Technological and Economic Shifts of the Second Industrial Revolution

The Second Industrial Revolution (1870–1914)

5. In the late nineteenth century, the world entered the Second Industrial Revolution, in which Britain began to share economic leadership with other countries, such as:

• Germany
• The USA
• Japan

New Energy Sources and Technological Advances

At this stage, electricity and oil supplanted coal as primary energy sources. The invention of the dynamo made it possible to produce electricity, while the alternator and the processor made possible the transfer of electrical current. Electricity had multiple applications, including:

• Industry
• Transport
• Communication systems
• Leisure
• Lighting (enlightenment)

The Rise of Oil and Aviation

Oil began to be drilled in the United States in the mid-nineteenth century. The invention of the internal combustion engine made possible its use as fuel for automobiles. Furthermore, a diesel engine was applied to shipping, making it possible to increase the speed and capacity of ships. Aviation was one area of progress thanks to oil; the first flight was by the Wright brothers in 1903.

Industrial Expansion and New Materials

The metal industry gained great momentum due to the production of new metals, such as stainless steel and aluminum. Consequently, the auto industry experienced a major expansion following the invention of Henry Ford's small car. The chemical industry achieved important development in Germany thanks to the production of new:

• Fertilizers
• Pesticides
• Chemicals
• Dyes
• Pharmaceuticals

Finally, with the use of reinforced concrete, the first skyscrapers were built.

Mass Production and Corporate Concentration

In the late nineteenth century, production was geared toward mass production as the best way to:

• Increase productivity
• Reduce turnaround time
• Reduce costs

Taylorism and the Assembly Line

This new working method is known as Taylorism, which consists of the manufacturing chain (the assembly line). That is, each worker has a specific purpose. This system originated in America, and Ford was the first to implement it widely.

Forms of Industrial Concentration

This era also stimulated industrial concentration, and firms became increasingly larger. Agreements were signed to restrict competition between undertakings, aimed at fixing prices. Thus, several forms of industrial concentration were born:

• Poster (Cartel): Agreements between undertakings.
• Trust: A merger between companies.
• Holding Company: A financial group with the majority of shares of a group of companies and banks.
• Monopoly: The exclusive right of a company to market a product.