Further education (FE) colleges are increasingly recognised as strategic contributors to regional development, workforce productivity, and long-term prosperity. As institutions embedded in our communities and closely aligned with employer needs, FE colleges are not only centres of learning—they are engines of economic impact.
Across Wales, the FE sector comprises 13 colleges serving more than 105,000 full-nd part-time learners, including over 46,000 apprentices. These institutions are not only centres of learning but also significant employers, with more than 9,500 staff contributing to local economies. The sector’s responsiveness to labour market needs, our reach across geographies and demographics, and our ability to deliver vocational and technical education at scale make it a cornerstone of Wales’ economic infrastructure.
Investment in skills is not a peripheral concern -it is central to economic strategy. High-quality jobs, business growth, and inward investment all depend on a workforce that is skilled, agile, and employable. FE colleges provide the pathways that enable young people and adults to acquire those skills, whether through apprenticeships, technical qualifications, or degree-level study. As a host college, we’ll be celebrating this when WorldSkills º£½ÇÊÓƵ comes to Cardiff next month.
Cardiff and Vale College Group (CAVC Group), which includes ACT Training and ALS Training, exemplifies this impact. Since opening our city centre campus in 2015, the Group has more than doubled in scale, now serving over 30,000 learners and working with more than 2,000 employers across Wales and beyond. Our apprenticeship provision has tripled, delivering over 10,000 apprenticeships annually. This is not just growth—it is transformation.
Independent studies show that CAVC Group contributes more than £500m to the Cardiff Capital Region economy and over £1bn to º£½ÇÊÓƵ society each year. These figures reflect multiple layers of value: increased lifetime earnings for learners, higher tax receipts for government, reduced demand for public services, and enhanced consumer spending in the region. The Group’s economic footprint is both direct and systemic.
Our strength as a sector lies in our ability to align education with employment. At CAVC Group, employer needs are placed at the heart of the system. From blue-chip brands like Aston Martin, Boeing, PwC and Deloitte to small family-run businesses, we work across sectors to build a pipeline of talent that supports home-grown industry and attracts overseas investment.
This employer engagement is not limited to recruitment. We co-design curriculums, deliver bespoke training, and support workforce development strategies. We help businesses upskill, reskill, and diversify their teams—contributing to productivity gains and competitive advantage. In doing so, we also support inclusive growth by removing barriers to learning and enabling individuals to access meaningful employment.
FE colleges are also investing in infrastructure that supports long-term economic development. Our own new £65m Advanced Technology Centre at Cardiff Airport, due to open by 2027, is a project of national significance. It will offer a net-zero, fully digital learning environment for 2,000 learners and deliver courses in advanced technologies and green energy—from emerging renewables to retrofit skills aligned with net zero Carbon targets.
As with the Advanced Technology Centre, the Welsh Government’s mutual investment model (MIM) is the finance tool also being used to fund our new Barry Waterfront Campus. A combined investment of £119m in the two new campuses is an innovative approach that will allow the public sector to earn a return on investment in public infrastructure, which can be recycled for additional investment.
This kind of investment also reflects the wider sector’s forward-looking approach. Colleges are not only responding to current skills gaps—they are anticipating future needs and building capacity to meet them. By integrating advanced technologies across disciplines, we are preparing learners for the jobs of tomorrow and supporting Wales’ transition to a low-carbon economy.
FE colleges contribute to regional growth not only through skills development but also through our role as anchor institutions. We stimulate demand for services, support local supply chains, and help retain talent within communities. Our presence in towns and cities across Wales promotes economic resilience and reduces inequality.
The social value generated by FE colleges is equally significant. By enabling individuals to achieve their potential, colleges improve health outcomes, reduce crime, and strengthen civic engagement. These benefits translate into measurable savings for society and contribute to a more prosperous, inclusive economy.
CAVC Group’s growth trajectory illustrates this impact. With a combined turnover exceeding £130m, the group is a major employer in the region and a trusted partner for employers across the private, public, and third sectors. Our commitment to removing barriers to learning and creating inspirational places to study is reflected in more than £200 million of capital investment over the past decade.
Further education colleges are not simply part of the education system—they are integral to Wales’ economic strategy. We develop skills, support businesses, drive regional growth, and promote social mobility.
As Wales looks to the future, the FE sector will be central to its success. By recognising and harnessing the economic value of colleges, policymakers and business leaders can build a more resilient, productive, and inclusive economy—one that benefits individuals, employers, and communities alike.
