Apprenticeships and Employer-Led Solutions
As manufacturing employers confront a projected 3.8 million job openings by 2033 with more than half potentially going unfilled, according to a 2024 MI and Deloitte report, the need for workforce development solutions has never been more urgent. President Trump’s April Executive Order 14278 marked a pivotal step toward modernizing the federal workforce and registered apprenticeship systems.
Apprenticeship is an employer-led training model that combines paid work experience with on-the-job training and related, classroom-based technical instruction. Manufacturers have seen strong outcomes from apprenticeship programs, though wider adoption has been constrained by relatively high startup costs. In addition, manufacturers have not found benefits in registering their apprenticeship programs federally or through a state office, as the registration process can be rigid and overly complex. Streamlining the registration and administration process, while also providing incentives—such as offsets for apprentice wages or training costs—would significantly expand participation in registered apprenticeship across the sector.
The MI has created recommendations on how to improve the workforce system and registered apprenticeship, which are grounded in real-world experience through the Federation for Advanced Manufacturing Education (FAME USA). Created by Toyota and now led by the MI, FAME is a national apprenticeship-style training program that has become a leading model for manufacturing workforce development. With more than 450 participating employers across 46 locations in 16 states, FAME has graduated over 2,100 students and boasts a 90% job placement rate.
FAME operates as a multiemployer apprenticeship model, allowing employers to share program costs and students to benefit from a strong cohort experience and streamlined instruction at local community colleges. While a few chapters have pursued registration, most have found that the benefits of formal registration don’t outweigh the administrative burdens under the current system.
Stay tuned for more on recommended actions can be undertaken to ensure that manufacturers are able to lead the way to train the next generation of high skilled workers.
