Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills what assessment he has made of the main areas of (a) strength and (b) weakness of the manufacturing industry.

Mark Prisk MP; Minister of State (Business & Enterprise): The Growth Review Framework for Advanced Manufacturing published by the Department in December 2010 was supported by an in-depth economic and statistical analysis of the UK manufacturing sector.

This analysis shows that the UK has specialised in high technology industries such as aerospace, pharmaceuticals and medical instruments. These industries are characterised by high levels of innovation including R&D, knowledge, skills and investment in capital and intangible assets such as branding and design. OECD figures show that in 2008, around 65% of UK manufacturing exports were higher technology exports.

The UK exports a relatively smaller percentage of low technology manufactured goods which tend to be more labour intensive. These include parts of textiles, metals, and rubber and plastic products where the UK is facing increasing international competition from low wage economies.