It outlines a longer-term positive agenda for both companies and government to address if the sector is to survive and prosper. This agenda includes:

. Making greater use of modern manufacturing techniques . Unlocking potential productivity gains from using performance related pay and other management techniques that would improve communication and teamwork . Raising investment in new IT and technology . Increasing innovation through higher spending on research and development, and . Increased investment in skills with a particular focus on continuous professional development of employees across the whole workforce.

EEF Director-General Martin Temple said, "We cannot allow manufacturing to decline at its current rate or the UK economy overall will suffer the consequences. Future debates must address issues of substance and look methodically at what needs to be achieved.

"We still have a large manufacturing sector, on which many other parts of our economy depend. It is vital that we develop and work to an agenda which positively grows our output."

www.eef.org.uk