6 Conclusion
87. The defence industry is vital for Scotland. As well as contributing to the economy the defence industry also provides skilled employment opportunities. The defence industry, particularly the ship building industry, is in a more stable position than it has been for some time, largely due to the CVF programme. Scottish engineering and manufacturing is supported by a highly skilled workforce. However, once the carriers have been constructed, there are a number of challenges that the industry will have to prepare for.
88. Those challenges include the potential impact of possible constitutional change with consequential loss of automatic access to the UK home market, limited success to date in the export market and the formation of a Joint Venture which could lead to more work being carried out in England. To prepare for these challenges, all stakeholders including the Ministry of Defence, the Scottish Executive, Scottish Enterprise, Skills Development Scotland, the Scotland Office and industry, need to work effectively together to ensure that Scotland's engineering and manufacturing base continues to be world class.
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