Search
Close this search box.
Search
Close this search box.

More Manufacturing Apprenticeships Could Help Fill the Skills Gap

President Trump recently signed an executive order to promote apprenticeship programs as a way to help young people find jobs, and to fill the skills gap in industries like manufacturing.

President Trump recently signed an executive order to promote apprenticeship programs as a way to help young people find jobs, and to fill the skills gap in industries like manufacturing.

The order will boost the amount of funding of such programs from $90 million to $200 million. Nicholas Wyman, CEO of the Institute for Workplace Skills and Innovation, said that it is cause for optimism that Trump will significantly improve the number and quality of apprenticeships in the economy. He said it will be a “boon to employers” because it will reduce red tape and overly rigid requirements for administering such programs.

“Employers will undoubtedly respond positively to these changes and it will encourage them to embrace apprenticeships…Successful apprenticeship programs work best when designed by employers around their own needs,” Wyman said.

The order also will move the role of developing government-funded apprenticeship programs from the Labor Department to third-party private entities such as businesses, trade groups and labor unions. Trump said during the announcement that federal regulations have “prevented many different industries from creating apprenticeship programs.”

“Successful apprenticeship programs work best when designed by employers around their own needs.”

Not everyone agrees, however. Chris Lu, former deputy Labor Secretary, tweeted that the executive order will “remove [government] oversight of apprenticeship standards, which will reduce quality” and that the new investments would require a shift in funding from other training programs.

And regardless of how they’re funded or overseen, there’s little denying the United States is falling well behind other industrialized nations in the use of apprenticeships. Wyman said that the United States would need approximately 5 million apprenticeships to be on par with countries like Germany and Switzerland.

As an example, Germany has an exceptionally high level of skilled workers and a low youth unemployment rate. The country’s vocational training program caters to roughly 60% of the young population and is funded by both businesses and the government, the Financial Times reported. Based on its nationally-recognized qualifications, Germany is currently helping 18 countries around the world set up their own apprenticeship programs.

Yet experts caution that programs here could face challenges. Susanne Burger, deputy head of international cooperation at the German ministry of education and research, said there needs to be “strong cooperation” between government, the business community and social partners. She said it would also require something the United States may be lacking—a strong interest in, and respect for, the skilled trades.

Many manufacturers are already struggling to find talent, and 2 million manufacturing jobs will go unfilled in the next 10 years. Such programs can be a cost-effective way for companies to secure talent. At company-sponsored apprenticeship programs, workers learn in the classroom at a community college and on the job for three to four years before graduating.

Robert Lerman, fellow at the Center on Labor, Human Services and Population at the Urban Institute, said the order is a “good start” toward moving away from less-effective programs and toward shifting policy to apprenticeships. He feels, however, that there needs to be a framework to ensure apprenticeships allow for portability but also can be tailored to meet individual employers’ needs. “Ideally, the federal government would join with the private sector to create a public-private institution charged with developing and diffusing national occupational frameworks for apprenticeship,” Lerman said.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.