Consider This from NPR

The Trump administration wants to increase apprenticeships

8 min
Mar 11, 20263 months ago
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Summary

The Trump administration aims to expand apprenticeships to reach 1 million active apprentices as a solution to manufacturing's skilled worker shortage. While the initiative has generated excitement, funding limitations and recent job losses raise questions about whether current efforts are sufficient to achieve this ambitious goal.

Insights
  • Manufacturing faces a critical skilled labor shortage despite technological advancement, as aging workforce retirements accelerate and competition for workers intensifies in strong regional economies
  • Federal apprenticeship funding of $285 million is insufficient according to industry advocates who estimate billions are needed to meaningfully expand apprenticeships across sectors
  • Apprenticeships have proven successful in construction trades but remain underutilized in other U.S. industries compared to countries like Germany and Switzerland where they're mainstream
  • Individual companies like Vercomani Manufacturing are finding success through local nonprofit partnerships rather than relying solely on federal incentives to build apprenticeship programs
  • The gap between Trump's 1 million apprentice goal and current federal incentive capacity (projected 50,000 new apprenticeships) suggests reliance on private sector adoption to close the difference
Trends
Skilled labor shortage becoming primary competitive constraint in U.S. manufacturing despite automation investmentsApprenticeship model gaining renewed policy attention across administrations as alternative to traditional college education pathwaysRegional economic strength paradoxically worsening labor competition for manufacturers in areas like ArkansasAging manufacturing workforce creating urgent knowledge transfer and succession planning challengesFederal incentive programs shifting focus toward high-priority sectors including IT, AI, healthcare, defense, and manufacturingNonprofit organizations filling gap between federal policy and local company needs for apprenticeship program developmentManufacturing job losses continuing despite pro-manufacturing policy rhetoric and tariff/tax initiativesPrivate sector ROI on apprenticeships emerging as key driver for voluntary adoption beyond government incentives
Topics
Apprenticeship Program ExpansionManufacturing Skills GapSkilled Labor ShortageFederal Apprenticeship FundingWorkforce Development PolicyManufacturing Job LossesTrade Union ApprenticeshipsRegional Labor Market CompetitionAging Workforce RetirementManufacturing AutomationTrump Administration Economic PolicyNonprofit Workforce DevelopmentIT and AI ApprenticeshipsManufacturing CompetitivenessEarn-While-You-Learn Models
Companies
Vercomani Manufacturing
Arkansas-based furniture manufacturer profiled as case study for skilled labor shortage and apprenticeship program de...
Apprentice Lee
Arkansas nonprofit organization that helped Vercomani Manufacturing establish its first apprenticeship programs
Apprenticeships for America
Advocacy group cited for expert perspective on funding requirements for expanding apprenticeships nationally
People
Steve Pressley
Vice president and general manager of Vercomani Manufacturing discussing company's skilled labor challenges and appre...
Zach Boren
Representative from Apprenticeships for America advocacy group providing expert analysis on funding needs for apprent...
Andrew Shoe
NPR labor correspondent who reported on Trump administration's apprenticeship goals and their real-world implementati...
Scott Detro
Host of Consider This from NPR who conducted interviews and framed the apprenticeship policy discussion
Quotes
"That's where we're really behind the April. Hiring is hard in Arkansas."
Steve Pressley, Vercomani ManufacturingEarly in episode
"I think we're looking at a number that has to start with a B in order to make any progress on apprenticeships in the United States."
Zach Boren, Apprenticeships for AmericaMid-episode
"You earn while you learn. You don't need to spend a lot of money on a college degree. You can become a highly skilled worker on the job while you're getting paid."
Andrew Shoe, NPR labor correspondentEarly-mid episode
"Virgo Manufacturing is a great American story. It's a 75 year old company that's making the classroom desks and chairs and lunch tables that I've seen in my kid's school."
Andrew Shoe, NPR labor correspondentLate episode
"He says this company has a future that's worth fighting for."
Andrew Shoe, NPR labor correspondentClosing segment
Full Transcript
Vercomani manufacturing is doing exactly the kind of work that President Trump says America needs more of. It starts with raw steel and turns it into the furniture you see in schools. We're going to bend it, manipulate it, spot weld it to make case goods, teachers' desk, office administration desk, vertical lateral file cabinets, all metal bookcases, things like that. That's Steve Pressley, vice president and general manager. He and his brother both started at age 16 when their dad was the plant manager. My dad drug our butt in here and we worked every Saturday and Sunday and we worked in maintenance department. The plant is in central Arkansas. Once employed 1,500 people but today it's down to around 500 and it is far more high-tech. They've got robots that weld steel, a state-of-the-art paint system, but they still need people to operate and maintain all of that equipment. On the campaign trail creating manufacturing jobs is one of the first things Trump mentioned in his big economic speeches. But we're here today to talk about how we're going to launch a historic build-up of American manufacturing muscle-in. So the tariffs and tax cuts and regulation rollbacks, Trump says they're all aimed at sparking a manufacturing reticence. It's worth noting that the manufacturing industry has lost around 100,000 jobs during Trump's second term so far, according to the Bureau of Labor Statistics. And none of those measures really helps with the big problem facing Steve Pressley at Forgo Manufacturing. How to find enough skilled workers. That's where we're really behind the April. Hiring is hard in Arkansas. Not for the reasons you might be thinking. Everybody can make fun of Arkansas and say what they want to say, but this is a really strong economy here and with a strong economy, there's a lot of competition for labor. Especially skilled labor. Adding to the problem is that here at Forgo and across manufacturing, the workforce is aging. They're losing a lot of collective experience. We've played 250 years retire since the first of the year. You don't hear about it as much as the rest of his economic agenda, but Trump does have an idea to address this problem. Consider this. The Trump administration wants to grow apprenticeships to train up skilled workers on the job. The goal is to reach 1 million active apprentices. So is it doing enough to make this happen? From NPR, I'm Scott Dattro. This message comes from Wise, the app for international people using money around the globe. You can send, spend, and receive an up to 40 currencies with only a few simple taps. Be smart, get Wise. Download the Wise app today or visit Wise.com. Tease and seize apply. It's considered this from NPR. President Trump is quite famous for offering apprenticeships. You fly. But mostly they went to the winners of the reality TV show he hosted called The Apprentice. And the real world his administration does have ambitious goals about generating actual apprenticeships. And NPR labor correspondent Andrew Shoe has been digging into them. Hey there. Hey Scott. So why apprenticeships? How does this work? Yeah, well the whole idea behind apprenticeships is you earn while you learn. You don't need to spend a lot of money on a college degree. You can become a highly skilled worker on the job while you're getting paid. And companies can develop exactly the workforce they need. It's a model that administration is going back to. At least President Obama have really pushed for as the solution to the skills gap that US employers face. Walk me through an example of where this has worked really well. Yeah, well here in the US the building trades unions have long used apprenticeships. They run apprenticeship programs for aspiring plumbers and carpenters and sheet metal workers and electricians. And those apprentices spend a little bit of time in a classroom and a lot of time on the job working under mentors and they're getting paid while they do it. But outside construction apprenticeships haven't had widespread appeal in the US. That's starting to change. But it's a real contrast to countries like Germany and Switzerland where apprenticeships are far more common. Including in sectors like retail and healthcare and IT. So one of the Trump administration's goals and really the goals of previous administrations too has been to expand this earn as you learn model into many more industries. What specifically has the administration done so far? Well, so last April, which was almost a year ago, Trump signed an executive order pledging to reach or surpass one million active apprenticeships. And the Labor Department has been promoting this goal, including on its Instagram page. The new era of American dominance will be forged not by woke universities, but by the grid on our skilled workers. And that got a lot of long time boosters of apprenticeships excited. But but since then, there has been some tempering of that excitement. First of all, Scott, the labor market is not that great right now. Last month, employers shed some 92,000 jobs. So that doesn't bode well for apprenticeships. Also last year, amid all the doge cuts, the Trump administration actually canceled a whole bunch of grants for organizations that were working to grow apprenticeships, including in sectors like clean energy. And here's the other thing. Trump hasn't asked Congress for any more money to support his goal of expanding apprenticeships. Congress has appropriated just 285 million for the cause for the last several years. It's one of those figures that's a lot of money, but is it a lot of money when it comes to a big federal program? Is that enough to achieve these goals? Yeah, well, the Trump administration seems to think so, but not so many others that I spoke with. Zach Boren at the advocacy group apprenticeships for America put it this way. I think we're looking at a number that has to start with a B in order to make any progress on apprenticeships in the United States. Okay, so billions, B billions. Yeah, billions. Now, I will say the Trump administration is using some of the money Congress has allocated around 180 million to set up these incentive funds to encourage the creation of apprenticeships in a bunch of key sectors like IT, AI, health care, defense, manufacturing. The incentives being offered through these funds, it's not a whole lot of money compared to the actual cost of running an apprenticeship. And, you know, the funds are limited. They're expected to create maybe some 50,000 new apprenticeships, so that's not enough to hit Trump's goal of 1 million. But the administration's hope is that this will jumpstart apprenticeships in new industries and once companies see the returns on investment, which can be substantial, they'll be hooked. How is all of this playing out at the furniture factory that you visited in Arkansas? Yeah, well, Steve Presley, the general manager is really excited. You know, Virgo Manufacturing is a great American story. It's a 75 year old company that's making the classroom desks and chairs and lunch tables that I've seen in my kid's school. And yet, Presley has been worried that he doesn't have the high skilled workforce he needs to be competitive and to be successful. He actually first heard about apprenticeships not through the federal government, but through a nonprofit in Arkansas called Apprentice Lee, which helped them set up their first two apprenticeships. And now Presley's working with them to create another 20 apprenticeships, really to build a deeper bench. You know, he is happy about these federal incentives. He stands to get a little over $3,000 per apprentice. But what he's way more excited about is just having a plan for the future. He says this company has a future that's worth fighting for. In the middle of the summer when we have say 20 of these assembly line running, the radios are cranked up. All you hear are the rivet machines and the screw guns and all that. And it's truly like American manufacturing at its finest. And Scott, he knows that can't happen without the right workers in place. And Pierre Labor correspondent, Andrea Shoe, thank you so much. Thanks for having me. This episode was produced by Conrad Anivan and me event cat. It was edited by Patrick Jaron Wada Nahnan and Emily Cot. Our executive producer is Samine Enigan. Consider this from NPR. I'm Scott Detro. 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