Apprenticeships Offer a New (Old) Pathway to Prosperity

The rise in popularity of post-secondary education institutions (including trade schools, 4-year universities and graduate programs) grew in part as a response to the baby boom of the late 1940s. Institutionally-based education is one of the most efficient ways to reach the large and sudden influx of new young adults the American workforce experienced as a result of the post-war population explosion.

But recently, an older system of acquiring professional skills—apprenticeships—has been “rediscovered” by students, their parents, and by American industries who are seeking professionals with the kind of experience that’s hard to gain in the classroom.

One such industry is collision repair, or autobody, where the largest, corporately-run multi-shop operations (MSOs) have all launched formal apprenticeship programs. Some automotive manufacturers also offer autobody apprenticeships. These programs range in scope from Caliber’s Technician Apprentice Program (TAP), which is a nationally registered apprenticeship program certified by the United States Department of Labor (1), to programs that operate by partnering with trade schools for a hybrid apprenticeship model.

Immediate Opportunities for the Apprentice

For the potential student, the immediate benefits of the apprenticeship model are obvious. According to the Education Data Initiative, post-secondary education costs are at an all-time high(2), as are national student loan debt, debt delinquency, and default (3). As these costs outpace inflation (2), many argue that the post-graduate salaries for bachelor's degree holders don’t align with the cost of obtaining them.

In contrast, many collision repair apprenticeships offer exclusively paid training, like Caliber’s TAP program, or paid training that offsets classroom expenses, such as those found in some hybrid models. Furthermore, many apprenticeship programs, including those offered by the three largest collision repair MSOs, all include benefits packages, including health insurance.

Long-Term Economic Outlook

Collision repair apprentices generally graduate in 12-24 months, depending on program and individual aptitude. Once the apprentice graduates, they can expect to earn a livable wage. According to the U.S. Bureau of Labor Statistics (BLS), the median wages of an automotive body, paint, interior or glass repairer averages to $54,530 annually (4). But as collision repair wages include “flag hours,” or task-based compensation, a skilled technician can earn more than their base hourly wage. Collision industry education leader I-CAR reports that collision repair technicians with 6-9 years of experience earn, on average, $72,000 annually, while over 1/3 of technicians with ten or more years of experience earn over $100,000 per year (5).

Autobody apprenticeships also build the foundation for further career development, including specializations in ADAS and other automotive technology, repair of advanced autobody materials, such as aluminum or carbon, repair and maintenance of electric vehicles, and certifications for specific automotive makes. All of these specializations are associated with higher wages.

Beyond the individual, higher wages and more career opportunities also benefit federal, state and local economies. According to Caliber, each graduate of their TAP program in Texas may ultimately earn $540,332 more over the course of their working lifetime than they may otherwise have, had they not completed the program (6).

Higher wages obviously result in more income tax paid and higher Social Security payments at retirement. In addition, stable career opportunities are associated with an all-around higher standard of living, including better housing, improved nutrition and health, longer life expectancy, more consistent employment, a better retirement outlook and more discretionary spending (7).

Better quality housing and more discretionary spending impact the state and local economy directly through property and sales tax revenue, and indirectly through their positive impact on local businesses. While better housing, nutrition, health, higher life expectancy, consistent employment and a better retirement plan also reduce reliance on social support systems. Caliber estimates that the value of each apprentice in Texas equals $206,000 in taxpayer benefits over the course of their working lives (6).

Apprenticeships Reduce Reliance on Government & Social Support Programs

Reliance on Government and social support systems is determined by household income relationship with the poverty threshold, as determined by the Department of Health and Human Services (8).

By that determination, a minimum wage earner working 40 hours per week and supporting only themselves falls below the national poverty threshold, increasing the likelihood that they would need to depend on means-tested assistance.

According to 2022 U.S. Census Survey of Income and Program Participation (SIPP) data, 42% of households receiving Temporary Assistance for Needy Families (TANF) and 39% relying on the Supplemental Nutrition Assistance Program (SNAP) fell into this backet (9).

But apprenticeships offer pathways to financial security, not just for individuals, but also for families.  

Based on the median annual income of $54,530 reported by the BLS, an autobody technician can support a family of 3 while maintaining income positioning 190% above the Federal poverty threshold, while at the $72,000 annual earnings for experienced technicians reported by I-CAR, a technician could support a family of 5 and maintain that same income positioning 190% above the threshold (8). 

According to SIPP data, fewer than 2% of households maintaining income positioning 190% above the Federal poverty threshold rely on any form of means-tested assistance (9).

A note on terminology: The TANF was known as Welfare prior to 1996, and SNAP was known as the Food Stamps program before 2008.

We Believe Apprenticeships are a Win-Win Investment for Businesses, Federal, State & Local Governments

By equipping participants with in-demand skills and stable career paths, collision repair apprenticeship programs can significantly improve personal economic outlooks and earning potential. At the same time, the steady employment and enhanced incomes generated by graduates amplify federal, state and local economies—through increased tax revenues, impact on businesses, and reduced demand for social services. Collectively, collision repair apprenticeships can not only transform lives but also strengthen the broader economic fabric of the communities they serve.