Aberdeen was historically known for its fisheries, textile mills, shipbuilding, and paper manufacturing. These industries have mainly been replaced. High-tech breakthroughs in the electronics design and development business, agricultural and fishery research, and the oil industry, which has been primarily responsible for Aberdeen’s economic expansion over the previous three decades, are now significant components of the Aberdeen economy. Until the 1970s, most of Aberdeen’s principal industries were from the 18th century, namely textiles, foundry work, shipbuilding, and paper-making, the city’s oldest business, with paper being created there for the first time in 1694. Paper production has declined in significance with the closures of Donside Paper Mill in 2001 and Davidson Mill in 2005, leaving Stoneywood Paper Mill with a workforce of roughly 500. Richards of Aberdeen closed in 2004, bringing an end to textile manufacture.
For almost 300 years, grey granite was mined at the Rubislaw quarry and used for pavement setts, kerb and construction stones, monumental and other decorative items. Aberdeen granite was used to construct the terraces of London’s Houses of Parliament and Waterloo Bridge. Quarrying was ultimately phased out in 1971. The present owners have started extracting 40 years of rain water from the quarry in order to build a historical center on the site.
Fishing was originally the most important industry, but it was superseded by deep-sea fisheries, which benefited greatly from better technology during the twentieth century. Because to overfishing and the usage of the harbour by oil support boats, catches have declined, and the port, although still significant, has been surpassed by the more northerly ports of Peterhead and Fraserburgh. The Fisheries Research Services is based in Aberdeen, and a marine research facility is located at Torry.
The James Hutton Institute (previously the Macaulay Land Use Research Institute), which has strong connections to the city’s two institutions, is well-known for its agricultural and soil research. The Rowett Research Institute, based in Aberdeen, is a world-renowned research center for food and nutrition studies. It has produced three Nobel laureates, and the city has a large concentration of life scientists.
As North Sea oil reserves decline, there is a push to rebrand Aberdeen as the “Energy Capital of Europe” rather than the “Oil Capital of Europe,” and there is interest in the development of alternative energy sources, as well as technology transfer from oil to renewable energy and other sectors. The “Energetica” effort, coordinated by Scottish Enterprise, aims to speed up this process. Aberdeen remained a key global hub for subsea petroleum technologies in 2013.
THE NORTH SEA AND ABERDEEN
Throughout the nineteenth century, Aberdeen was a significant maritime center, culminating in the introduction of the first steam-powered trawler by a consortium of local entrepreneurs. The steam trawling business grew, and by 1933, Aberdeen was Scotland’s leading fishing port, employing approximately 3,000 people and sailing 300 boats from its harbor. By the time oil was discovered, the majority of the trawling fleet had shifted to Peterhead. Although Aberdeen continues to bring in significant catches, the tugs, safety boats, and supply ships that crowd the port vastly outweigh the trawlers.
Since the mid-twentieth century, geologists had theorized about the possibility of oil and gas in the North Sea, but extracting it from its deep and hostile waters was a different story. However, as Middle Eastern oil sheiks became increasingly cognizant of the political and economic power of their oil deposits, as well as government rationing threats, the industry started to view the North Sea as a potential supply of oil. Exploration began in the 1960s, and the first significant discovery in the British sector occurred in November 1970 at the Forties field, 110 miles (180 km) east of Aberdeen.
After years of hard work, the required infrastructure was in place by late 1975. The Queen clicked the button that would start the entire affair in motion in Aberdeen, at BP’s (British Petroleum) headquarters. The oil flowed straight from the rig to the distant Grangemouth refinery. While many ports have declined, Aberdeen has remained busy due to the oil trade and the inflow of people associated with the business, as well as a following surge in housing values, which has brought affluence to the region.
The business still employs over 47,000 people in the area, and proven reserves indicate that oil will continue to flow long into the twenty-first century.
Aberdeen, being a significant port in the United Kingdom, gets a large number of visiting sailors from ships stopping at the port. Apostleship of the Sea, a seafarers’ welfare organization, employs a port chaplain in Aberdeen to provide practical and pastoral help.
BUSINESS
Aberdeen was designated the best-placed city for development in Britain by the Centre for Cities in 2011, as the nation sought to recover from the recent economic slump. With energy still being the backbone of the local economy, considerable new investment in the North Sea has occurred in recent years as a result of increased oil prices and attractive government tax incentives. As a result, numerous oil majors and independents have established new worldwide headquarters in the city.
Aberdeen City and Shire’s GDP is expected to be more than £11.4 billion, accounting for more than 17 percent of total Scottish GDP. Aberdeen is home to five of Scotland’s top ten enterprises, with a combined sales of £14 billion and a profit of more than £2.4 billion. Along with this, 29 of Scotland’s top 100 firms are situated in Aberdeen, which has a 77.9 percent employment rate, making it the second most populous city in the United Kingdom.
According to 2016 data, Aberdeen has the second highest number of patents processed per inhabitant in the UK.
In terms of retail, the city is ranked third in Scotland. Union Street and George Street are the main retail routes, which are now supplemented by shopping centers, most notably the Bon Accord & St Nicholas and the Trinity Shopping Centre. Union Square, a new retail complex worth £190 million, was completed in late September/early October 2009. Away from the city center, major retail parks include the Berryden Retail Park, the Kittybrewster Retail Park, and the Beach Boulevard Retail Park.
The Fairtrade Foundation designated Aberdeen as a Fairtrade City in March 2004. It shares the distinction of being the first city in Scotland to gain this honor, together with Dundee.