1. 1 Carillion Training Services 'Can Apprenticeships Rescue the Economy?' NEEC January 2014 Ray Wilson Director & General Manager 1

2. 2 2 Carillion Training Services - Overview We operate a unique ‘host employer’ model which is predominantly funded by Government grants. We train around 1500-2000 apprentices annually across a national network of 15 training centres. Key points – we: -Are the UK’s largest construction employer/training provider -Trained apprentices for around 50 years -Recruit around 1000 new apprentices each year -Achieve consistently good apprenticeship success rates -Assist many small firms to train apprentices -Have many existing links with schools and colleges -Support local employment through our Work Experience Provider base and our own recruitment agency, SkyBlue

3. Benefits of Apprenticeships… A report* by CEBR for the National Apprenticeship Service: Between 2012-13 and 2021-22, 3.8 million people will complete an Apprenticeship. It is estimated this would contribute £3.4 billion to the UK economy a year in productivity gains by 2022 Apprenticeships boost productivity by enabling businesses to grow their skills base. Productivity gains from former apprentices: -engineering and manufacturing sectors (£414 per week) -construction and planning (£401); and -business, administration & legal (£268). The number of annual Apprenticeship completions is forecast to rise across all sectors of the economy, growing from an annual 260,000 in 2012/13 to 480,000 by 2021/22. * Source: The Impact of Apprenticeships: Center for Economics and Business Research http://www.cebr.com/reports/productivity-matters /

4. Benefits of Apprenticeships… A recent study* shows: Apprenticeships allow employers to secure a supply of the skills they require Costs of recruiting experienced workers from the external labour market seen as more expensive because of recruitment and induction costs Often supply in the external labour market is limited Apprentices provide a pool of skilled people to select from for future promotion Apprentices are seen as relatively loyal: more likely to stay with the company and steeped in company values Apprentices seen to bring new ideas into organisations The costs of Apprenticeship training is recouped relatively quickly The Net Benefit to Employer Investment in Apprenticeship Training - University of Warwick Institute for Employment Research A Report for the Apprenticeship Ambassadors Network By Chris Hasluck, Terence Hogarth, Beate Baldauf and Geoff Briscoe http://www.motor.org.uk/documentlibrary/research/Apprenticeship%20benefits%20jan09.pdf* Source

5. Benefits of Apprenticeships… Can Apprenticeships Save Britain*? UK has been failing to keep up with the major developed economies in productivity, but what about the developing economies? Our higher education system is a match for our competitors, but the intermediate level is suffering. Apprenticeships could be the answer to how we address this problem, but -attitudes to apprenticeships must change; and -employers must treat apprenticeships as a vehicle for driving up performance standards. By bringing in new employees with no preconceptions about how things should be done, managers can bring about step changes in their ways of working. Apprenticeships can be a viable alternative to University. David Cameron has pledged to make apprenticeships the ‘new norm’, and wants work-based training to sit “at the heart of our mission to rebuild the economy”. * Source: http://ilmukblog.wordpress.com/2013/03/14/can-apprenticeships-save-britain/

6. Can Apprenticeships Rescue the Economy? Absolutely! by: Improving the supply of skilled labour in key sectors and reducing reliance on migrant workers By providing a route way for young people to gain sustainable employment and economic security By helping UK firms improve productivity and competitiveness By showcasing the UK’s high quality education and training capability and ensuring its responsiveness to employer needs