The Growth of Industry 3-2

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The Growth of Industry3-2
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1900s
US becoming greatest in the world!
From small mills to giant factories
Skilled hand laborers to laborers working
machines people replaced with machinery
Can you think of examples?
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INDUSTRY
Businesses involved in , , and
Needs to be
Transportation system
to invest
Natural resources
Large workforce
A market
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Trains brought raw materials (coal, iron ore,
cattle) to factories
Produced mining equipment and farm tools (ex
steel plows)
Railroads carried goods back across the nation
for people to buy them.
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New Inventions

• Made
• Diesel engine
• Elevator
• Telephone
• typewriter

• Electric Power
• Thomas Edison
• Central power station
• Power generated in one place and sent over wires
  to homes and businesses

• Made peoples lives at home
• Light bulb
• Electric-powered stove
• Sewing machine

Some inventions created whole new industries!
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Growth of Steel Industry
Henry Bessemer helped to create the Enabled
steel makers to produce strong steel at a lower
cost.

• Demand for
• Thousands of miles of steel rr tracks
• Bridges
• Skyscrapers with steel skeletons

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Andrew Carnegie

• Steel Industry
• a business that sells stock to
  shareholders and uses the money to invest in the
  business.
• Began buying up all phases of the steel industry
• Iron mines, railroad and steamship lines, and
  warehouses
• - gaining control of all steps used to
  change raw materials into finished products.
• Carnegie believed in giving to those who were
  less fortunate.
• Sold his steel empire in 1901 and spent the rest
  of his life helping people and donating to charity

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Steel Mills Thrive

• Pittsburg, PA becomes one of the leaders in steel
  production
• The boom in the industry brought to the
  cities
• Negative effects
• Air and water

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John D. Rockefeller

• Built oil refineries when everyone else was
  drilling for oil
• He bought up all competition -
• He started his own large company called .
• Slashed prices to undercut competition.
• Forced RR companies to grant rebates and lower
  shipping costs to keep his business
• called the shots for all the companies that he
  overtook.
• Eliminated competition by forming
• a group of corporations run by a single board of
  directors

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Horizontal vs. Vertical Integration
Coke fields
Buying up your competition
Iron ore deposits
Steel Mills
Ships
Railroads
Buying up related businesses to lower your
manufacturing prices