The Next-Gen IMT Apprenticeship: A Return on Investment Study

At a Glance

This study measures the business impact of the Industrial Manufacturing Technician Registered Apprenticeship program on six apprenticeship sponsors.

Apprenticeships are drastically underutilized as a standard part of the development and training of the American workforce. To date, very little research regarding cost-benefit analysis or return on investment (ROI) for sponsors of apprenticeship has been conducted in the United States. As a result, there are gaps and inconsistencies regarding employers’ perceived costs, possibly preventing the sponsorship of Registered Apprenticeship (RA) programs.

This study performs an ROI and cost-benefit analysis for sponsors of the Industrial Manufacturing Technician (IMT) RA program. Using a mixed methodology consisting of an interview in conjunction with an accounting framework, the study found that several of the sponsors saw a positive ROI in terms of both monetized and overall non-monetized benefits. Sponsors represented in this study also indicated that apprenticeship is part of their long and short-term strategies for addressing immediate labor shortages.

The ROI for several sponsors showed that on average, every $1.00 invested in apprenticeship returned $1.48. These sponsors also indicated that there was a direct link from IMT RA to upskilling, retention, comprehensive training, recruitment, and increased productivity, providing a significant advantage over competitors.

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