Era of the Great War New industries in the 1920s

In today’s class I am learning to: New industries in the 1920s In today’s class I am learning to: Explain why Scotland’s economy faced problems in the 1920s Describe the type of new industries which emerged in Scotland in the 1920s

New industries in the 1920s The Great War had a mixed economic impact, first bringing wealth and then decline. By the 1920s, Scotland and Britain’s economy began to change.

After 1918, Scotland’s industries faced major economic problems. New industries in the 1920s After 1918, Scotland’s industries faced major economic problems. Heavy industry no longer had the same demand as during the war and it also faced more competition from abroad. All this led to high unemployment.

New industries in the 1920s Scotland’s shipyards – especially on the Clyde – had to compete with other countries, leading to fewer orders. The jute industry in Dundee went into decline due to cheaper or alternative cloth being available.

Scotland’s geography also created problems. New industries in the 1920s Scotland’s geography also created problems. Much of Scotland was not connected to the electricity grid, making it hard to power factories. Other Scottish businesses were too far away from good transport links.

There were other reasons for economic collapse too. New industries in the 1920s There were other reasons for economic collapse too. In 1920, the introduction of prohibition (banning alcohol) in the USA meant fewer orders for whisky. This caused problems in distilleries across Scotland.

Various steps were taken to fix these problems. New industries in the 1920s Various steps were taken to fix these problems. Some companies merged to have fewer workplaces trying to attract work. The government also offered loans to companies to set up in areas with high unemployment.

New industries in the 1920s Post-war unemployment levels led to fears there might be a violent revolution in Britain. The government offered help (such as free travel or land) to British people that moved elsewhere in the British Empire to live and work.

New industries in the 1920s However some new industries did emerge to create jobs, including car manufacturing. Companies such as Halleys and Arrol- Johnston opened up car factories, making products such as the Victory car.

New industries in the 1920s It wasn’t just cars that were being built - other vehicles (or parts for them) were too. The Albion Motor Company built buses and lorries, and Harland & Wolff in Glasgow built diesel engines to power their ships.

Energy helped create new jobs in Scotland. New industries in the 1920s Energy helped create new jobs in Scotland. The Grangemouth oil refinery was opened in 1924 by Anglo-Persian Oil. Work also began to build a British electricity grid, with the first ‘grid tower’ (pylon) being built in Edinburgh.

New industries in the 1920s The rise of electricity in homes meant people could afford more luxury goods. Factories in the south of England made vacuum cleaners and electric irons. Sewing machines were made in Clydebank in Scotland.

New industries in the 1920s New heavy industries emerged in Britain but most of these were based in the south, far from Scotland. This is because these areas had better electricity connection, and were closer to their customers.

New industries in the 1920s Other industries also saw change at this time, including insurance companies. The General Accident insurance firm in Perth expanded in the 1920s, especially with a deal to insure every Morris Minor car in Britain.

Farming also changed in the 1920s. New industries in the 1920s Farming also changed in the 1920s. Farming methods improved, using new technology like tractors. Also many farms started growing and producing different food, such as poultry and soft fruit (like strawberries).