Transportation and communication were special challenges in a nation that stretched across the North American continent. Economic growth depended on tying together the resources, markets, and people of this large area. Despite the general conviction that private enterprise was best, the government played an active role in uniting the country, particularly by building roads. From 1815 to 1860 state and local governments also provided almost three-quarters of the financing for canal construction and related improvements to waterways.
When the British began building railroads, Americans embraced this new technology eagerly, and substantial public money was invested in rail systems. By 1860 more than half the railroad tracks in the world were in the United States. The most critical 19th-century improvement in communication, the telegraph, was invented by American Samuel F. B. Morse. The telegraph allowed messages to be sent long distances almost instantly by using a code of electronic pulses passing over a wire. The railroad and the telegraph spread across North America and helped create a national market, which in turn encouraged additional improvements in transportation and communication.
Another challenge in the United States was a relative shortage of labor. Much more than in continental Europe or in Britain, labor was in chronically short supply in the United States. This led industrialists to develop machinery to replace human labor.
Americans soon demonstrated a great talent for mechanization. Famed American arms maker Samuel Colt summarized his fellow citizens’ faith in technology when he declared in 1851, “There is nothing that cannot be produced by machinery.”
An important American development was continuous-process manufacturing. In continuous-process manufacturing, large quantities of the same product, such as cigarettes or canned food, are made in a nonstop operation. The process runs continuously, except for repairs to or maintenance of the machinery used. In the late 18th century, inventor Oliver Evans of Delaware created a remarkable water-powered flour mill. In Evans’s mill, machinery elevated the grain to the top of the mill and then moved it mechanically through various processing steps, eventually producing flour at the bottom of the mill. The process greatly reduced the need for manual labor and cut milling costs dramatically. Mills modeled after Evans’s were built along the Delaware and Brandywine rivers and Chesapeake Bay, and by the time of the American Revolution (1775-1783) they were arguably the most productive in the world. Similar milling technology was also used to grind snuff and other tobacco products in the same region.
As the 19th century passed, Americans improved continuous-process technology and expanded its use. The basic principle of utilizing gravity-powered and mechanized systems to move and process materials proved applicable in many settings. The meatpacking industry in the Midwest employed a form of this technology, as did many industries using distilling and refining processes. Items made using continuous-process manufacturing included kerosene, gasoline, and other petroleum products, as well as many processed foods. Mechanized, continuous processing yielded uniform quantity production with a minimum need for human labor.
In a closely related development, by the mid-19th century American manufacturers shaped a set of techniques later known as the American system of production. This system involved using special-purpose machines to produce large quantities of similar, sometimes interchangeable, parts that would then be assembled into a finished product. The American system extended the idea of division of labor from workers to specialized machines. Instead of a worker making a small part of a finished product, a machine made the part, speeding the process and allowing manufacturers to produce goods more quickly. This method also enabled goods of much more uniform quality than those made by hand labor. The American system appeared first in New England in the manufacture of clocks, locks, axes, and shovels. Around the same time, the federal armories used an advanced version of this same system to produce large numbers of firearms, coining the term armory practice.
Soon a group of knowledgeable mechanics and engineers spread the American system. Many industries began to use special-purpose machines to produce large quantities of similar or even interchangeable parts for assembly into finished goods. The American system was used by inventor and manufacturer Cyrus Hall McCormick to produce his innovative reapers; Samuel Colt used it to make revolver pistols; and inventor Isaac Merrit Singer produced his popular sewing machines using this system. These kinds of products won prizes and attracted much attention at the Crystal Palace exhibition of 1851.
As American manufacturing technology spread to new industries, it ushered in what many have called the Second Industrial Revolution. The first had come on a wave of new inventions in iron making, in textiles, in the centrally powered factory, and in new ways of organizing business and work. In the latter 19th century, a second wave of technical and organizational advances carried industrial society to new levels. While Great Britain had been the birthplace of the first revolution, the second occurred most powerfully in the United States.
With the second revolution came many new processes. Iron and steel manufacturing was transformed in the 1850s and 1860s by vastly more productive technologies, the Bessemer process and the open-hearth furnace. The Bessemer process, developed by British inventor Henry Bessemer, enabled steel to be produced more efficiently by using blasts of air to convert crude iron into steel. The open-hearth furnace, created by German-born British inventor William Siemens, allowed steelmakers to achieve temperatures high enough to burn away impurities in crude iron.
In addition, factories and their production output became much larger than they had been in the first stage of the Industrial Revolution. Some industries concentrated production in fewer but bigger and more productive facilities. In addition, some industries boosted production in existing (not necessarily larger) factories. This growth was enabled by a variety of factors, including technological and scientific progress; improved management; and expanding markets due to larger populations, rising incomes, and better transportation and communications.
American industrialist Andrew Carnegie built a giant iron and steel empire using huge new plants. John D. Rockefeller, another American industrialist, did the same in petroleum refining. Soon there were enormous advances in science-based industries—for example, chemicals, electrical power, and electrical machinery. Just as in the first revolution, these changes prompted further innovations, which led to further economic growth.
It was in the automobile industry that continuous-process methods and the American system combined to greatest effect. In 1903 American industrialist Henry Ford founded the Ford Motor Company. His production innovation was the moving assembly line, which brought together many mass-produced parts to create automobiles. Ford’s moving assembly line gave the world the fullest expression yet of the Second Industrial Revolution, and his production triumphs in the second decade of the 20th century signaled the crest of the new industrial age.
Just as important as advances in manufacturing technology was a wave of changes in how business was structured and work was organized. Beginning with the large railroad companies, business leaders learned how to operate and coordinate many different economic activities across broad geographic areas. During the first phase of the Industrial Revolution, many factories had grown into large organizations, but even by 1875 few firms coordinated production and marketing across many business units. Leaders such as Carnegie and Rockefeller changed this, and firms grew much larger in numerous industries, giving birth to the modern corporation.
Within the business unit, Americans pioneered novel ways of organizing work. Engineers studied and modified production, seeking the most efficient ways to lay out a factory, move materials, route jobs, and control work through precise scheduling. Industrial engineer Frederick W. Taylor and his followers sought both efficiency and contented workers. They believed that they could achieve those results through precise measurement and analysis of each aspect of a job. Taylor’s The Principles of Scientific Management (1911) became the most influential book of the Second Industrial Revolution. By the early 20th century, Ford’s mass production techniques and Taylor’s scientific management principles had come to symbolize America’s place as the leading industrial nation.
As it had done in Britain, industrialization brought deep and often distressing shifts to American society. The influence of rural life declined, and the relative economic importance of agriculture dwindled. Although the amount of land under cultivation and the number of people earning a living from agriculture expanded, the growth of commerce, manufacturing, and the service industries steadily eclipsed farming’s significance. The proportion of the work force dependent on agriculture shrank constantly from the time of the first federal census in 1790. From that time until the end of the 19th century, farm workers dropped from about 75 percent of the work force to about 40 percent.
New technology was introduced in agriculture. The scarcity of labor and the growth of markets for agricultural products encouraged the introduction of machinery to the farms. Machinery increased productivity so that fewer hands could produce more food per acre. New plows, seed drills, cultivators, mowers, and threshers, as well as the reaper, all appeared by 1860. After that, better harvesters and binding machines came into use, as did the harvester-threshers known as combines. Farmers also used limited steam power in the late 19th century, and by about 1905 they began using gasoline-powered tractors. At about the same time, Americans began to apply science systematically to agriculture, such as by using genetics as a basis for plant breeding. These techniques, plus fertilizers and pesticides, helped to increase farm productivity.
As in Britain, the Industrial Revolution in the United States led to major social changes. Urban population grew, rural population declined, and the nature of labor changed dramatically.
As a result of the shift in economic importance from agriculture to manufacturing, American cities grew both in number and in population. From 1860 to 1900 the number of urban areas in the United States expanded fivefold. Even more striking was the explosion in the growth of big cities. In 1860 there were only 9 American cities with more than 100,000 inhabitants; by 1900 there were 38. Like the British critics of the preceding century, many Americans viewed these industrial and commercial centers as dark and dirty places crowded with exploited workers. But whatever the drawbacks of city life, urban growth in the United States was unstoppable, fueled both by the movement of rural Americans and a swelling tide of immigrants from Europe. In 1790 only about 5 percent of the American population lived in cities; today more than 75 percent does. This long-term trend is characteristic of societies experiencing industrialization and is evident today in regions of Asia and Latin America that are now undergoing an industrial revolution.
Industrialization brought to the United States conflicts and stresses similar to the ones encountered in Britain and in Europe. Those who had a stake in the traditional economy lost ground as mechanized production replaced household manufacturing. Often, skilled workers found their income and their status under attack from the new machines and the relentless division of labor. Businesses had always enjoyed considerable power in their relationships with the labor force, but the balance tipped even more in their favor as firms grew larger.
In order to counter the power of business, workers tried to form trade unions to represent them and bargain for rights. Initially they had only limited success. Occasional strikes, sometimes violent, appeared as signs of underlying tensions. Until the Great Depression of the 1930s, skilled craft workers were almost the only groups able to sustain unions. The most successful of these unions were those in the American Federation of Labor. They did not seek fundamental social or economic change, such as socialists advocated; instead they accepted industrial society and concentrated on improving the wages and working conditions of their members.
Eventually the United States digested the tensions and dislocations caused by the coming of industry and the growth of cities. The government began to enact regulations and antitrust laws to counter the worst excesses of big business. The Sherman Antitrust Act of 1890 was created to prevent corporate trusts, monopoly enterprises formed to reduce competition and allow essentially a single business firm to control the price of a product. Laws such as the Fair Labor Standards Act, enacted in 1938, mandated worker protections, including the maximum 8-hour workday and 40-hour workweek. Above all, the rising incomes and high rates of economic growth proved calming. Material progress convinced most Americans that industrialization had been a positive development, although the challenge of balancing business growth and worker rights remains an issue to this day.