What's the future for UK manufacturing?

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The BBC's Robert Peston analyses the job cuts at BAE Systems

Here's my report on the state of the UK's manufacturing sector on the day that BAE has announced that it is cutting 3,000 jobs.

The fact that the company, which is the country's largest manufacturer, is dependent on government contracts puts it in a special position.

But both government and opposition agree that the manufacturing industry needs to grow.