The future of industry in Tamworth relies on businesses taking the steps today to invest in the workforce, Obieco HR manager Fiona Sweeney said.

Obieco Industries are a licensed vehicle body builder manufacturer for major clients like the Department of Primary Industry and Origin Energy.

The business employs at least 65 people, Ms Sweeney said.

"As a result of the federal government's announcement it will boost apprentices, we have actually committed to taking on two new spray-painting apprentices and one adult metal fabrication apprentice," she said.

"Without local industry and businesses providing these opportunities, the long-term viability of these industries in the region are not guaranteed.

"We need to be proactive by providing multiple opportunities to retain these skills for our region."

The $1.2 billion commitment means Tamworth businesses can claim 50 per cent of the wages of a new or returning apprentice or trainee up to $7000 each quarter.

Obieco employs 10 apprentices and one trainee across four disciplines and is just about to add business administration.

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Outside of COVID-19, local schools that have wound back engineering or trade classes could contribute to a skills shortage, Ms Sweeney said.

"You need to look at your long-term recruitment strategy, if you are not bringing them on now, in four years when they were supposed to complete you will struggle with turnover," she said.

"We have never struggled to get staff here but in recent months we have had to advertise because our main feeder for apprenticeships is through work experience from schools.

"Two of our biggest feeder schools no longer provide engineering as a subject and that's extremely disappointing to industry locally."

The subsidy was announced by the federal government two days before the Federal Budget.

The wages will be paid for 12 months and Treasurer Josh Frydenberg estimates it will deliver 100,000 jobs.

It was welcomed by Business NSW president Joe Townsend who said it would give employers the confidence to invest in new staff during the pandemic.