February 2020 Volume 2

OPERATIONS & MANAGEMENT

Apprenticeship Programs Pay Dividends through Retention Nationwide research confirms that apprenticeship programs are mutually beneficial for participants and sponsor companies. A 2016 study from the Economics & Statistics Administration, an agency within the U.S. Department of Commerce, noted that 91 percent of apprentices find employment through their program (Economics & Statistics Administration 2016). The study also reported that all companies they surveyed said apprenticeships gave them a competitive advantage and improved their overall performance. In fact, once manufacturers look at the true costs of unfilled jobs, they realize the investment in an apprenticeship program can have an incredible, long-term return on investment including a highly trained, best-of-class and loyal team which provides them a sustainable pipeline of talent and positions them for growth. For more information on how apprenticeships may fit into your corporate strategy, contact Virginia Rounds at (312) 494-2163 or rounds@icattapprenticeships.com Reference list entries (in alphabetical order) 1. ASE Training Managers Council. "ATMC Training Benchmark Survey 2018." ATMC Training Benchmark Survey 2018, January 1, 2018, 38-50. 2. Bureau of Labor Statistics. "Bureau of Labor Statistics Data." U.S. Bureau of Labor Statistics. January 10, 2010. Accessed January 12, 2020. https://data.bls.gov/ timeseries/LNS14000000 . 3. “Can an Apprenticeship Network Fill US Skills Gap?” IndustryWeek.com. October 17, 2019. Accessed January 12, 2020. https://www.industryweek.com/talent/ article/22028420/can-an-apprenticeship-network-fill-us skills-gap 4. "Economics & Statistics Administration." STEM Jobs: 2017 Update | Economics & Statistics Administration. November 16, 2016. Accessed May 23, 2018. http://www. esa.doc.gov/reports/benefits-and-costs-apprenticeships business-perspective . 5. "Pace of U.S. Factory Growth Slows Again in April." Manufacturing.net. May 01, 2018. Accessed May 23, 2018. https://www.manufacturing.net/news/2018/05/ pace-us-factory-growth-slows-again-april-0 . ■

skill set world-wide for its technicians and designers, in addition to the usual benefits of apprenticeships. Locally-based companies without global operations appreciate the time-tested content and structure of the apprenticeship as well as the quality control aspect of the exams.

Rigorous Standards Ensure Results Apprenticeships that combine rigorous academic learning and practical training can accelerate the learning curve. The relevance of the theory becomes clear, helping the apprentice retain what they have learned. Having the theory to back up the practical skills helps the apprentice to apply his or her knowledge to new situations, and enables the complex troubleshooting so often needed in advanced manufacturing. One manufacturer in southern Illinois says, “Our apprentice is only in his second year but has the capabilities of an A-level maintenance technician. It would take someone off the street two to three years to reach that level. The work/college interaction has really accelerated his learning process.” Leverage Networks for Improved Efficiency As detailed in IndustryWeek’s October 2019 article, “Can an Apprenticeship Network Fill US Skills Gap?” Dr. Johann Fortwengel, of King's College London, has studied barriers to apprenticeships, and how companies can collaborate to reduce the burden. He writes, “Many SMEs […] face hurdles because implementing an apprenticeship program is complex and costly. Joining forces with other companies in the area and creating inter-firm networks is a solution here. My research shows how this enables firms to fill college classes, promote the program to interested students, and even rotate apprentices and thus benefit from the competencies of partner firms.” One such collaboration is the Industry Consortium for Advanced Technical Training (ICATT), founded in Chicago in 2015 and now operating in 5 states. Scot Forge was one of the founding companies, and has two graduates of ICATT and two current ICATT Apprentices. The program is one part of Scot Forge’s wide ranging efforts to recruit young people to careers at the employee owned company. Other apprenticeship networks include the Michigan Advanced Technician Training (MAT2) program, and the Mechatronics Apprenticeship Program Partners in greater Cincinnati, OH.

Virgina Rounds Director of the ICATT Apprenticeship Program

FIA MAGAZINE | FEBRUARY 2020 48