Technical colleges expand capacity for tomorrow’s workforce
Writer: Eleana Teran
September 2025 — Tennessee is all-in on workforce development, committing more than $1.5 billion to modernize the Tennessee Colleges of Applied Technology (TCAT) in recent years. The upgrades are designed to replace outdated facilities and expand programs that prepare students for high-demand fields.
Work is underway at the Nashville campus, one of 27 TCAT colleges in the state, which is undergoing a $28 million allied health expansion that will add simulation labs for nursing and EMT training, and a separate $52 million aviation facility is underway. This comes at a time when U.S. states are doubling efforts to train students for in-demand jobs.
The Tennessee Board of Regents highlighted that, following the $1.5 billion TCAT package, the focus will be shifting to community colleges. Leaders approved a new round of $449 million in building project requests for FY2026-2027, along with $80.5 million in major maintenance proposals. The board’s actions will advance to the Tennessee Higher Education Commission for review before heading to the governor’s administration and ultimately to the legislature for budget approval next spring.
“Tennessee has recognized the need to better prepare students and workers for today’s jobs, particularly through nontraditional education paths. That includes skilled trades and technical colleges,” said Josh Brown, president and CEO of the Tennessee Chamber of Commerce & Industry, to Invest:. “The governor has prioritized workforce development, putting major funding into technical education. The Tennessee Works scholarships now offer free tuition, previously only available at community colleges, to students at technical colleges as well. It highlights how critical these pathways are to meeting labor demands.”
That commitment is also reflected in new enrollment policies. This summer, the Tennessee Higher Education Commission launched the Direct Admissions pilot, the first program in the nation to link automatic college acceptance with personalized financial aid offers. By streamlining what is often a complex and discouraging process, state leaders hope to boost the number of students who continue their education and enter the workforce.
Local leaders also point to the importance of aligning training with employer needs. “Gallatin has seen rapid population growth, bringing workforce challenges, not in availability but in skill alignment with employer needs. We take a targeted approach by working directly with industries to identify their specific needs. Then, we partner with local schools and our community college to develop tailored training programs,” Gallatin Economic Development Agency Executive Director Rosemary Bates told Invest:. “The focus is on preparing Gallatin residents for jobs here by upskilling workers and ensuring employers find the talent they need to grow. That’s the foundation of our workforce strategy.”
The investments come at a moment when businesses rank workforce availability as one of the most important factors in where they choose to expand. CBRE identified access to a skilled workforce as a crucial driver of corporate site-selection decisions, noting that communities with deeper labor pools are often best positioned to capture new investment.
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Broader impact
The long-term implications extend beyond state borders. A Deloitte study with The Manufacturing Institute projected that 3.8 million jobs will need to be filled in U.S. manufacturing over the next decade, with as many as 1.9 million going unfilled if skill gaps persist. Positions demanding more advanced skills are projected to see the fastest growth between 2022 and 2032, with success requiring a blend of technical manufacturing, digital, and soft skills.
Doug Wagner, director of Manatee Technical College in Florida, reinforced this in an interview with Invest: by noting, “Postsecondary technical education is thriving. There’s a growing demand for technical education because every one of our 50-plus programs leads directly to a career. With nearly 90% employment for graduates, it’s a pathway with tangible outcomes.”
Equally important is how institutions partner with employers to keep programs relevant. “Our success lies in partnerships with over 400 local businesses,” Wagner added. “For example, our allied health programs moved to a hybrid platform based on input from employers serving on advisory committees for those programs. With some classwork moving from the classroom to online and on-the-job training, students are freed up to go to work sooner. This is a win for students and employers. Students begin earning a paycheck before they graduate, and employers get to have a hand in training their much-needed new employees.”
Other markets are seeing similar results as technical colleges position themselves to serve high-growth industries. “A lot of the high-demand industries are identified well by the state of Georgia, which also provides resources to support training in those areas. Cybersecurity continues to be at the top of the list, along with anything related to networking and information security. Skilled trades also remain in high demand,” said Victoria Seals, president of Atlanta Technical College, in an interview with Focus:. “One partnership we are very proud of is with Microsoft. With so many data centers located in the metro area, Microsoft is building a data center training facility right on our campus. Students will gain hands-on experience during their program and move directly into employment opportunities.”
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