Modern Carlisle (since 1914) GAZ Carlisle

In the first half of the 20th century, the railways, engineering and metal trades were the major industries. The textile industry, in severe recession at the beginning of the century, made a limited recovery during the inter-war years, but after 1945 it was a shadow of its former self, though some specialised activity continued, such as Linton Tweeds, which took over Shaddon Mill in 1912.  Some major firms have now been closed down. For example, St Nicholas engineering works has closed, the last crane being built in 1987 and the Victoria ironworks closed in 1998.  Other firms are now parts of larger concerns. In 1921 Hudson Scott became part of Metal Box; Carr's was taken over by United Biscuits; Stead McAlpin is now part of the John Lewis Partnership.  The railway companies are still a large employer, but have been slimmed down since pre-war days.  Losses have been counteracted to some extent by the growth of several new firms including Kangol, Pirelli and Nestle.

In 1927 a new power station was erected at Willowholme, and was connected to the national grid. The electric trams which ran through the streets from the city centre to the suburbs started operating in 1900, but by 1931 it was judged that the trams were causing congestion and were taken out of service.  The decline in railway transport in the mid-20th century reduced Carlisle’s role as a transport hub; two of its lines were closed in the Beeching cuts: the Carlisle-Silloth line in 1964 and the Waverley line in 1965.

Redevelopment of the city centre from the 1960s radically altered the townscape: Carlisle Civic Offices were built in 1964 and an inner ring-road opened 1971.  The most noteworthy development in the city centre since 1945 has been the Lanes shopping precinct, which was built in 1984 on the site of the increasingly derelict 19th-century lanes and courts.  Another development was the Sands centre, which has provided much-needed sporting facilities, and a concert hall/theatre. Today Carlisle is a successful city with a generous mix of industries. Carlisle's industrial base and administration services are best supported by tourism, for which it has long been a centre, being centrally based for access to the Lake District, the Scottish border country, Pennine foothills and Hadrian's Wall.