Growth of Big Business

Big Business=A large and powerful company that mass produces goods and employs many people.

Between the Civil War and World War I (1877-1914), the

United States was transformed from an agricultural to an

industrial nation

Agricultural= rural / farming

Industrial= urban / factories

What caused the growth in industry?

• Access to raw materials and energy

Access to raw materials and energy

• Vast supplies of natural resources had been discovered in the U.S., including food, fuel and minerals.

• By the late 1800s, railroads carried raw materials like coal and iron ore from the mines to mills in Pittsburgh

What caused the growth in industry?

• Access to raw materials and energy

• Availability of work force due to immigration

Availability of work force

immigrants

Farmers who lost their jobs to machines

Availability of work force

• A large workforce was available due to – huge influx of immigrants, which

caused the U.S. population to triple between 1860 and 1910

– increased migration to the cities from southern farms, where mechanization was decreasing the need for labor.

What caused the growth in industry?

• Access to raw materials and energy

• Availability of work force due to immigration

• Inventions

Inventions

• Bessemer process allowed coal and iron (raw materials) to be converted cheaply to steel

• sewing machines led to a huge textile industry in New England

• telegraph and telephone increased quality of communication

• hydroelectric power plants for electricity.

Inventions

Bessemer Converter

Sewing machine

What caused the growth in industry?

• Access to raw materials and energy

• Availability of work force due to immigration

• Inventions• Financial resources

Financial Resources

• During this prosperous period, money was available to fund new industries.

What caused the growth in industry?

•Financial Resources

•Availability of work force due to immigration

• Inventions

•Raw materials & energy

F.A.I.R.

What Is Industry vs. Big Business?

• Industry- a specific branch of manufacture or trade

• Big Business- a term used to describe large corporations, in either an individual or group sense

Which is Which? Industry (I) or Big Business (BB)

• WalMart– BB

• Steel– I

• Coal– I

• ExxonMobile– BB

• General Electric– BB

• Technology– I

• Dell Computers– BB

• Apple– BB

Examples of Big Business

Railroads

Oil

Steel

Why was there a rise in big business?

•Captains of Industry

•Lower-cost production

•Advertising

•National markets created by transportation advances

C.L.A.N.

National Markets• A single manufacturer could use railroads

and canals to ship goods to markets all around the U.S.

Advertising• In order to increase sales,

manufacturers began to develop strategies to advertise their products.1889

1908 1892

Lower-cost Production

• Big businesses could lower the cost of production with new technologies like assembly lines, standardized interchangeable parts, and the Bessemer process for making steel.

John D Rockefeller• Captain of the Oil Industry. (Standard Oil)• He was born in New York.• Rockefeller started his first business when he

was 7. He raised and sold turkeys.• Rockefeller opened his first oil refinery in

1863.• He was the richest man in the world. At

one point he was worth what would be 310 BILLION DOLLARS today.

Captains of Industry• John D. Rockefeller • Rockefeller's Standard Oil owned each

step in the oil production process from the drilling operations to the gas station pumps.

Andrew Carnegie

• Captain of the Steel Industry.• Born in Scotland. Moved to America

when he was 13.• Grew up in a poor family.• He worked hard and became one of

the richest men in the world.

Captains of Industry• Andrew Carnegie• By using the latest technology and

watching costs, Carnegie priced his steel below competitors. By 1900 he owned the world's largest industrial corporation - Carnegie Steel.

Cornelius Vanderbilt

• Captain of the Railroad & Shipping Industry.

• Started out as a steamboat entrepreneur.

• Nicknamed the “Commodore”• Known for being ruthless• Became one of the richest men in

America

Captains of Industry• Cornelius Vanderbilt• Was an industrialist in railroads and

shipping. His famous family and fortune made him one of the most influential Americans of his time. He funded Vanderbilt University.

Henry Ford

• Captain of the Automobile Industry.• Born in Michigan.• Completed his first car in 1903.• 1903 the Model A is introduced.• 1908 the Model T is introduced. It cost

980.00• 1913 introduces the Assembly Line. The

Model T was the most popular automobile in the country. After the assembly Line it only cost 280.00!

Captains of Industry• Henry Ford• Ford increased output in the auto

industry with assembly line production.

USII – ‘izations’ Vocab

• Urbanization– the process of Americans moving from rural to

urban areas – (More people live in cities)

• Industrialization– The process of industries growing in America– (a lot more factories)

• Mechanization– The process of America relying more on machines– Less work by hand