Percent of ADTC graduates in the current investment are sponsored by employers
Social Finance is partnering with American Diesel Training Centers (ADTC), a diesel technician training program based in Ohio, on a Career Impact Bond. Through two impact investments, the program will train over 1,100 unemployed or underemployed people. Amid critical labor shortages, leading employers are increasingly paying for employee graduates’ tuition, enabling participants to upskill at no cost.
ADTC was founded in 2017 to address a nationwide diesel technician shortage and help American workers transition into higher-wage careers. The five-week program significantly cuts down the cost and time typically required for learners to become diesel technicians.
Goals
Expand access to training: Minimize risks for learners by covering their upfront tuition costs and providing supportive services like toolsets to help them succeed.
Support career advancement: Empower learners to develop the skills needed to land careers in a growing, high-demand industry.
Catalyze employer investment in talent: Partner with employers to cover graduates’ tuition payments, enabling participants to upskill at no cost.
Participant Stories
After Doubling His Income, Cam Looks Forward to the Future
Cam was living in West Virginia when the pandemic started, and his job as a chiropractic assistant wasn’t enough to pay the bills. After enrolling in the ADTC Career Impact Bond, he accepted a job with Kenworth Trucks, earning a starting salary of $42,000—more than double his previous income. “We’re looking towards settling down, buying a house, doing the American Dream stuff,” said Cam.
A Financing Model that Benefits Workers and Employers
From the beginning, the ADTC Career Impact Bond has been built on a student-friendly financing model. Top industry employers quickly began to recognize the quality of the program’s graduates, and employer sponsorship became more and more common. This model benefits graduates, who begin new careers without the burden of student debt, and employers—who access a diverse, skilled talent pool amid severe labor shortages; boost retention; and reduce hiring costs.
Daniel has Career Goals at Penske—and a Path to Achieve Them
“I was struggling to find a career—financing it, seeing the training through all the way,” said Daniel. Things changed for him when he learned about the ADTC Career Impact Bond. Three weeks after graduating, Daniel accepted a job with Penske. For the first time in a long time, he has solid career goals—and a pathway to achieve them.
For Bill, Five Weeks of Training was the Key to Economic Mobility
In 2020, Bill saw an ADTC ad on Facebook. It came with an unusual pitch: He would pay for the schooling only if it landed him a job. “I figured this was my best opportunity to succeed,” he said. Bill enrolled in the ADTC Career Impact Bond and found a job at U.S. Xpress with a starting pay of $39,000 a year—$10,000 more than he made before as a cable TV installer.
New Diesel Technicians Increase Salaries by an Average of $16,800
Career Impact Bond learners began graduating from ADTC in 2020. As of October 2022, over 90% of the program’s graduates were employed. After the five-week program, students’ incomes increase by a median of $16,800 over their median pre-program wages of $25,000.
How It Works
This is the answer. Find motivated people. Give them solid, specific fundamental mechanical training. Set them up for success—and the sky's the limit.
![Bill B, ADTC Career Impact Bond Student](https://socialfinance.org/wp-content/uploads/2021/04/bill-barber-e1667312667144-1000x1000.webp")
![Cam, an ADTC participant, smiles at the camera in his gray jumpsuit uniform.](https://socialfinance.org/wp-content/uploads/2022/11/Screen-Shot-2022-11-01-at-6.55.22-AM-1000x845.png")
![American Diesel Training Center participants working inside of a truck.](https://socialfinance.org/wp-content/uploads/2022/11/adtc-5-e1667932883281-1000x1000.jpeg")
![Daniel, adtc participant speaking](https://socialfinance.org/wp-content/uploads/2021/04/Screen-Shot-2022-11-01-at-10.22.51-AM-1000x750.png")
![2021 ACT Summit participants holding certificates](https://socialfinance.org/wp-content/uploads/2021/12/2021-ACT-Summit-image-3-e1668466450189.png")
