The manufacturing industry has been growing a lot recently. Companies are spending more than ever to expand or build new facilities. A report from Deloitte shows that investments in these projects tripled in 2020 and went up another 37% last year.¹ This growth signals a bright future for the industry and the potential creation of more job opportunities.
However, despite this positive outlook, workforce challenges remain a significant concern. A survey from NAM revealed that attracting and retaining high-quality workers remains one of the top issues for manufacturers.² Many companies report unfilled positions across various levels, highlighting a persistent gap between the jobs available and the talent needed to fill them. To fix this, businesses are leaning on training programs like apprenticeships and on-the-job training to help workers build the necessary skills.
What is the Difference Between Apprenticeship and On-the-job Training?
Apprenticeships are formal training programs that combine hands-on work with classroom learning and typically last several years. They’re designed to create highly skilled workers, such as machinists or tool-and-die makers, who can handle complex and technical tasks. Apprentices earn a wage while they train, and upon completion, they often receive a nationally recognized certification or credential that validates their expertise.
On-the-job training (OJT), on the other hand, is less formal and focuses on immediate, job-specific skills. It occurs when a new hire or employee learns by doing tasks under the guidance of a more experienced team member. OJT is faster and ideal for teaching someone how to operate specific machines or follow a production process. However, it doesn’t usually provide the broader foundational knowledge or formal credentials that an apprenticeship does.
How Both Approaches Help Solve Talent Shortages in Manufacturing
Apprenticeship and OJT do more than just training —they create long-term pipelines of skilled workers and address the root causes of the talent shortage. Here’s how:
Building Job-Ready Skills for Today’s Manufacturing Environment
Manufacturing jobs today aren’t like the factory jobs of the past. They now require advanced machines, robots, and computer programs to make things. The problem is that schools and colleges don’t always teach these specific skills.
That’s where apprenticeships and OJT come in. These hands-on programs are designed to match the company’s work. This means workers aren’t just getting general knowledge—they’re learning how to do the actual tasks their job requires. When they finish the program, they’re fully prepared to step into their role confidently.
Attracting Diverse Talent
One big reason for the talent shortage in manufacturing is perception. Many people still see it as a low-paying field, while others think a college degree is a must to succeed. Apprenticeships are helping change this view. These programs provide a clear pathway to stable, well-paying jobs without needing a four-year degree. Apprentices get paid as they learn, gaining hands-on skills while earning a paycheck. On top of that, many programs offer certifications or licenses that boost employability and open doors to even more opportunities.
They are also ideal for people looking to switch careers. Someone with experience in retail or food service could transition into a trade like machining or welding through one of these programs. Veterans have also seen success in this space. Take Richard McCarthy, a World War II veteran who used the G.I. Bill to enter a welding apprenticeship.3 He became a plant manager and eventually started his own company—proving how transformative these programs can be.
At their core, apprenticeships and OJT open doors for people from all walks of life. As these opportunities become more widespread, manufacturers can tap into diverse talent pools, addressing the labor shortage while building a more inclusive and skilled workforce.
Closing the Experience Gap
It’s a classic catch-22 for many job seekers: you need experience to land a job, but you need a job to gain experience. For those looking to start a career in manufacturing, this can be both frustrating and a significant barrier to entry.
On-the-job training solves this problem by giving people the experience they need while they work. Instead of expecting someone to know everything from day one, companies hire workers with potential and teach them what they need to know.
A new hire might start by shadowing an experienced worker to learn how to use a machine. Over time, they’ll take on more responsibilities and learn more advanced skills. This training fills positions and allows workers to build confidence and grow into the role.
Retaining Employees
Hiring skilled workers is only part of the equation—keeping them is just as important. When employees leave, it’s expensive for companies, not just in terms of money but also in terms of lost time and productivity. This is especially true for jobs that take months of training to master. Apprenticeship and on-the-job training programs foster loyalty by showing employees that their growth is a priority.
These programs offer mentorship, opportunities for advancement, and a sense of belonging that makes employees feel valued. Workers who see their employer investing in them are more likely to stick around. LinkedIn reports that 94% of employees would stay with a company longer if it helped them grow their careers.4
It’s a win-win. Companies save money by reducing turnover and recruitment costs, and employees get job security and the chance to advance in their careers.
Reducing Recruitment Costs
Hiring externally can be expensive. Bringing in someone new means investing time and resources into recruiting, onboarding, and hoping they’re the right fit. If they aren’t good fits, it can cost the company days of productivity. Apprenticeships and on-the-job training programs reduce this dependency by cultivating talent from within the organization.
Training existing employees or bringing in apprentices without prior experience creates a steady pipeline of skilled workers familiar with their culture, processes, and values.
5 Ways to Implement These Training Initiatives
How can you turn theory into practice and implement these training programs in your organization?
1. Work with Local Schools and Colleges
Collaboration with community colleges, technical schools, and universities is one of the most effective ways to build strong apprenticeship programs. Educational institutions can provide the classroom-based learning portion of apprenticeships while you focus on hands-on training. This partnership ensures that apprentices learn both the theory and the practical skills needed to succeed in the job.
2. Take Advantage of Government Support
Many governments offer financial incentives to companies that invest in workforce development through apprenticeships. The Massachusetts State Government, for instance, offers grants, tax credits, and support to help industries like health care, life sciences, education, and advanced manufacturing to create and expand registered apprenticeship programs.5 Tapping into these resources can reduce the financial burden while helping with standardization to meet recognized industry standards.
3. Start Small and Grow Over Time
If your company has never done an apprenticeship program, starting with just one or two roles is best. Once that program runs smoothly, you can add more positions or train workers for more advanced jobs. Starting small makes it easier to figure out what works and what doesn’t before expanding.
4. Pair New Workers with Mentors
Every apprentice or new hire should have an experienced guide. A mentor can teach them how to do the job, answer questions, and give them tips based on real-life experience. This kind of one-on-one help teaches skills and makes new workers feel supported and valued.
5. Use Technology to Make Training Easier
Technology can significantly enhance training programs, making them more efficient and accessible. A tool like virtual reality (VR) allows apprentices to safely practice tasks like assembling machines in realistic simulations. Online training tools, such as apps or websites, provide lessons and quizzes that apprentices can complete at their own pace. These tools save time and create a more engaging and practical learning experience, helping apprentices quickly develop the necessary skills.
Read more: Fostering a Culture of Continuous Learning: Preparing Your Workforce for Industry Shifts
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References
1. Coykendall, John et al. “Taking charge: Manufacturers support growth with active workforce strategies” Deloitte, 3 April 2024, www2.deloitte.com/us/en/insights/industry/manufacturing/supporting-us-manufacturing-growth-amid-workforce-challenges.html.
2. Bloom, Victoria and Holland, Mary. “NAM Manufacturers’ Outlook Survey: Third Quarter 2024” 4 Oct. 2024, nam.org/wp-content/uploads/2024/10/Outlook_Survey_Q3_2024_NAM.pdf.
3. “A Veteran’s Manufacturing Story” Thomas, 8 Nov. 2019, blog.thomasnet.com/a-veterans-manufacturing-story?utm_.
4. “2018 Workplace Learning Report” LinkedIn, 2018, learning.linkedin.com/resources/workplace-learning-report-2018.
5. Kitsos, Matthew. “Massachusetts Awarded More Than $1 Million For Registered Apprenticeship” Mass.gov, 16 Sept. 2024, www.mass.gov/news/massachusetts-awarded-more-than-1-million-for-registered-apprenticeship.
