1. Marketing Apprenticeship in the U.S. The Case of South Carolina
Robert I. Lerman Urban Institute and American University
Johannesburg, 23 April 2013

2. Modest Scale of Apprenticeship in US
With weakness in the US economy and especially construction, civilian slots in apprenticeship fall from 400k to 250k
US has three apprenticeship systems
Registered system (state and federal)
Unregistered system (scale unknown)
Youth apprenticeship (rare)

3. Minimal Budget for Apprenticeship
Budget for the Office of Apprenticeship is minimal for large country ($26 million)
Enough for 1 person in Ohio
Some marketing, but much regulation
Little role for serious marketing
One reason for low apprenticeship penetration in the US

4. South Carolina’s unusual success
Apprenticeship Carolina
Chamber and technical college system enact $1 million plus tax credit of $1,000
Since 2008, developed one new program per week, programs rise from 90 to nearly 600, apprentices rise from 780 to 4,500+
Gains during economic, jobs downturn

5. Key Questions What approach did South Carolina use?
What made it so effective?
Did it involve conversations between firm staff and apprenticeship staff?
What are the lessons for other states?
Paper draws on interviews with leaders of Apprenticeship Carolina

6. Initial Context Meaning of “registered apprenticeship”
Under Labor Department Office, OA
OA responsibilities—issue certificates, protect health and safety, monitoring equal opportunity, and registering programs
Many firms in unregistered programs
Federal-state governance; half of states in each; South Carolina is a federal state

7. Apprenticeship Carolina Emerges
State chamber of commerce with state technical college system—develop study in showing the need for skills
Commission survey on “apprenticeship”; it shows neutral attitudes on the word
Apprenticeship Carolina was the brand that gave local ownership; nothing about department of labor
Skeptics raise two questions
Is apprenticeship really the right direction?
Is apprenticeship feasible in many countries?
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8. How to Market
Who should be hired for marketing?
Chose individuals with business degrees and business backgrounds
Give crash courses on apprenticeship
Work with one representative in the state from the Office of Apprenticeship
Tax credit draws interest in apprenticeship

9. Advertising and selling apprenticeships
Website but selling business by business
Program works with business to diagnose skill demands; work with expertise from the technical colleges; then ask how businesses can improve outcomes
Establish content standards drawing from already registered programs
Do paperwork for firms

10. Reaches Many Sectors
Most apprentices in the US are in the construction sector, led by unions
Reaches many sectors by offering flexibility and using competency-based
Health, advanced manufacturing
Uses existing standards as a starting point

11. Competitive Advantages
Example of major pharmacy company
Establish state-wide program for pharmacy assistants as apprenticeships
Major success—now competitive firms in the pharmacy field are trying to replicate those of initial system
Company curriculum viewed as propriety

12. Adapting to Employer Interests
Only now is Apprenticeship Carolina linking into high schools and moving to a youth apprenticeship concept
Have ambitious goals for continuing growth—no evidence of a slowdown
Amazing accomplishment that takes place during serious economic downturn