 The First World War cut off overseas markets, which established local industries and eroded Stockport's eminence.Even so, in 1932 more than 3,000 people worked in the industry, making it the third biggest employer after textiles and engineering.The depression of the 1930s and changes in fashion greatly reduced the demand for hats, and the demand that existed was met by cheaper wool products made elsewhere, for example the Luton area.