Food, drinks and tobacco: the food industry is dominated by the competition to supply the larger supermarket chains and has become more consolidated. There has been weak export performance in the food industry because of disease problems, although the home industry has been helped by the demand for chilled ready meals. The drinks industry is highly concentrated, with 70% of soft drinks being made by two companies, and 85% of beer in the UK produced by four companies. Tobacco is also dominated by a few companies. Improve is the proposed sector skills council to cover this sub-sector. 

Wood and wood products: the wood industry is vulnerable to import competition and profitability has fallen. Rising transport costs have become an increasing problem which is heightened by poor road infrastructure for shipping to an increasingly limited number of sawmills.

Chemicals and non-metallic mineral products: Pharmaceutical companies are large because of the costs and time-scales for new drug developments. Company mergers have enabled the sub-sectors market share to increase. Mergers have not reduced costs as there have been increases in the cost of raw materials. There has been a steady decline in the demand for petrol, whilst the rubber industry has become less labour intensive with technological developments. Cogent and SEMTA sector skills councils cover these industries.

Metals and metal goods: Steel production in the EU is concentrated, with three producers accounting for two-thirds of the output. Export demand has balanced the steady EU demand. Restructuring in the metal goods sector sees companies moving production to low cost areas in Eastern Europe and Asia. SEMTA sector skills council covers this sub-sector.

Sources: Working Futures 2004a and SSDA Sector Skills Matrix 2004