Sussex firms could finally be gaining on their overseas competitors in terms of productivity following an increase in spending on training to boost workers' skills, according to a new report.

A snapshot of 500 companies from across the UK showed more than half had improved their productivity levels over the past year despite fierce competition and tighter margins.

The Engineering Employers Federation (EEF) said its study revealed an increase in spending on training in the manufacturing and engineering sectors which was set to continue in 2006.

But EEF director general, Martin Temple warned throwing money at training could backfire.

He said: "This report demonstrates that increasing the amount spent on training is not enough on its own to improve performance.

"The companies that are able to steal a march on their competitors are those with a business culture which clearly aligns their investment in skills and training to their overall business goals."

Lesley McCarthy, people development team manager at Sussex Enterprise, said there had been a "growing acceptance" among businesses of the value of training in the last two years.

She said: "Our people development advisory team is busier now than it ever has been, with increasing numbers being called back for second visits and referrals.

If training did not improve productivity this would not be happening, as tougher market conditions means company budgets are under close scrutiny.

"Increased spend on training can actually help reduce costs long term, as it improves staff retention and thus saves on expensive recruitment drives."

She added: "I would caution, however, that training works best if it is supported by management. It should be seen as a longterm investment and should be open to everyone, at any point within an organisation."

In Brighton and Hove, business leaders are urgently trying to address a skills shortage in the construction industry to cater for the £2 billion worth of development planned over the next ten years.

There are currently not enough skilled workers in the city to deliver this scale of development.

At the same time unemployment in Brighton and Hove is twice the regional average.

Employers in the building industry have teamed up with City College and the Government-backed skills agency Constructing Futures to address the issue.

On Thursday, a training and apprenticeship centre called First Footings will open on the site of the former College of Media and Art in Wilson Road, Brighton, to get unemployed people into construction.

Andrew Garrett, project director of Constructing Futures, said:

"The centre is designed to offer a genuine taste of what it's like to work in the construction industry.

Instead of relying on classroom-based lessons, we're using a practical approach to learning.

"On our replica building site, real on-site conditions are simulated so the students have the chance to gain hands-on experience in a variety of construction skills."

Tuesday, January 24, 2006