Universal Technical Institute Expands Welding Program

Universal Technical Institute Expands Welding Program

Company also reports significant cost savings from lease restructuring and rightsizing at its Sacramento campus.

Universal Technical Institute (UTI) has announced the expansion of its Welding Technology program to a seventh campus and significant cost savings from lease restructuring and rightsizing at its Sacramento campus. 

“As more Americans turn to technical careers, and as we continue to see increasing interest in UTI’s education, we remain focused on delivering growth through innovative initiatives to attract and serve more students, meet the nation’s urgent need for skilled workers, and optimize our cost structure,” said Jerome Grant, CEO. “We are actively pursuing our growth strategy, including launching new programs and rationalizing our campus footprint, as we continue to evolve our blended learning model and support our students and employees in response to the COVID-19 pandemic.”

Welding Technology Training program expansion
UTI plans to expand its successful Welding Technology Training program to a seventh campus during the fourth quarter of fiscal 2021. Also, as scheduled, the company will launch welding at UTI-Lisle in the second quarter of fiscal 2021. 

Building on its existing program locations at Rancho Cucamonga, Calif., Avondale, Ariz., and Dallas, Texas, the company opened Welding Technology in Houston, Texas on May 18, 2020 and in Long Beach, Calif. on August 10, 2020. The company continues to see strong demand for its welding program across its campuses. On average, once fully ramped, each new welding launch increases UTI’s current overall new student starts by approximately 1.5 percent.

“Welding is an important piece of our growth strategy,” Grant said. “It broadens our student base and lets us serve a much wider range of industry customers. At the same time, it complements our core technical training business and is consistent with our commitment to quality education that prepares students for rewarding careers.”

Welders are increasingly sought after in essential industries such as transportation, energy, and manufacturing, and are particularly in demand for major infrastructure projects. The U.S. Bureau of Labor Statistics projects that there will be more than 488,000 job openings for welders by the year 2028.

Campus footprint optimization
As part of its larger footprint optimization strategy, UTI will eliminate underutilized square footage by downsizing its Sacramento, Calif. campus over 50 percent, or 128,000 square feet, and decreasing the cost per square foot. The combination of these actions will reduce annual occupancy costs and improve EBITDA by approximately $3 million beginning in January of 2022.

The company will make a one-time capital investment of approximately $2 million to consolidate its operations into one of the two buildings it currently occupies, effective Dec. 31, 2021. In addition, it has negotiated favorable terms and is in the process of finalizing a new lease, which goes into effect on January 1, 2022. As part of the transition, the campus’ Collision Repair and Refinish Technology program (CRRT) will be phased out at the Sacramento campus. All current CRRT students will be able to complete their program, and the company will continue to offer its successful CRRT program in Houston and Long Beach.

You May Also Like

LKQ Donates $50K to TechForce Foundation

With a concern over the technician shortage, LKQ says it wants to be part of the solution.

LKQ Corporation, through the LKQ Community Foundation, and TechForce Foundation have entered into a strategic partnership to support students pursuing a technical education and career as a professional transportation technician.

Through the partnership, LKQ has donated $50,000 to support TechForce Foundation’s charitable programs, including a nationwide public service campaign recognizing the value and importance of skilled technicians, its FutureTechs Rock and Techs Rock awards, and TechForce, the first of its kind, gamified online community of aspiring and working technician to find tech schools, scholarships, events, apprenticeships and jobs.

Mitchell 1 Names 2023 Educator of the Year

Ryan Washington, instructor at Community College of Baltimore County in Hunt Valley, Maryland, earned this distinction.

ASE Education Foundation Congratulates SkillsUSA Winners

Students from ASE-accredited programs were among the winners at the SkillsUSA competition last month in Atlanta, Georgia.

MPA to Host Part Smart Webinar Training

The free webinar will be held on Thursday, July 20 from 1-2 p.m. EDT.

Registration open for Northwood’s INFUSION 23-24

The series is for aftermarket executives who want to become more efficient and proficient at leading their organization.

Other Posts

The Four P’s of GSP’s Growth with Michael Ceritano (Audio)

Ceritano describes how he worked his way up in the industry and what he feels has been integral to the company’s success.

Drivetime_ Ceritano-Michael GSP North America
Amerit Launches Reefer Tech Academy

The program focuses on environmental compliance, refrigerants management, leak detection and other maintenance.

Amerit Fleet Reefer Tech Academy
TCCI Breaks Ground on EV Innovation Hub in Decatur

TCCI’s Innovation Hub will include an electric compressor manufacturing facility and innovation and research center.

TCCI innovation Hub
ASE to Sponsor U.S. Auto Tech National Championship

The qualifying round ends on July 31, 2023.