📜History of American Business Unit 3 – Early American Industry & Manufacturing

Key Concepts and Terminology

• Mercantilism: Economic system where colonies provided raw materials to the mother country and served as markets for finished goods
• Cottage industry: Small-scale manufacturing of goods in homes or small workshops before the Industrial Revolution
• Interchangeable parts: Standardized parts that could be used in the assembly of various products, enabling mass production
• Patent: Government-granted exclusive right to an inventor to manufacture, use, or sell an invention for a specified period
• Tariff: Tax imposed on imported goods to protect domestic industries and generate revenue for the government
• Corporation: Legal entity separate from its owners, allowing for limited liability and easier access to capital
• Division of labor: Breaking down production into specialized tasks performed by different workers to increase efficiency
• Economies of scale: Cost advantages that businesses can exploit by expanding production and becoming larger

Colonial Era Manufacturing

• Colonial manufacturing primarily focused on producing goods for local consumption due to mercantilist policies
• Cottage industries dominated, with families producing textiles, clothing, and other necessities in their homes
• Shipbuilding emerged as a significant industry, especially in New England, due to abundant timber and the need for maritime trade
• Iron manufacturing began in the early 18th century, with the first successful ironworks established in Saugus, Massachusetts (1646)
• Grist mills and sawmills harnessed water power to process grains and lumber, respectively
• Artisans such as blacksmiths, coopers, and cabinetmakers played essential roles in colonial communities
• The putting-out system allowed merchants to distribute raw materials to cottage industry workers and collect finished products
• Colonial manufacturing faced limitations due to British restrictions on exporting finished goods and competing with British industries

Impact of the American Revolution

• The American Revolution disrupted trade with Britain, forcing the colonies to become more self-sufficient in manufacturing
• The war created a demand for weapons, ammunition, and other military supplies, stimulating domestic production
• The Continental Congress encouraged the development of native industries to reduce dependence on British goods
• The Revolution led to a shift in economic thinking, with a greater emphasis on protecting and promoting American industries
• Tariffs were introduced to protect fledgling American industries from foreign competition and generate revenue for the new government
• The post-war period saw an increase in the number of patents issued, as inventors sought to capitalize on their innovations
• The Revolution inspired a sense of national pride and a desire to prove that Americans could compete with European manufacturers

Early Industrial Revolution in America

• The early Industrial Revolution in America began in the late 18th century and gained momentum in the early 19th century
• The shift from cottage industries to factory-based production marked the beginning of industrialization
• The development of new technologies and inventions, such as the cotton gin and power loom, revolutionized textile production
• The growth of transportation networks, particularly canals and railroads, facilitated the movement of raw materials and finished goods
• The rise of the factory system led to the concentration of workers in centralized locations and the division of labor
• The putting-out system gradually declined as factories became more prevalent and efficient
• The early Industrial Revolution saw the emergence of new industries, such as the machine tool industry and the firearms industry
• The industrialization process was uneven, with the Northeast experiencing more rapid growth than the South and West

Technological Innovations and Inventions

• The cotton gin, invented by Eli Whitney (1793), revolutionized the cotton industry by mechanizing the separation of cotton fibers from seeds
• The power loom, developed by Francis Cabot Lowell (1814), automated the weaving process and greatly increased textile production
• The steamboat, pioneered by Robert Fulton (1807), improved river transportation and opened up new trade routes
• The Erie Canal (1825) connected the Great Lakes with the Atlantic Ocean, reducing transportation costs and stimulating economic growth
• The telegraph, invented by Samuel Morse (1837), revolutionized long-distance communication and facilitated business transactions
• The sewing machine, patented by Elias Howe (1846), mechanized the clothing industry and increased productivity
• Interchangeable parts, popularized by Eli Whitney and others, enabled mass production and the rise of the American system of manufacturing
  • The firearms industry, particularly the Springfield Armory, was an early adopter of interchangeable parts
• The Bessemer process, introduced by Henry Bessemer (1856), greatly reduced the cost and time required to produce steel

Labor and Working Conditions

• The early Industrial Revolution saw a shift from skilled artisans to unskilled factory workers
• Factory workers, including women and children, often faced long hours, low wages, and dangerous working conditions
• Child labor was common, with children as young as 5 or 6 working in factories and mines
• The factory system led to the rise of industrial cities, such as Lowell, Massachusetts, where workers lived in company-owned housing
• Labor unions began to form in the 1820s and 1830s to advocate for better wages and working conditions
  • The National Trades' Union, formed in 1834, was one of the first national labor organizations in the United States
• Strikes and labor unrest became more frequent as workers sought to improve their conditions and gain a greater share of the profits
• The labor movement faced significant challenges, including legal obstacles, employer resistance, and public skepticism
• The early Industrial Revolution laid the groundwork for future labor reforms, such as the 10-hour workday and the abolition of child labor

Economic and Social Impacts

• The early Industrial Revolution led to significant economic growth and increased productivity in the United States
• The rise of factories and the growth of cities led to urbanization and the emergence of a new middle class
• The industrialization process contributed to regional specialization, with the Northeast focusing on manufacturing and the South on agriculture
• The growth of transportation networks, particularly railroads, created a national market and facilitated the movement of people and goods
• The Industrial Revolution led to increased income inequality, with factory owners and investors benefiting more than workers
• The rise of the factory system and the decline of cottage industries disrupted traditional social structures and family life
• The Industrial Revolution contributed to the growth of consumerism, as mass-produced goods became more affordable and widely available
• The industrialization process had significant environmental impacts, including air and water pollution, deforestation, and resource depletion

Notable Figures and Companies

• Samuel Slater, known as the "Father of the American Industrial Revolution," established the first successful water-powered textile mill in the United States (1790)
• Francis Cabot Lowell founded the Boston Manufacturing Company (1813), which pioneered the use of power looms and the factory system in the United States
• Eli Whitney, inventor of the cotton gin and a proponent of interchangeable parts, founded the Whitney Arms Company (1798)
• Robert Fulton, inventor of the steamboat, founded the North River Steamboat Company (1807) and revolutionized river transportation
• Cyrus McCormick, inventor of the mechanical reaper (1831), founded the McCormick Harvesting Machine Company (1847)
• Samuel Colt, inventor of the revolver (1836), founded Colt's Patent Fire-Arms Manufacturing Company (1855)
• Isaac Singer, inventor of the modern sewing machine (1851), founded the Singer Sewing Machine Company (1851)
• Cornelius Vanderbilt, a prominent industrialist, built a transportation empire that included steamboats and railroads, such as the New York Central Railroad (1853)