The Dawn of Modern Industry: Proto-Industrialization and the Birth of a New Era

The Rise of Proto-Industry

At the beginning of the 18th century, various regions of Europe had already accumulated considerable concentrations of rural industry. In the early 1770s, a new term emerged to describe the expansion and occasional transformation of these industries: proto-industrialization. First used to refer to the linen industry in Flanders, the term was later refined and extended to encompass similar industries across time and space.

A proto-industrial economy is characterized by dispersed, usually rural, workers organized by urban entrepreneurs. These entrepreneurs provide the raw materials and sell the finished products in distant markets. The workers, in turn, must purchase at least part of their livelihoods. The term “proto-industry” and related terms generally refer primarily to consumer goods industries, especially textiles.

Characteristics of Modern Industry

One of the most obvious differences between modern and pre-industrial societies is the diminished role of agriculture in the former. Modern agriculture’s immense production allows it to feed a large non-agricultural population. Another key difference is the high proportion of the modern workforce employed in the tertiary, or services, sector.

During the period of industrialization, spanning from the beginning of the 18th century to the first half of the 20th century, the principal feature was the rise of the secondary sector. This transformation was first evident in England, often called “the first industrial nation.” Several features distinguish modern industry from its pre-modern counterpart:

  1. Extensive use of mechanical machinery
  2. Introduction of new, inanimate sources of fossil fuel energy
  3. Widespread use of synthetic substances

The most significant technological improvements involved using machinery and mechanical energy for tasks previously performed by human or animal power (e.g., wheel, pulley, lever). The 18th century saw marked growth in hydropower use in industries like grain milling, textiles, and metallurgy. However, the most important energy-related advances in early industrialization were the replacement of wood and charcoal with coal and the introduction of the steam engine in mining, manufacturing, and transport.

The Industrial Revolution: A Misnomer?

For over a century, the term “Industrial Revolution” has described the period in British history marked by the application of machinery in textile industries, the introduction of James Watt’s steam engine, and the rise of the factory system.

Prerequisites and Concomitants of the Industrial Revolution

The changes during this period were not merely industrial but also social, intellectual, commercial, financial, and even political. However, the intellectual changes were arguably the most fundamental. At the dawn of modern industry in the early 18th century, the body of scientific knowledge was too limited to be directly applied to industrial processes. It was not until the second half of the 19th century, with the rise of chemical and electrical sciences, that scientific theories provided the foundation for new processes and industries.

A notable aspect of the technical advances of the 18th and 19th centuries was the high proportion of major innovations made by ingenious, self-taught mechanical engineers and tinkerers. As the first nation to industrialize on a large scale, England also pioneered increased agricultural production. England’s rise in agricultural productivity owes much to trial-and-error experimentation with new crops and crop rotations. The most important agricultural innovation was the development of convertible husbandry, involving the alternation of crops and temporary pastures. Improved fencing and the consolidation of dispersed farm holdings were crucial for crop rotation and selective breeding. The new agricultural landscape consisted of consolidated, enclosed farms. Small farmers became owner-occupiers working with family labor, while larger farmers became capitalist tenants who rented land and hired landless farm workers. It wasn’t until the second half of the 19th century, with the introduction of farm machinery, that the absolute number of agricultural laborers began to decline. The relatively prosperous rural population provided a ready market for manufactured goods, ranging from agricultural implements to consumer products like clothing and porcelain. The commercialization of agriculture reflected a broader process of commercialization throughout the nation. By the 16th century, London had begun to function as a growth pole for the British economy, benefiting from both geographical and political advantages. Commercialization influenced the financial development and organization of the nation. The founding of the Bank of England in 1694, with its legal monopoly on joint-stock banking, had significant consequences. It opened no branches and circulated no banknotes outside London. Cash transactions were extremely inefficient, and the value of gold coins was too high for everyday transactions like paying wages. This led to the emergence of rural banking institutions. The euphoria following the Glorious Revolution spurred the creation of several joint-stock companies. After the War of Spanish Succession, similar euphoria led to a speculative financial bubble known as the South Sea Bubble, which burst in 1720. As a result, the formation of corporations without express parliamentary authorization was prohibited. Consequently, England entered its “industrial revolution” with a legal barrier against this form of business organization, forcing most industrial initiatives to remain partnerships or individual enterprises. Another important consequence of the Glorious Revolution was the parliamentary control of public finances. This allowed for capital accumulation through investment in infrastructure, especially transportation, which significantly contributed to industrialization. Britain’s vast coastline, excellent natural harbors, and abundant navigable waterways reduced the need for land transportation, which hindered trade and industrial growth on the continent. Demand for improved transport infrastructure in Britain increased rapidly. Canals and navigable rivers connected major ports with important centers of production and consumption. While extremely effective for its time, Britain’s canal and river network eventually proved insufficient to meet the growing demand for internal transport.

Technology and Industrial Innovation

The rapid mechanization of the cotton industry in the last two decades of the 18th century saw several key innovations, including the process for smelting iron ore and the invention of the atmospheric steam engine. By the end of the century, iron production had increased significantly, and Britain had become the largest exporter of iron products, using steam power in the mining industry for the first time. In 1774, commercial production of steam-powered textile machinery began. Textile manufacturing, particularly wool, had gained prominence in Britain during the pre-industrial era, largely due to the putting-out system. The water-powered spinning frame was of great importance. New spinning machines reversed the demand pressure between spinning and weaving, leading to a search for mechanical weaving solutions. Innovations in spinning and weaving were among the most important in the cotton industry. Another representative industry was ceramics manufacturing. The chemical industry also experienced significant expansion and diversification, driven by advances in chemical science. The coal industry, whose growth had been stimulated by the scarcity of wood fuel (which, in turn, led to the invention of the steam engine), remained a labor-intensive industry. Coal mines were also responsible for the first railways in Britain. The steam locomotive was the product of a complex evolutionary process with many antecedents.

Social Aspects of Early Industrialization

The population increased rapidly during the early stages of industrialization. A closer analysis reveals that population growth began in the 1740s after stagnating in the first half of the century, accelerating in the 1780s. Britain participated fully in, and possibly led, the third logistical revolution in Europe. That population growth was not solely related to industrialization is evident from its prevalence throughout Europe. The contrasting fates of Britain and Ireland in the mid-19th century suggest that industrialization was a factor in sustained population growth. The birth rate may have risen due to a decrease in delayed marriages, as the growth of industries and manufacturing workshops allowed young couples to establish homes without waiting to inherit a farm or complete an apprenticeship. Migration and emigration also affected the total population. Internal migration, which dramatically shifted the geographical distribution of the population from rural areas to expanding industrial centers, was more important for economic growth. This resulted in two changes: a shift in population density and increased urbanization. However, not all growing cities benefited. Many housed large numbers of dilapidated homes, lacked sanitation facilities, and suffered from refuse accumulating in the streets.