A significant report by the EEF, which shows widespread acceptance of the link between a more highly skilled workforce and improved performance, with two thirds of companies saying improving productivity was the main reason for increasing training. As a result, over the last year half the companies surveyed had improved their productivity suggesting the gap with their competitors may be closing. The survey also showed that firms had increased their training spend over the previous twelve months and were planning to do so over the coming twelve months, despite their margins being under intense pressure. The survey showed that companies which place greater importance on business plan than available budget when planning training and target the right types of training across the whole business get more out of their training efforts.

Whatever their strategy, companies believe they will require higher skill levels in their workforce to achieve it. Only a small proportion of companies foresee their skill needs remaining unchanged over the next three years. Complex supply chains and more sophisticated and flexible production processes, together with the need to tailor manufacturing solutions to customer requirements, are placing greater demands on all levels of management.