Survey shows East Midlands firms appreciate benefits of apprenticeships

The findings have been met with alarm by some experts who fear that as the economy improves there will be a shortage of skilled workers.

According to the survey by Close Brothers Asset Finance, while only 33 per cent of small and medium-sized businesses offer apprenticeships, many of those who do say it has positive results.

The Close Brothers Business Barometer shows that 24 per cent of those firms in the region that do take on apprentices say it gives them access to the best young talent.

A further 29 per cent say that it allows them to develop skill sets the business may be lacking.

Just over one in 10 small and medium-sized firms say that apprentices improve business productivity.

Chief executive of Close Brothers Asset Finance, Mike Randall, said: “It’s evident that small and medium-sized firms that participate in apprenticeship schemes see clear business benefits in doing so.

“And I think it would be to the benefit of the wider economy if participation in such programmes were to increase.”

Engineering UK has warned that the UK does not have either the capacity or the rate of growth needed to meet the forecast demand for skilled engineers by 2022.

Mr Randall added: “The demand for skilled employees will become greater as the economy grows, and at present there are real fears that the demand won’t be met, particularly in industry sectors such as engineering.

“Apprenticeships could play a key role in helping SMEs bridge that skills gap but perhaps the cost and process of recruitment and training are prohibitive factors for many smaller businesses.

“That’s why our parent company, Close Brothers Group plc has launched the ‘Close Brothers SME Apprentice Programme’.

“We have pledged to contribute to the cost of apprentices for 60 small and medium-sized firms in the engineering and manufacturing sector over a three-year period.”