Britain requires a massive effort in its schools to persuade pupils that engineering is for them.

It can be done because Germany has done it – hence their competitiveness and fine products.

But the Government is taking steps to tackle the problem here.

University Technical Colleges are coming – the Warwick Manufacturing Group (WMG) Academy is due to open in September 2014.

Billed as a new concept in education, they will offer 14-19 year-olds the opportunity to take a highly regarded, full time, technically-oriented course. Sponsored by a university, UTCs will specialise in the likes of engineering, product design, health sciences, construction, and land and environmental services.

These specialisms will reflect the university’s areas of excellence and the needs of local employers.

And, in a second significant step, the Government has announced a new apprenticeship system.

Employers will be heavily involved, with apprenticeships tailored to their needs. Every apprenticeship should be targeted at a skilled job. Employers will, in effect, be allowed to design their own qualifications and choose their own training provider.

Between them, University Technical Colleges and these new forms of apprenticeships, represent a wonderful opportunity to progress.

I should know – I started out as a graduate apprentice.

Companies have to take responsibility for their short, medium and long-term manpower needs.

Long ago they used to be subject to a training levy via the Engineering Industry Training Board, but there is no such thing today.

My major worry is over small and medium sized businesses – how will they be able to afford apprenticeships? It is important because we require a strong first, second and third tier automotive supply sector – otherwise we will just import components, doing nothing for jobs in this country.

The Government must incentivise big companies to train more apprentices than they need – enough for some to go into the firm’s own supply chain. But if companies can see that this will boost productivity and solve their skills issues then hopefully they will get behind the new system. It is vital that they do.

* Lord Kumar Bhattacharyya is founder of Warwick Manufacturing Group