We are mainly a financial and service industry country now.
You can't compete with the "emerging markets" in manufacturing - if you want a million M5 bolts they will beat you on price every time - its just not possible to do it here for that price with our taxes, employment, h&s laws etc.
We can be pretty good at component manufacture as well though. For example : we don't make aircraft any more, but we do make parts - wing leading edges, flaps, nacelles, etc.
Where we can really compete is the knowledge, experience and skill in how and why to use those bolts in a solution for a customer and using all of that to deliver to the customer.
That isn't strictly true, I watched a program recently about a textile company, I think they made cushions. They were moving production back to the UK from China.