The furniture industry declined during the world economic crisis in the 1930s, followed by the limitation of production in other industrial companies. That situation resulted in a high level of unemployment in the area. This changed in 1937 with the construction of a new factory called Zbrojovka. However, at that time Vsetín was known for its production of electric engines in the Josef Sousedík factory. During World War II, mainly due to military production, the number of inhabitants doubled, reaching 14,000. New inhabitants were mainly represented by a group of employees from Zbrojovka who came from Brno. During the war, several resistance groups were successively established, out of which J.Sousedík was one of the most significant. Its members initiated collaboration with the Clay group connected with the exiled government in London and later with the 1st Czechoslovak Partisan Brigade of Jan Žižka which crossed the Moravian border at times of the Slovakian National Uprising. Vsetín was liberated on May 4, 1945 by forces of the 1st Czechoslovak Army led by General Karel Klapálek.