Britain was once known as the "workshop of the world". Now it makes less than it consumes and manufacturing makes up little more than 12% of GDP.
That position is unsustainable, according to a wide range of business leaders and politicians - including David Cameron. He used his first major speech as prime minister in 2010 to call for a "rebalancing" of the economy.
But what does this mean? Does Britain need a complete rethink of industrial policy? Can the UK ever hope to compete with highly efficient and low-wage manufacturing regions in China?
To discuss this we have in the studio: Sir Alan Rudge, chairman of the Era Foundation ; Gregg McClymont, Labour MP for Cumbernauld; Sukhdev Johal, author of Rebalancing the Economy (or Buyer's Remorse); and Heather Stewart, the Observer's economics editor.
Leave your thoughts below.
• The Cresc team will be speaking at a Commons debate on Thursday evening, "How shall we rebuild the British economy?" Entry is free but registration is vital (newpolecon@googlemail.com).
