before an increase to 2020.

This is incredibly challenging given the TARGET TO increase the defence sector workforce to 37,000 by 2020 as targeted within South Australia’s State Strategic Plan.

The implications of likely success in these identified project wins/bids, include the need for risk management, diversification and future proofing of our workforce.

Should this “valley of death” situation occur, it would cause the timing of different defence projects to misalign, causing shrinkage of workforce capacity and capability. At a point critical mass is eroded and the ability to bounce back or recover from dips in demand, where any spare capacity may be removed, means running the risk of losing critical skills and facing long lead times to re-develop or advance skills.

This is further complicated via an expectation that cost for defence

projects through ‘value for money’ drivers will reduce over time as more efficiencies are gained. At the same time, output from major projects is expected to continue to increase.

So, just as one declines, the other dimensions are required to increase. This is counter intuitive to what a growth scenario would generally represent.

Attracting workers into the sector will require greater community awareness of the benefits to females, a more coordinated approach to engaging graduates and undergraduates in projects and work experience, greater regard to the up-skilling of technical staff within education

institutions, the development of commercial skills in University and VET practitioners, and a greater focus on education that provides more job ready skills in school leavers. Structural adjustment of manufacturing presents a risk in balancing the drying up or alternatively flooding of the market.

Growing and maintaining the skills of the existing workforce should also consider an increasing need for risk management capability, a shift in ability to utilise technology for what once were manual tasks, and the need to update training content and skills to adapt to new and emerging technologies.

Figure 3: Valley of Death Implications

2014 20202017

Capacity

Cost

Productivity

Capability

Documents

DEFENCE INDUSTRY 1 SOUTH AUSTRALIA WORKFORCE … WS... · 2016-04-11 · 2 The DTC and its defence industry partners have identified that a combination of Must Win Projects that are