Absence of conflict of interest.
Citation
Highlights
- The study’s objective was to examine the cost/benefit and return on investment for intermediary and business sponsors participating in Industrial Manufacturing Technician Registered Apprenticeships.
- The study used interview data to assess the costs and benefits of Industrial Manufacturing Technician Registered Apprenticeship sponsors.
- The study found that there was a positive return on investment for sponsors during the apprenticeship.
- The study collected data from a limited group of sponsors, as data from the other sponsors were unavailable.
Intervention Examined
Industrial Manufacturing Technician Registered Apprenticeship (IMT RA)
Features of the Intervention
The Industrial Manufacturing Technician Registered Apprenticeship (IMT RA) was established in 2015. It was created by Jobs for the Future, the Wisconsin Regional Training Partnership, and AFL-CIO to improve basic skills and increase the number of workers in skilled manufacturing jobs. IMT RA is an 18-month program designed to teach entry-level manufacturing skills.
Features of the Study
IMT RA initially included 32 sponsors, but the study's sample was narrowed to six sponsors chosen by IMT RA partners based on their working relationships and ability to provide necessary data. These six sponsors were in the Mid-Atlantic and Midwestern regions of the United States. The study authors collected both qualitative and quantitative data through one-hour interviews with each sponsor. The interview findings were used to calculate the costs incurred by the sponsors for participating in registered apprenticeships, the revenue generated from being part of the program, and the return on investment to assess the profitability of participation.
Findings
- The study found that the yearly expense of sponsoring an apprentice varied between $39,567 and $128,069 in the first year, and between $17,874 and $64,672 in the second year.
- On average, sponsors earned $79,923 in revenue from participating in IMT RA.
- The study found that sponsors typically experienced a 48% return on their investment.
Considerations for Interpreting the Findings
The sponsor sample included six of the 32 eligible sponsors likely to provide study data. These sponsors were mainly from two U.S. regions, so the sample might not represent all manufacturing registered apprenticeships. Half of the contacted sponsors could not provide return on investment data. Also, all six sponsors expressed uncertainty regarding the accuracy of their data, which could impact the assessment of costs and benefits.