UK’s SMEs say ‘apprentices are the solution to UK’s skills gap crisis’

Over 80% of the UK’s SMEs believe apprenticeships are at least partly the solution to the UK’s skills gap crisis, with a further 69% of the view apprenticeships are a ‘valuable alternative to university’

Four in 10 (44%) feel not enough is being done to encourage young people to consider apprenticeships.
The findings are taken from the latest independent research commissioned by Close Brothers Asset Finance and are in support of National Apprenticeship Week (NAW), which highlights the positive impact that apprenticeships make on individuals, businesses and the wider economy.
According to a survey by the Learning and Work Institute, around 70% of employers reported a skills shortage in their workforce. The Close Brothers Asset Finance research confirms that 50% of business owners are concerned there’s a skills gap in their sector while a further 16% say the issue is regionally based.
Over a third (37%) of responding firms report having an apprenticeship scheme of their own, with many (65%) stating that if financial assistance were available from either the government or the private sector to help contribute towards wages and/or training, they would put someone from their company forward to participate in an apprenticeship scheme.

The National Apprenticeship Service states that 96% of employers with apprentices have experienced at least one benefit from taking on apprentices, and most can count at least eight benefits. In addition, 74% of employers say that apprentices improved products or service quality, and 78% say that they improved productivity while 73% say that staff morale is improved by having apprentices.
Steve Gee, CEO of Close Brothers’ Asset Finance’s Industrial Equipment Division, said: “As a funder of a number of sectors that rely on apprentices, we’ve long seen the need and value of apprenticeship schemes, which encourage new talent into industries that really need them.” 
“As part of our commitment to the SME community, we’ve been funding an apprenticeship scheme since 2015, in partnership with the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC). Under the scheme, we contribute towards the wages of the apprentices in both the first and second year, with all training costs also covered.
“The reality is, it’s not cheap for an SME to invest in apprentices – and its important small business owners see it as an investment and not a cost. Handled correctly, apprenticeships can help an SME flourish and, at the same time, develop the individual apprentice.”
“I believe we all have a duty to look at where, as ‘UK PLC’, we need to concentrate our efforts and money. I would strongly encourage firms to support apprentices – we know first-hand what a hugely positive impact they can have.”
Nikki Jones, Director of the University of Sheffield AMRC Training Centre said: “At the AMRC Training Centre, we’re transforming lives through apprenticeships. We combine classroom learning and shop floor industrial experience to equip new, young talent with all the skills they need to become the advanced engineers of tomorrow.