The Learning and Skills Council has called for manufacturing industries to invest in staff training to meet demands of the growing industry.

The call comes as the Engineering Employers Federation (EEF), which represents manufacturers, revealed in its quarterly trends that output, orders and investment are rising strongly.

The EEF said that this is the first quarter since the beginning of 1998 that companies have not reported job cuts.

The LSC is currently working with the manufacturing industry to develop fit-for-purpose training and qualifications to improve its competitiveness and performance.

David Cragg, LSC regional director for the West Midlands, said: "To meet rising demand and to be effective and productive, employers need to invest in staff training and development.

"Our research shows that one-fifth (20%) of job vacancies in England remain unfilled because of a lack of skilled applicants - some 135,000 vacancies. If the upturn in manufacturing is to be sustained, it is crucial for employers to work in partnership with training providers and the LSC to ensure the right staff, with the right skills, are available."

According to the LSC's National Employer Skills Survey, which questioned 72,000 employers about the skills of the workforce, failure to train staff adversely affects the bottom line for business.

Lost orders, increases in operating costs and failure to meet customer service objectives were the main consequences cited by employers. Despite this, 40% of employers admitted that they provide no staff training.