march 2014 bicycle industry training in victoria · from 2013, as part of the refocusing vocational...

A C I L A L L E N C O N S U L T I N G

DRAFT REPORT TO

DEPARTMENT OF EDUCATION AND EARLY CHILDHOOD DEVELOPMENT

MARCH 2014

BICYCLE INDUSTRY TRAINING IN VICTORIA

FINAL REPORT

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ii

C o n t e n t s Executive 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


iii

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 boxes

Box 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


iv

List of figures

Figure 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 tables

Table 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


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT v

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 VICTORIA FINAL REPORT vi

Acknowledgements

The 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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT vii

Executive summary

Project overview

ACIL 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 training

Broadly 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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT viii

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.

Figure ES 1 Skills and training needs

Source: ACIL Allen Consulting


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT ix

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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT x

Alternative training options

Given 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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT xi

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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT xii

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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT xiii

Recommendations

Given 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.

Figure ES 3 Categorisation of options



BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT xiv

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


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT 1

1 Project overview

1.1 Background


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 Methodology

A 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

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 report

The 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.



2 Overview of the bicycle retail sector in Victoria

2.1 Industry overview

The 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

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 stakeholders

There 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.

0

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Vic NSW Qld WA SA Tas ACT NT

Employment (LHS)

No. of businesses (RHS)



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.

Figure 2 Bicycle industry stakeholders




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.

Figure 3 The Victorian retail bicycle industry




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.

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.

Figure 4 Revenue streams and the industry value chain

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.

Va

lue

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

Repairs and

services

Retail and repairs*

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

Bicycle sales

Accessories

sales



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

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.



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

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

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.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Annual bicycle imports



Figure 6 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

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).

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

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

Annual bicycleimport growth

$0

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$0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Million, A$

Tyres (LHS)

Tubes (LHS)

Lights (LHS)

Bicycles (RHS)

Million, A$



Figure 8 Monthly imports

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.

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

0

20,000

40,000

60,000

80,000

100,000

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

4 year band

4 year average

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Victorian cyclingparticipation rate



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



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.

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.



3 Skills needs and current training delivery in the bicycle industry

3.1 Workforce profile

Broadly 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.



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.

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.



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

Figure 11 Skills and training needs




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.



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 Technology

This 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 Operations

This 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).



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 2012 Proportion 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 166 143

Note: Covers AUR20311 - Certificate II in Bicycles and AUR20305 - Certificate II in Bicycles

Source: ACIL Allen Consulting analysis of NCVER data

Table 2 National Certificate III enrolments by provider

Provider State 2011 2012 Proportion 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 159 129

Note: Covers AUR30211 - Certificate III in Bicycles, AUR30205 - Certificate III in Bicycles

Source: 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).



Figure 12 Certificate II in Bicycles, enrolments, selected states

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

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

0

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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).

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.

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

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

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Certicate II enrolments Certicate III enrolments

NMIT Advance TAFE Bacchus Marsh College Gordon TAFE

South West TAFE Echuca College University of Ballarat



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

Qualification 2012 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 bands

Subsidy 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



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

Qualification Subsidy 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

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.

0

50

100

150

200

250

-85%

-80%

-75%

-70%

-65%

-60%

-55%

-50%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10% -5

% 0% 5% 10%

15%

20%

25%

30%

35%

Number of courses

Bicycle Cert II

Bicycle Cert III



Figure 16 Current subsidy rates

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 Enrolments Subsidy expenditure

Difference 2012 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 -$118,341

Note: 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.

0

50

100

150

200

250

300

350

$1.0

0

$1.5

0

$2.0

0

$2.5

0

$3.0

0

$3.5

0

$4.0

0

$4.5

0

$5.0

0

$5.5

0

$6.0

0

$6.5

0

$7.0

0

$7.5

0

$8.0

0

$8.5

0

$9.0

0

$9.5

0

$10.

00

$10.

50

$11.

00

$11.

50

$12.

00

$12.

50

Number of courses

Bicycle Cert III

Bicycle Cert II



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

Qualification

Government

subsidy per

SCH

Student fee

per SCH

Number of

SCHs Materials fees

Total 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

Qualification RTO revenue per

SCH

Minimum 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 TAFE

Source: 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.



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,

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 subsidies

Qualification 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

Qualification

Hours

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.



Table 11 Annual RTO costs

Trainer costs Administration &

other overheads

Return 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 student Break 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.


3.4 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 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.



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.



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 issues

This 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.



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.



4 Alternative training options

4.1 Summary of challenges for training delivery

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. 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.



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



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.



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.


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.

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

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

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 options

The 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.

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;

Figure 19 Assessment of options




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.

4.5 Clusters of options

As 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;

Figure 20 Effort required and categories of options




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.

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.



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



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.



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 government

Most 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



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 Conclusions

Given 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.



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



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:



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; 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.

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

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

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 training

To 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 pursued

The 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;

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



References

Advance 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.

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

Melbourne.

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



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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT A-1

Appendix A Stakeholders consulted

Table 13 Stakeholder consultation list

Organisation Name Role/title

Employers

Super Retail Group Sean Millard Workshop Trainer

David Smith Workshop mechanic

Bike Force Bill Gordin CEO

Beverly Lucas Operations Manager

Cannondale Michael O'Brien Operations Manager

Specialised Sam Monardo

Managing 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 Dickason Director – 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 TAFE Fred Vanderslick Manager, Trades & Work Safety

Shaun Tomlinson Trainer, Trades & Work Safety

Bicycle Training Australia (BTA)

Greg Hallihan Manager/trainer

Robyn Alexander Director

Phillip Watts Director

NMIT Phil Trip Manager

SkillsTech Australia Chris Naylor

Business 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 Studies

Research and Policy Manager at the Amy Gillett Foundation


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT B-1

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 Project

Discussion Guide

1. Overview


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. Background

There 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.


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT B-2

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?


BICYCLE INDUSTRY TRAINING IN VICTORIA FINAL REPORT C-1

Appendix C Units in the Certificate III

In 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.

No. Unit Elective/

Core Of no value Of little value

Of some

value Of high value

Of very high

value

1 Establish relations with customers Elective □ □ □ □ □

2 Apply 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


6 Solve routine problems in an automotive workplace


7 Write routine texts in an automotive workplace


8 Adapt work processes to new technologies


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


22 Provide mechanical support to cycling events


23 Service and repair bicycle mechanical braking systems

Core □ □ □ □ □



No. Unit Elective/


Of some

value Of high value

Of very high

value

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 □ □ □ □ □

29 Repair and overhaul bicycle suspension systems


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


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 □ □ □ □ □



No. Unit Elective/


Of some

value Of high value

Of very high

value

52 Carry out brazing procedures Elective □ □ □ □ □

53 Carry out gas metal arc welding procedures Elective □ □ □ □ □

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

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


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

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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