Warship building on the Clyde, 1889-1939 : a financial study

Abstract

The part played by warshipbuilding in sustaining the Clyde shipbuilding industry between 1889 and 1939 has received less attention than it deserves. Only a minority of firms undertook warshipbuilding in peacetime but they included some of the leading shipyards an the Clyde. This study, based on a detailed examination of accounts and cost records, shows that naval work was of critical importance for these firms from the 1890's onwards. All of the firms which took advantage of the expansion in the demand for warships in the 1890's were in financial difficulties and profitable naval contracts were largely responsible for reviving their fortunes. From then until the outbreak of the First World War in 1914, naval work constituted a major part of their output and the most profitable part of it. By 19149 all of the warshipbuilders had expanded their capacity and provided expensive new facilities largely an the strength of the demand for warships and the three biggest yards were owned by armaments manufacturers who were primarily interested in shipyards for their warshipbuilding capability. After the war, the demand for armaments contracted and the warshipbuilders were faced with the problem of finding profitable employment for capacity designed for building warships and warship engines. This proved to be impossible and the relative dearth of naval contracts in the 1920's and early 1930's was the primary cause of the severe financial difficulties in which they found themselves when the onset of the world financial crisis in 1931 brought merchant shipbuilding to a standstill. Only Beardmore's succumbed but, had rearmament not been in the offing, it is doubtful if many of the warshipbuilding yards would have survived the ensuing crisis. As it was the survivors regained their financial stability by 1939 only because of the revival in the demand for warships.