Companies operating in the advanced manufacturing sector across Sunderland can invest in the future, thanks to funding secured by the North East Automotive Alliance (NEAA) to boost entry level apprenticeships.
The Training for Growth Level 2 programme will provide financial support for firms to help cover the costs of hiring Level 2 apprentices and will support up to 16 positions.
It is aimed at businesses new to apprenticeships or who have not employed an apprentice in the last 3 academic years, and those who will hire a Level 2 apprentice as part of the September 2025 intake.
The initiative, which comes with a funding package of £5,000 for each business creating an apprenticeship position, is the second apprenticeship-based programme the NEAA has managed in the last 12 months. The original Training for Growth pilot, which commenced in September 2024, has demonstrated that financial support helps small and medium sized enterprises (SMEs) overcome barriers to hiring apprentices.
The £1.5m pilot resulted in 17 Level 3 apprenticeships being created across ten local businesses. Turnmill Engineering, an engineering business in Sunderland, continues to benefit from the initial trial phase. Andrew Howe, Operations Director, said: “The high-quality support from Training for Growth has been great for the business. The project supported the wages of a new Apprentice for 6 months. We appointed a female Apprentice who fitted well into the organisation. We wouldn’t have employed the apprentice without it, and it has allowed us to improve our productivity.”
Building on that success, Training for Growth Level 2, shifts focus to entry level skills, with new opportunities for Sunderland residents, while supporting SME growth in automotive and advanced manufacturing sectors.
The next phase of the Training for Growth project has received £133,916 from the UK Government through the UK Shared Prosperity Fund Programme, overseen by Sunderland City Council on behalf of the Sunderland Partnership.
The project brings strong collaboration between employers, training providers, and industry bodies to address local skills shortages. It is aligned with the priorities outlined in the North East Local Skills Improvement Plan (NELSIP) and has been shaped by comprehensive analyses conducted over several years by local stakeholders.
The NEAA’s operational role will include leading and managing staff employed on the programme in pursuit of its objectives and policies, working closely with other bodies to develop and promote the programme to SMEs and promoting the objectives, actions and achievements to wider stakeholders both regionally and nationally.
Paul Butler, chief executive of the North East Automotive Alliance, said: “The region has many outstanding manufacturing companies, who are contributing enormously to the local economy, not least by the creation of thousands of high-quality jobs. However, many more entrants to the sector are required to ensure the long-term prosperity of the sector.
“Our first pilot project successfully demonstrated that financial support for SMEs helped overcome a key barrier to apprenticeship recruitment and resulted in the creation of a number of Level 3 apprenticeships, to the benefit of those individuals and the companies in which they are employed. There is still much more that can be done to encourage young people to enter the industry, and we are very optimistic that this latest programme which is around entry level apprenticeships will stimulate SMEs to recruit apprentices.”
Cllr Kevin Johnston, Cabinet Member for Housing, Regeneration and Business at Sunderland City Council, said: “We have world and first-class advanced manufacturing businesses in our city and region. The sector is one of our largest employers and a major contributor to the national economy of UK plc. This support for SMEs in Sunderland taking on entry-level apprentices is part of the ongoing partnership work underway to strengthen and grow our advanced manufacturing base.
“This next phase of the Training for Growth programme offers individuals a fantastic opportunity to enrol on an apprenticeship programme, develop new skills and gain invaluable experience in a variety of roles.”
The North East is globally significant for automotive manufacturing, home to the UK’s largest and most productive car plant, three of the UK’s top five off-highway manufacturers and an internationally competitive supply chain comprising 34 first tier suppliers and a myriad of innovative SMEs. It is also recognised as the UK’s leading location for vehicle electrification thanks to the Nissan LEAF, Europe’s first Giga battery manufacturing facility, its full Power Electronics, Motors and Drives capability and a raft of further investments that have bolstered these credentials.