Growing Industry and BIG Business 1865 1914 Growing

Growing Industry and BIG Business 1865 -1914

Growing Industry and BIG Business • Between the end of the Civil War (1865) and World War I (1914), the United States was transformed from an agricultural to an industrial nation 1865 -1914

Manufacturing areas were created near places with large populations Chicago – Meat Packing Industry Detroit – Automobile Industry Pittsburgh – Steel Industry New England – Textile Industry

Manufacturing areas were created near places with large populations D A B C

Why does the U. S industrialize after the Civil War?

Growth of Industry Why industrialize…. 1. Railroads – better transportation 2. New Inventions 3. Increase in labor – Immigrants 4. Access to raw materials (copper, lead, and iron ore) 5. Mass production

1. Railroad Better Transportation • Brought raw materials from the west to the factories in the east. • Copper, lead, and iron ore • Railroads carried goods (finished products) from factories to people all over the country • This creates NATIONAL MARKETS • Markets that stretch across the continent • Now people can buy things from anywhere around the country

Advertising • Advertising was a way to reach consumers • Consumer: a person who buys goods to use • Industries started mail order – catalogs; people could order goods from home and the railroad would deliver them

2. New Inventions • New inventions created great change and industry in the United States

Henry Ford • Born on July 30, 1863 in Dearborn, Michigan • Worked as an engineer • Founded Ford Motor Company

Henry Ford • Designed the Model T automobile (not the 1 st car) using the assembly line • Assembly line: arranging workers in such a way to manufacture a product quickly and cheaply • Each worker has one task • Impact on Industry: other factories copied Ford’s idea of using the assembly line

Thomas Edison • Born in 1847 in Ohio (later moved and worked in New Jersey) • Only completed 3 months of school • Started General Electric (GE)

Thomas Edison • Invented the light bulb in 1879 • Invented electric lighting • Impact on Industry: Extended the work day

Alexander Graham Bell • Born in Scotland – immigrated to America in 1871 (US citizen in 1882) • Worked with deaf children • Bell’s wife and mother were both deaf • President of National Geographic

Alexander Graham Bell • Invented the telephone in 1876 • Created Bell Telephone Company – a telephone service • Impact on Industry: Improved communication

• Cities were growing FAST! • Thousands of immigrants were moving to the US for a better life • Immigrants were used as workers (labor) in factories • Workers were not always treated fairly

4. Raw Materials • Raw Material: a material that comes from nature that is used to manufacture goods. • Examples: Copper, lead, iron ore… • Raw materials were found in the west and transported east using the railroad • Iron ore was brought from the west to Pittsburgh to make steel

5. Mass Production • Mass production: making large quantities (amounts) of a product quickly and cheaply • Factories would produce goods using the assembly line • Assembly line allowed factories to produce goods QUICKLY AND CHEAPLY

BIG Business • Rich business leaders used money and resources to create large companies, called BIG BUSINESS • Monopoly – when a company has complete control over an industry, product, or service 4 Examples of Big Business: 1. Oil 3. Shipping (Railroad) 2. Steel 4. Banking

Big Business – Oil 1. Oil is used as a power source 2. Oil can be mined from the ground

“Captain of the Oil Industry” • Formed The Standard Oil Company in 1870 in Ohio • Larger than others companies and able to set his prices lower than others • He bought other oil refineries and was able to create a giant oil company

Big Business - Steel • Steel can be manufactured quicker and cheaper • Bessemer Process makes it easy to make steel • Heat iron • Makes steel cheaper

“Captain of the Steel Industry” • First steel factory in Pittsburgh • Bought companies that performed all steps of steel production (railroad, ships, steel mill, Iron ore deposits, etc. ) • Kept costs low and prices high • Smaller companies were at a disadvantage because they were not able to make steel as cheap • Known for giving money to charities – Philanthropist

Big Business – Shipping/Railroad • Improvements in transportation (railroads) helped boost industry • Railroads create markets across the country • Easy to move natural resources (copper, lead, and iron ore) to factories in the East • Easy to transport goods and people

“Captain of the Railroad and Shipping Industry” • Owned New York Central Railroad and Hudson River Railroad • Connected the east coast to Chicago

Big Business – Banking Bank – a company that loans and invests capital (money) • Loan: borrowing money • Invest: giving money to a company. • If company does well: make money! • If company fails: lose money

“Captain of the Banking Industry” -Started his own company, JP Morgan & Co. -Began as a private banking company which became a leading financial firm in the nation -Merged Edison General Electric and Thomson-Houston Electric Company to form General Electric (GE)