Productivity in the engineering construction industry is set to improve under a new government initiative.

Lord Mandelson announced that his and skills secretary John Denham’s departments are to conduct a review of productivity and skills in the sector.

The review will be led by Mark Gibson, currently director general business and enterprise.

The review also aims to identify some of the factors having a positive influence on UK-based companies bidding for UK and foreign engineering construction contracts and hopes to establish if there is anything else government or industry can do to ensure they win and deliver on contracts in such a competitive economy.

Lord Mandelson said:"Mark Gibson has extensive experience in working to improve the competitiveness of UK industry. His remit is to draw up clear recommendations for ensuring that British companies and workers are fully equipped for vital future jobs in industries like nuclear new build, and the other large scale engineering construction work. Thus ensuring that those jobs and that innovation come to the UK."