" BAES does have a highly skilled workforce; so they would be equally effective applying these skills in the civilian world "
Very true, but there is one small problem here. There is nowhere for them to go, irrespective of their skill levels. For the guys on the shop floor, the "traditional" escape route was the UK heavy maintanance market as contractors and subsequently the airlines for those who made the transition.
This market is now saturated with engineers, be they Lic.Engs, Techs or mechs.....and with a distinct paucity or work, most of it having left these shores over recent years. For those in the design world, same problem as there are a finite number required by other manufacturers, the same criteria being applicable to the shop floor guys seeking to continue in the manufacturing sector.
Bleak and barren best summates matters.