Manufacturing has always been a cornerstone of America’s economic success; however, recently it has come under pressure and may need further investment.
At the close of the eighteenth century, new industrial production technologies began making their debut in America. Samuel Slater brought with him from England technology that enabled him to establish the first textile factory using water power – something no other American had attempted until this point.
The Origins of Manufacturing
Manufacturing refers to the transformation of raw materials such as ore, wood and food into finished goods like furniture or metal goods – it’s an integral component of an economy’s health that often serves as an early indicator.
Modern manufacturing was birthed from the Industrial Revolution. This momentous shift saw production move away from hand production methods towards factory processes that drastically cut production times, material costs and labor requirements – thus revolutionizing modern manufacturing industries.
Though industrial growth provided many benefits, its impacts were also profoundly negative. Cities quickly became overpopulated with factory workers whose working conditions often were subpar; sewerage would often run freely through streets; contaminated water sources made people sick;
Manufacturers leaned heavily on machines instead of skilled craftspeople for production, as machines were able to cut steel much more rapidly than any person could by hand, helping reduce labor costs while leading to assembly lines – creating the foundation of America’s middle class in the process.
The Industrial Revolution
The Industrial Revolution began in Britain during the 1760s and spread quickly throughout continental Europe and North America during the late 1830s, marking a dramatic transformation in manufacturing production. Samuel Slater’s successful water-powered cotton mill in Pawtucket, Rhode Island signalled this milestone event, followed by innovations like machine tools, iron production processes, new chemical manufacturing methods, as well as increased factories.
Natural resources and energy, combined with a free market economy and skilled labor availability, as well as a legal system which encouraged business development were among the main drivers of early industrialization in the US. Thomas Jefferson’s ban on European imports during the War of 1812 caused domestic consumption to surge exponentially while speeding economic progress forward significantly.
The Industrial Revolution led to an abrupt transformation in American society from rural to urban living conditions, as people left farms for factory work and higher wages with more reliable incomes. While factory jobs provided better incomes and living conditions than farm life had offered them, city environments became polluted due to sewage flooding streets and manufacturers discharging toxic chemicals into rivers and water supplies.
The Second Industrial Revolution
Rapid industrialization in the US during the late nineteenth and early twentieth centuries brought profound changes. Improvements to transportation infrastructure – roads, steamboats, the Erie Canal, railroads – combined with technological breakthroughs pre-Civil War led to an exponential expansion in organization, coordination and scale of industrial production.
Immigrant labor was instrumental to this industrial revolution. By 1880, agricultural jobs had dropped below half, while manufacturing and other industries employed one quarter (see Figure 1).
As industrialization began to alter industrial structure, massive investments were needed in transportation, communications, retailing and government bureaucracies to support business development and an urban society. Occupations changes were also anticipated with industrialization but there remains little clarity regarding which ones were upgraded or replaced – for example early mass production may have led to skilled crafts workers being replaced by unskilled laborers.
The Third Industrial Revolution
The advent of large, factory-based production was revolutionary for Americans, providing workers with significantly higher wages than they could in home businesses or agriculture. Cities rapidly expanded as more workers moved there to work.
American industry experienced rapid expansion between 1880 and 1920 as a result of several factors. Steam-powered printing and the telegraph combined into an accessible technology platform; cheap coal allowed for quick transport of raw materials; the legal system encouraged entrepreneurialism; and its diverse geographic location enabled access to large easily accessed upscale markets.
Immigrants also played a crucial part in this development; by 1920, over half of manufacturing workforce consisted of immigrants and their descendants. This phenomenon was due mainly to cotton manufacturing (which relied on immigrants from Great Britain and Northwestern Europe), iron and steel production, machinery production, coal mining rubber petroleum industries etc. Immigrants provided work force for several large corporations as well.
The Fourth Industrial Revolution
After the Civil War, the American economy experienced rapid expansion as old industries expanded and new ones emerged. New technologies, including cotton gin inventions that revolutionized slave-based agriculture and an abundance of advancements fueled industrial expansion (coal, gas and oil discoveries were made while railroad expansion occurred); coal, gas and oil discoveries occurred as well as rail expansion. America quickly become one of the world’s most technologically advanced economies.
At about the same time, another industrial revolution occurred with the rise of electric power and electronics. These innovations enabled automation and mechanized production, enabling companies to produce an abundance of goods quickly.
At present, we are experiencing the Fourth Industrial Revolution–more commonly known as Industry 4.0–an epochal social shift which requires all of us to act with an understanding of future developments based on values like common good, human dignity and intergenerational stewardship. Already this technological advance has had an effect on numerous sectors including manufacturing – responsible for 70 % of corporate R&D spending as well as 55 % of U.S. patents and 60% of exports.