Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

Employers in several manufacturing clusters report that they cannot fill vacancies even as trained candidates go unplaced. Part of the mismatch is in the equipment: a graduate who has learnt on machines two generations behind the ones on the shop floor needs months of retraining before being productive. Part of it is in the instructors, many of whom have never worked in the industry they are preparing students for. Where institutes have brought in serving practitioners to teach and have updated their workshops, placement rates have moved.

Based on the above passage, the following assumptions have been made:

1. Technical training is more useful when what is taught keeps pace with what industry currently uses.

2. Technical institutes in the country at present have no capacity or potential whatsoever to deliver such training.

Which of the assumptions given above is/are valid?