A trade group has been set up to tackle a recruitment crisis which is threatening to undermine one of the fastest-growing industries in Brighton and Hove.

The Brighton E-Learning Alliance (BELA) aims to promote a wider understanding of the industry, which is already worth £50 million to the city's economy.

The switch from classroom-based training to e-learning (online or CD-rom-based programmes) has largely gone unnoticed, though it is rapidly gathering pace.

Brighton and Hove accounts for ten per cent of the UK e-learning market, roughly the same as London, and there is growing resolve to protect and increase its share.

But, according to two recently published reports, there may be trouble ahead.

Figures from the British Learning Association showed the UK had slipped to eighth in the world in terms of the adoption of e-learning, behind Sweden, Canada and the US.

Research by business development agency Wired Sussex showed recruitment problems, ignorance and scepticism about e-learning and a growing skills shortage threaten to undermine the industry.

Now Wired Sussex has joined up with ten of the city's better-known e-learning companies, including Epic and Futuremedia, to counter the problem. The alliance aims to develop skills, encourage collaboration between companies and set up a pool of freelances to help businesses with staff shortages.

Emily Aitken, chief executive of Wired Sussex, said Brighton and Hove's track record on e-learning was excellent and the it was BELA's job to make sure it wasn't derailed.

Carole Bower, creative director at Futuremedia, said: "This is a very crucial and exciting time for the e-learning industry in the UK and it is essential companies work together to help solve current and future challenges. The problem with recruitment and skills is one that unites the industry as its impact on our future success could be devastating."

David Wolfson, chairman of the British Learning Association, said: "The amount of e-learning is increasing but it still represents a small percentage of overall learning and training. The uptake of e-learning is at a low level compared to traditional delivery methods and there is a considerable scepticism among small and medium-sized enterprises."

BELA also includes Academy Internet, Brightwave, Cognitive Applications, Digitalbrain, Imparo, KnowledgePool eLearning and Worth Media.

Supporting partners include Brighton and Hove City Council, City College, Sussex Learning and Skills, the University of Brighton and the University of Sussex.