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Describing case studies of good practice concerning training on a range of new industrial equipment, this document reports on the effectiveness of the British plan for the Department of Trade and Industry to pay for one-third of the cost of equipment and local education authorities (LEAs) and the companies whose employees require training to share the rest of the cost. The report makes the following conclusions: (1) colleges, in cooperation with local industry and central government, can respond to the identified training needs of industry, but pump-priming funding beyond the basic education budget was essential to meet the high costs of the new equipment; (2) there must be coordinated LEA/college development policy linked to evolving local needs and a clear strategy for identifying training needs; (3) appropriate staff development is vital; (4) there should be a move toward financing procedures that adequately take into account maintenance and replacement costs; and (5) colleges should receive further assistance with determining the training needs of industry. (CML)