Manufacturing companies that invest in engineering and science skills can expect to see a five-fold return on investment, according to employers.

A pilot programme run by Semta - the employer-led skills council for science, engineering and manufacturing technologies - in the West Midlands, found that government seed funding of £18,000 led to an average improvement in profits of £94,000 in a year.

"With an ageing workforce coming up to retirement, our sector needs 38,000 new skilled employees every year for the next six years," said Philip Whiteman, chief executive of Semta.

"This training will give measurable economic benefit, technical skills, management and leadership, and increased numbers of apprenticeships."

The findings were announced in a presentation to the secretary of state for innovation, universities and skills, John Denham, to discuss the impact of government funding.