Industry Training Demand Profile – Property Services

Industry Training Demand Profile

Property Services

Contents

Scope of Property Services TDP

Part 1 Industry background and directions

Part 2 Skill shortages

Part 3 Property Services Industry demand for training

Part 4 Assessment of infrastructure needs

Part 5 Information on VET in schools and School-based Apprenticeships and Traineeships

Part 6 Industry’s top priorities for the public training system

Part 7 Higher education

Appendices

References

Scope of Property Services TDP

Industry sectors and core occupations

The property services industry is a collection of broad services and thus is found under a number of classifications under the Australian and New Zealand Standard Industrial Classification(ANZSIC)system.

The property services industry is comprised of the following industry sub-sectors:

  • Business Broking
  • Cleaning Services
  • Carpet Cleaning
  • Cleaning Operations
  • Facilities Management
  • Fire Services
  • Fire Protection Equipment
  • Fire Safety Systems Inspection
  • Pest Management
  • Property Operations and Development
  • Real Estate
  • Security
  • Security Operations
  • Technical Security
  • Security Management
  • Investigative Services
  • Spatial Information Services
  • Stock and Station Agency
  • Waste Management

Industry sectors

The ANZSIC L Property & Business Servicesindustry codes are:

  • 7712 Commercial Property Operators & Developers
  • 7720 Real Estate Agents
  • 786 Other Business Services

Core occupations

The property services industry comprises the following core occupations according to the Australian Standard Classification of Occupations (ASCO) classifications:

3112-13Earth Science Technical Officer

3293-11Real Estate Agency Manager

3293-13 Property Manager

3293-15Real Estate Sales Person

3399-23Stock and Station Agent

3999-17Private Investigator

3999-19Security Advisor

6399-17Pest and Weed Controller

7992-11Product Examiner

8311-11Security Officer

8311-13 Armoured Car Escort

8311-79 Guard and Security Officers (other)

9111-11 Commercial Cleaner

9111-13 Domestic Cleaner

9111-15Carpet Cleaner

9111-17 Vehicle Cleaner

9111-19 Window Cleaner

9111-79 Cleaners (other)

9914-11Survey Hand

9918-11Electrical or Telecommunications Trades Assistant

9991-11 Garbage Collector

Training packages and qualifications

PRM04Asset Maintenance

PRS03Asset Security

PRD01Property Development and Management

Asset Maintenance (PRM04)

The Asset Maintenance Training Package (PRM04) was endorsed nationally in February 2004 and implemented in Tasmania in April 2005. It contains 15 qualifications across 6 industry sectors:

Carpet Cleaning / PRM20604 Certificate II in Asset Maintenance (Carpet Cleaning)
PRM30604 Certificate III in Asset Maintenance (Carpet Cleaning)
PRM40104 Certificate IV in Asset Maintenance (Cleaning Management)
Cleaning Operations / PRM10104 Certificate I in Asset Maintenance (Cleaning Operations)
PRM20104 Certificate II in Asset Maintenance (Cleaning Operations)
PRM30104 Certificate III in Asset Maintenance (Cleaning Operations)
PRM40104 Certificate IV in Asset Maintenance (Cleaning Management)
Fire Protection Equipment / PRM20404 Certificate II in Asset Maintenance (Fire Protection Equipment)
PRM30404 Certificate III in Asset Maintenance (Fire Protection Equipment)
Fire Safety Systems Inspection / PRM40704 Certificate IV in Asset Maintenance (Fire Safety Systems Inspection)
Pest Management / PRM30204 Certificate III in Asset Maintenance (Pest Management - Technical)
PRM40204 Certificate IV in Asset Maintenance (Pest Management)
Waste Management / PRM20504 Certificate II in Asset Maintenance (Waste Management)
PRM30504 Certificate III in Asset Maintenance (Waste Management)
PRM40504 Certificate IV in Asset Maintenance (Waste Management)

Asset Security (PRS03)

The Asset Security Training Package (PRS03) was endorsed nationally in March 2003 and implemented in Tasmania in May 2004. It contains 8 qualifications across 3 security industry sectors:

Security Operations / PRS10103 Certificate I in Security Operations
PRS20103 Certificate II in Security Operations
PRS30103 Certificate III in Security Operations
PRS40103 Certificate IV in Security and Risk Management
PRS50103 Diploma of Security and Risk Management
Security Operations includes Certificates I to III covering security operations functions and Certificate IV and Diploma levels covering both management and higher level specialist functions such as risk management
Technical Security / PRS20203 Certificate II in Technical Security
PRS30203 Certificate III in Technical Security
Technical Security includes two qualifications at the Certificate II and III levels that focus on the sale and installation of security equipment
Investigative Services / PRS30303 Certificate III in Investigative Services
Investigative Services consists of a Certificate III qualification that covers both factual investigation and surveillance areas

Property Development and Management (PRD01)

The Property Development and Management Training Package (PRD01) was endorsed nationally in May 2001 and implemented in Tasmania in November 2001, with subsequent additions. It contains 15 qualifications across 5 sectors:

Real Estate / PRD30101 Certificate III in Property (Real Estate)
PRD40101 Certificate IV in Property (Real Estate)
PRD50101 Diploma of Property (Real Estate)
Stock and Station Agency / PRD30201 Certificate III in Property (Livestock Services)
PRD40201 Certificate IV in Property (Stock and Station Agency)
PRD50201 Diploma of Property (Stock and Station Agency)
Spatial Information Services / PRD30301 Certificate III in Spatial Information Services
PRD50301 Diploma of Spatial Information Services
PRD60301 Advanced Diploma of Spatial Information Services
Business Broking / PRD40403 Certificate IV in Property (Business Broking)
PRD50403 Diploma of Property (Business Broking)
Property Operations and Development / PRD30504 Certificate III in Property (Operations)
PRD40504 Certificate IV in Property (Operations)
PRD50504 Diploma of Property, Asset and Facility Management
PRD60504 Advanced Diploma of Property, Asset and Facility Management

TDP Methodology

This Training Demand Profile (TDP)is derived from both quantitative and qualitative data. The emphasis in gathering data was to link sector and training trends with the expressed demands of industry for training and skills. The TDP therefore draws upon statistical material, sector information, and direct input from industry, both at the association and individual business level through:

  • Desk research of documents in the public domain (listed in the References).
  • Analysis of sector association documents released to the researchers.
  • Course enrolment and completion data provided by the Office of Post-Compulsory Education and Training (OPCET).
  • Qualitative data gathered through direct interviews with industry:
  • 74 interviews with businesses, industry associations and trainers.
  • The Training Development Manager of the Real Estate Institute of Tasmania.
  • The Executive Officer of the Spatial Sciences Institute of Tasmania.
  • The President and immediate Past-President of the National Upholstery and Carpet Cleaners Association (Tasmania).
  • The President of the Tasmanian division of the Waste Management Association of Australia.
  • The Executive Officer of the Australian Environmental Pest Managers Association.
  • The Executive Officer of the National Upholstery and Carpet Cleaners Association.
  • The immediate Past-Executive Officer of the Property Agents Board of Tasmania.
  • In addition, a further 46 individuals and companies were contacted, who either declined or were unavailable.
  • A number of companies provided information on more than one sub-sector (such as real estate and business broking) as these worked across industry lines.
  • Attendance at the Spatial Education Advisory Committee (SEAC) task force presentation to stakeholders on the Spatial Sciences Institute Biennial International Conference, 18 May 2007, Hobart.
  • Attendance at the National Security Regulators’ Meeting, 29 May 2007, Hobart.
  • Information supplied by industry and training organisations.

Part 1 Industry background and directions

Industry background

In 2005-06, property and business services contributed 12.4% of total industry value added (current prices) to GDP in Australia. Dwelling ownership contributed 8.5%.[1]

Property services employ approximately 1,160,000 persons across Australia, or around 11% of the total workforce. The sector stretches from unskilled workers to postgraduate professionals. In 2005, the number of persons estimated to be working in the property services industry was 2,500.[2]

Property services is a conglomeration of sectors, delivering services in areas as diverse as real estate services, property management, fire equipment and systems, waste management, security, cleaning, and spatial information services. These were banded together largely as a result of the Australian Government’s industry training advisory body (ITAB) process which endeavored to give industry a voice on its training and skills needs.

The profiles, training and skills needs of each sector are as diverse as the sectors themselves. Industry-wide conclusions are therefore difficult to draw. However, there are some distinct trends.

In nearly all sectors, there are strong moves to increased professionalism, evidenced in higher competency standards for employees, improving management systems, growing commitments to regulation and industry-wide standards, and growing membership numbers within industry associations. There are increasing requirements in many of the sectors for training prior to licensing (where appropriate) or work within the industry.

The moves to greater professionalism are uneven, both across and within sectors. Traditionally, a number of the sectors have been of low status and low pay, with few barriers to entry. A number of these conditions persist, but stronger national and local regulation, which is affecting many of the sectors, are expected to bring about more across-the-board change.

All sectors indicated that their primary function was to address the needs of clients. Businesses across the spectrum identified customer service and employability skills as a major skills gap in both the workers they were attracting to the industry and in the formal vocational training that was available.

Cleaning

General cleaning covers residential, industrial, and commercial cleaning services, and includes cleaning services to interior and exterior property as well as automotive cleaning. It encompasses large companies with national contracts and one-person operators.

The sector is characterised by unskilled and less-educated workers, although there are moves to greater professionalism within some companies.

Those that engage in publicly funded training are the public sector cleaners and larger contractors, whilst the micro-businesses usually only participate when required by regulatory or technological change (mainly new chemicals).

Historically, the VET provision in this sector has been Fee-For-Service, Competitive Bids[3] and User Choice funded. The most commonly funded courses have been PRM20104 Certificate II in Asset Maintenance (Cleaning Operations) and PRM30198 (now PRM30104) Certificate III in Asset Maintenance (Cleaning Operations) and in 2005, most training was funded under User Choice or Fee-For-Service arrangements.

There are few major industry trends within the general cleaning industry. New chemicals and advances in machinery (such as new functions to vacuum cleaners) are minor changes. The most significant change is to environmentally friendly chemical products, although this is applied unevenly across the industry.

Carpet cleaning

The cleaning sector is divided into general cleaning and carpet cleaning, but changing business structures and advances in technology are increasingly blurring this line of distinction. Carpet and upholstery cleaners at the more professional end of the sector, for instance, are widening their skills to deal with hard floor and wall surfaces.

The cleaning industry is represented by a range of business types, from medium-sized companies, often deriving business from contracts with larger firms and government, to single-person outlets that may be unregistered. In addition, cleaning personnel may be engaged within organisations (such as hospitals) as staff members.

The carpet cleaning sector is broader than carpet cleaning and also encompasses upholstery cleaning, fire and smoke restoration, and water damage restoration. It is characterised by small, usually family-owned businesses. The sector is represented by the National Upholstery and Carpet Cleaners’ Association (NUCCA), headquartered in Sydney with chapters in each state. The association promotes qualification and accreditation, quality and standards, and a code of ethics. The majority of businesses are not members of the body. In Tasmania NUCCA have a membership of 15 of an estimated total of75 operators within the state. NUCCA is presently considering changes to its national structure to increase its influence over policy and the industry.

Carpet cleaning is a relatively small sector that is unregulated(although it does have to comply with regulation pertaining to chemical use and OH&S), has no mandated pricing scales and is therefore highly competitive. The most lucrative aspect of carpet cleaning is insurance and restoration work associated particularly with water, fire and forensic cleaning. However, this aspect of carpet cleaning is often subject to business arrangements between the larger carper cleaners and insurance companies to not only simplify the national provision of that type of service but also to ensure uniform standards of service in a somewhat exacting specialist area.

The sector is characterised by franchisors and other business arrangements involving the larger companies that channel chemicals, equipment and training to the smaller operators who are either franchisees or free agents and who, in some instances are loosely aligned with these channel suppliers. This exerts a level of informal control within some segments of the sector that influences market opportunities for new entrants and/or the growth of existing operators. This means, for instance, that:

  • Franchises prescribe the nature of the base training for their franchisees (although of course, that does not restrict operators from seeking training outside their franchise arrangements);
  • Arrangements between larger carpet cleaning companies and insurance companies makes new entrants into carpet restoration more difficult and therefore less attractive, hence fewer small operators are likely to seek training in that aspect of carpet cleaning;
  • Training is frequently associated with specific brands of chemicals and the use of equipment which may then be used as a channel to market those products to the operators.

The carpet cleaning sector in Tasmania is facing a number of changes, both internally and externally driven:

  • Increasing professionalisation, driven by the national body, whose members want to see better training and accreditation in the industry, and by insurance companies facing large restoration or replacement costs.
  • Broadening of services, to include hard floor and surface cleaning (such as tile, grout and wooden floor cleaning).
  • Continuous advances in technology, including chemicals, machinery and techniques – often making business set-up and operations more costly.

Pest control

Pest control incorporates extermination, pest control systems and surveillance, and risk analysis. The core activities focus on the application of pest or weed management techniques to kill and control pests or weeds in domestic, commercial and industrial areas, roadsides, and private and public lands.

This is a highly competitive sector and this includes competition between sector participants and competition by the sector with other industries. The main competitive factors are:

  • Price-based competition is significant in this sector, due to the large number of small business operators.
  • Larger firms have placed more emphasis on quality service standards by offering regular and professional service on a programmed and contract basis.
  • Business operators who utilise the newer liquid products for termites currently available may secure more repeat business, as these treatments requireregular applications to maintain their effectiveness.
  • External competition also exists as more households are doing their own pest control using pre-prepared products from supermarkets and hardwarestores.[4]

The barriers to entering the pest control sector are regarded as a medium degree of difficulty and the trend is currently increasing owing to:

  • Operators must be licensed.
  • The high entry capital costs for franchised operators.
  • Increasing technological and regulatory requirements.

Security

The security sector covers a broad range of services, such as security guarding, security desk services, electronic security, crowd control, vehicle control, cash-in-transit, ATM servicing, and parcel and personal screening (including safe passage screening). The sector ranges from small to large enterprises, with a number of (mainly medium and larger firms) involved in a range of security and other related services, such as occupational health and safety.

The Australian Security Industry Association (ASIAL) is a national representative body for the sector. It claims to represent 85% of the security industry.

ASIAL estimates the size of the sector to be around $4.3 billion, expanding each year to play an ever-increasing role in public safety and the protection of assets and employees. It suggests that the private security sector will grow at a rate of 5.5% per annum over the next 5 years. The national private security sector has a workforce of well in excess of 150,000 personnel, three times the size of police forces around the country and therefore a significant factor in framing of new national security strategies.

Margins can be as low as 2%, as for security guarding, which drives some companies within the sector to cut costs and reduce standards. Pay scales are also low (estimated in the lowest 5% earnings) and hence attracting and retaining suitable staff is also an issue. Due to strong competition, it is not expected that there will be an upward pay shift in the near future.

The sector is regulated by state and territory governments, with requirements and standards varying. Issues of mutual recognition, duplication of licensing, high compliance costs and lowering of standards exist because of the regulatory environment. In addition, the sector is increasingly regulated, which has led to a change in both the structure of the industry and in those entering it. The industry is consolidating, with a number of smaller players closing their businesses. The majority of business within the sector work on a contractual basis, with governments and large corporations (such as airport authorities and mining companies) outsourcing their security operations on a fixed-term basis.

Public perceptions of the sector are not always positive, although the community may be unaware of the spread of employment, from crowd control to personal screening at airports, for example. In part, poor public perception relates to the uneven service delivery within the sector, which the sector itself acknowledges.

Real estate

The real estate services sector covers valuing, purchasing, selling by auction and private treaty, and managing or renting real estate for others (as defined in the Australian Bureau of Statistics.[5] For the purposes of this TDP it represents both real estate and property management services.

The latest available survey of Australian real estate services was conducted by the Australian Bureau of Statistics (ABS) in 2002-03.[6] According to the ABS survey, income from all sources to real estate agents in 2002-03 totaled $6,819 million, with the average operating profit margin calculated at 11.1%.