According to ATSCo, the biggest jump in wages for engineering professionals was in the East Midlands (19.8% over the last three years). Derby is one of the main centres of the UKs fast-growing aerospace industry, and the headquarters of Rolls Royce, which has benefited from the recent boom in air travel.

ATSCo says that engineers in the North of England and Scotland have profited from the recent boom in the North Sea oil and gas industry, and strong demand in the aviation and automotive sectors. ATSCo says that a strong reputation for R&D has helped the UKs engineering sector compete with cheaper overseas manufacturing bases.

Ann Swain, Chief Executive, of ATSCo, comments: It is impressive to see how the North has caught up with the traditionally more prosperous South. Although engineers in the South still earn £2,270 more than their peers in the North, these figures are the evidence that the gap is narrowing.

She explains: The Midlands engineering sector has recovered strongly from the body blow of the closure of the Rover plant. The region has battled back to re-affirm its position at the heart of UK engineering. Companies in the aerospace industry like Rolls-Royce in Derby have developed tremendously over the last three years thanks to a thriving aviation sector.

ATSCo says that in Yorkshire and Wales higher global demand for specialist metal components used in aerospace, automotive and the oil & gas industries has helped generate larger orders of high-value materials and boosted production, most of which is intended export. At the same time a number of small businesses have been very successful at tapping into innovative technologies to manufacture state-of-the-art products in diverse areas ranging from car parts made of sustainable resources to orthopaedic implants fabricated from shape memory polymers.

Adds Ann Swain: Scottish engineers are doing well too with a pay rise of 10.9% over the last three years. It is worth noting that this average hides far higher percentage increases for engineers in the real hotspots like Aberdeen.

The increase in the price of oil rose means that there has been a rush to exploit those oil reserves which were previously seen as unprofitable.

ATSCo says that the resurgence of the engineering sector in the North and Scotland is causing some concerns over skill shortages as engineers have drifted South over the previous 10 years.

In the South wages grew by an average of 8.5% in total over the last three years led by the South East with 9.8%. The weekly median gross pay in both London and the East grew 8.4% between 2004 and 2007 and 7.1% in the South West.

Ann Swain comments: The engineering sector in the East of England is more specialised in electrical and electronic engineering while the Thames Valley and other areas along the M4 corridor are more focused on telecommunication technologies. Many companies there have merged or shifted production offshore, both of which have stifled job creation.