The Engineering Employers' Federation (EEF) has called for the creation of a new funding system to cut the skills gap and increase training in the sector.
It is calling for more funding towards the cost of Modern Apprenticeships, which can cost up to £50,000.
Employers currently receive £14,560 in funding for 16-18 year olds but much less for those over 19. The EEF claims this is hampering improved workplace skills.
The Government has set targets for 2004 that require 28 per cent of young people to be in an apprenticeship by the age of 22.