{"id":429,"date":"2023-09-03T16:40:37","date_gmt":"2023-09-03T20:40:37","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/?post_type=chapter&p=429"},"modified":"2024-11-19T05:32:09","modified_gmt":"2024-11-19T10:32:09","slug":"return-on-investment-skilled-trades","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/financialfreedomfortrades\/chapter\/return-on-investment-skilled-trades\/","title":{"raw":"Return on Investment - Skilled Trades","rendered":"Return on Investment – Skilled Trades"},"content":{"raw":"From a monetary perspective, it is very beneficial to complete a trades program.\u00a0 [pb_glossary id=\"613\"]Return on investment (ROI)[\/pb_glossary] is used as a metric to assess the profitability of an investment.\u00a0 ROI attempts to directly evaluate the amount of benefit on a particular investment, in relation to its costs.\u00a0 A positive ROI commonly shows that a proposed venture will be profitable.\r\n\r\nApprentices spend the majority of their time on the job (approximately 80% according to Provincial \/ Territorial Trades Training Authorities) over a usual 4-year period.\u00a0 During the active hands-on learning component, trade apprentices are paid a wage while accumulating training hours.\u00a0 A sample [pb_glossary id=\"611\"]net cash flow[\/pb_glossary] calculation has been generally outlined for a 4-year Industrial Electrician in British Columbia.\r\n\r\n \r\n\r\n[caption id=\"attachment_1222\" align=\"aligncenter\" width=\"988\"]\"Return<\/a> Return on Investment Cash Flow Apprentice Example[\/caption]\r\n\r\nTherefore, over the 4-year apprenticeship training period, a skilled trades apprentice is not as likely to have accumulated debt or required upfront support compared to an individual that has entered a traditional university program.\u00a0 Note that the above sample net cash flow calculation has not included any income benefits, such as [pb_glossary id=\"821\"]Employment Insurance (EI)[\/pb_glossary], available to trade apprentices.\u00a0 These additional grants and subsidies will be discussed further in <\/span>Chapter 5 - Funding Opportunities for Apprentices<\/a>.<\/span>\r\n\r\nAs a [pb_glossary id=\"583\"]certified journeyperson[\/pb_glossary], an individual\u2019s average wage upon completion will be higher than the maximum level of apprentice.\u00a0 Any further increase in salary or wages will improve the ROI, which will already have been improved as the costs associated with basic technical training are over.\u00a0 Therefore, attainment of a skilled trades qualification or [pb_glossary id=\"642\"]Red Seal Endorsement[\/pb_glossary] makes a significant difference on how much one can earn and save towards financial independence.<\/span>\r\n\r\n \r\n\r\n[caption id=\"attachment_1233\" align=\"aligncenter\" width=\"1001\"]\"Estimated<\/a> Estimated Annual Salary Certified Journeyperson Industrial Electrician British Columbia[\/caption]\r\n\r\nAn Excel template has been provided for you to determine an estimated net cash flow for a specified trade.<\/span>\r\n
\r\n\r\nChapter 01_Net Cash Flow Template<\/a>\r\n\r\n \r\n\r\n<\/div>","rendered":"

From a monetary perspective, it is very beneficial to complete a trades program.\u00a0 Return on investment (ROI)<\/a> is used as a metric to assess the profitability of an investment.\u00a0 ROI attempts to directly evaluate the amount of benefit on a particular investment, in relation to its costs.\u00a0 A positive ROI commonly shows that a proposed venture will be profitable.<\/p>\n

Apprentices spend the majority of their time on the job (approximately 80% according to Provincial \/ Territorial Trades Training Authorities) over a usual 4-year period.\u00a0 During the active hands-on learning component, trade apprentices are paid a wage while accumulating training hours.\u00a0 A sample net cash flow<\/a> calculation has been generally outlined for a 4-year Industrial Electrician in British Columbia.<\/p>\n

 <\/p>\n

\"Return<\/a>
Return on Investment Cash Flow Apprentice Example<\/figcaption><\/figure>\n

Therefore, over the 4-year apprenticeship training period, a skilled trades apprentice is not as likely to have accumulated debt or required upfront support compared to an individual that has entered a traditional university program.\u00a0 Note that the above sample net cash flow calculation has not included any income benefits, such as Employment Insurance (EI)<\/a>, available to trade apprentices.\u00a0 These additional grants and subsidies will be discussed further in <\/span>Chapter 5 – Funding Opportunities for Apprentices<\/a>.<\/span><\/p>\n

As a certified journeyperson<\/a>, an individual\u2019s average wage upon completion will be higher than the maximum level of apprentice.\u00a0 Any further increase in salary or wages will improve the ROI, which will already have been improved as the costs associated with basic technical training are over.\u00a0 Therefore, attainment of a skilled trades qualification or Red Seal Endorsement<\/a> makes a significant difference on how much one can earn and save towards financial independence.<\/span><\/p>\n

 <\/p>\n

\"Estimated<\/a>
Estimated Annual Salary Certified Journeyperson Industrial Electrician British Columbia<\/figcaption><\/figure>\n

An Excel template has been provided for you to determine an estimated net cash flow for a specified trade.<\/span><\/p>\n

\n

Chapter 01_Net Cash Flow Template<\/a><\/p>\n

 <\/p>\n<\/div>\n

definition<\/span>