What's Happening?
General Motors (GM) has committed over $242 million to its skilled trades apprenticeship program in response to a significant decline in the skilled trades workforce in the United States. This initiative
aims to train the next generation of skilled trade professionals through a combination of classroom instruction and extensive hands-on experience at GM facilities. The program includes up to 672 hours of technical instruction and approximately 7,920 hours of on-the-job training. Participants can earn a journeyperson card, certifying their qualification to work independently in skilled trades. The program is part of GM's broader strategy to address the anticipated retirement of 18.4 million experienced workers by 2032, which is expected to outpace the entry of 13.8 million younger workers into the labor market. GM is also engaging younger generations by introducing them to career paths in automotive manufacturing through community outreach and educational initiatives.
Why It's Important?
The investment by GM is crucial as the U.S. faces a growing shortage of skilled labor, which is vital for maintaining the country's infrastructure and economic stability. The manufacturing sector, in particular, is projected to experience a significant skills gap, potentially leading to 2.1 million unfilled jobs by 2030. This shortage could cost the economy up to $1 trillion. By investing in training programs, GM is not only securing its future workforce but also contributing to the broader effort to sustain the manufacturing industry's role in the national economy. The initiative also highlights the importance of vocational training as a viable alternative to traditional college education, especially in a job market that increasingly values practical skills.
What's Next?
GM plans to continue expanding its apprenticeship program and community outreach efforts to attract more young people to skilled trades. The company is also upskilling its current workforce through its Technical Learning University, which trains about 2,500 employees annually. As technology evolves, GM aims to keep its workforce updated with the latest advancements to enhance efficiency and product quality. The success of GM's program could serve as a model for other companies facing similar workforce challenges, potentially leading to a broader industry shift towards investing in vocational training and apprenticeships.
