Consumers would pay more for products that champion apprentices

One in four North-east consumers would pay a price premium for services or products that champion apprentices, a report has found.

The Centre for Economics and Business Research (CEBR) report also found that, nationally, a typical apprentice delivers productivity gains of more than £10,000 a year - rising to almost double that in the construction and planning, and engineering and manufacturing sectors.

The research, to mark National Apprenticeship Week (March 9-13), is part of a national drive to promote the benefits of apprenticeships. Organisations across Teesside have celebrated the success of apprenticeships that have been transformed in recent years to respond better to the needs of employers and learners.

They include Middlesbrough training provider TTE, which has teamed up with Cleveland Fire Brigade to highlight the range of skills of its engineering students.

Two TTE apprentices, Michael Gray, 20, from Redcar and Nathan Hunter, 20, from Hartlepool, are spending this week with the Brigade helping to deliver free Home Fire Safety Visits.

Student Laura Nolan

Meanwhile, to highlight the week, Middlesbrough College principal Zoe Lewis handed over the top job to 18-year-old apprentice Laura Nolan, to give her an insight into running Teesside’s largest college.

The CEBR report discovered that offering apprenticeships were perceived by 62% of the North-east as contributing to society and providing opportunities for young people. Nationally, 5m consumers say they are more likely to make a purchase from an apprentice employer.

Over a quarter (28%) of North-east consumers say they would go as far as paying more for goods and services offered by companies that employ apprentices.

Aggregated across key sectors in the economy, this price-premium would equate to an additional £18bn a year in consumer spending nationally.

As well as long-term productivity gains, the Benefits of Apprenticeships to Businesses report shows that even before an apprentice is fully qualified, many businesses across the North-east will see economic benefits of offering apprenticeships. The figures show that while training, each apprentice in the region is estimated to deliver an average positive net gain of £1,626 to their employers.

Scott Corfe, co-author of the report, said: “This report proves that hiring apprentices has a hugely positive impact on employers themselves.

“Not only do apprentices contribute to the productivity of a company from day one, but consumers are more likely to switch to brands and firms that employ apprentices.”

As part of National Apprenticeship Week, employers in the North-east are being encouraged to share their reasons for employing apprentices on social media, with #100reasonswhy.