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VIC BRANCH UPDATE
VIC BRANCH
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BRANCH UPDATE
Pawel Podolski NECA VIC Executive Director Dean Spicer NECA VIC President
WElCOME TO THE FirST EDiTiON OF THE ViCTOriAN NECA NEWS UpDATE FOr 2022. HOpEFUllY YOU All HAD AN OppOrTUNiTY FOr SOME rEST OVEr THE FESTiVE SEASON, AND ArE FUll OF ENErGY TO MEET THE iNCrEASED DEMAND WE’rE SEEiNG iN MANY pOCKETS OF THE iNDUSTrY.
NECA industry update
late last year, NECA Victoria sent out an industry update to our members. Through NECA’s role, we get to engage with a broad range of stakeholders and participants. i believe it is useful for all of our industry to understand some of the structural drivers and perhaps what to expect over the coming months – despite the many uncertainties that will still need to be navigated this year.
i share the executive summary with you here. if you are interested in the full white-paper, this can be accessed at www.bit.ly/vicupdate2021:
“When we wrote last year’s industry update, we thought – or perhaps hoped! – that the end of COVID-19 was in sight. In retrospect, it’s probably just as well we didn’t know then what we do now! Given the upheaval COVID-19 has brought to the whole world, you would be forgiven for thinking that it would have a seismic effect on our industry as well.
COVID-19 has influenced the way we do business to some extent – contact with suppliers for instance, has been more remote than previously. The biggest impact of the pandemic though, seems to be larger companies moving away from commercial contracts into other areas. The most encouraging result was that, despite the challenges of the last few years, the overall mood was one of optimism, which bodes well for our industry going forward into the 2020s.”
NECA VIC Excellence Awards
The NECA ViC Virtual Excellence Awards were held on Friday 11 February, and were a great success despite the virtual format. Up to 900 people joined the celebrations from the comfort of their offices and/ or homes. There were some wonderful projects showcased. if you have not previously participated in the awards, and want to get a flavour of the projects and the exposure organisations receive by participating, an on-demand replay is available at www.bit.ly/vicawards2021
Nominations are now open for 2022. You’ve asked and we’ve listened! There’s a new Small Business Award this year, so i advise all our smaller members to take the opportunity to showcase the projects you’ve been working on.
New Silica Safety Regulations from November 2021
Victoria’s new Occupational Health and Safety Amendment (Crystalline Silica) Regulations 2021 (the regulations) came into effect on 15 November 2021.
These new laws have been introduced to better protect workers from exposure to respirable (breathable) crystalline silica. Crystalline silica is a natural mineral found in many materials, such as engineered stone, granite, sandstone, concrete, bricks, tiles and mortar. Engineered stone is often used in the construction of benchtops, flooring and tiles. This type of stone (also called reconstituted stone) can contain up to 95% crystalline silica, which can be hazardous to health if inhaled.
The key point here is that, from 15 November 2021, all businesses working with engineered stone must hold a licence, and suppliers will no longer be permitted to supply engineered stone to any business which requires a licence but does not have one. As an example, from this date, you will not be permitted to cut a hole in a Caesarstone splashback to install a power outlet, unless your business has an engineered stone licence. There is a grace period of a 12 months for duty holders to prepare, but it has already started ticking down, so don’t put off looking into the implications of these important changes and the potential impacts for your business.
As always, we invite you to enjoy the rest of the material prepared for you by the NECA team across some of the Victorian centric issues, as well as providing a sense of ‘what is hot’ across the other states. Of particular note, you might be interested in the “The evolution in the psychology of purchasing behaviour”, which directly links to some of the findings in the industry Updates.
Stay safe folks, and as always, keep letting us know how our NECA Victoria team can be of assistance to your businesses.
NEW EXPERT COMMITTEE ADVISING ESV ON IMPORTANT ENERGY SAFETY ISSUES IS ESTABLISHED
Victoria’s energy industry will become safer following the creation of an expert Technical Advisory Committee, which will advise Energy Safe Victoria (ESV) on important issues impacting the electrical and gas industries, and drive improvements. ESV is Victoria’s independent energy safety regulator, responsible for the licensing of electrical workers, investigating and prosecuting energy-related legislation breaches, energy education and appliance safety, as well as the issuing and auditing of Certificates of Electrical Safety.
The committee, created by the Victorian Government, will include and provide expert advice on the functions of ESV, including issues relating to network safety and bushfire prevention and mitigation.
it will also focus on safety standards and compliance requirements for energy equipment, installations and electrical and gas fitting work and safety implications arising from the operation of renewable energy sources.
in order to provide balanced, accurate and informed advice on key issues, the eight-member committee is made up of an independent chair, members from both the electrical and gas sectors, two community representatives and ESV’s own chairperson and commissioner.
last month, Minister for Energy, Environment and Climate Change lily D’Ambrosio approved the creation of the advisory committee, which was one of 43 recommendations delivered by the Grimes review.
The review was chaired by Dr paul Grimes and focused on significant reforms aimed at strengthening ESV’s capabilities and regulatory approach to the state’s electricity and gas network safety framework.
The committee will provide advice based on their experience, considering risks, hazards and consultation with the sectors and communities they represent.
ESV Commissioner and Chairperson Marnie Williams said this was a key development for ESV and Victoria’s energy industry. “The experts on this committee will help drive improvements in safety across the whole energy sector,” Ms Williams said.
“i look forward to joining my fellow committee members as we deliver safety and process improvements across Victoria’s energy sector.”
Economist, data scientist and company director Christine Williams will chair the committee, which will meet quarterly.
Other members include Elizabeth perrone and Arron Harris from the electricity industry, Bill Tabourlos and Gary Bath from the gas industry as well as community appointments Emma Germano (Victorian Farmers Federation) and Tina HogarthClarke (Council on The Ageing Victoria).
For more details, visit: esv.vic.gov.au
Marnie Williams
Director of Energy Safety & CEO Energy Safe Victoria www.esv.vic.gov.au
iF THE lAST TWO YEArS HAVE TAUGHT US ANYTHiNG, iT’S THAT CHANGE iS AlWAYS WiTH US… NOT THAT BUSiNESS OWNErS NEEDED A pANDEMiC TO DiSCOVEr THAT. BUSiNESS prACTiCES HAVE BEEN EVOlViNG SiNCE pEOplE FirST DiSCOVErED THE BENEFiTS OF TrADE. AND NOWHErE iS THAT EVOlUTiON MOrE KEENlY FElT THAN iN AN iNDUSTrY liKE OUrS, WHErE CONSTANTlY ADVANCiNG TECHNOlOGY iS AS BiG A FACTOr AS THE ECONOMiC AND SOCiAl lANDSCApE. iN OUr WOrlD, BUSiNESSES MOVE WiTH THE TiMES, Or DiE.
Some things are consistent, of course. The fundamental role of an electrician – safely installing and maintaining electrical equipment – has remained essentially the same for more than a century. But as the technology has progressed, the skills, tools and products required to perform that role have not only changed, but continue to change, at an ever-increasing rate.
Just as technology continues to evolve, so do business practices, including procurement and the options around purchasing tools, materials and solution components. Which is where the robust network of wholesalers comes in. in Victoria, we are fortunate to be served by several very respected wholesalers, who have been supplying our industry since as far back as the late 1800s.
in the beginning, those businesses would have had only a single shopfront, or even just a warehouse, with representatives providing the link between importer and customer.
But electrical features were not the only cutting-edge technology that progressed significantly in the early years of the 20th Century. Advancements in shipping, trains, telephony, and internal combustion engines (to name some big ones) were happening at almost the speed a new iphone comes out today – and embracing the opportunities they offered was part of what caused these companies to thrive.
Over time, those businesses grew to include vast networks of outlets and representatives, serving electrical contractors all over the country, from one-person operations to the largest concerns. They hold inventory at levels that would have staggered the early pioneers and maintain much quicker supply chains, thanks to air freight which has cut down transport times, closer direct trading ties with overseas suppliers, and also through need for creativity in overcoming supply challenges - of which the global impact of COViD-19 is a good, timely example.
it’s a system that has grown and matured across the industry. For many contractors, their wholesaler – be it the friendly person in their local store, a local rep or the national sales office, have become an integral part of their business; a source of information and support, as well as the products they need.
Balancing the way we do business
Technological advancements of the new century have brought developments as revolutionary as some of those original imports were initially for our industry. The internet has changed how everyone does business. Whether it’s in retail, wholesale, or professional services (or a blend), whether it’s in the technology, transport, or food sector - every business has an online presence of some sort. For some, that presence is little more than contacts and catalogues, but as we have become more familiar and comfortable with online shopping, an increasing number of businesses are doing the majority, or even all, of their business online.
The electrical wholesaling business is no exception to this rule. As part of the evolution mentioned above, most of the established suppliers have incorporated online elements into their offering. And recently, they have been joined by what was an inevitable development – an online-only style of wholesaler.
For those who prefer popping into their wholesaler’s physical premises to pick up what they need when they need it, to ‘touch before they buy,’ and/or to get the lowdown on the latest technology face to face, the online-only style is probably not that immediately appealing.
For others, who like the convenience of 24/7 ordering, who prefer to order in bulk and have items delivered (and whose business model allows for waiting on delivery), and for whom online specials are more important than in-person contact, an online supplier will be right up their alley.
in fact, NECA’s 2021 Market Monitor Survey results showed several interesting results around the buying habits of electrical contractors:
½ Online is the language of the new generation of contractors. Online ordering continues to grow, with four in ten contractors now using websites for some portion of their orders. App usage has nearly doubled since the last study. ½ in general, all suppliers (bricks and mortar or online) are seen to have quality, Australian-compliant products, however online suppliers tended to score better than others on several metrics, including stock availability and competitive pricing. ½ COViD-19 has exacerbated some of the online trends. However, despite this, contractors have reported few changes in their preferred wholesaler throughout COViD-19, with many remaining with their preferred suppliers. instead, the impact is more prevalent in how contractors use their wholesalers of choice for obtaining information, with a more dominant shift from face-to-face contact (a move away from tradeshows and sales representatives) to more online engagement regarding product information and the like. ½ Finally, the study also found that smaller businesses are more likely to still order in store and were the least likely to order via a sales rep or via email/online. As the century unfolds, and technology continues to develop, the reality is that most customers will probably use a bit of both kinds of supply. And the wholesalers that flourish will do so the way successful businesses always have – by meeting their customers’ needs, whatever and wherever they happen to be.
There will be plenty of scope for both styles of wholesaler to thrive, as the market for electrical products and services is not going to shrink any time soon. in addition to more traditional electrical products, the growing opportunities presented by renewables, smart technologies and energy efficient alternatives also mean opportunities for suppliers to develop their businesses in a variety of new ways, regardless of their underlying business model.
Traditional approach
Pros
Opportunity to build personal relationships with customers Customers can see before they buy/ get quick answers to questions Stock on hand at point of sale is an advantage for customers and for upselling New technology is easier to introduce face to face
Cons
Costs associated with maintaining physical premises for the wholesaler increasing expectation of ondemand, online availability Having to manage expectations regarding being more expensive than online style stores
Online Supply
Pros
lower overheads mean the opportunity to offer lower prices for the wholesaling business Customers can order 24/7
As the Market Monitor Survey has shown, contractors perceive online stores to be more nimble with better stock availability, and more competitive pricing
Cons
less opportunity to create relationships with customers Transactional relationships are more easily discarded if prices are comparable elsewhere Delivery performance is partly out of your control Fewer opportunities to promote new technology or upsell related products
WorkSafe Inspectors - Inspections and Powers
Every year WorkSafe inspectors conduct tens of thousands of inspections both proactive (based on a particular topic – like ladder safety or electrical hazards) and reactive (based on a notifiable incident, or a call from an appointed Health and Safety representative on a disputed provisional improvement Notice (piN) or to deal with an unresolved matter).
Under the Occupational Health and Safety Act 2004 (OHS Act), which deals with health, safety and welfare in the workplace, inspectors are appointed and provided with certain powers to allow them to inspect, give advice, investigate, and enforce OH&S law here in Victoria.
With these legislated powers WorkSafe inspectors are permitted to enter any workplace during working hours or all reasonable times or when they have formed a reasonable belief of an immediate risk to a person, to assess compliance with the relevant health and safety laws. Access to a workplace can also be actioned with the execution of a warrant issued by a magistrate.
During these inspections they have the power to issue improvement notices, prohibition notices or directions and now, under newly-passed legislation, can issue on-the-spot fines (for certain specified offences). WorkSafe inspectors are permitted to request names and addresses of those persons they speak with and investigate and make any necessary enquiries during their inspections.
WORKSAFE KNOCKS ON YOUR DOOR
Inspector obligations
When WorkSafe inspectors enter a workplace or site, they:
½ Should take all reasonable steps to notify the employer or occupier that they are on the premises and they must show their identification card at any time when this is requested or at any time when performing a function or exercising a power. Often, they will have it displayed clearly on their top clothing during an inspection. ½ Are required to provide certain “caution” warnings pertaining to your privilege against self-incrimination when exercising their powers to require a person’s name and address, the production of documents and for individuals to answer questions put to them. ½ Must provide an entry report on or as soon as practicable after leaving a site. This entry report should outline a clear summary of what the inspector has observed, a description of things undertaken by the inspector while on site, the powers used by the inspector, any documents, photographs, sketches, or recordings that were taken or cited during the inspection along with the WorkSafe procedure for internal review.
What you should do and not do during the visit
There are certain things you need to take note of in terms of what you can and cannot do when an inspector conducts a site visit.
When dealing with an inspector you must not:
½ refuse an inspector access to a workplace or site or obstruct them. ½ Fail to produce documents that are non-privileged* and relevant documents. ½ Conceal a person. ½ prevent any person from assisting an inspector. ½ Threaten or intimidate an inspector. ½ refuse to state your name and address or provide false information.
*For privilege to apply, it is necessary to show a communication was confidential, and that its dominant purpose was for the purpose of obtaining legal advice or for actual or anticipated litigation.
When dealing with an inspector you should:
½ Avoid making any admissions of liability or fault to an inspector, at least without first getting legal advice. ½ Appoint a management representative to liaise with the inspector during the visit. ½ Take note that the requirement to assist an inspector does not extend to making a statement or taking action such as demonstrating a process or operating a machine for the inspector. ½ Not voluntarily give information or documents unless formally requested. ½ Take note that during questioning by an inspector you may invoke and rely on the privilege against selfincrimination, if you believe answering a question put to you would tend to incriminate you personally.
if you have any questions around a WorkSafe inspection or have recently had to do one, get in touch with the Safety team on 1300 300 031 or via safety@neca.asn.au to understand your rights and obligations and to get support as to the next steps.
