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Economic impact summary

We are transforming people’s lives and making an impact on the skills landscape, not only regionally, but nationally.

The AMRC Training Centre has become a national asset and a model of skills development and collaboration. Since opening in 2013, we have recruited more than 2,200 apprentices and worked with more than 400 different businesses - from small start-ups to major companies. 

Connected together, we’re pulling together the roots for outstanding impact - making good things happen and growing future prosperity for manufacturing in South Yorkshire.

Economic Impact Assessment of the AMRC Training Centre

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The University of Sheffield AMRC Training Centre

The University of Sheffield AMRC Training Centre was established to train the next generation of world-leading engineers. It works with employers to identify and provide the skills required to enable manufacturing companies to compete globally. Trends within the advanced manufacturing sector are driving demand for greater technical proficiency and higher-level engineering skills, for both apprentices and the existing workforce in the sector. Since opening in 2013, the training centre has recruited over 2,200 apprentices, providing a real-world manufacturing environment that offers learners the opportunity to gain hands-on experience with equipment that is used daily in industry. Productivity in advanced manufacturing is far higher than industry as a whole and over the past 10 years, the Gross Value Added (GVA) of the sector in the Yorkshire and The Humber region has grown 48% compared to 27% in England, illustrating its importance in the region.

Economic impact, purpose and approach

The University of Sheffield Advanced Manufacturing Research Centre (AMRC) commissioned Kada Research to produce an Economic Impact Assessment (EIA) to capture the economic benefits generated by the University of Sheffield AMRC Training Centre over the past five years. The EIA calculation is based on those who completed their apprenticeship training and went into industry and the employees at the training centre. The approach adopted three measures of benefit:

  • An estimate of the productivity uplift generated by apprentices through the increased skills acquired from the training centre after completion.
  • An estimate of the jobs and GVA benefits to the industry from qualified apprentices moving into fully skilled job roles.
  • An estimate of the GVA benefits arising from employment at the training centre.

The assessment also analysed the training centre’s activity over the five-year reference period (2018/19 to 2022/23), including those who started, withdrew and completed their apprenticeship.  

AMRC Training Centre activity

The training centre currently provides Level 3 to Level 6 apprenticeship training as well as continuing professional development (CPD) training.  During the five-year reference period, activity at the AMRC Training Centre has been affected by the Covid-19 pandemic with reduced numbers of starters, completions and CPD courses delivered particularly in 2020/21, although each activity has shown signs of recovery in recent years. Over the five years, the training centre employed an average of 92 part-time and full-time staff and managed 750 registered apprentices a year. Analysis of these five years has shown:

  • 1,070 apprentices started training.
  • 770 or 68% completed their course compared to national figures of 58% in other equivalent courses and institutions.  This means a withdrawal rate of 32%, which is higher than in previous years when Covid was not present.
  • Female representation increased from 7% five years ago to 12% in the latest intake. However, in common with the national picture, completion rates are higher for males.
  • Those apprentices who live and work in South Yorkshire are more likely to complete their training. 76% of trainees and 87% of those who complete are from the subregion.
  • Self-reported non-white starters increased from 3% five years ago to 7% in the most recent recruitment year.
  • As technology advances and demand for higher technical skills increases, more apprentices are applying for higher-level courses. In 2018/19, 23% of starters applied for Level 4 and above training, rising to an average of 33% in the last two years.
  • Level 3 apprentices were more likely to complete within their course timescale than higher-level training.
  • Almost 290 businesses have recruited an AMRC Training Centre apprentice.

Impact results

The GVA analysis includes direct, indirect and induced effects:

  • Direct GVA arises from the employment of former AMRC Training Centre apprentices.
  • Indirect GVA is the value generated in the supply chain of the manufacturing businesses employing these apprentices.  
  • Induced GVA is the benefit generated from direct and indirect employees spending their wages in the economy, which supports further induced jobs.  

There were 767 apprentices who completed their course over the five years from 2018/19 to 2022/23 and provided the direct job effect. The indirect and induced effects added a further 575 and 268 jobs respectively totalling over 1,600 jobs attributable to the AMRC Training Centre apprenticeship completers.

The value benefits include:

  • GVA benefits arising from former apprentices in the workforce is:
    £281m NPV (including £136m direct, £102m indirect and £43m induced) of which £233m benefits South Yorkshire.
  • GVA benefits arising from  AMRC Training Centre employment is:
    £19.7m NPV (including £7.5m direct, £1.6m indirect and £10.6m induced) of which £16.3m benefits South Yorkshire.

In terms of the improved productivity arising from the AMRC Training Centre’s training and apprentices moving into the workforce, productivity uplift is £46m NPV (Net Present Value) of which £38m benefits South Yorkshire

Conclusion

The economic impact delivered during the last five years of the AMRC Training Centre’s operation is significant. The trained skilled workers contribute to increased productivity in advanced manufacturing businesses and generate additional economic benefits through their employment. The operation of the AMRC Training Centre itself also generates considerable economic benefit. It is therefore an important asset for the advanced manufacturing sector locally, regionally and nationally, delivering a pipeline of highly trained workers for employers across the sector.  

Over the five years covered by the EIA, the Covid-19 pandemic had a very disruptive effect on apprenticeship starts and completion rates.  However, the number of starts and CPD courses is now on an upward trajectory. The economic value of the advanced manufacturing sector has grown strongly over the past ten years, by providing an uplift in productivity, creating jobs in the sector and adding to GVA. There is an ongoing need for new recruits to replace older members of the workforce as they approach retirement age.  The existing workforce also needs to be upskilled in response to technological change and other economic drivers such as net zero.  By planning for the future, the AMRC Training Centre is in a strong position to meet these challenges.