Aaron O'Neill
Research expert covering historical data
Industrialization- Statistics & Facts
Global industrialization has been one of the most important and influential processes in the world in the past three centuries. It refers to the transition from predominantly agricultural to industrial societies, which has resulted in drastic shifts in demographics, employment, wealth, globalization, and general everyday life. What began in the United Kingdom in the late-1700s has since spread across the globe at varying rates, and the process is ongoing. Industrialization has also helped change the world we live in and has shaped many major events or trends in recent history, however, it has largely been powered by fossil fuel consumption at a great cost to the planet.
The innovations that fueled industrialization were not limited to agriculture - inventions such as steam and combustion engines, the spinning jenny, and assembly-lines, allowed for new methods of production. These innovations resulted in greater efficiency, which then lowered production costs per unit – in turn, this could result in higher industrial wages, lower costs for consumers, and greater profits for business owners. While wages were higher in industry than agriculture, they were still incredibly low compared to modern (adjusted) figures. Child labor was also rampant in the early decades of industrialization, as it was cheaper, children had few legal protections, and schooling was not compulsory. Children were also small enough to crawl into large machinery to remove blockages or to fit into narrow tunnels or spaces (such as chimneys), often with fatal consequences. With time, laws were brought in to protect children, shorter working weeks were introduced for all, and the first social security systems were introduced in Germany in the 1880s.
After the Second World War, the role of oil in industry increased massively as it was a more efficient fuel source than coal and the demand for cheaper plastic products increased. Western industrialization became dependent on oil exports from OPEC countries, which allowed for an influx of wealth and power to the Middle East. By the end of the century, East Asia, particularly China, emerged as the “world’s factory” - as production costs in the West increased, it became cheaper to manufacture items in Asia and ship them to other markets than to produce them domestically. More advanced economies then became post-industrial or specialized in manufacturing high-tech or complex goods, while many Asian countries specialized in mass production of goods such as textiles, machinery and equipment, or electronics.
Industrial revolution
The industrial revolution began in the United Kingdom in the late 18th century, as technological advancements lowered the agricultural sector’s labor demands. This allowed much of the workforce to transition to manufacturing and production jobs, which led to the onset of rapid urbanization. In Britain, textiles was the dominant industry for manufacturing – cotton, imported from the United States or India was then processed and manufactured in British factories before being sold in the UK or exported. Through these developments, Britain was able to generate massive wealth through both its domestic and colonial output, and the system was soon replicated across continental Europe and North America.The innovations that fueled industrialization were not limited to agriculture - inventions such as steam and combustion engines, the spinning jenny, and assembly-lines, allowed for new methods of production. These innovations resulted in greater efficiency, which then lowered production costs per unit – in turn, this could result in higher industrial wages, lower costs for consumers, and greater profits for business owners. While wages were higher in industry than agriculture, they were still incredibly low compared to modern (adjusted) figures. Child labor was also rampant in the early decades of industrialization, as it was cheaper, children had few legal protections, and schooling was not compulsory. Children were also small enough to crawl into large machinery to remove blockages or to fit into narrow tunnels or spaces (such as chimneys), often with fatal consequences. With time, laws were brought in to protect children, shorter working weeks were introduced for all, and the first social security systems were introduced in Germany in the 1880s.
The Four Industrial Revolutions
The industrial revolution is often used as a general term that refers to the large shift from agrarian to manufacturing work in Europe and North America in the 18th and 19th centuries - more recently, this period has been split into the First and Second Industrial Revolutions based on technological differences and trends across these years. These are followed by the Third Industrial Revolution, which refers to advancements in computing and digital technology which began in the late-1900s, which overlaps with the Fourth Industrial Revolution, referring to the ongoing increase in the role played by digital technology in daily human life. It should be noted, however, that the Third and Fourth Revolutions have less to do with the traditional process of industrialization but are more defined by the influence of technology.Global industrialization
The First and Second Industrial Revolutions were largely confined to Europe and North America until a century ago, with Japan and Australia among the exceptions. Textile industries were the most common drivers of industrialization in early years, before the mining of resources and the production of heavy machinery increased in importance in the late-1800s. These developments contributed to the rising power of Germany and Russia at the turn of the 20th century, and control over access to these coal, oil, and metals was a driver of territorial expansion and international conflict in the early-1900s (including both World Wars). Until this point, most of today’s African and Asian countries were European colonies and their economies were largely based around the supply of raw materials for manufacturing in Western countries. Latin America was largely independent, but in a similar position.After the Second World War, the role of oil in industry increased massively as it was a more efficient fuel source than coal and the demand for cheaper plastic products increased. Western industrialization became dependent on oil exports from OPEC countries, which allowed for an influx of wealth and power to the Middle East. By the end of the century, East Asia, particularly China, emerged as the “world’s factory” - as production costs in the West increased, it became cheaper to manufacture items in Asia and ship them to other markets than to produce them domestically. More advanced economies then became post-industrial or specialized in manufacturing high-tech or complex goods, while many Asian countries specialized in mass production of goods such as textiles, machinery and equipment, or electronics.
Demographic influence
Industrialization not only has an enormous economic impact, but it combines with improvements in medicine and living standards that enable the global phenomenon known as the demographic transition. It has been the major catalyst for urbanization, and helped facilitate the population explosion of the past 220 years. By offering more economic opportunities and upward mobility than agriculture, industrialization often leads to the emergence of a middle class, creating economic opportunities for those without inherent wealth (although income inequality remains a pertinent issue in virtually all societies). There are also notable regional variations in how industrialization has helped shape demographic development. In the U.S., industrialization was a major pull factor for European migration in the 1800s and greatly contributed to the decline of slavery in the northern states. In the command economies of the USSR and China, government-driven industrialization was wildly mismanaged, and the relocation of workers from agriculture to manufacturing led to famines that killed tens of millions of people. Today countries with long legacies of industrial production tend to be among the wealthiest with high life expectancies, and newly industrialized countries are usually among the poorest with lower living standards.Post-industrialization
Many of today’s more advanced societies are considered post-industrial, where income and employment in service sectors is greater than those from heavy industry and manufacturing. As societies become richer, service industries (such as retail, gastronomy, tourism, or IT, as well as the public sector) develop to meet the everyday needs of the population. Improved efficiency and productivity in manufacturing (similarly to the mechanization of agriculture) cause a great shift in employment trends as technology reduces the labor demands of the sector. However, unlike previous developments in Europe or North America, the largest employment sector in other regions often jumps straight from agriculture to services, as improved efficiency and productivity has lowered labor demands. Automation is just one example of how newly developing countries are able to technologically leapfrog certain areas of industrialization.Environmental impact
A major implication of industrialization is its impact on the environment. The burning of fossil fuels has been a key component of industrial expansion, and the rapid increase in carbon output has had a detrimental effect on the planet. Additionally, the types of product being manufactured have greatly changed over time, and the increase in plastic production has had particularly devastating consequences in nature. To reverse climate change, global targets have been put in place to limit carbon output, although many argue that this is restricting industrial growth in many of the least developed countries in a way that was not present for many of today's wealthiest countries. Despite this, many less developed economies have lower dependency on fossil fuels for production, and are embracing green and smart alternatives as they industrialize. The global climate crisis is widely considered humanity's greatest existential threat - while deindustrialization may be a key component to tackling this challenge, it will likely come with widespread economic repercussions for many of the world's most powerful nations.
