Of 70 new centres of vocational excellence announced by the Learning and Skills Council this week, 19 will specialise in engineering, technology and manufacturing - more than for any other sector.

Public perception of the decline of traditional industry has run ahead of reality. Employers have been complaining for many years that there are not enough people with technical and craft skills.

The Engineering and Maritime Training Authority, the sector’s national training body, estimates 12,000 young people need to start Modern Apprenticeships each year to meet the industry’s needs, but the take-up has levelled out at around 8,000.

One project that is likely to inspire the new engineering centres is already taking shape at Ford in Dagenham. As the Fiesta production line comes to a halt this month, construction work is starting on a centre of vocational excellence on land handed over by the company.

Barking and Havering colleges are moving their engineering departments to the Essex site to create the Centre of Engineering and Manufacturing Excellence. This will be housed in an pound;18 million steel-framed building with a glass frontage facing the A13.

The two colleges and East London learning and skills council have put in pound;3m each towards the start-up costs. Despite the gloomy headlines generated by the demise of car production, the centre is an expression of confidence in the future of engineering in the area.

Although car production will stop at Dagenham, the engine-building plant remains. The colleges, which put 160 Modern Apprentices through Ford every year, say the number could be sustained or increased as this plant expands.

Further afield, the area is expecting an influx of small to medium-sized businesses, many requiring engineering skills, attracted by investment in regeneration.

It is anticipated that around 800 students will be based at the new Dagenham centre at any one time, with about 1,200 using the facilities during any one year.

While it will take over the training of Modern Apprentices, currently provided by lecturers visiting the Ford plant, the college will mostly deal with people on full or part-time FE courses, bringing to an end the duplication that exists between the two colleges.

The board of the joint-venture firm running the centre will include three Ford representatives, one of whom, Mike Harvey, will be chairman. They will be joined by Ted Parker, principal of Barking, Noel Otley, principal of Havering, two governors from the Thames Gateway consortium which is involved in regenerating the area and a community governor.

“CEME is a remarkable example of effective co-operation between business, academia and the community,” said Mr Harvey.

“We believe it will be a world first in proving the value of education as a catalyst for commercial regeneration. It offers a new approach in educational partnerships and a great opportunity to a wide range of local people and businesses.”

“Building on the strength of the colleges and existing initiatives, CEME will provide a first-rate platform for developing the talents of people throughout the area.”

The CEME’s annual turnover should be at least pound;5 million, about the size of a small college.