The Foundations in Industry Training (FIT) Program
In May, Governor Shapiro announced approximately $2.85 million in grants through Pennsylvania’s Foundations in Industry Training Program. The Foundations in Industry Training (FIT) Program is a statewide initiative administered by Pennsylvania’s Department of Community and Economic Development to help employers and other apprenticeship sponsors expand access to registered apprenticeship programs. FIT funding is intended to offset the educational and technical instruction costs associated with apprenticeships. Eligible sponsors are able to receive up to $3,000 per apprentice per year for as many as three years.
The Skilled Labor Gap
As mentioned in previous articles, the country is experiencing a challenge recruiting, training, and retaining skilled employees. This issue is not industry specific, and its impact is being felt both nationally and regionally here in Pennsylvania. The National Manufacturer’s Association (NAM) reported that the United States could face a shortfall of 1.9 million manufacturing workers by 2033.
The skilled labor gap has caused employers to look internally to train and educate their current employee base to fill the growing skills gap in the labor market. In a recent survey from NAM, approximately $32 billion is being spent on annually on training programs. An increase of nearly $5 billion compared to 2019.
The construction industry has taken a closer look at this issue as well. According to the 2025 workforce survey published by the Associated General Contractors of America and the National Center for Construction Education Research, 92% of construction firms that are hiring report difficulty finding qualified workers, while 45% say labor shortages are causing project delays. The survey also found that 57% of firms report that available candidates lack the necessary skills, credentials, or licenses for the work.
Apprenticeship Costs and Returns
This skills gap is what makes the investment in the FIT program so important. Apprenticeship offers these businesses an avenue to recruit, train, and retain the necessary talent to meet their operational goals. The challenge with an apprenticeship approach is the cost associated with the program. In The Return on Investment (ROI) to Employers from Registered Apprenticeships, a 2024 U.S. Department of Labor review found that the most employer return on investment in a Registered Apprenticeship generally range from $1.40 to $1.90 returned for every $1.00 invested.
This return is significant, given the growing costs of starting or maintaining an apprenticeship program. Registered Apprenticeship programs come with a wide array of expenses, including wages, mentorship time, lost productivity, training materials, technical instruction costs, as well as other significant administrative costs to the program. The FIT program is well positioned to help not only alleviate these costs but allow employers to observe better return on investment.
An Important Investment
FIT funding is positioned to help alleviate the costs incurred by employers in an effort to address the skilled labor gap observed here in the state. In practice, these funds can assist employers by adding apprentices, sustain related technical instruction costs, or continue a program that otherwise would be scaled back because of cost.
Please reach out to a member of our Manufacturing & Distribution team for more information on the topic outlined above. For more information regarding our Manufacturing & Distribution experience, visit our Manufacturing & Distribution industry page.
About the Author
Dan Dorgan, CPA is a Senior Manager with the firm. As a member of the firm’s Audit & Assurance Segment, he primarily works with clients in manufacturing and distribution as well as architecture, engineering, and construction indust… Read more
