ENGINEERING bosses have set out a long-term agenda for the future of manufacturing.

A new study has the title Manufacturing at the Crossroads -- Neglect or Nurture.

It highlights the vital contribution manufacturing still makes to the economy and the dangers of continued decline.

Companies and Government are urged to address issues including:

Making greater use of modern manufacturing techniques.

Unlocking potential productivity gains from using performance related pay and other management techniques which would improve communications and teamwork.

Raising investment in new IT and technology.

Increasing innovation through higher spending on research and development.

Increased investment in skills with a particular focus on continuous professional development of employees across the whole workforce.

Mr Andrew Semple, external affairs manager for EEF in the North-west, said today: "Contrary to popular opinion, manufacturing is vital to the economy, accounting for 62 per cent of exports and half of the total credits on our current account.

"Yet, even allowing for this, our trade deficit has continued to increase and there is now every prospect of it becoming alarmingly large if we continue to allow our manufacturing base to weaken."

He added: "We still have a large manufacturing sector on which many other parts of our economy depend.

"It is vital that we develop and work to an agenda which positively grows our output."