This question is testing your contemporary industry knowledge. If you have prepared before the interview then you should be able to make some good points here. Try to keep a positive spin but be realistic about the prospects for manufacturing in the UK. Try and find some information of a government or EU grant that has been used to subsidize the manufacturing industry, but acknowledge the difficulties faced by the manufacturing industry caused by cheap labour abroad. Perhaps highlight a possible niche in artisan and high quality manufacturing in Britain.