Carillion Training Services 'Can Apprenticeships Rescue the Economy?' NEEC January 2014

1. Carillion Training Services 'Can Apprenticeships Rescue the Economy?' NEEC January 2014 Ray Wilson Director & General Manager 1

2. Carillion Training Services - Overview We operate a unique ‘host employer’ model which is predominantly funded by Government grants. We train around 1500-2000 apprentices annually across a national network of 15 training centres. Key points – we: • Are the UK’s largest construction employer/training provider • Trained apprentices for around 50 years • Recruit around 1000 new apprentices each year • Achieve consistently good apprenticeship success rates • Assist many small firms to train apprentices • Have many existing links with schools and colleges • Support local employment through our Work Experience Provider base and our own recruitment agency, SkyBlue 2

3. Benefits of Apprenticeships… A report* by CEBR for the National Apprenticeship Service: • Between 2012-13 and 2021-22, 3.8 million people will complete an Apprenticeship. It is estimated this would contribute £3.4 billion to the UK economy a year in productivity gains by 2022 • Apprenticeships boost productivity by enabling businesses to grow their skills base. • Productivity gains from former apprentices: • engineering and manufacturing sectors (£414 per week) • construction and planning (£401); and • business, administration & legal (£268). • The number of annual Apprenticeship completions is forecast to rise across all sectors of the economy, growing from an annual 260,000 in 2012/13 to 480,000 by 2021/22.  * Source: The Impact of Apprenticeships: Center for Economics and Business Research http://www.cebr.com/reports/productivity-matters/

4. Benefits of Apprenticeships… A recent study* shows: • Apprenticeships allow employers to secure a supply of the skills they require • Costs of recruiting experienced workers from the external labour market seen as more expensive because of recruitment and induction costs • Often supply in the external labour market is limited • Apprentices provide a pool of skilled people to select from for future promotion • Apprentices are seen as relatively loyal: more likely to stay with the company and steeped in company values • Apprentices seen to bring new ideas into organisations • The costs of Apprenticeship training is recouped relatively quickly The Net Benefit to Employer Investment in Apprenticeship Training - University of Warwick Institute for Employment Research A Report for the Apprenticeship Ambassadors Network By Chris Hasluck, Terence Hogarth, Beate Baldauf and Geoff Briscoe http://www.motor.org.uk/documentlibrary/research/Apprenticeship%20benefits%20jan09.pdf* Source

5. Benefits of Apprenticeships… Can Apprenticeships Save Britain*? • UK has been failing to keep up with the major developed economies inproductivity, but what about the developing economies? • Our higher education system is a match for our competitors, but the intermediate level is suffering. • Apprenticeships could be the answer to how we address this problem, but • attitudes to apprenticeships must change; and • employers must treat apprenticeships as a vehicle for driving up performance standards. • By bringing in new employees with no preconceptions about how things should be done, managers can bring about step changes in their ways of working. • Apprenticeships can be a viable alternative to University. • David Cameron has pledged to make apprenticeships the ‘new norm’, and wants work-based training to sit “at the heart of our mission to rebuild the economy”. * Source: http://ilmukblog.wordpress.com/2013/03/14/can-apprenticeships-save-britain/

6. Can Apprenticeships Rescue the Economy? Absolutely! by: • Improving the supply of skilled labour in key sectors and reducing reliance on migrant workers • By providing a route way for young people to gain sustainable employment and economic security • By helping UK firms improve productivity and competitiveness • By showcasing the UK’s high quality education and training capability and ensuring its responsiveness to employer needs