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This report is the first edition of an annual report to be produced as part of the Australian National Training Authority's (ANTA's) drive to keep training in touch with the economy's skill needs. The aim is to provide a report to Ministers which: gives a general overview of the state of play of industry skill needs; outlines the drivers of industry demand for skills so as to anticipate future skill needs; and identifies the priority areas that need to be addressed at a national or policy level to ensure future industry skill needs are met. The focus of this first report is on the drivers of industry demand for skills and it is based on an analysis of the strategic industry VET [vocational education and training] plans submitted earlier this year by the Industry Training Advisory Bodies (ITABs). One of the key messages in this report is that skill needs vary from time to time, and by understanding what drives industry skill needs, attempts can be made to anticipate trends, change policy, or intervene ahead of time to minimise skill shortages in the future.