Shetland Economy
It has been said of Shetland that it is 'a place of friendly hospitable people, where modern technology co-exists alongside traditional industries.’ Shetland’s economy benefits from a first-rate education system, affable culture and pristine environment. An economic disadvantage, however, is the high transport and travel costs.
Whitefish Boats
Boats at Scalloway Harbour.
Image by David Gifford
Traditional Industries
The traditional industries of crofting and fishing remain, but for various reasons the whitefish industry has declined in recent years. The pelagic fleet remains strong, with Lerwick being home to Shetland Catch, the largest pelagic fish processor in Europe.
Oil
In the 1970s there was a fundamental shift in Shetland’s economy with an influx of people and skills due to the oil industry. The oil terminal at Sullom Voe remains the largest in Europe. The revenues generated have benefited many aspects of the Shetland community, as well as the economy.
Aquaculture
Since the mid-1980s, aquaculture, salmon farming in particular, has become an important industry. World overproduction and resulting poor prices have led to the consolidation of local farms into larger conglomerates, especially from Norway. In the last few years there has been a much needed diversification into cod, halibut and mussel production. Johnson Seafarms, based in Vidlin, are at forefront of the emerging cod farming industry.
Tourism
Tourism is another increasingly significant sector. Visitor numbers have increased over the last few years, due in part to improved sea links with Norway, Denmark, Faroe and Iceland through Smyril Line, and also the modern Northlink Ferries serving Shetland and Orkney from Aberdeen.
Renewable Energy
When it comes to renewable energy techologies, Shetland is leading the way. The PURE project in Unst is a particularly intersting example.
"PURE is a demonstration project showing how wind power and hydrogen technology can be combined to provide the energy needs for a remote rural industrial estate. It has been developed by the Unst Partnership Ltd, a community development agency established by the Unst Community Council to support local economic development and regeneration."
See the PURE Project web site for more details.
Entrepreneurial Spirit
The slower pace of life, so attractive for the city-dwelling tourist, has not hindered Shetland’s strong entrepreneurial spirit. The famous Shetlander Arthur Anderson founded P&O, which became one of the world’s largest companies.
Today, Shetland companies do well in domestic, national and international markets for goods and services ranging from fish processing to knitwear to computer applications. Kildrummy - a project cost management solutions provider - is an excellent example of a Shetland company with a truly global reach.
Shetland is also leading the way in the field of 'social enterprise'. COPE Ltd embodies the Shetland ethos of combining hard work with a friendly caring outlook. COPE has established a range of successful businesses, involving adults with learning disabilities at the heart of their operations.
