SKILLS shortages could present the largest risk to the North-East’s economic stability in generations, a car parts firm boss has warned.

Mike Matthews MBE, Nifco UK managing director and European operations officer, says businesses must encourage more youngsters to start careers in manufacturing and engineering.

Mr Matthews added unless the skills gap is addressed, the region will not realise its potential.

He said: “Businesses across the region are growing, but until we have the right skills base to support this growth, we will never be able to be all that we can be.

“We must address skills shortages and treat them as we would any other business issue by tackling them head on.”

Nifco UK, which makes millions of plastic products from door handles to cup holders, works with schools in Stockton to educate students about a career in manufacturing,

It also has a commitment to take on at least five apprentices a year, and works with Teesside University to ensure courses meet employers’ needs.

Mr Matthews added: “We are the only region with a positive balance of trade and we have the fastest rate of economic growth.

“Businesses can thrive here, but the skills gap is an issue that needs to be addressed now.”