For example the cars needed steel and rubber and due to the vast amounts of cars being produced much steel and rubber was being produced hence more employment. The 'T-model' car was coming off the production line at one every 10 seconds at one stage! As many people were buying cars, more roads had to be made, and this created large employment (at one point making roads was the USA's largest employer), boosting the economy. Many people bought cars on credit, again stimulating the economy. The automobile industry did indeed have a major role to play in the prosperity of the 1920s.
The growth of the automobile industry caused an economic revolution across the United States. The beginning of the 20th century, horse-drawn vehicles and the railroads were the dominant sources for transportation of both goods and people. Before the assembly line each vehicle was created individually. The assembly line created by Henry Ford, made automobile production faster and easier. The assembly line doubled production and reduced costs, and made each worker an expert at installing his particular car part.
To this day, car companies in America are constantly racing to innovate, improve, and outsell their competitors. Manufacturing of cars “became the backbone of a new consumer goods-oriented society. By the mid-1920s it ranked first in value of product, and in 1982 it provided one out of every six jobs in the United States.” (history –idk yet) The demand for cars also resulted in a booming petroleum industry, and a high demand for metals, like steel. ( History idk yet) Furthermore, with so many people driving cars, construction of roads was necessary. The popularity of automobiles set off a chain reaction that created new opportunities all across the country.
His ideas and innovation like the assembly line forever changes the automobile and the way goods are produce. Although there are many technological advancement during the 1920s, the assembly line designed by Henry Ford is the most important innovation of its time because it lowers the price for goods, creates worker friendly well paying jobs, and still largely impacts the automobile industry today. Throughout the 1920s the assembly line, design by Henry Ford, helps move forward the automobile into a new age of affordability and necessity. He makes the car more than just symbol of wealth but a symbol of the every man. The model T, Henry Ford’s pride and joy is the first car ever to be built using the assembly line.
The ‘Automobile Revolution’ massively impacted the United States, from environmental issues all the way to how people lived their everyday lives. (“1920’s”; Wikipedia) During the twenties a major technological revolution had come forth into the spotlight, Henry Ford’s assembly line. The widely acclaimed assembly line allowed for manufacturing companies to create much more product to sell, one of these products was your everyday automobiles. With these companies being able to make increasing numbers of vehicles they were able to supply the skyrocketing demand that the public wanted. Prosperity during this time allowed for the residence to afford these worldly purchases they so greatly desired.
The automobile, movie, radio, and chemical industries skyrocketed during this decade-one of the most important was the automobile industry. As mass-produced automobiles were churned in by Henry Ford, about 1.9 million cars had been sold by the end of 1929. The economy of the automobile society had a great impact on not only business, but also society. Henry Ford, who had revolutionized the new workers day and the concept of mass-production, had indirectly affected how Americans lived and behaved. Cars promoted other markets to grow, such as steel, rubber, glass, and petroleum.
The American Economy The American economy is a vibrant, free-market system that is constantly developing out of the choices and decisions made by millions of citizens who play multiple, often overlapping roles as consumers, producers, investors and voters. The changes in the organization and performances of the manufacturing industry over the last century have helped shape the American economy. The Automotive industry perhaps made the biggest changes to their manufacturing processes. I will be reviewing the role of the industrialist Henry Ford and his innovative methods that changed the organization and performance of the American manufacturing industry forever. He produced an affordable car, paid high wages and helped create a middle class, which in turn fueled the America Industrial revolution into overdrive mode.
The Model T Ford was invented in 1908 and was originally only bought by the rich. The Model T was slick and appealing as opposed to the older design of cars. After the war when prices dropped, productions skyrocketed because common people could afford to buy them. The assembly line for the Model T’s gave many Americans seeking jobs after war an opportunity for work. Not only did sixteen million Model T’s sell by 1927, but the automobiles popularity lead to the construction of more roads and highways through the funds of the public.
Ford's innovation of the assembly line transformed the automobile industry from just an expensive piece of fancy metal with wheels to a productive machine of American society. Many people assume that Henry Ford invented the assembly line, however, they were wrong. Henry Ford only improved it very greatly and used it in his factories to produce them better and faster. Ford perfected it to be used for mass production. The assembly line allowed for production to increase in the factories.
However despite its impact Fords competitive advantage was short lived and was soon taken over as Alfred P. Sloan at General Motors sensed consumers wanted more variety than what they were being offered and he offered “a car for every purse and purpose” (Holweg, 2014, p. 14). Customers were soon given a choice with a broader range of products to include cars of different colour which was in contrast to Fords standard black car. Employment Europe is the largest automobile producing region with nearly 20 million vehicles assembled in 2001. It is the world’s largest market in terms of size and the competition is intense. The automotive industry represents up to one third of European manufacturing jobs.