Sydney-based construction group St Hilliers are set to begin work on a $17million trades hub as part of the now $25million new TAFE NSW site in Bega.
Bega Liberal MP Andrew Constance made the announcement on Friday, with construction due to be completed by the middle of next year.
Research by the Western Research Institute, and commissioned by Bega Valley Shire Council, found just 17 per cent of local business believed training was meeting their top five future skill requirements, with reductions in TAFE funding a key concern for stakeholders.
"Trades were a big thing growing up, and it's been lost," Bega Valley mayor Sharon Tapscott said on Friday.
Mr Constance said construction "couldn't come at a better time", due to the current economic recession.
He said the space, which sits alongside the Connected Learning Centre, will offer "offer hands-on courses across key industries such as carpentry, bricklaying, engineering, hospitality, aged care and early childhood".