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Mr Maynard stressed the need for improving the image of manufacturing and engineering with Government, alliances of trade associations, individual companies, education, and media all working together to make things different.

"Manufacturing is a highly skilled sector, with high technology and new innovations constantly being brought in, plus the pay and conditions for those working in manufacturing is now very competitive", he said.

The guest speaker was Michael J Baunton, President of Perkins Engines Company, who spoke in favour of industry/government led initiatives. He championed proactive approaches to EC lobbying and legislation, such as the newly refocused DTI Automotive Unit, now known as the Automotive Innovation Growth Team (AIGT), which established VIPER - the Vehicle industry Policy and European Regulation Group. VIPER's members, from industry and government will review, at a very early stage, all regulation that has a significant impact on the motor industry to help minimise any negative impact.

Mr Baunton highlighted the impact of global sourcing on UK manufacturers. He cited the new Nissan Micra, exhibited at last year's Motor Show, which has only 30% by value of its components from UK-based suppliers, the outgoing model had 80%.

If the trend continues, as much as £3 billion a year could go from the UK to component companies abroad. This is a serious and urgent issue that the key AIGT recommendations on productivity and supply chain efficiency are trying to address.

Baunton concluded: "We, in the UK, clearly have an opportunity to develop new business, but it will be through greater innovation in technology, driven by improving our skills base. The vision is to build here in the UK, superior design and development capabilities, and then assemble and test our products, rather than rely on the vertical integration of the traditional basic metal forming and cutting of years past."

"We may have to accept that the UK no longer holds the purse strings of many global industries, as it did in the past - but I think we can lay claim to something even stronger, we are the most innovative, diverse and enthusiastic country on earth when it comes to manufacturing and engineering", he said.