5/16/2017 INDUSTRIALREVOLUTION

INDUSTRIALREVOLUTION

SEEALSO,EuropeTransformed
Author:LewisHackettDate:1992
Industrialization:TheFirstPhase

Mostproductspeopleintheindustrializednationsusetodayareturnedoutswiftlybytheprocessofmassproduction,
bypeople(andsometimes,robots)workingonassemblylinesusingpowerdrivenmachines.Peopleofancientand
medievaltimeshadnosuchproducts.Theyhadtospendlong,tedioushoursofhandlaborevenonsimpleobjects.
Theenergy,orpower,theyemployedinworkcamealmostwhollyfromtheirownandanimals'muscles.TheIndustrial
Revolutionisthenamegiventhemovementinwhichmachineschangedpeople'swayoflifeaswellastheirmethods
ofmanufacture.

AboutthetimeoftheAmericanRevolution,thepeopleofEnglandbegantousemachinestomakeclothandsteam
enginestorunthemachines.Alittlelatertheyinventedlocomotives.Productivitybeganaspectacularclimb.By1850
mostEnglishmenwerelaboringinindustrialtownsandGreatBritainhadbecometheworkshopoftheworld.From
BritaintheIndustrialRevolutionspreadgraduallythroughoutEuropeandtotheUnitedStates.

ChangesThatLedtotheRevolution

ThemostimportantofthechangesthatbroughtabouttheIndustrialRevolutionwere(1)theinventionofmachinesto
dotheworkofhandtools(2)theuseofsteam,andlaterofotherkindsofpower,inplaceofthemusclesofhuman
beingsandofanimalsand(3)theadoptionofthefactorysystem.

ItisalmostimpossibletoimaginewhattheworldwouldbelikeiftheeffectsoftheIndustrialRevolutionwereswept
away.Electriclightswouldgoout.Automobilesandairplaneswouldvanish.Telephones,radios,andtelevisionwould
disappearMostoftheabundantstocksontheshelvesofdepartmentstoreswouldbegone.Thechildrenofthepoor
wouldhavelittleornoschoolingandwouldworkfromdawntodarkonthefarmorinthehome.Beforemachineswere
invented,workbychildrenaswellasbyadultswasneededinordertoprovideenoughfood,clothing,andshelterfor
all.

TheIndustrialRevolutioncamegradually.Ithappenedinashortspanoftime,however,whenmeasuredagainstthe
centuriespeoplehadworkedentirelybyhand.UntilJohnKayinventedtheflyingshuttlein1733andJamesHargreaves
thespinningjenny31yearslater,themakingofyarnandtheweavingofclothhadbeenmuchthesameforthousands
ofyears.By1800ahostofnewandfasterprocesseswereinuseinbothmanufactureandtransportation.

Thisrelativelysuddenchangeinthewaypeoplelivedeservestobecalledarevolution.Itdiffersfromapolitical
revolutioninitsgreatereffectsonthelivesofpeopleandinnotcomingtoanend,as,forexample,didtheFrench
Revolution.

Instead,theIndustrialRevolutiongrewmorepowerfuleachyearasnewinventionsandmanufacturingprocesses
addedtotheefficiencyofmachinesandincreasedproductivity.Indeed,sinceWorldWarIthemechanizationof
industryhasincreasedsoenormouslythatanotherrevolutioninproductionistakingplace

ExpandingCommerceAffectsIndustry

Commerceandindustryhavealwaysbeencloselyrelated.Sometimesoneisaheadandsometimestheother,butthe
onebehindisalwaystryingtocatchup.Beginninginabout1400,worldcommercegrewandchangedsogreatlythat
writerssometimesusetheterm"commercialrevolution"todescribetheeconomicprogressofthenextthreeandahalf
centuries.

Manyfactorshelpedbringaboutthisrevolutionintrade.TheCrusadesopeneduptherichesoftheEasttoWestern
Europe.Americawasdiscovered,andEuropeannationsbegantoacquirerichcoloniesthereandelsewhere.Newtrade
routeswereopened.Thestrongcentralgovernmentswhichreplacedthefeudalsystembegantoprotectandhelptheir
merchants.Tradingfirms,suchastheBritishEastIndiaCompany,werecharteredbygovernments.Largershipswere
built,andflourishingcitiesgrewup.
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Withtheexpansionoftrade,moremoneywasneeded.Largescalecommercecouldnotbecarriedonbybarter,as
muchoftheearliertradehadbeen.GoldandsilverfromtheNewWorldhelpedmeetthisneed.Banksandcredit
systemsdeveloped.Bytheendofthe17thcenturyEuropehadalargeaccumulationofcapital.Moneyhadtobe
availablebeforemachineryandsteamenginescouldcomeintowideusefortheywerecostlytomanufactureand
install.

By1750largequantitiesofgoodswerebeingexchangedamongtheEuropeannations,andtherewasademandfor
moregoodsthanwerebeingproduced.Englandwastheleadingcommercialnation,andthemanufactureofclothwas
itsleadingindustry.

OrganizingProduction

SeveralsystemsofmakinggoodshadgrownupbythetimeoftheIndustrialRevolution.Incountrydistrictsfamilies
producedmostofthefood,clothing,andotherarticlestheyused,astheyhaddoneforcenturies.Inthecities
merchandisewasmadeinshopsmuchlikethoseofthemedievalcraftsmen,andmanufacturingwasstrictlyregulated
bytheguildsandbythegovernment.Thegoodsmadeintheseshops,thoughofhighquality,werelimitedandcostly.

Themerchantsneededcheaperitems,aswellaslargerquantities,fortheirgrowingtrade.Asearlyasthe15thcentury
theyalreadyhadbeguntogooutsidethecities,beyondthereachofthehamperingregulations,andtoestablish
anothersystemofproducinggoods.

FromCottageIndustrytoFactory

Clothmerchants,forinstance,wouldbuyrawwoolfromthesheepowners,haveitspunintoyarnbyfarmers'wives,
andtakeittocountryweaverstobemadeintotextiles.Thesecountryweaverscouldmanufacturetheclothmore
cheaplythancitycraftsmencouldbecausetheygotpartoftheirlivingfromtheirgardensorsmallfarms.

Themerchantswouldthencollecttheclothandgiveitoutagaintofinishersanddyers.Thustheycontrolled
clothmakingfromstarttofinish.Similarmethodsoforganizingandcontrollingtheprocessofmanufacturecameto
prevailinotherindustries,suchasthenail,cutlery,andleathergoods.

Somewriterscallthistheputtingoutsystem.Otherscallitthedomesticsystembecausetheworkwasdoneinthe
home("domestic"comesfromtheLatinwordforhome).Anothertermiscottageindustry,formostoftheworkers
belongedtotheclassoffarmlaborersknownascottersandcarriedontheworkintheircottages.

Thissystemofindustryhadseveraladvantagesoveroldersystems.Itgavethemerchantalargesupplyof
manufacturedarticlesatalowprice.Italsoenabledhimtoordertheparticularkindsofitemsthatheneededforhis
markets.Itprovidedemploymentforeverymemberofacraftworker'sfamilyandgavejobstoskilledworkerswhohad
nocapitaltostartbusinessesforthemselves.Afewmerchantswhohadenoughcapitalhadgoneastepfurther.They
broughtworkerstogetherunderoneroofandsuppliedthemwithspinningwheelsandloomsorwiththeimplements
ofothertrades.Theseestablishmentswerefactories,thoughtheybearslightresemblancetothefactoriesoftoday.

WhytheRevolutionBeganinEngland

Englishmerchantswereleadersindevelopingacommercewhichincreasedthedemandformoregoods.The
expansionintradehadmadeitpossibletoaccumulatecapitaltouseinindustry.Acheapersystemofproductionhad
grownupwhichwaslargelyfreefromregulation.

TherealsowerenewideasinEnglandwhichaidedthemovement.Oneofthesewasthegrowinginterestinscientific
investigationandinvention.Anotherwasthedoctrineoflaissezfaire,orlettingbusinessalone.Thisdoctrinehadbeen
growinginfavorthroughoutthe18thcentury.ItwasespeciallypopularaftertheBritisheconomistAdamSmithargued
powerfullyforitinhisgreatwork'TheWealthofNations'(1776).

Forcenturiesthecraftguildsandthegovernmenthadcontrolledcommerceandindustrydowntothesmallestdetail.
NowmanyEnglishmenhadcometobelievethatitwasbettertoletbusinessberegulatedbythefreeplayofsupply
anddemandratherthanbylaws.ThustheEnglishgovernmentforthemostpartkeptitshandsoffandleftbusiness
freetoadoptthenewinventionsandthemethodsofproductionwhichwerebestsuitedtothem.

ThemostimportantofthemachinesthatusheredintheIndustrialRevolutionwereinventedinthelastthirdofthe18th
century.Earlierinthecentury,however,threeinventionshadbeenmadewhichopenedthewayforthelatermachines.
Onewasthecrude,slowmovingsteamenginebuiltbyThomasNewcomen(1705),whichwasusedtopumpwaterout
ofmines.ThesecondwasJohnKay'sflyingshuttle(1733).Itenabledonepersontohandleawideloommorerapidly
thantwopersonscouldoperateitbefore.Thethirdwasaframeforspinningcottonthreadwithrollers,firstsetupby
LewisPaulandJohnWyatt(1741).Theirinventionwasnotcommerciallypractical,butitwasthefirststeptoward
solvingtheproblemofmachinespinning.

InventionsinTextileIndustry

Astheflyingshuttlespedupweaving,thedemandforcottonyarnincreased.Manyinventorssettoworktoimprove
thespinningwheel.JamesHargreaves,aweaverwhowasalsoacarpenter,patentedhisspinningjennyin1770.It
enabledoneworkertoruneightspindlesinsteadofone.

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AboutthesametimeRichardArkwrightdevelopedhiswaterframe,amachineforspinningwithrollersoperatedby
waterpower.In1779SamuelCrompton,aspinner,combinedHargreaves'jennyandArkwright'srollerframeintoa
spinningmachine,calledamule.Itproducedthreadofgreaterfinenessandstrengththanthejennyortherollerframe.
Sincetherollerframeandthemulewerelargeandheavy,itbecamethepracticetoinstalltheminmills,wherethey
couldberunbywaterpower.Theyweretendedbywomenandchildren.

Theseimprovementsinspinningmachinerycalledforfurtherimprovementsinweaving.In1785EdmundCartwright
patentedapowerloom.Inspiteoftheneedforit,weavingmachinerycameintouseveryslowly.First,many
improvementshadtobemadebeforetheloomwassatisfactory.Second,thehandweaversviolentlyopposedits
adoptionbecauseitthrewmanyofthemoutofwork.Thosewhogotjobsinthefactorieswereobligedtotakethesame
payasunskilledworkers.Thustheyrioted,smashedthemachines,andtriedtopreventtheiruse.Thepowerloomwas
onlycomingintowideoperationinthecottonindustryby1813.Itdidnotcompletelyreplacethehandloominweaving
cottonuntil1850.Itwasnotwelladaptedtothemakingofsomewoolens.Aslateas1880manyhandloomswerestill
inuseforweavingwoolencloth.

Manyothermachinescontributedtotheprogressofthetextileindustry.In1785ThomasBellofGlasgowinvented
cylinderprintingofcottongoods.Thiswasagreatimprovementonblockprinting.Itmadesuccessiveimpressionsof
adesign"joinup"anddidtheworkmorerapidlyandmorecheaply.In1793theavailablesupplyofcottonwas
increasedbyEliWhitney'sinventionofthecottongin.In1804J.M.Jacquard,aFrenchman,perfectedaloomonwhich
patternsmightbewoveninfabricsbymechanicalmeans.Thisloomwaslateradaptedtothemakingoflace,which
becameavailabletoeveryone

Watt'sSteamEngine

Whiletextilemachinerywasdeveloping,progresswasbeingmadeinotherdirections.In1763JamesWatt,aScottish
mechanic,wasaskedtorepairamodelofaNewcomensteamengine.Hesawhowcrudeandinefficientitwasandbya
seriesofimprovementsmadeitapracticaldeviceforrunningmachinery.

Wheelsturnedbyrunningwaterhadbeenthechiefsourceofpowerfortheearlyfactories.Thesewerenecessarily
situatedonswiftrunningstreams.Whenthesteamenginebecameefficient,itwaspossibletolocatefactoriesinmore
convenientplaces.

CoalandIron

Thefirstusersofsteamengineswerethecoalandironindustries.Theyweredestinedtobebasicindustriesinthe
newageofmachinery.Asearlyas1720manysteamengineswereinoperation.Incoalminestheypumpedoutthe
waterwhichusuallyfloodedthedeepshafts.Intheironindustrytheypumpedwatertocreatethedraftinblast
furnaces.

Theironindustrybenefitedalsofromotherearlyinventionsofthe18thcentury.Ironwasscarceandcostly,and
productionwasfallingoffbecauseEngland'sforestscouldnotsupplyenoughcharcoalforsmeltingtheore.
Ironmastershadlongbeenexperimentingwithcoalasafuelforsmelting.FinallytheDarbyfamily,afterthree
generationsofeffort,succeededwithcoalthathadbeentransformedintocoke.Thiscreatedanewdemandforcoal
andlaidthefoundationfortheBritishcoalindustry.Thenextgreatstepsweretakeninthe1780s,whenHenryCort
developedtheprocessesofpuddlingandrolling.Puddlingproducednearlypuremalleableiron.Handinhandwith
theadoptionofthenewinventionswenttherapiddevelopmentofthefactorysystemofmanufacture.

ChangingConditionsinEngland

Thenewmethodsincreasedtheamountofgoodsproducedanddecreasedthecost.Theworkeratamachinewith100
spindlesonitcouldspin100threadsofcottonmorerapidlythan100workerscouldontheoldspinningwheels.
SouthernplantersintheUnitedStateswereabletomeettheincreaseddemandforrawcottonbecausetheywereusing
thecottongin.Thismachinecoulddothejobof50menincleaningcotton.Similarimprovementswerebeingmadein
otherlinesofindustry.Britishmerchantsnolongerfounditaproblemtoobtainenoughgoodstosupplytheir
markets.Onthecontrary,attimesthemarketsweregluttedwithmoregoodsthancouldbesold.Thenmillswere
closedandworkerswerethrownoutofemployment.

WithEnglishfactoriescallingforsupplies,suchasAmericancotton,andsendinggoodstoallpartsoftheworld,
bettertransportationwasneeded.TheroadsofEnglandwerewretchedlypoorandoftenimpassable.Packhorsesand
wagonscrawledalongthem,carryingsmallloads.Suchslowandinadequatetransportationkeptthecostofgoods
high.Hereagaintheneedproducedtheinvention.ThomasTelfordandJohnMacAdameachdevelopedamethodof
roadconstructionbetterthananythathadbeenknownsincetheancientRomansbuilttheirfamousroads.

BuildingCanalsandRailways

Manycanalsweredug.Theyconnectedthemainriversandsofurnishedanetworkofwaterwaysfortransportingcoal
andotherheavygoods.Acanalboatheldmuchmorethanawagon.Itmovedsmoothlyifslowlyoverthewater,witha
singlehorsehitchedtothetowline.Insomeplaces,whereitwasimpossibletodigcanalsandwhereheavyloadsof
coalhadtobehauled,mineownerslaiddownwoodenorironrails.Ontheseearlyrailroadsonehorsecouldhaulas
muchcoalas20horsescouldonordinaryroads.

Earlyinthe19thcenturycameGeorgeStephenson'slocomotiveandRobertFulton'ssteamboat,anAmerican
invention.Theymarkedthebeginningofmoderntransportationonlandandsea.Railroadscalledfortheproductionof
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moregoods,fortheyputfactorymadeproductswithinreachofmanymorepeopleatpricestheycouldaffordtopay.

TheConditionofLabor

Asconditionsinindustrychanged,socialandpoliticalconditionschangedwiththem.Farmlaborersandartisans
flockedtothemanufacturingcentersandbecameindustrialworkers.Citiesgrewrapidly,andthepercentageoffarmers
inthetotalpopulationdeclined.

ThepopulationofEnglandasawholebegantoincreaserapidlyafterthemiddleofthe18thcentury.Becauseof
progressinmedicalknowledgeandsanitation,fewerpeoplediedininfancyorchildhoodandtheaveragelengthoflife
increased.

Farreachingchangesweregraduallybroughtaboutinthelifeoftheindustrialworkers.Foronething,machinestooka
greatburdenofhardworkfromthemusclesofhumanbeings.Someoftheotherchanges,however,werenotso
welcome.

Thechangefromdomesticindustrytothefactorysystemmeantalossofindependencetotheworker.Thehome
laborercouldworkwheneverhepleased.Althoughtheneedformoneyoftendrovehimtotoillonghours,hecould
varythemonotonyofhistaskbydiggingorplantinghisgardenpatch.Whenhebecameafactoryemployee,henot
onlyhadtoworklonghours,buthehadtoleavehislittlefarm.Helivednearthefactory,ofteninacrowdedslum
district.Hewasforcedtoworkcontinuouslyatthepacesetbythemachine.Thelonghoursandthemonotonoustoil
wereanespeciallygreathardshipforthewomenandchildren.Thevastmajorityofthejobswereheldbythemby
1816.

Thechangewasparticularlyhardontheweaversandtheotherskilledworkerswhosanktothepositionoffactory
workers.Theyhadbeenindependentmasters,capitalistsinasmallway,andmanagersoftheirownbusinesses.They
hadprideintheirskill.Whentheysawthemselvesbeingforcedintofactoriestodoothermen'sbiddingforthesame
payasunskilledworkers,itisnowonderthattheyriotedandbrokeuplooms.

ProblemsofCapitalandLabor

Apersonhadtohavealotofcapitaltobuymachinesandopenafactory.Thosewhoweresuccessfulmadehuge
profitswithwhichtobuymoremachines,putuplargerbuildings,andpurchasesuppliesingreaterquantitiesat
enormoussavings.Thuscapitalincreasedfarmorerapidlythaniteverhadbefore.Muchofitwasinvestedinbuilding
canals,railroads,andsteamshipsandindevelopingforeigntrade.Themenwhocontrolledtheseenterprisesformeda
powerfulnewclassinEnglandtheindustrialcapitalists.

Thecapitalistshadastruggletoobtainavoiceinthegovernment.Theyneededabettersystemofbanking,currency,
andcredit.Theyhadtofindandholdmarketsfortheirproducts.Theyhadmanydifficultiesinorganizingtheir
factoriestorunefficiently.Theyalsohadtomakeaprofitontheirinvestmentsinthefaceofintensecompetition.

LaissezfairewastheruleinEngland.Thismeantthatthegovernmenthadacceptedthedoctrinethatitshouldkeep
handsoffbusiness.Factoryownerscouldthereforearrangeworkingconditionsinwhateverwaytheypleased.Grave
problemsarosefortheworkersproblemsofworkinghours,wages,unemployment,accidents,employmentofwomen
andchildren,andhousingconditions.

Childrencouldtendmostofthemachinesaswellasolderpersonscould,andtheycouldbehiredforlesspay.Great
numbersofthemwereworkedform12to14hoursadayunderterribleconditions.Manywereapprenticedtothe
factoryownersandhousedinmiserabledormitories.Illfedandillclothed,theyweresometimesdrivenunderthelash
oftheoverseer.ThehighdeathrateofthesechildslaveseventuallyrousedParliamenttopasslawslimitingthedaily
toilforapprentices.

RiseofLaborUnions

Workerssoughttowinimprovedconditionsandwagesthroughlaborunions.Theseunionsoftenstartedas"friendly
societies"thatcollectedduesfromworkersandextendedaidduringillnessorunemployment.Soon,however,they
becameorganizationsforwinningimprovementsbycollectivebargainingandstrikes.

Industrialworkersalsosoughttobenefitthemselvesbypoliticalaction.TheyfoughtsuchlegislationastheEnglish
lawsof1799and1800forbiddinglabororganizations.Theycampaignedtosecurelawswhichwouldhelpthem.The
strugglebyworkerstowintherighttovoteandtoextendtheirpoliticalpowerwasoneofthemajorfactorsinthe
spreadofdemocracyduringthe19thcentury.

RevolutionSpreadstotheUnitedStates

Until1815FrancewasbusywiththeNapoleonicwars.Ithadlittleopportunitytointroducemachinery.Whenpeace
cameFrancebegantofollowEngland.Itfollowedslowly,however,andhasneverdevoteditselfasexclusivelyto
manufacturingasEnglandhas.BelgiumwasaheadofFranceinadoptingthenewmethods.TheotherEuropean
countriesmadelittleprogressuntilthesecondhalfofthe19thcentury.

TheUnitedStatestoowasslowinadoptingmachinemethodsofmanufacture.Farmingandtradingwereitschief
interestsuntiltheCivilWar.Thenewnationhadlittlecapitalwithwhichtobuythemachineryandputupthebuildings

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required.Suchcapitalasexistedwaslargelyinvestedinshippingandcommerce.Laborwasscarcebecausemen
continuedtopushwestward,clearingtheforestsandestablishingthemselvesontheland.

Astartinmanufacturing,however,wasmadeinNewEnglandin1790bySamuelSlater.AnemployeeofArkwright's
spinningmills,SlatercametotheUnitedStatesin1789.HewashiredbyMosesBrownofProvidence,R.I.,tobuilda
millonthePawtucket,orSeekonk,River.Englishlawsforbadeexportofeitherthenewmachineryorplansformaking
it.Slaterdesignedthemachinefrommemoryandbuiltamillwhichstartedoperationin1790.WhentheNapoleonic
warsandtheWarof1812upsetcommerceandmadeEnglishproductsdifficulttoobtain,moreAmericaninvestors
begantobuildfactories.

PioneerIndustriesandInventions

NewEnglandsoondevelopedanimportanttextileindustry.Ithadswiftstreamsforpowerandahumidclimate,which
keptcottonandwoolfibersinconditionforspinningandweaving.InPennsylvaniaironformachines,tools,andguns
wassmeltedinstonefurnaces.Theyburnedcharcoal,plentifulinthisforestedland.Spinningmachinesdrivenby
steamwereoperatinginNewYorkby1810.ThefirstpracticalpowerloomwasinstalledatWaltham,Mass.,byFrancis
CabotLowellin1814.ShoemakingwasorganizedintoafactorysystemofproductioninMassachusettsintheearly
19thcentury.NewEnglandwasthefirstareaintheUnitedStatestoindustrialize.

Americaninventorsproducedmanynewmachinesthatcouldbeappliedtoindustryaswellastoagriculture.Oliver
EvansdesignedasteamenginemorepowerfulthanthatofJamesWatt.Engineersquicklyadoptedthenewengineand
usedittopowerlocomotivesandsteamboats.

CyrusMcCormickinventedseveralmachinesusedtomechanizefarming.Hismechanicalreaper,patentedin1834,
revolutionizedharvesting,makingitquickerandeasier.EliasHowe'ssewingmachineeasedthelifeofthehousewife
andmadethemanufactureofclothinglessexpensive.

TechniquesoffactoryproductionwererefinedinAmericanworkshops.EliWhitneyledthemovementtostandardize
partsusedinmanufacture.Theybecameinterchangeable,enablingunskilledworkerstoassembleproductsfrom
boxesofpartsquickly.Americanfactoriesusedmachinetoolstomakeparts.Thesemachineswerearrangedinlines
formoreefficientproduction.Thiswascalledthe"Americansystemofmanufacturing,"anditwasadmiredbyallother
industrialnations.Itwasfirstappliedtothemanufactureoffirearmsandlaterspreadtootherindustrieslikeclockand
lockmaking.

SecondIndustrialRevolution

ThemachinesoftheIndustrialRevolutioninthe18thandearly19thcenturiesweresimple,mechanicaldevices
comparedwiththeindustrialtechnologythatfollowed.Manynewproductsweredevised,andimportantadvanceswere
madeinthesystemofmassproduction.Changesinindustryweresogreatthattheperiodafter1860hasbeencalled
theSecondIndustrialRevolution.Newscientificknowledgewasappliedtoindustryasscientistsandengineers
unlockedthesecretsofphysicsandchemistry.Greatnewindustrieswerefoundedonthisscientificadvance:steel,
chemicals,andpetroleumbenefitedfromnewunderstandingsofchemistrybreakthroughsinthestudyofelectricity
andmagnetismprovidedthebasisforalargeelectricalindustry.Thesenewindustrieswerelargerandmore
productivethananyindustriesexistingbefore.GermanyandtheUnitedStatesbecametheleaders,andbytheendof
the19thcenturytheywerechallengingGreatBritainintheworldmarketforindustrialgoods.

Theageofelectricitybeganin1882whenThomasA.EdisonintroducedasystemofelectriclightinginNewYorkCity.
Electricitywaslaterappliedtodrivingallkindsofmachineryaswellaspoweringlocomotivesandstreetcars.Electric
lightingquicklyspreadacrosstheUnitedStatesandwassoonadoptedinEurope.Theelectricalindustrywas
dominatedbylargecompaniesthatdevelopednewproductsandthenmanufacturedandmarketedthem.These
companieswerebasedinGermanyandtheUnitedStatesbutsoldtheirgoodsallovertheworld.Theywerethefirst
multinationalcompanies.CompanieslikeWestinghouseandGeneralElectrichelpedtoelectrifycitiesinEurope,
Africa,andSouthAmerica.

Thesteelandchemicalindustriesusednewtechnologythatgreatlyincreasedproduction.Thesizeoffactories
increasedrapidly,employingmoreworkersandusingmoremachinery.Theseindustriesintegratedallstagesof
productionunderasinglecorporatestructure.Theyboughtoutcompetitorsandacquiredsourcesofrawmaterialsand
retailoutlets.CorporationssuchasU.S.SteelandStandardOilcontrolledallstagesofmanufacturingtheproduct,
frommininganddrillingtodeliveringittothecustomer.Thisgavethemgreateconomicpower,andtheUnitedStates
governmenttookmeasurestolimittheirmonopoliesinsteelandpetroleum.

Thelargersizeofbusinesspresentedgreatchallengestomanagerswhoadministeredenormousorganizationswith
manybranchesandsubsidiaries.Advancesincommunicationsandtransportationhelpeddecisionmakerstomaintain
control.TheelectrictelegraphwasinventedbySamuelMorsein1844andwasusedtorelaycommercialinformation
aboutpricesandmarkets.Itwasusedinthestockexchangesandontherailwaysystems.AlexanderGrahamBell
patentedhistelephonein1876,andnetworksoftelephonelineswerebuiltquicklyacrosstheUnitedStates.

Thetelephonebecameausefultoolformanagerstokeepincontactwiththewidelydispersedpartsoftheir
businesses.Newmethodsofmanagementweredevisedthatstressedcentralcontrol,planning,andefficient
productionmethods.Oneoftheleadingadvocatesof"scientificmanagement"wasFrederickWinslowTaylor.

TheSecondIndustrialRevolutionmarkedgreatprogressinthemethodsofmassproduction.Moreandmore
industriesusedinterchangeablepartsandmachinetools.Electricpowerreplacedsteampowerinfactoriesitwas

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cheaper,faster,andmoreflexible.Itallowedmachinetoolstobearrangedmoreefficiently.Humanpowerwasreplaced
bymachinepower.In1913HenryFordintroducedtheassemblylineinthemanufactureofhisModelTFord.Parts
wereassembledonamovingconveyorbelt,andtheModelTtookshapeasitmovedfromoneworkstationtothenext.
Theassemblylinegreatlyincreasedthespeedofmanufactureandsoonwasusedinmanyindustries.

BytheoutbreakofWorldWarIin1914,onlyasmallnumberofindustriesinthemostindustrializednationsofthe
worldhadadoptedadvancedproductionmethodsandorganization.Muchoftheworldhadnotyetbegunafirst
industrialrevolution.Russia,Canada,Italy,andJapanwerejustbeginningtoindustrialize.

OnlyGreatBritain,theUnitedStates,Germany,France,andsomepartsoftheScandinaviancountrieshadsuccessfully
completedanindustrialrevolution.Mostoftheworld'spopulationstillworkedinprimitiveagriculturaleconomies.
China,India,andSpaindidnotbegintoindustrializeuntilwellintothe20thcentury.

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