MANUFACTURING in Hampshire is at a crossroads with companies struggling to recruit the right people, battling road congestion, coping with the cost of crime and facing dramatically escalating energy prices.

A survey conducted by EEF South, the regional manufacturers' organisation, also reveals that up to 30 per cent of manufacturing businesses across the south east have considered relocating overseas.

Around three-quarters of manufacturers in Hampshire are particularly frustrated by a shortage of qualified engineers, skilled craftsmen and production workers a situation made worse, they say, by the high cost of housing, poor government support for training and by a fragmented apprenticeship programme.

Some are even actively recruiting from overseas for key positions.

They say that too many young people leave school with poor levels of basic skills, with three-quarters also citing problems with crime and security as adding considerably to their costs.

Transport was raised as a major issue in Hampshire.

Almost half said road congestion delayed deliveries and they argued for better public transport and an expansion of regional airports.

Specifics included congestion in Fareham and poor traffic management in Portsmouth.

Almost 40 per cent of manufacturers surveyed in Hampshire said they had problems complying with regulation, especially the Working Time Directive.

Overwhelmingly, companies cited energy prices as a significant problem.

EEF South chief executive David Seall said: "There is little in the current business climate to settle the nerves of manufacturing at large.

"This survey shows that manufacturers are experiencing considerable problems recruiting staff and in coping with burgeoning regulation.

"Considering that the south east is now such an important element in the UK's manufacturing base, these findings have significance for both the national and regional economy."