Andrew Carnegie And The Transformation Of The Steel Industry

1919 Words Dec 17th, 2014 8 Pages
American Economic Development
Andrew Carnegie and the Transformation of the Steel Industry
November 2014

Before Andrew Carnegie’s influence in the steel industry, steel was as an expensive product. It was used for tools and weapons, all large scale metal operations were created with cast iron. The Bessemer process was the cheap way to produce steel. The process enabled the mass production of steel for industrial types of usage. Essentially the process breaks down impurities in the iron by way of open furnace extraction. This oxidizes the steel while it is run through molten metal. Steel has been common in production since the Bessemer process was discovered and perfected in the late 1850s. Andrew Carnegie made his fortune in the steel industry. He was one of the first to practice the vertical integration management technique which drastically reduced his costs of production. Along with the vertical integration his honing of the Bessemer process created somewhat of a monopoly in the area. I say this because Edgar Thompson Steel Works provided permits for Carnegie to purchase a number of nearby steel mills. The steel industry in the United States changed drastically from the early 1800s to 1900s; the man responsible for the mass production was Andrew Carnegie. Carnegie is one of the wealthiest men to live on this earth; much of that wealth came from Carnegie Steel Company, later U.S. Steel.
Prior to the application of the Bessemer process, Britain had no way of reducing…

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