As a result of the recent strategic defence and security review (SDSR), BIS has set up the Skills and Jobs Retention Group, which will look at how and where the abilities of highly-skilled employees can be best used.
"I want to ensure that wherever possible we retain the talented individuals leaving the defence industry within the UK's advanced manufacturing sector," said business secretary Vince Cable.
Sector Skills Council for Science, Engineering and Manufacturing Technologies chairman Allan Cook will head the new panel, which is also expected to include several other experienced figures from the military industry.
The SDSR came under fire from Ed Miliband after details were announced last week, with the Labour leader describing it as a "shambles" and "a profound missed opportunity".
