Building Victoria’s Skills Base

This is content for Downer

Building infrastructure is an investment in building industry capability and developing the skills of Victoria’s workforce.

In a diversified economy, which must be globally competitive, skills are the lifeblood of economic prosperity and community vitality. Skilled communities attract investment, generate economic activity, encourage innovation and provide work and careers for millions of Victorians.

Building infrastructure is a major driver of employment and economic activity in Victoria. Quite apart from assets that will be utilised by generations to come – assets as diverse as schools, ports, roads and public transport systems – big infrastructure projects help to build a vast array of skills and capabilities that satisfy not only present needs but also the future demands of industry.

Sergio Cinerari, CEO of Downer Infrastructure Services, an Australian Securities Exchange-listed company, says developing and maintaining Downer’s skills base is “absolutely critical” for an organisation that operates across so many sectors of the economy.

“We create jobs and build skills in up to 40 workforce categories in a range of sectors throughout Victoria. We have the leverage to build our own skills base and we use that leverage to forge partnerships with the communities we operate in,” Cinerari says.

At least 10% of the work carried out on Victoria’s major projects will be undertaken by apprentices, trainees or engineering cadets, according to Victorian Government data.

Public policy plays an important part in ensuring that state infrastructure projects are utilised as an engine for skills development. The Major Projects Skills Guarantee mandates minimum apprenticeship requirements for all publicly funded major projects.

Regional universities are also alert to the potential for building local skill pools – as well as open up employment opportunities for their students and graduates – by partnering with construction and engineering employers.

“One of the difficulties we face is getting skilled people to move to regional centres. An engineer from Melbourne is going to be reluctant for various reasons to move to Wodonga or Shepparton so we focus on building skills in those regional centres.” Says Cinerari.

Ballarat-based Federation University Australia (FUA) uses industry partnerships to provide practical on-the-job experience for its engineering students with the prospect of full-time employment upon graduation.

Dr Jessie Harman, Director of Partnerships & Commercial Engagements at FUA, says the local community, graduates and employers benefit from these partnerships.

“The students gain valuable work experience and employability skills while giving [employers] access to talented individuals that can make a contribution to their business,” she says.

“We strongly value opportunities for our students to gain these really important skills and experience. The focus on the employability of graduates and the importance of work experience cannot be understated.”

Harman says infrastructure services provides opportunities not only for engineering graduates but for a diverse range of occupations. As a dual-sector university comprising higher education as well as vocational education and training, FUA is interested in the opportunities infrastructure activity provides for its graduates, apprentices and trainees.

“Infrastructure canvasses so many sectors. It covers the breadth and depth of employment opportunities,” she says.

“Infrastructure’s role in employment is often overlooked but it’s critically important because it spans so many distinct occupations and careers.”

Although the word “infrastructure” tends to conjure up images of grand billion-dollar projects, infrastructure projects vary in size from local community refurbishments that employ a handful of people to mega-projects that employ thousands.

The $5.5 billion Western Distributor project, which will provide an alternative to the Westgate Bridge when it is completed in 2018, will create 5600 new jobs. Construction of Melbourne’s $6 billion Metro Rail Tunnel project – which will include the construction of five new underground stations – will create 3700 Victorian jobs once major construction starts in 2018.

At the smaller end of the infrastructure spectrum, the $400,000 foreshore redevelopment and precinct upgrade in the north central Victorian town of Bridgewater will create five local jobs during construction and six new jobs upon completion.

Warrnambool CBD infrastructure upgrades – including footpath widening, road narrowing, landscaping, parking, roundabout and traffic lane modifications – will generate 396 jobs during construction.

Whatever its dimensions, infrastructure activity will continue to play a vital role in employing, skilling and reskilling Victorians.

This is especially important as the Victorian economy transitions to a more diversified service and knowledge-based economy, with less reliance on traditional industries such as manufacturing. Manufacturing’s share of the state’s economy has shrunk from 19% 30 years ago to 9% today.

Statutory authority Infrastructure Victoria is ensuring that infrastructure activity is co-ordinated with short-, medium- and long-term social and economic interests in mind. It is currently in the process of developing a 30-year infrastructure strategy for the state.

“If current trends continue, the Victorian economy is expected to shift further away from manufacturing,” the authority says in a recent report.

“Global forces are changing how our economy operates… Better use of, and investment in, infrastructure could make a significant contribution to lifting Victoria’s productivity performance.”