It is that time of year again when new students pour onto campuses nationwide to commence or continue their studies. I must say it is a welcome sight, adding vitality and spark to under-occupied buildings over the summer months.

But universities such as Teesside are changing not just in scale (though they have certainly grown) but in focus. Although school leavers studying full-time programmes are the most conspicuous, and to a large extent set the tone of university life, other groups are becoming critical to the success of many universities. Part-time, mature and international students are becoming ever more important, while educating those already in the workforce is now a particular focus for many.

The "new" universities have always been business-facing in that they offered professional qualifications, placement opportunities and vocationally- oriented programmes when others did not. But now there is a renewed emphasis on providing products that are directly valued by organisations in developing their workforces. Terms such as "business engagement" and "workforce development" abound and the talk is of "demand-led" rather than "supply-driven" provision.

The imperative for this focus arises from demographic changes, Government policy and regional priorities. The number of school leavers is expected to fall markedly in the next few years (particularly in areas such as Tees Valley) while the Government, emboldened by the findings of the Leitch Report last year, has targeted 40 per cent of the workforce to be qualified at higher education level. In the region, we all know about the potential skills deficit in areas such as process industries, sales management and leadership, and the universities and colleges are central to addressing the demand.

Undeniably, for businesses and universities to work together there is a learning curve on both sides. Universities traditionally find it difficult to respond quickly and flexibly, while industry struggles to understand the quality mechanisms that universities are required to engage in. But recent experience suggests changes are afoot here, too. In my own school, for example, we worked flexibly and in partnership with the North-East Chamber of Commerce to produce a foundation degree in leadership and management, which has proved highly popular and has given us first mover advantage nationally.

The lesson is clear. Universities and business can work successfully together for mutual benefit, but must communicate effectively to understand each other's needs.

* Nigel Evans is acting dean, Teesside Business School, University of Teesside