The document discusses new industries that emerged in Scotland in the 1920s after World War I. It explains that heavy industries like shipbuilding declined due to reduced demand after the war and increased foreign competition. This led to high unemployment. New industries like car factories and electrical goods manufacturing developed to address the economic problems. The document also notes efforts by the government and companies to help areas with job losses through loans and encouraging emigration to other parts of the British Empire.

2. National 5 History:
Era of the Great War
New Industries

3. Today’s lesson – 1920’s Scotland
We are developing our knowledge and understanding of
new industries that appeared in Scotland after World War
One.
By the end of today’s lesson I should be able to:
1) Explain why Scotland’s economy faced problems in the 1920’s.
2) Describe the type of new industries that appeared in Scotland in
the 1920’s.
Today’s lesson involves:
Note taking
National 5 Question

4. Impact of the war
The Great War has a mixed
economic impact, first bring wealth
to industries and then decline. By
the 1920’s this began to change.
Discuss (Use the pictures to help
you)
1) Why do you think the war
brought wealth to industries?
2) Why do you think the war
brought decline to industries?

5. Task 1
Split your page into two columns like so
Problems after the war Positives after the war
Together we are going to go through
notes to populate this table.

6. Changes in Industry after the war
Heavy industry did not see the same amounts of demand after the war
with shipbuilding in particular not seeing an increase in orders. They
also suffered increased competition from abroad.
This lead to massive unemployment in the Clyde shipyards as shipyards
such as Beardmore did not receive the volume of orders it had pre-war.
Dundee’s Jute Industry went into decline due to cheaper or alternative
cloth being available in areas such as India.

7. Other problems
Scotland’s geography also was an issue.
Much of the North and West of Scotland
was not connected to the electricity grid
making it harder to power factories.
Other Scottish businesses were too far
away from good transport links such as
railways. The Highlands for example only
had 4 major rail lines in comparison to
over 100 in the Central Belt.
Another problem was the introduction of
prohibition (banning alcohol) in the USA
which heavily impacted on orders for the
Whiskey trade. This caused many small
distilleries in places such as Islay to close.

8. Government Measures
The Government and companies did take steps to solve these issues.
Some companies such as shipyards merged together to have fewer
workplaces in Scotland.
The Government also offered loans to help areas which had high
unemployment.
Due to large amount of unemployment there was fears that Britain
could face a violent revolution just like what happened in Russia in
1917 or France in the 1800’s.
Britain also offered free travel to other countries in the empire such as
Canada so many able workers went there to work.

9. New Industries
However some new industries did emerge to create jobs with Arrol-
Johnston opening up car factories making products such as the Victory
car.
Other vehicle factories were set up with the Albion Motor Company
building buses and lorries, shipbuilders Harland & Wolff diversified to
build diesel engines to power their ships.
The rise of electricity in homes meant people could afford more luxury
goods such as Sewing Machines which were made in Clydebank.
Insurance companies expanded in Scotland with the General Accident
insurance firm in Perth due to a deal to insure every Morris Minor car
in Britain.

10. Energy & Farming
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 pylon
being built in Edinburgh.
However due to Scotland not having a create electricity connection
many new energy industries were based in England rather than
Scotland.
Farming also changed due to new technology such as tractors. Many
farms started growing and producing different food such as soft fruit in
Perthshire (Perthshire strawberries).

11. How Fully Question
How fully does Source D (Below) explain the reasons for the decline of
Scottish Industries in the 1920s – 6 Marks
Source D partly explains the reasons for the decline of Scottish
Industries in the 1920s.
Before World War One, the Scottish economy was very dependent on the traditional industries.
When the war ended, there was a sharp drop in demand for Clyde-built ships. The decline in
shipbuilding also had a huge effect on the iron and steel industries. Many of these companies
depended on shipbuilding for their orders. Despite, increased competition from abroad,
Scotland’s manufacturers failed to invest in new technology. Not surprisingly, overseas markets
lost during the war often preferred to stay with their new suppliers.