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Charlie Colkett struck in the 86th minute to condemn the young Blues to defeat in their final game of the season but the 42-year old believes it will aid their development in the long term.
He told mcfc.co.uk: “Chelsea at youth level are having that edge over us at the moment and it was a bit of a kick in the teeth at the end of the game.
“We’ve had a really good week considering we’re into the last week of our season. We played Bolton in the Manchester Senior Cup semi-final, it was a really tough game but we got through, we played really well on Friday against Liverpool and then had the game against Chelsea to cap it off.”
Davies continued: “Having three games in a week is a great experience for the lads as it helps them towards the level they want to be at.
“To get done in the last five minutes is a hard one to take but I’ve reinforced to the boys that if they show the attitude and professionalism, plus the way they’ve looked after themselves on and off the pitch over the last week, and take that forward then they’ll have successful careers.”
Both sides created good chances throughout the game and the EDS manager commented on the clash being settled by the finest of margins.
He stated: “I think what you saw in the game was two clubs with two sets of very good, young footballers with great potential.
“The goalkeepers are there to make the saves and both did.
“These games are settled by the smallest of margins and that proved to be the case.”
The final Barclays U21 Premier League match of the campaign was played at the Etihad Stadium and Davies spoke of his delight at his players being able to share the same facility as the first team.
The 42-year old said: “It’s fantastic to play here.
“They see the first team players every day of the week when they’re training so to actually play in the same stadium and surroundings gives them a lift.”
EDS captain George Glendon shared a similar opinion to Davies, with the 21-year old telling mcfc.co.uk of his delight at leading out his boyhood club at the Etihad.
He beamed: “It’s always a proud moment captaining a City side at the Etihad as I’m a City fan. It’s always an honour to lead the boys out, it was just disappointing we didn’t get the win.”
Like the EDS boss, Glendon also spoke of his disappointment with the result and how he believed there was a foul in the build-up to Chelsea’s goal.
Glendon commented: “It was a bit disappointing because we wanted to win the game, or at least get a point from it, to end the season on a positive note.
“I thought that we deserved something from the game and it looked like a foul on Tosin (Adarabioyo) in the build-up to the goal. It wasn’t given though and we’ve got to get on with it, that’s football.”
He continued: “The first half was very open but we edged it in the second half. We took the game to them and we deserved a lot more.”
City through on penalties
City EDS fell to a 3-1 defeat to Middlesbrough at the Riverside Stadium.