WERE you to believe the words of some commentators, you could be forgiven for thinking that manufacturing was not only dead, but also was boxed and buried deep in the annals of history.

Our manufacturing sector has been written off more times than I care to recall.

But this is a popular misconception which is a frustration for everyone working in industry. Manufacturing still makes up one-fifth of the total North-East economy and employs 16 per cent of the region's workforce.

Compare this with the national picture, where manufacturing is responsible for 16 per cent of GDP and 13 per cent of all jobs.

As dying - or dead - industries go, our manufacturing sector is still extremely healthy.

I was asked by Bishop Auckland MP Helen Goodman to speak on the state of manufacturing at a recent regeneration conference. Casting through the list of our members in south-west Durham, it showed people producing everything from air-conditioning equipment to coatings and sealants for the aerospace industry.

It has become a tired - to the point of broken - record repeatedly saying that manufacturers have to innovate if they are to survive and thrive. But it is a message that must continually be stated because it is crucial for companies to stay one step ahead of the game.

For several years now I have been asking businesses what their China strategy is - how will they cope with ruthless competition from an awakening economic giant that will beat them on price every time?

When the average wage earned by a North-East manufacturing worker is 25 times that of his or her Chinese counterpart, the problem is there for everyone to see.

Individually, we are seeing tremendous examples of success stories, such as Renham and Wade, which operates a highly-respected chemical manufacturing business out of its base in rural Middleton-in-Teesdale.

South Shields-based Cell Pack Solutions (CPS) is another company enjoying its niche in a batteries market in which many would say Western companies struggle to remain competitive. CPS recently won the North-East Chamber of Commerce's award for Innovation Through Technology after displaying excellent ways to offer bespoke services to customers with individual needs.

The message clearly is to add extra value, to market well and to provide first-class customer service. The key to success is a high degree of effort and determination and many North-East businesses have a dogged attitude to be here come hell or high water.

Two initiatives are also helping firms within this region to meet the challenges of today and the future.

The North-East Productivity Alliance (NEPA) was established in 2001 to improve productivity and competitiveness. Under the guidance of former Nissan Motor Manufacturing UK managing director John Cushnaghan, it offers pragmatic help to a range of companies needing support to improve or adapt the way in which they work.

It had developed the Accelerate North-East programme - a package of support measures worth more than £13m.

The Manufacturing Advisory Service (MAS) has also been influential since its inception in 2002. The Department of Trade and Industry initiative set up ten regional centres offering a first point of contact for manufacturers.

MAS links firms to a network of organisations that can provide additional, specialised assistance.

One area we need to change is the amount spent on research and development in the North-East compared with other regions.

The Government's R&D contribution is a pitiful £6m, compared with £459m in the South-East.

It is a similar picture for higher education, with £159m being spent here in comparison with £1,059m in London, and by North-East businesses (£128m) as opposed to £3,268m in the South-East.

Research and development is a key plank of future success as it encourages the type of innovation that enables companies to stay profitable, which, in turn, raises employment and skills levels.

There is no doubt that the North-East manufacturing landscape has changed for the good. It is no longer possible to pigeon-hole firms in the way we could in the days of traditional industry.

With so many companies doing outstanding things with chemicals, pharmaceuticals and new applications of old techniques, it is a harder job to determine where manufacturing boundaries lie.

Suffice it to say that the manufacturing sector is a vital and sizeable section of this region's economy and the sooner we channel our energies in to helping it innovate, rather than preaching its demise, the better.