SKILL shortages, high living costs and poor transport have prompted four out of every 10 manufacturers in the South East to consider moving out of the region, according to a survey of engineering chiefs. The survey - Time to Wake-Up? - by EEF South, the regional engineering employers' association, covers the concerns and opinions of manufacturers across the area, including Kent.

It paints a picture of a region recognised for its quality of life but struggling with poor infrastructure, high living costs and significant skills shortages. "Two key issues, in particular, appear to undermine the best efforts of business to improve competitiveness - the dire consequences of skill shortages and the cost of housing," said David Seall, EEF South chief executive.

"Across the region, there is a primary lack of specialist labour, notably qualified engineers. Add to this the difficulty in recruiting bright young people in sufficient numbers, due in part to a poorly regarded vocational education system, and it's easy to see why so many businesses - four out of every 10 according to our survey - have considered turning their backs on the South East."

Transport is high up the list of concerns, and manufacturers say there is an urgent need for effective integration. EEF South, which has more than 800 members, says there are clear advantages to being based in the South East - quality of life, proximity to overseas markets, and an increasing emphasis on knowledge-based industries.

The area continued to attract inward investment, boding well for the future "if some of the key barriers to growth can be addressed". The survey found little support for elected regional assemblies, criticism of local authorities over restrictive planning processes, and complaints about Government's "general lack of support for business".