Collision repair shops now have a direct path to federal funding for hiring and keeping new technicians. The U.S. Department of Labor has awarded the ASE Education Foundation a $25 million, four-year grant to expand registered apprenticeships for auto, collision and truck service technicians nationwide, according to the foundation and the Department of Labor.
The foundation said it is aiming to place 6,000 new apprentices across those trades under the grant. Independent body shops can apply on their own to take part.
The ASE Education Foundation's release described the $25 million award as the largest workforce investment the department has directed to the transportation service industry.
No set-aside for collision shops, foundation says
The release does not break out how much of the funding is earmarked for collision repair specifically, and in response to questions from Autobody News, the ASE Education Foundation said there is no fixed share or quota by industry segment. The foundation said it is looking forward to working with all of its collision industry partners in supporting apprenticeship opportunities.
Independent collision shops, as well as associations and groups, can apply as sponsors on their own, the foundation said, as long as they are using a Department of Labor registered apprenticeship.
"What do you have to lose by applying? If you can develop apprentices into professionals utilizing a DoL registered apprenticeship, this is the result the program is meant to achieve," Dave Johnson, ASE president and CEO, told Autobody News.
Sponsors earn $3,500 per apprentice in two installments
Program sponsors, described in the release as dealer groups, shop associations, franchise operators and similar organizations, receive $3,500 for every apprentice they hire and retain, paid in two installments as the technician reaches 90 and 270 days on the job.
The industry needs roughly 128,000 new technicians a year, but training programs produce about 37,000; and only about one in eight entry-level technicians is still on the job three years later, the foundation said. Registered apprenticeships have shown an average return of $1.47 for every dollar employers invest, and more than 90% of apprentices stay with the same employer after completing a program, according to the foundation.
Mike Coley, president of the ASE Education Foundation, said in the release that the program gives the industry "a clear, paid path into the trade" and a proven way for employers to invest in the technicians who keep vehicles moving.
Incentive fund applications open this fall
Shops that already run a registered apprenticeship can begin preparing now, and those that do not can use a free planning resource, called Apprenticeship-in-a-Box, developed by the foundation and the National Automobile Dealers Association, which covers mentor training and interview guides for standing up a program from scratch.
The Department of Labor said it will work with the five grant recipients through the summer to implement their projects, with eligible registered apprenticeship sponsors expected to begin applying for incentive funds in the fall. Employers, schools and prospective technicians can sign up for updates now at ASEeducationFoundation.org/apprenticeship.
The grant adds to a run of federal and industry apprenticeship activity touching collision repair this year. The Collision Engineering Career Alliance earned Department of Labor recognition for its own apprenticeship model in the spring, and the Workforce Pell Grant program is set to extend federal financial aid to short-term collision repair training starting this summer.
ASE has also been building out its workforce pipeline through an ongoing partnership with I-CAR and CREF aimed at the same technician shortage the new grant targets, and on July 1 acquired the technician recruiting platform WrenchWay, a company it had already been partnering with on similar initiatives.
Other initial partners on the apprenticeship grant include the National Institute for Automotive Service Excellence, the American Truck Dealers, and Jobs for the Future, which will manage incentive payments and federal reporting. The coalition plans to engage employers, schools and prospective technicians in all 50 states, the five U.S. territories and the District of Columbia, with apprenticeships opening across dealerships, retail chains, fleets, body shops, and truck and diesel repair shops.
The ASE Education Foundation accredits more than 1,800 technician education programs, reaching over 100,000 students annually.
