Commercial Transport

Commercial Transport

Explore Commercial Transport Qualification Pathways document today and take the first step towards realising your potential.

Detailed pathways for Commercial Transport

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Who's this plan for?
Commercial Road Transport
Rail Transport
Water Freight and Passenger Transport
Driving Skills

Whether it's the roads, the rails, or the waterways, the commercial transport sector is the beating heart of Aotearoa New Zealand's economy. Producers, importers, and exporters rely on the swift and efficient movement of goods across the country. The sector's role in keeping industries operational, shelves stocked, and the nation running cannot be overstated. In 2023, the commercial transport sector boasted a workforce of 67,897, a testament to its diversity. Projections indicate that the sector will need to fill over 19,800 job openings by 2029, averaging 4,000 per year. This growth is crucial to meet the industries' expansion and ensure sustained productivity (Infometrics 2024). However, the sector faces stiff global competition for technical talent.

Overview

What matters to Industry Matters to us

Hanga-Aro-Rau engages with the sector through our Industry Stakeholder Group (ISG) and National Industry Advisory Group (NIAG) composed of industry leaders from around the country. This is supported by regular site visits and engagements with sector associations, business owners, and key stakeholders annually. We have heard what issues the commercial transport sector is facing specifically, and below, we have outlined our planned actions to address each priority:

Strong Workforce Pipeline
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In addition to the Cross-Sector Action Plan, which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to attracting and retaining talent in the commercial transport sector. These include:

  1. Declining number of women in the sector: The number of women in commercial transport roles is declining, highlighting the need to intentionally promote the sector as a viable career pathway for women
  2. Need for leadership development: Leadership development is essential for maintaining a skilled and motivated workforce. However, the sector lacks clear pathways for leadership development, leading to a shortage of effective leaders

What action is Hanga-Aro-Rau taking?

In addition to the actions outlined in our Cross-Sector Action Plan, specific actions aligned with the commercial transport sector to support a strong workforce pipeline are:

Support for Pacific workforce: Scoping tangible actions in Lumana’i o Tangata Moana plan, there is a focus on supporting Pacific learners and workers through talent attraction, retention and engagement with a particular target to increase community engagement across regional Pacific communities. This action plan is a guiding tool for industry to identify and develop education and training solutions to prepare Pacific peoples for emerging opportunities. It also presents confident approaches to building Pacific cultural capabilities to support the Pacific workforce.

Qualifications and Recognition Challenges
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In addition to the Cross-Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the commercial transport sector, these include:

  1. Fragmented Sector: The commercial transport sector is fragmented, especially among Small and Medium Enterprises (SMEs). This fragmentation makes it challenging to establish standardised training programs and qualifications across the sector, leading to inconsistencies in skill levels and qualifications among workers.

  1. Lack of Qualified On-site Trainers: There is a shortage of qualified on-site trainers within the Commercial Transport sector, particularly in SMEs.  

  1. Maintaining Relevance and Efficiency: The rapidly evolving nature of the Commercial Transport sector requires workers to continuously update their skills and knowledge to remain relevant and efficient. However, the lack of accessible and up-to-date training opportunities can result in skills gaps and a workforce that struggles to keep pace with industry advancements.

What action is Hanga-Aro-Rau taking?

In addition to the Cross-Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the commercial transport sector, these include:

Balancing theory and practical learning: Collaborating with training providers, Hanga-Aro-Rau is working to maintain a balance between theory and practical learning in commercial transport education programs. By ensuring that qualifications emphasise hands-on experience and real-world applications, we aim to produce graduates who are well-prepared for the demands of the industry.

Ensuring qualifications are up-to-date and industry-relevant: Hanga-Aro-Rau is partnering with providers to ensure that qualifications remain up-to-date and relevant to the evolving needs of the commercial transport sector. This involves regular review and updating of training materials and curricula to incorporate changes in technology, regulations, and industry best practices.

Tailoring delivery models for SMEs: Recognising that many businesses in the sector are SMEs with unique constraints, Hanga-Aro-Rau is developing additional solutions to delivery models that best suit their needs. This may include flexible training options, customised programs tailored to SME requirements, and support for on-the-job training initiatives within SMEs.

From working directly with Industry and understanding their needs, Hanga-Aro-Rau is currently working on the following qualifications:

  • Introduction to dispatch operations for commercial road transport (Level 3)
  • Workplace communication skills for commercial road transport or logistics (Level 3)
  • Workplace communication strategies for commercial road transport or logistics (Level 4)
  • Data collection and analysis for commercial road transport (Level 4)
  • Workplace driver trainer skills for commercial road transport (Level 4)
  • Health and safety, and regulatory compliance for commercial road transport (Level 4)

Hanga-Aro-Rau is undertaking a number of qualification reviews for the commercial transport sector – you can find more information around these and how to get involved here. And follow the links to find out more about interim rulings, or quals reviews coming up from Hanga-Aro-Rau.

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Size of the sector

GDP: In 2023, Commercial Transport contributed $7.9 billion to the national GDP, which is 2.1% of the total economy.
No. of businesses: 11,220, road freight (53%), road passenger 45%. Rail & water transport are both small, with little change.
Māori-owned businesses: (2020) The sector had 523, or 16% (in 1/3 where ownership data was available).

Employment and people

Employment: Continuing to grow, forecast to reach around 75,000 by 2029, around 7,000 more than in 2023.
Number of Māori employed
Ethnicity data for sector.
Age breakdown: 15 to 24-year-olds dropped from 11% (2015) to 9% (2020). 55+ grew from 26% (2015) to 29% (2020).
Gender split: The workforce remains predominantly male with 17% female in 2020 up from 16% in 2015.

Trends and Forecasts

New entrants: From 5,500 to 7,000 between 2015 and 2021. Most from other industries, showing opportunity for attraction.
Retention of new entrants: Most of 2015’s new entrants who remained after 5 years were aged 35-54.
Overall retention: Of the 2015 workforce, 45% remained after 5 years, and 24% remained in the same job after 5 years.
Forecast: 19,800 openings over the next 5 years (average 4000 p/a) 19% due to growth and 81% due to workers leaving/retiring.

Download Commercial Transport Pathways

Explore Commercial Transport Qualification Pathways document today and take the first step towards realising your potential.

Detailed pathways for Commercial Transport

View the flexible options to fit learning preferences
Download Pathway

We want to hear from you

These Workforce Development Plans are our functions in action and remain agile to changing Industry and VET sector needs. We encourage and seek continual feedback, so if you would like to contact our team, please email info@hangaarorau.nz