Aberdeen - Economy

Economy

Traditionally, Aberdeen was home to fishing, textile mills, shipbuilding and paper making. These industries have been largely replaced. High technology developments in the electronics design and development industry, research in agriculture and fishing and the oil industry, which has been largely responsible for Aberdeen's economic boom in the last three decades, are now major parts of Aberdeen's economy. Until the 1970s, most of Aberdeen's leading industries dated from the 18th century; mainly these were textiles, foundry work, shipbuilding and paper-making, the oldest industry in the city, with paper having been first made there in 1694. Paper-making has reduced in importance since the closures of Donside Paper Mill in 2001 and the Davidson Mill in 2005 leaving the Stoneywood Paper Mill with a workforce of approximately 500. Textile production ended in 2004 when Richards of Aberdeen closed.

Grey granite was quarried at Rubislaw quarry for more than 300 years, and used for paving setts, kerb and building stones, and monumental and other ornamental pieces. Aberdeen granite was used to build the terraces of the Houses of Parliament and Waterloo Bridge in London. Quarrying finally ceased in 1971. The current owners have begun pumping 40 years worth of rain water from the quarry with the aim of developing a heritage centre on the site.

Fishing was once the predominant industry, but was surpassed by deep-sea fisheries, which derived a great impetus from improved technologies throughout the 20th century. Catches have fallen due to overfishing and the use of the harbour by oil support vessels, and so although still an important fishing port it is now eclipsed by the more northerly ports of Peterhead and Fraserburgh. The Fisheries Research Services are headquartered in Aberdeen, and there is a marine research lab in Torry.

Aberdeen is well regarded for the agricultural and soil research carried out at The Macaulay Institute, which has close links to the city's two universities. The Rowett Research Institute is a world-renowned research centre for studies into food and nutrition located in Aberdeen. It has produced three Nobel laureates and there is a high concentration of life scientists working in the city.

There is also a dynamic and fast growing electronics design and development industry.

With the discovery of significant oil deposits in the North Sea during the late 20th century, Aberdeen became the centre of Europe's petroleum industry. With the second largest heliport in the world and an important service ship harbour port serving oil rigs off-shore, Aberdeen is often called the Oil Capital of Europe. In 2011 the Centre for Cities named Aberdeen as the best placed city for growth in Britain, as the country looked to emerge from the recent economic downturn.

There is now a concerted effort to transform Aberdeen's reputation as the Oil Capital of Europe into the Energy Capital of Europe as oil supplies may start to dwindle in coming years, and there is considerable interest in the development of new energy sources; and technology transfer from oil into renewable energy and other industries is under way. The "Energetica" initiative led by Scottish Enterprise has been designed to accelerate this process.

The city ranks third in Scotland for shopping. The traditional shopping streets are Union Street and George Street, now complemented by shopping centres, notably the Bon Accord & St Nicholas and the Trinity Shopping Centre. A new retail £190 million development, Union Square, reached completion in late September/early October 2009. Major retail parks away from the city centre include the Berryden Retail Park, the Kittybrewster Retail Park and the Beach Boulevard Retail Park.

In March 2004, Aberdeen was awarded Fairtrade City status by the Fairtrade Foundation. Along with Dundee, it shares the distinction of being the first city in Scotland to receive this accolade.