The administration has set an admirable goal of reaching 1 million apprentices during President Trump’s term, positioning apprenticeship expansion as a central pillar of its workforce strategy. That’s good news because businesses want practical ways to build their talent pipelines, and they want to train workers with the skills needed for their jobs. But ambitious goals alone don’t create apprenticeships; investments do.
Many companies across industries have built and managed registered apprenticeship programs and value their benefits. They allow businesses to provide hands‑on training for specialized equipment, embed company culture into the learning process, and strengthen workforce retention. However, to reach 1 million apprentices, companies who haven’t built a registered apprenticeship program must be part of the equation, and many are anxious about jumping in. They don’t know where to start, and some feel overwhelmed. In my experience, when businesses don’t know where or how to start, they frequently don’t.
This summer, Business Leaders United for Workforce Partnerships (the business engagement arm of National Skills Coalition) spoke with 150 businesses as part of our A New Promise of Work Initiative and recently brought business leaders from 10 states to Washington DC to speak with Members of Congress. Although these projects did not center on registered apprenticeships, they revealed important lessons that federal agencies and Members of Congress ought to consider:
- Businesses Don’t Have Capacity: Employers recognize the talent pressures ahead: a wave of retirements, limited visibility for high‑quality jobs, and the growing urgency of developing strong pipelines of new workers to prevent worsening shortages. Roughly half of all jobs in the United States are offered by small and mid-sized employers, and many do not have the capacity to overcome these challenges. One maritime company we interviewed, with roughly 600–700 employees, operates with an HR team of only two to three people responsible for every HR and workforce function. For a team that lean, building and managing a new registered apprenticeship program is simply beyond capacity—and many smaller employers are in the same position.
- Incentives Are a Good Start, but Not Enough: In early summer, one business leader told me that their company spends $10-$15 thousand on each new apprentice, who will need months of training before they start generating revenue for the business. This year the Federal Department of Labor released new incentives to reduce that cost, which, like the goal of 1 million apprentices, is a good start, but some believe it’s not enough. A manufacturing company commented that these incentives are great for those already bought into registered apprenticeships, but don’t think the current amount offered will motivate companies who are currently on the sidelines.
- Businesses Need and Want Partners: If you have ever talked to a business about registered apprenticeship, you have likely heard one concern: paperwork. With thin capacity to manage a new workforce development program, businesses want help from intermediaries and industry sector partnerships to get started. Fortunately, we already have great examples of initiatives, funded with public dollars, helping businesses build and expand registered apprenticeships. The Manufacturers Talent Institute powered by MACNY in Upstate New York helps businesses get into the game by managing the relationship with the New York State Department of Labor, handling registration, and identifying funding streams to help businesses offset costs and risk. There are currently 17,000 registered apprentices in New York, and since 2022, more than 1,000 apprentices have been supported by the alliance. “Without the MTI and its partners, there would be fewer apprentices and businesses engaged in apprenticeship in New York State,” according to Michael Frame, Executive Director, “and we could do even more with additional support.”
- Workers also Need Support: Every year, the chorus of businesses talking about the barriers posed by the lack of quality, affordable childcare, transportation, and housing grows. These are complex issues that the business community and their training partners and intermediaries cannot solve alone, especially companies in industries with tight profit margins. Many workers who want to be in apprenticeship programs are sometimes unable to participate because they can’t afford childcare, which can cost more than tuition at a 4-year university. Or their car needs a major repair, and public transportation is unavailable at the job site. These kinds of hurdles can derail a person’s career path.
Registered apprenticeships deliver real value for both businesses and workers, and setting an ambitious target is an important start. But a goal alone won’t get us to 1 million apprentices. It needs to be backed by greater federal investments from Congress and the federal administration that help smaller businesses reduce cost and risk, expand the number of intermediaries and industry sector partnerships, and ensure workers have the tools they need to succeed.
