Industrialization is the process of social and

economic change that transforms a human group

from a pre-industrial society into an industrial
one. It is a part of a wider modernization process,
where social change and economic development
are closely related with technological innovation,
particularly with the development of large-scale
energy and metallurgy production. It is the
extensive organization of an economy for the
purpose of manufacturing.[1]
Industrialization also introduces a form of
philosophical change where people obtain a different
attitude towards their perception of nature, and a
sociological process of ubiquitous rationalization.
There is considerable literature on the factors
facilitating industrial modernization and enterprise
development.[2] Key positive factors identified by
researchers have ranged from favorable political-
legal environments for industry and commerce,
through abundant natural resources of various kinds,
to plentiful supplies of relatively low-cost, skilled and
adaptable labour.
One survey[citation needed] of countries in Africa, Latin
America, the Caribbean, and the Middle East and
the rest of Asia in the late 20th century found that
high levels of structural differentiation, functional
specialization, and autonomy of economic systems
from government were likely to contribute greatly to
industrial-commercial growth and prosperity.
Amongst other things, relatively open trading
systems with zero or low duties on imported goods
tended to stimulate industrial cost-efficiency and
innovation across the board. Free and flexible labour
and other markets also helped raise general
business-economic performance levels, as did rapid
popular learning capabilities.
Positive work ethics in populations at large
combined with skills in quickly utilising new
technologies and scientific discoveries were likely to
boost production and income levels – and as the
latter rose, markets for consumer goods and
services of all kinds tended to expand and provide a
further stimulus to industrial investment and
economic growth. By the end of the century, East
Asia was one of the most economically successful
regions of the world – with free market countries
such as Hong Kong being widely seen as models for
other, less developed countries around the world to
emulate.[3] The first country to industrialize was
Great Britain during the Industrial Revolution.[4]
Description
According to the original sector classification of Jean
Fourastié, an economy consists of a "Primary
sector" of commodity production (farming, livestock
breeding, exploitation of mineral resources), a
"secondary sector" of manufacturing and processing,
and a "Tertiary Sector" of service industries. The
industrialization process is historically based on the
expansion of the secondary sector in an economy
dominated by primary activities.
The first ever transformation to an industrial
economy from an agrarian one was called the
Industrial Revolution and this took place in the late
18th and early 19th centuries in a few countries of
Western Europe and North America, beginning in
Great Britain. This was the first industrialization in
the world's history.[4]
The Second Industrial Revolution describes a later,
somewhat less dramatic change that came about in
the late 19th century with the widespread availability
of electric power, internal combustion engines, and
assembly lines to the already industrialized nations.
The lack of an industrial sector in a country is widely
seen as a major handicap in improving a country's
economy, and power, pushing many governments to
encourage or enforce industrialization.
History of industrialization
Main article: Pre-industrial society

Map showing the global distribution of industrial

output in 2005, based on a percentage of the top
producer, which is the United States

Most pre-industrial economies had standards of

living not much above subsistence, among that the
majority of the population were focused on
producing their means of survival. For example, in
medieval Europe, 80% of the labor force was
employed in subsistence agriculture.
Some pre-industrial economies, such as classical
Athens, had trade and commerce as significant
factors, so native Greeks could enjoy wealth far
beyond a sustenance standard of living through the
use of slavery. Famines were frequent in most pre-
industrial societies, although some, such as the
Netherlands and England of the seventeenth and
eighteenth centuries, the Italian city states of the
fifteenth century, the medieval Islamic Caliphate,
and the ancient Greek and Roman civilizations were
able to escape the famine cycle through increasing
trade and commercialization of the agricultural
sector. It is estimated that during the seventeenth
century Netherlands imported nearly 70% of its grain
supply and in the fifth century BC Athens imported
three quarters of its total food supply.
Industrialization through innovation in manufacturing
processes first started with the Industrial Revolution
in the north-west and Midlands of England in the
eighteenth century.[5] It spread to Europe and North
America in the nineteenth century, and to the rest of
the world in the twentieth.
[edit] Industrial revolution in Western Europe
Main article: Industrial Revolution
A Watt steam engine, the steam engine fuelled
primarily by coal that propelled the Industrial
Revolution in Great Britain and the world.[6]

In the eighteenth and nineteenth centuries, Great

Britain experienced a massive increase in
agricultural productivity known as the British
Agricultural Revolution, which enabled an
unprecedented population growth, freeing a
significant percentage of the workforce from farming,
and helping to drive the Industrial Revolution.
Due to the limited amount of arable land and the
overwhelming efficiency of mechanised farming, the
increased population could not be dedicated to
agriculture. New agricultural techniques allowed a
single peasant to feed more workers than
previously; however, these techniques also
increased the demand for machines and other
hardwares, which had traditionally been provided by
the urban artisans. Artisans, collectively called
bourgeoisie, employed rural exodus workers to
increase their output and meet the country's needs.
The growth of their business coupled with the lack of
experience of the new workers pushed a
rationalization and standardization of the duties the
in workshops, thus leading to a division of labor, that
is, a primitive form of Fordism. The process of
creating a good was divided into simple tasks, each
one of them being gradually mechanized in order to
boost productivity and thus increase income.
The accumulation of capital allowed investments in
the conception and application of new technologies,
enabling the industrialization process to continue to
evolve. The industrialization process formed a class
of industrial workers who had more money to spend
than their agricultural cousins. They spent this on
items such as tobacco and sugar, creating new
mass markets that stimulated more investment as
merchants sought to exploit them.[7]
The mechanization of production spread to the
countries surrounding England in western and
northern Europe and to British settler colonies,
helping to make those areas the wealthiest, and
shaping what is now known as the Western world.

The Crystal Palace Great Exhibition. The United

Kingdom was the first country in the world to
industrialize.[4]
Some economic historians argue that the
possession of so-called ‘exploitation colonies’ eased
the accumulation of capital to the countries that
possessed them, speeding up their development.
The consequence was that the subject country
integrated a bigger economic system in a subaltern
position, emulating the countryside, which demands
manufactured goods and offers raw materials, while
the colonial power stressed its urban posture,
providing goods and importing food. A classical
example of this mechanism is said to be the
triangular trade, which involved England, southern
United States and western Africa. Critics argue that
this polarity still affects the world, and has deeply
retarded industrialization of what is now known as
the Third World.
Some have stressed the importance of natural or
financial resources that Britain received from its
many overseas colonies or that profits from the
British slave trade between Africa and the Caribbean
helped fuel industrial investment.
[edit] Early industrialization in other countries

After the Convention of Kanagawa issued by

Commodore Matthew C. Perry forced Japan to open
the ports of Shimoda and Hakodate to American
trade, the Japanese government realized that drastic
reforms were necessary to stave off Western
influence. The Tokugawa shogunate abolished the
feudal system. The government instituted military
reforms to modernize the Japanese army and also
constructed the base for industrialization. In the
1870s, the Meiji government vigorously promoted
technological and industrial development that
eventually changed Japan to a powerful modern
country.
In a similar way, Russia suffered during the Allied
intervention in the Russian Civil War. The Soviet
Union's centrally controlled economy decided to
invest a big part of its resources to enhance its
industrial production and infrastructures to assure its
survival, thus becoming a world superpower.[8]
During the Cold war, the other European socialist
countries, organized under the Comecon framework,
followed the same developing scheme, albeit with a
less emphasis on heavy industry.
Southern European countries saw a moderate
industrialization during the 1950s-1970s, caused by
a healthy integration of the European economy,
though their level of development, as well as those
of eastern countries, doesn't match the western
standards.[9][10]
[edit] The Third World
Main article: Third World

A similar state-led developing programme was

pursued in virtually all the Third World countries
during the Cold War, including the socialist ones, but
especially in Sub-Saharan Africa after the
decolonization period.[citation needed] The primary scope
of those projects was to achieve self-sufficiency
through the local production of previously imported
goods, the mechanization of agriculture and the
spread of education and health care. However, all
those experiences failed bitterly due to a lack of
realism: most countries didn't have a pre-industrial
bourgeoisie able to carry on a capitalistic
development or even a stable and peaceful state.
Those aborted experiences left huge debts toward
western countries and fuelled public corruption.
[edit] Petrol producing countries

Oil-rich countries saw similar failures in their

economic choices. An EIA report stated that OPEC
member nations were projected to earn a net
amount of $1.251 trillion in 2008 from their oil
exports.[11] Because oil is both important and
expensive, regions that had big reserves of oil had
huge liquidity incomes. However, this was rarely
followed by economic development. Experience
shows that local elites were unable to re-invest the
petrodollars obtained through oil export, and
currency is wasted in luxury goods.[12]
This is particularly evident in the Persian Gulf states,
where the per capita income is comparable to those
of western nations, but where no industrialization
has started. Apart from two little countries (Bahrain
and the United Arab Emirates), Arab states have not
diversified their economies, and no replacement for
the upcoming end of oil reserves is envisaged.[13]
[edit] Industrialization in Asia

Apart from Japan, where industrialization began in

the late 19th century, a different pattern of
industrialization followed in East Asia. One of the
fastest rates of industrialization occurred in the late
20th century across four countries known as the
Asian tigers thanks to the existence of stable
governments and well structured societies, strategic
locations, heavy foreign investments, a low cost
skilled and motivated workforce, a competitive
exchange rate, and low custom duties.
In the case of South Korea, the largest of the four
Asian tigers, a very fast paced industrialization took
place as it quickly moved away from the
manufacturing of value added goods in the 1950s
and 60s into the more advanced steel, shipbuilding
and automobile industry in the 1970s and 80s,
focusing on the high-tech and service industry in the
1990s and 2000s. As a result, South Korea became
a major economic power and today is one of the
wealthiest countries in Asia.
This starting model was afterwards successfully
copied in other larger Eastern and Southern Asian
countries, including communist ones. The success
of this phenomenon led to a huge wave of offshoring
– i.e., Western factories or Tertiary Sector
corporations choosing to move their activities to
countries where the workforce was less expensive
and less collectively organized.
China and India, while roughly following this
development pattern, made adaptations in line with
their own histories and cultures, their major size and
importance in the world, and the geo-political
ambitions of their governments (etc.).
Currently, China's government is actively investing in
expanding its own infrastructures and securing the
required energy and raw materials supply channels,
is supporting its exports by financing the United
States balance payment deficit through the purchase
of US treasury bonds, and is strengthening its
military in order to endorse a major geopolitical role.
Meanwhile, India's government is investing in
specific vanguard economic sectors such as
bioengineering, nuclear technology, pharmaceutics,
informatics, and technologically-oriented higher
education, openly overpassing its needs, with the
goal of creating several specialization poles able to
conquer foreign markets.
Both Chinese and Indian corporations have also
started to make huge investments in Third World
countries, making them significant players in today's
world economy.
[edit] Newly industrialized countries
Main article: Newly industrialized country

The countries in green are considered to be newly

industrializing nations. China and India (in dark
green) are a special case.

In recent decades, a few countries in Latin America,

Asia, and Africa, such as Turkey, South Africa,
Malaysia, Philippines and Mexico have experienced
substantial industrial growth, fuelled by exportations
going to countries that have bigger economies: the
United States, Japan, China, India and the EU. They
are sometimes called newly-industrialized countries.
[citation needed]

Despite this trend being artificially influenced by the

oil price increases since 2003, the phenomenon is
not entirely new nor totally speculative (for instance
see: Maquiladora). Most analysts conclude that in
the next few decades the whole world will
experience industrialization, and international
inequality will be replaced with worldwide social
inequality.
Other outcomes
[edit] Urbanization
Main article: Urbanization

The concentration of labor into factories has brought

about the rise of large towns to serve and house the
working population.
[edit] Exploitation
Main articles: Exploitation and Exploitation of natural
resources
Workers have to leave their family in order to come
to work in the towns and cities where the industries
are found..
[edit] Change to family structure

The family structure changes with industrialization.

The sociologist Talcott Parsons noted that in pre-
industrial societies there is an extended family
structure spanning many generations who probably
remained in the same location for generations. In
industrialized societies the nuclear family, consisting
of only of parents and their growing children,
predominates. Families and children reaching
adulthood are more mobile and tend to relocate
to where jobs exist. Extended family bonds become
more tenuous. [14]
[edit] Environment

Industrialization has spawned its own health

problems. Modern stressors include noise, air, water
pollution, poor nutrition, dangerous machinery,
impersonal work, isolation, poverty, homelessness,
and substance abuse. Health problems in industrial
nations are as much caused by economic, social,
political, and cultural factors as by pathogens.
Industrialization has become a major medical issue
world wide.[citation needed]
current situation
cIn 2005, the USA was the largest producer of
industrial output followed by Japan and China,
according to International Monetary Fund.[citation needed]
Currently the "international development community"
(World Bank, OECD, many United Nations
departments, and some other organizations)[citation
needed]
endorses development policies like water
purification or primary education.[citation needed] The
community does not recognize traditional
industrialization policies as being adequate to the
Third World or beneficial in the longer term, with the
perception that it could only create inefficient local
industries unable to compete in a free-trade
dominated world.

Manufacturing
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Assembly of Section 41 of a Boeing 787 Dreamliner.

Manufacturing is the use of machines, tools and

labor to produce goods for use or sale. The term
may refer to a range of human activity, from
handicraft to high tech, but is most commonly
applied to industrial production, in which raw
materials are transformed into finished goods on a
large scale. Such finished goods may be used for
manufacturing other, more complex products, such
as aircraft, household appliances or automobiles, or
sold to wholesalers, who in turn sell them to
retailers, who then sell them to end users – the
"consumers".
Manufacturing takes turns under all types of
economic systems. In a free market economy,
manufacturing is usually directed toward the mass
production of products for sale to consumers at a
profit. In a collectivist economy, manufacturing is
more frequently directed by the state to supply a
centrally planned economy. In free market
economies, manufacturing occurs under some
degree of government regulation.
Modern manufacturing includes all intermediate
processes required for the production and
integration of a product's components. Some
industries, such as semiconductor and steel
manufacturers use the term fabrication instead.
The manufacturing sector is closely connected with
engineering and industrial design. Examples of
major manufacturers in the North America include
General Motors Corporation, General Electric, and
Pfizer. Examples in Europe include Volkswagen
Group, Siemens, and Michelin. Examples in Asia
include Toyota, Samsung, and Bridgestone.
History and development
 In its earliest form, manufacturing was usually
carried out by a single skilled artisan with
assistants. Training was by apprenticeship. In
much of the pre-industrial world the guild system
protected the privileges and trade secrets of
urban artisans.
 Before the Industrial Revolution, most
manufacturing occurred in rural areas, where
household-based manufacturing served as a
supplemental subsistence strategy to agriculture
(and continues to do so in places).
Entrepreneurs organized a number of
manufacturing households into a single
enterprise through the putting-out system.
 Toil manufacturing is an arrangement whereby a
first firm with specialized equipment processes
 raw materials or semi-finished goods for a
second firm.
[edit] Manufacturing systems: The changing
methods of manufacturing

 Craft or Guild system

 Putting-out system
 English system of manufacturing
 American system of manufacturing
 Soviet collectivism in manufacturing
 Mass production
 Just In Time manufacturing
 Lean manufacturing
 Flexible manufacturing
 Mass customization
 Agile manufacturing
 Rapid manufacturing
 Prefabrication
 Packaging and labeling
 Ownership
 Fabrication
 Publication
[edit] Economics of manufacturing
According to some economists, manufacturing is a
wealth-producing sector of an economy, whereas a
service sector tends to be wealth-consuming.[1][2]
Emerging technologies have provided some new
growth in advanced manufacturing employment
opportunities in the Manufacturing Belt in the United
States. Manufacturing provides important material
support for national infrastructure and for national
defense.
On the other hand, most manufacturing may involve
significant social and environmental costs. The
clean-up costs of hazardous waste, for example,
may outweigh the benefits of a product that creates
it. Hazardous materials may expose workers to
health risks. Developed countries regulate
manufacturing activity with labor laws and
environmental laws. In the U.S, manufacturers are
subject to regulations by the Occupational Safety
and Health Administration and the United States
Environmental Protection Agency. In Europe,
pollution taxes to offset environmental costs are
another form of regulation on manufacturing activity.
Labor Unions and craft guilds have played a historic
role negotiation of worker rights and wages.
Environment laws and labor protections that are
available in developed nations may not be available
in the third world. Tort law and product liability
impose additional costs on manufacturing.
Manufacturing requires huge amounts of fossil fuels.
The construction of a single car in the United States
requires, on average, at least 20 barrels of oil.[3]
[edit] Manufacturing and investment around the
world
Surveys and analyses of trends and issues in
manufacturing and investment around the world
focus on such things as:
 the nature and sources of the considerable
variations that occur cross-nationally in levels of
manufacturing and wider industrial-economic
growth;
 competitiveness; and
 attractiveness to foreign direct investors.
In addition to general overviews, researchers have
examined the features and factors affecting
particular key aspects of manufacturing
development. They have compared production and
investment in a range of Western and non-Western
countries and presented case studies of growth and
performance in important individual industries and
market-economic sectors.[4][5]
On June 26, 2009, Jeff Immelt, the CEO of General
Electric, called for the United States to increase its
manufacturing base employment to 20% of the
workforce, commenting that the U.S. has outsourced
too much in some areas and can no longer rely on
the financial sector and consumer spending to drive
demand.[6] A total of 3.2 million – one in six U.S.
manufacturing jobs – have disappeared between
2000 and 2007.[7]
[edit] Taxonomy of manufacturing processes
 Taxonomy of manufacturing processes
 Manufacturing Process Management
[edit] Manufacturing categories
 Chemical industry
o Pharmaceutical
 Construction
 Electronics
o Semiconductor
 Engineering
o Biotechnology
o Emerging technologies
o Nanotechnology
o Synthetic biology, Bioengineering
 Energy industry
 Food and Beverage
o Agribusiness
o Brewing industry
o Food processing
 Industrial design
o Interchangeable parts
 Metalworking
o Smith
o Machinist
o Machine tools
o Cutting tools (metalworking)
o Free machining
o Tool and die maker
o Global steel industry trends
o Steel production
 Metalcasting
 Plastics
 Telecommunications
 Textile manufacturing
o Clothing industry
o Sailmaker
o Tentmaking
 Transportation
o Aerospace manufacturing
o Automotive industry
o Bus manufacturing
 o Tire manufacturing
[edit] Theories
 Taylorism
 Fordism
 Scientific management
[edit] Control
 Management
o List of management topics
o Total Quality Management
 Quality control
o Six Sigma