Download The Decline of Manufacturing Industry and the Consequences

The Decline of Manufacturing Industry and the Consequences
Reasons for the Decline of Industry
The Central Belt of Scotland has seen the closure of many traditional industries over the last 40 years –
shipbuilding, iron and steel, coal mining, textiles and petro-chemicals and now modern industries. The reasons for
the decline are mainly due to changing markets, increasing labour costs, research in other areas and competition
from other countries.
As new technology takes over, the demand for products can fall e.g. DVD players have to some extent been
replaced by inbuilt players in TVs and the use of the internet to watch and download programmes and films. Many
NICs can now produce products at a cheaper cost (more productive labour force) and this competition is pricing
some UK firms out of the market. Modernisation of industries can result in redundancies and rationalisation of
companies can lead to overseas plants being closed. Improved and cheaper transport means that products can
almost be manufactured anywhere and not near the market. Telephone banking and finance can be located in
countries such as India.
See handout Scotland’s Central Belt: Changing Locational Factors
The consequences of decline can be both negative and positive.
Environmental Consequences

Buildings quickly fall into disrepair if they are not maintained – eyesore and dangerous (-)

Older industries such as iron and steel works produce toxic by-products which are buried on site – can
leach from soil and contaminate water supplies (-). The land needs to be cleared and vast sums of money
require to be spent on the clean-up.

If money is spent clearing the site and dealing with underground waste, the landscape can be turned into
parkland or developed for housing (+)

Closure of traditional industry means less atmospheric pollution and often less noise pollution (-)
Social Consequences

High levels of unemployment can cause deprivation/poverty (-)

Family unit can suffer – increase in rate of divorce, increase in depressive illnesses (-)

Rate of alcohol and drug abuse rises (-)

Crime – petty theft and vandalism will increase (-)

People in their late 40s and 50s are less able to leave to seek employment elsewhere – house prices drop
for homeowners, council tenants require to wait on housing list in area that they want to move to (-)

The young, educated, skilled will leave – brain drain (-)

Depopulation (-)
Economic Consequences

Shops and services in the local area will close – domino effect (-)

Unemployment will increase as a result (-)

Government investment inevitable – training schemes, inward investment, start-up grants.
Reindustrialisation may occur (+)

Associated service and supply industries may close (-)
The Decline of Manufacturing Industry and the Consequences
Reasons for the Decline of Industry
The Central Belt of Scotland has seen the closure of many traditional industries over the last 40 years –
shipbuilding, iron and steel, coal mining, textiles and petro-chemicals and now modern industries. The reasons for
the decline are mainly due to changing markets, increasing labour costs, research in other areas and competition
from other countries.
As new technology takes over, the demand for products can fall e.g. DVD players have to some extent been
replaced by inbuilt players in TVs and the use of the internet to watch and download programmes and films. Many
NICs can now produce products at a cheaper cost (more productive labour force) and this competition is pricing
some UK firms out of the market. Modernisation of industries can result in redundancies and rationalisation of
companies can lead to overseas plants being closed. Improved and cheaper transport means that products can
almost be manufactured anywhere and not near the market. Telephone banking and finance can be located in
countries such as India.
See handout Scotland’s Central Belt: Changing Locational Factors
The consequences of decline can be both negative and positive.
Environmental Consequences

Buildings quickly fall into disrepair if they are not maintained – eyesore and dangerous (-)

Older industries such as iron and steel works produce toxic by-products which are buried on site – can
leach from soil and contaminate water supplies (-). The land needs to be cleared and vast sums of money
require to be spent on the clean-up.

If money is spent clearing the site and dealing with underground waste, the landscape can be turned into
parkland or developed for housing (+)

Closure of traditional industry means less atmospheric pollution and often less noise pollution (-)
Social Consequences

High levels of unemployment can cause deprivation/poverty (-)

Family unit can suffer – increase in rate of divorce, increase in depressive illnesses (-)

Rate of alcohol and drug abuse rises (-)

Crime – petty theft and vandalism will increase (-)

People in their late 40s and 50s are less able to leave to seek employment elsewhere – house prices drop
for homeowners, council tenants require to wait on housing list in area that they want to move to (-)

The young, educated, skilled will leave – brain drain (-)

Depopulation (-)
Economic Consequences

Shops and services in the local area will close – domino effect (-)

Unemployment will increase as a result (-)

Government investment inevitable – training schemes, inward investment, start-up grants.
Reindustrialisation may occur (+)

Associated service and supply industries may close (-)