Skills shortages and training problems are forgotten by many companies
when they adopt new technology. 52 engineering firms in a 'traditiona
l' industry in a single local labour market were interviewed to examin
e their attitudes to new technology and the skills and training implic
ations of technology adoption. Skills and training issues were often f
orgotten or misjudged during the new technology appraisal process. It
was these same areas which created most problems for many companies af
ter adoption. Mis-judgements concerning the level of labour force flex
ibility and training requirements for staff often created problems aft
er the adoption of new technology. Skills shortages for adopting firms
are most acute at the skilled level, this predominantly concerns the
'local labour market'. Most firms adopted a short term response to ski
lls shortages. Relatively low utilisation of policy initiatives and 'f
ormal' avenues of assistance prior to new technology adoption were als
o identified.