The Manufacturing Development Commission meeting held on August 20, 2025, focused on the state of registered apprenticeship programs in Virginia, particularly within the manufacturing sector. The meeting began with a discussion on federal expansion funding, which is one of the few programs not primarily federally funded that falls under the agency's purview.
A key highlight was the presentation of a return on investment study for registered apprenticeships. It was revealed that for every dollar invested in registered apprenticeships, the Commonwealth of Virginia sees a return of $4 in tax revenue and economic output. This significant return underscores the value of investing in apprenticeship programs, particularly in manufacturing, where the number of registered apprenticeships has remained steady despite overall increases in other sectors.
The meeting emphasized the need to grow registered apprenticeship programs in manufacturing, as many high-demand occupations align well with existing apprenticeship frameworks. The discussion included popular apprenticeship programs such as machinists, welders, and shipfitters, with a specific mention of the shipbuilding industry in Norfolk, which has an active apprenticeship school.
To incentivize employers to establish and expand apprenticeship programs, the state launched the Hired Apprenticeship Fund, funded entirely by a federal apprenticeship expansion grant. This program, with an initial funding of approximately $283,000, aims to encourage small and medium-sized businesses to start apprenticeship programs. The incentive structure is designed to be manageable for employers, with feedback indicating that smaller incentives can effectively motivate businesses to engage in apprenticeship initiatives.
The meeting also clarified the flow of funding, noting that while federal dollars are directed to employers for program expenses, state funding of about $2.5 million annually supports program administration rather than direct employer incentives. This funding is utilized to maintain and expand existing apprenticeship programs through a team of registered apprenticeship consultants who assist employers in program design and implementation.
In conclusion, the meeting highlighted the ongoing efforts to enhance apprenticeship programs in Virginia's manufacturing sector, emphasizing the importance of collaboration with employers and the strategic use of both federal and state funding to foster workforce development. The commission aims to continue these initiatives to ensure the growth and sustainability of apprenticeship opportunities across the Commonwealth.