Workforce Development Through Apprenticeship and Training Gulf Coast Leadership Meeting Houston, Texas August 20,

The Business Case for Apprenticeship and Journey-Level Training Robert Pleasure Director of Education Special Assistant to the President Building and Construction Trades Department 2

Building Trades Training Capacity The Numbers – 250 training centers in eight Gulf States 35,000 seat capacity at these centers 40 mobile training centers 850 welding booths Experienced instructors – national curricula 3

Building Trades Training Capacity Capacity – Buildings Trades’ affiliate unions/ signatory contractors have 1,626 US training centers 70 percent of all US construction apprentices are trained in the union construction sector Building Trades Multi-Craft Core Curriculum Pre-Apprenticeship Program 4

Building Trades Gulf Region Training Capacity Training Centers 35,000 Seat Capacity 850 Welding Booths 40 Mobile Training Centers

Building Trades Training Capacity Quality – The nation’s safest, most highly skilled and productive construction craft workers receive their training through privately-funded, local joint apprenticeship and training committees (JATCs) JATC apprenticeship training combines industry standard technical (classroom) instruction with structured on-the-job learning 6

Building Trades Training Capacity Quality – All Building Trades apprenticeship programs are registered with DOL Office of Apprenticeship or State Apprenticeship Agency Building Trades affiliates and industry partners also provide training for hundreds of thousands of journey-level workers each year, continually improving their cutting edge skills 7

Building Trades Training Capacity Investment – The Building Trades and their signatory contractors invest over $1 billion annually in apprentice and journey-level training (not including tens of millions invested in plant and equipment) The Building Trades/signatory contractors annually invest $10 billion in apprentice wages and benefits 8

Building Trades Training Capacity Scope – If the JATC system was a K-12 school district, it would be the 6th largest K-12 district in the US If the JATC system was a college or university, it would be the second largest in the US – 3 ½ times the size of Kaplan University, more than 4 times larger than Miami Dade Community College and almost 5 times the size of Ohio State 9

10 Construction Apprenticeship and Training The Key Question – Is there a business case for Building Trades apprenticeship and journey-level training?

11 Construction Apprenticeship and Training The Key Question – Research suggests the answer is YES!

12 The Business Case for Training The Evidence – Research Study #1 – “Construction Industry Craft Training in the United States and Canada,” Construction Industry Institute, University of Texas, Research Summary 231-1, August 2007 Financial support for study by CURT, NCCER Examines the potential business case for training

13 The Business Case for Training The Findings – The CII Research Team “concludes that each dollar invested in craft training can yield $1.30 to $3.00 in benefits. The benefits accrue in the form of increased productivity and reductions in turnover, absenteeism, rework and other areas.” Productivity improvement11% Decrease in turnover14% Decrease in absenteeism15% Decrease in injuries26% Decrease in rework23%

14 CII Report Conclusions “Owners are paying for training on union projects, but rarely pay for training on open shop projects.” “Although some formal training programs are funded through cents per hour contributions in the open shop sector, this is a relatively rare occurrence.”

15 CII Report Conclusions “Owners should require craft training and certification on larger projects.” “Owners who have plants in areas where industry is concentrated should require training on all construction and ongoing maintenance projects (e.g., U.S. Gulf Coast).”

16 CII Report Recommendations “Contractors should provide comprehensive employment packages that include competitive wage, training, and benefits.” “While these benefits produce tangible results, perhaps the most important benefit is the development of skilled craft workers to meet future demands.”

17 The Business Case for Training The Evidence – Research Study #2 – Canadian Apprenticeship Forum – It Pays to Hire an Apprentice: Calculating the Return on Training for Skilled Trades Employers in Canada – A Study of 16 Trades, Final Report 2009 “Data from almost 1,000 employers across Canada…surpasses any previous study of this type in Canada”

18 The Business Case for Training Findings – “For every $1 spent on apprenticeship training, an employer receives a benefit, on average, of $1.47 or a net return of $0.47.” In trades like heavy-duty equipment mechanics, and industrial mechanics, “…the revenue generated by an apprentice far exceeds the total training costs.”

19 The Business Case for Training Findings – Most important? The benefits increase over time “The net benefit of apprenticeship training increases in each year over the course of the apprenticeship period.” “The revenue generated by apprentices increases throughout the apprenticeship.”

20 A Case for Construction Training? The answer is Yes The CII Research Team “concludes that each dollar invested in craft training can yield $1.30 to $3.00 in benefits. The benefits accrue in the form of increased productivity and reductions in turnover, absenteeism, rework and other areas.”