1

Carillion Training Services

'Can Apprenticeships Rescue the Economy?'

NEECJanuary 2014

Ray WilsonDirector & General Manager

1

2

2

Carillion Training Services - Overview

We operate a unique ‘host employer’ model which is predominantly funded by Government grants. We train around 1500-2000 apprentices annually across a national network of 15 training centres. Key points – we:

- Are the UK’s largest construction employer/training provider

- Trained apprentices for around 50 years

- Recruit around 1000 new apprentices each year

- Achieve consistently good apprenticeship success rates

- Assist many small firms to train apprentices

- Have many existing links with schools and colleges

- Support local employment through our Work Experience

Provider base and our own recruitment agency, SkyBlue

Benefits of Apprenticeships…

A report* by CEBR for the National Apprenticeship Service:

• Between 2012-13 and 2021-22, 3.8 million people will complete an Apprenticeship. It is estimated this would contribute £3.4 billion to the UK economy a year in productivity gains by 2022

• Apprenticeships boost productivity by enabling businesses to grow their skills base.

• Productivity gains from former apprentices: - engineering and manufacturing sectors (£414 per week)- construction and planning (£401); and- business, administration & legal (£268).

• The number of annual Apprenticeship completions is forecast to rise across all sectors of the economy, growing from an annual 260,000 in 2012/13 to 480,000 by 2021/22. 

* Source: The Impact of Apprenticeships: Center for Economics and Business Research http://www.cebr.com/reports/productivity-matters/

Benefits of Apprenticeships…

A recent study* shows:

• Apprenticeships allow employers to secure a supply of the skills they require

• Costs of recruiting experienced workers from the external labour market seen as more expensive because of recruitment and induction costs

• Often supply in the external labour market is limited

• Apprentices provide a pool of skilled people to select from for future promotion

• Apprentices are seen as relatively loyal: more likely to stay with the company and steeped in company values

• Apprentices seen to bring new ideas into organisations

• The costs of Apprenticeship training is recouped relatively quickly

The Net Benefit to Employer Investment in Apprenticeship Training - University of Warwick Institute for Employment ResearchA Report for the Apprenticeship Ambassadors Network By Chris Hasluck, Terence Hogarth, Beate Baldauf and Geoff Briscoehttp://www.motor.org.uk/documentlibrary/research/Apprenticeship%20benefits%20jan09.pdf* Source

Benefits of Apprenticeships…

Can Apprenticeships Save Britain*?

• UK has been failing to keep up with the major developed economies in productivity, but what about the developing economies?

• Our higher education system is a match for our competitors, but the intermediate level is suffering.

• Apprenticeships could be the answer to how we address this problem, but - attitudes to apprenticeships must change; and- employers must treat apprenticeships as a vehicle for driving up

performance standards.

• By bringing in new employees with no preconceptions about how things should be done, managers can bring about step changes in their ways of working.

• Apprenticeships can be a viable alternative to University.

• David Cameron has pledged to make apprenticeships the ‘new norm’, and wants work-based training to sit “at the heart of our mission to rebuild the economy”. * Source: http://ilmukblog.wordpress.com/2013/03/14/can-apprenticeships-save-britain/

Can Apprenticeships Rescue the Economy?

Absolutely!

by:• Improving the supply of skilled labour in key sectors and

reducing reliance on migrant workers

• By providing a route way for young people to gain sustainable employment and economic security

• By helping UK firms improve productivity and competitiveness

• By showcasing the UK’s high quality education and training capability and ensuring its responsiveness to employer needs