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Durham E-Theses Durham E-Theses A history of north east shipbuilding: being an attempt to describe and analyse the development of shipbuilding in the North East of England from earliest times to the end of 1967 Dougan, D. J. How to cite: Dougan, D. J. (1968) A history of north east shipbuilding: being an attempt to describe and analyse the development of shipbuilding in the North East of England from earliest times to the end of 1967, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/9906/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 j> i^ ovw / si-. ABSTKACT OF Art bt.A. SUBMISSION ^ ^ "A hISTOKY <.)F wOKTn EAST SHIPrtUILtilNXi" PKKSEwTEU BY U.JJ. OOUOA1K)UGAw« FPU AN w.Aw .A. ^fr'MffffffJJgliBKK*. DECEri MBK 196g IS69 At the end or the lyth century, trie united Kingdom produced four out of every five ships built in tne whole world, and the North East coast of England, stretching from jjlyth in tne North to Whitby in the South, was responsible for tvo out of those five ships. A Government enquiry said that the United Kingdom perfor• mance vas an industrial achievement almost without parallel. Clearly tne contribution by the North East was a substantial one. Together with tne river Clyde, the North East of England has been the major shipbuilding area in the country and until recently.one of the main areas in the whole world. Yet this supremacy did not start to emerge until about naif way through the l<?tji century wnen iron began to usurp wood and steam began to usurp sail. These two technical changes turned a craft into an industry and no area was as successful in adapting; to the new era as the Nortn Kast coast. Its natural resources of coal and iron were exploited by a group of brilliant entrepreneurs who literally fashioned the industry. They were responsible not only for organising production; they also stimulated technical innovations. The turbine engine was developed in the region; so was the oil tanker. 'inere are many other examples. British - and North East - supremacy lasted for 100 years. By the 1^50*s competition from otner countries and an inability to expand meant tnat British - and North East - shipbuilding had to yield its place as & world leader. Today Japan is almost as dominant as the United Kingdom was at the end of the lyth century. This story of tue rise and fall of a great industry is not yet finished, nowever. In lybO there were strong indications that the industry was going through a period of rejuvenation and reinvigoration, ready to challenge foreign competition more strongly than it had done in the lJJiiO's and early lybO^s. The copyright of this thesis rests with the author. No quotation from it should be published without his prior written consent and information derived from it should be acknowledged. A HISTORY! OF NORTH EAST SHIPBUILDING by DAV ID DODGAN. ti.A. (DUNELM) being an attempt to describe and analyse tne development of shipbuilding in tne, Nortn East of England from earliest times tp tne end of 196? . SUBMITTED AS AM M.A. THESIS TO DURHAM UNIVERSITY NOVEMBER. 1966 Tutor; Professor Edward Allen - 2 - C O I'M "l1 E JN i S INTRODUCTION. 1. Tne Early Years (up to 1840). 2. growing Strong. (1840-lBbO). 3. Years or Power (18b0-l890). 4. On Top of tne World (1890-191^)• 5. First Sign of Trouble ^191^-1930). 6. Terrible Times (1930-1939). 7. Post-war Cnallenge (1940-196/;. 8. An Analysis. TABLES EPlLOliuE UltiLIOuRAPiiY IiNDEX - 3 - AN ECONOMIC HISTORY OF SHIPBUILDING IN THE NORTH EAST OF ENGLAND SUBMITTED TO DuRnAM UNIVERSITY AS AN M.A. THESIS BY DAVID DOUGAN. B..A. (DUNELM) INTRODUCTION oustification of the Study Trie re are at least two major reasons why it is important to study the history of shipbuilding on the north east coast;*, for its contribution to national and world output; and for the light it throws upon Britain's general economic performance. At one time, the United Aingdom was responsible for 80 per cent of world shipbuilding output and for many years after this outstanding period it was still by far tne most important snipbuilding country in the world. In fact tnis dominance lasted from about 1850 to 195b. inuch of this success was due to the contribution made by yards in tne north east. Over a considerable period they were responsible for about 50 per cent of national output; today their share is about kO-^jffi per cent of national output.. This preponderant contribution stems from, technical innovations and a high degree of managerial organisation and initiative. For this reason alone the economic history of north east shipbuilding is of great interest. But, equally important, this study bears on the more general question of Britain's total economic performance over tne period. According to the London and Cambridge Economic Bulletin, the U.K. share of the total world export of manufactures fell from 33-2$ in 1899 to 13.7"^ in I965-. Over the same period, tne U.K.. share of world shipbuilding launchings fell from 66..7$ to 8..89b and tne north east share from 36 + Ofi to 3.-7$.. Stretching from tne river Blyth in the north, to Whitby in the south. - k - The comparison in the above paragraph is, of course, not an exact one. In the case of total exports, the volume has gone up from. 53 (index, 195*5 = 100) in 1900 to 123 in 1964 and the value of U.K. exports nas gone up from &291 m. in 1900 to £4,25.4 m. by 1964, a fourteen-fold increase. But with Britisn shipbuilding output there has been an actual decrease of about 40$ in production. Nevertheless, both generally and in shipbuilding alone, Britain has not been able to match standards being set in other countries, and a study of nortn east shipDuilding may help to illuminate the reasons. BRIEF OUTLIIINE OF SBIPBUILDIIMLT ACTIVITY Increasingly, shipbuilding is becoming a technical, scientific and mechanised operation. And, increasingly, ships tnemselves are becoming part of tne computerised world of advanced tecnnology. So a wide range of skills is required, from heavy mechanical on the one hand to electrical and electronic on tne otner. Shipbuilding can conveniently be divided into two parts: tne building and launching of tne null (and this is tne essence of the industry); and fitting out with lighting, plumbing, furniture, instrumentation and, in the case of naval ships, armaments. About two thirds of tne total building time consists of assembly and ?0$> of trie costs arise from bought- in materials. Tne shipbuilder's task consists of programming tiiis assembly work accurately as well as working out the often complicated details of design, and performance and tnen ensuring tnat the ship is built to these specifications. Over the years, new skills nave come in and otners nave disappeared. And at different times, certain sections of the workforce are more important tiian otners. At tne moment, witii tne keen competition to gain new orders, tne sales team is tne most important. Vfithout their success in winning contracts at the right price and ensuring delivery at the right time, shipyards could not survive. The skills of the workforce would have no chance to flourish. In wartime orders flow in and the main, responsibility falls on the production departments. - .5 ~ An interesting example is provided by tne Furness Shipbuilding Company, which announced in March 1968 that it was to close the yard it hadoperated at haverton Hill, near Middlesbrough, for 50 years. Production techniques were among the most efficient in the country, following a £5 m» investment in. new plant, and machinery. Relations between management ana men were said to be excellent. Yet the management could not operate the yard at a profit for a number of reasons, particularly because the company was unable to join one of the groups that were emerging in tne industry which would have enabled it to share in cost reductions through bulK purchases. In 1967-tt the company tendered for oven' 100 contracts. In every case it was told that its prices were too high. Since it nad made losses of fctt»5 in- between 1962-7., the management decided that it could no longer continue, despite a willing labour force and modern production capacity. In October 196b, it was announced that the yard was to join tne Swan Hunter & Tyne Shipbuilders CAAKACTEKISTICS OF ThE IflDuSTRY CO. (1) Output is extremely unstable. There is seldom a steady trend line for a couple of years, never mina longer,, so that the industry continually appears to be shifting gear from expansion to contraction or vice versa. This noticeable fluctuation, perhaps more marked in shipbuilding than in any other industry, leads to difficult management problems.
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