The importance and process of Apprenticeships

1. ap·pren·tice·ship
“A system for training a new generation of
practitioners of a trade or profession with on-
the-job training and some accompanying study”
(C) 2021 Richard Guha

2. Basis of Report
• I have been an observer of, participant in, and owner of
apprenticeship programs in the US, UK, and Germany, for over 50
years.
• This is based on my own and third party learning
• Some skilled positions in these industries include:
Electricians
Plumbers
Carpenters
Machinists
Steelworkers
Welders
Pipefitters
(C) 2021 Richard Guha

3. Building an Advanced Manufacturing System
demands a high level of Practical skills, in
large numbers of people.
(C) 2021 Richard Guha

4. The Issue – growing shortage of skilled workers
• "... manufacturing employs about 12 million workers and is training
11,447 apprentices. Less than 1% of the total manufacturing
workforce is getting formal advanced training in the form of
apprenticeships.” Michael Collins, president of MPC Management
• The decline of training started well before the 2008 recession
(C) 2021 Richard Guha

5. During the 2008 Recession 1.1 million
jobs were lost and not replaced
• This accelerated the decline in training.
• By 2030 all Baby Boomers will be at least 65
• “...the Boomer labor force has been declining by 2.2 million on average
each year since 2010, or about 5,900 daily.” Pew Research Center
• “No Child Left Behind” led to the elimination of “Shop” classes
“The message became that you need to have a college degree or you’re a
lesser individual,” he says. “We aren’t exposing people to these
opportunities, and the funding model in public schools supports college-or-
bust.” Spenser Villwock, interim CEO of Independent Electrical Contractors
(C) 2021 Richard Guha

6. Young People look down on skilled craft work
• Many young people prefer to take low paid service jobs over much
higher paying craft jobs, where there is a large shortage, largely due
to lack of knowledge
• There is also less interest in taking over family businesses in
construction, plumbing, and such. A 2017 survey conducted by
PricewaterhouseCooper found that only 52% of family business
owners who intend to give up their business in the next five years
expect to pass their company on to other family members. This figure
was down from nearly 74% only two years previously.
(C) 2021 Richard Guha

7. Yet skilled crafts work can pay as well as
many “professional” jobs
• Starting pay can be over $20 per hour at 18, and experienced skilled
workers can earn over $100,000 per year.
• It is not as physically demanding as it used to be, and requires more
knowledge of technology than it used to.
(C) 2021 Richard Guha

8. This costs money
(C) 2021 Richard Guha
•The heavy equipment industry is losing more than $2.4 billion every year because dealerships can’t hire
enough skilled workers
•Globally, the manufacturing labor shortage is expected to be 8 million people by 2030, with a potential
revenue loss of $607 billion – Source: Conger 2021

9. The decline of Apprenticeships
(C) 2021 Richard Guha

10. Germany – a different approach
• The German VET (Vocational Education & Training) is recognized
internationally as the best system for skilled Crafts people. Some of its
characteristics include:
• A dual track high school system (“Academic” and “Trade”)
• Young people at 16-19 enter by signing a contract with an employers
who takes responsibility for their training
• They are paid a salary from the day they start.
• They spend most of their time at the company working on real life
assignments under the supervision of a mentor, with time at school
studying languages, science and social studies.
• It is regarded as so important to the German economy that it is one of
the few programs supervised by the Federal Government, which imposes
uniform and high standards for training and certification
• Over half of German young people sign up for this program, which is over
100 years old
(C) 2021 Richard Guha

11. It would be difficult to replicate the German system
(C) 2021 Richard Guha

12. Building an apprenticeship program in
the USA
• Employers should take responsibility for the program
• Attract candidates (working with other employers) by appealing to 15-20 year olds to
point out the pay advantages, high satisfaction levels, career prospects, and
certification potential, as well as opportunities for entrepreneurship.
• Recruit people between the ages of 16-20 to programs that include real life
experience and classroom training
• Ensure that older skilled people are available and are trained to be mentors
• Use state and Federal government programs that subsidize and advise on such
programs
• Establish relationships with high schools and Community Colleges
• Make an effort to attract women
• Recruit young ex-offenders.
• Ensure lifelong continuing education
(C) 2021 Richard Guha

13. Challenges in the US
• Americans make career choices later in life than young people in
other countries – Europeans, whether to be Soccer players,
electricians, or biologists, are making these decision as 15-16
• The US education system does not see its purpose as to serve
business and industry as much as in other countries
• The US has a lack of national standards in many fields.
• The extreme focus on a 4 year college degree means that a skilled
craft is not viewed as high status, and the small number of people
entering them does not provide the scale it really needs.
• It needs long-term commitment from industry and business.
(C) 2021 Richard Guha

14. Strong Apprenticeships result in higher
revenue and growth
• The German system, where most people working in industry went
through apprenticeships and engage in continuous training and
education, allows for manyfascturing innovation.
• In fact, Germany is rated #1 by the World Economic Forum because of
its manufacturing innovation and ability to turn new technology into
products.
• Even with labor costs that are 66% higher than the US, manufacturing
in Germany represents 21% of GDP and is growing.
• Many, if not most, of the Chinese products we buy every day are
produced by German-made machinery, and the companies that make
them are thriving.
(C) 2021 Richard Guha