A Brief History of Manufacturing in Pennsylvania
When it comes to innovation and manufacturing, Pennsylvania has been a major contributor to the nation’s success and prosperity. This article will explore a few of the many industries and historical events that helped shape Pennsylvania’s modern manufacturing landscape.
Colonial Beginnings (1600s – 1700s)
When the settlers planted roots in Pennsylvania, their immediate focus was on developing the agrarian economy. A sustainable food supply was critical to building a new nation. Frustrated by high prices of imported goods, settlers quickly started small scale manufacturing operations to produce household goods, tools, hunting gear, and textiles. These workshops allowed settlers to produce goods with the resources available to them, trade with neighboring communities, and allow for specialization and craftsmanship. In addition, Pennsylvania’s abundance of rich natural resources, including iron ore and timber, set the stage for Pennsylvania’s industrial future. In 1720, Pennsylvania’s first cold blast furnace, the Colebrookdale Furnace in Berks County, helped ignite Pennsylvania’s iron and steel industries.
Industrial Revolution (1800s)
During the 19th Century, the discovery of anthracite in Northeastern Pennsylvania fueled a massive expansion in manufacturing capabilities. Pennsylvania became a national leader in coal production, providing fuel for both local and national industries. By the mid-1800s, Pennsylvania also emerged as a global leader in the production of steel. Andrew Carnegie’s steel empire in Western PA and Bethlehem Steel in Eastern PA are often synonymous with Pennsylvania industrialization. In addition, Philadelphia and Harrisburg had grown as leaders in textile manufacturing, and both Allentown and Pittsburgh became leaders in glass manufacturing.
Golden Age of Manufacturing (Late 1800s – Early 1900s)
Pennsylvania capitalized on these early industrial developments and was considered a powerhouse of industrial production in the United States throughout the late 1800s. Pennsylvania refined its manufacturing processes, expanded into new industries, and remained a leading manufacturer of coal, steel, railroads, shipbuilding, and textiles. This rapid growth attracted millions of immigrants from Eastern and Southern Europe to work in factories, mines, and mills. The labor force of this era contributed to Pennsylvania’s ethnic and cultural diversity, which remains today.
World Wars, Post-War Boom, and Decline (Mid-to-Late 1900s)
As the United States came together to support the oversees efforts of World Wars I and II, Pennsylvania’s manufacturing infrastructure played a pivotal role in supporting the U.S. and Allied war efforts. Pennsylvania industries were essential in producing ships, tanks (like the Stuart Tank in Berwick, PA), aircraft, and artillery shells and ammunition among many other needed supplies. As men enlisted and were oversees, women were vital in maintaining the adequate production levels needed to support the wars.
After World War II, the manufacturing landscape in Pennsylvania experienced substantial changes driven by demands of a peacetime economy and global competition. The steel and textile industries faced monumental challenges from outdated infrastructure, foreign competition, and significantly decreased demand. The coal industry faced challenges from alternative fuels (oil, natural gas, and nuclear) and environmental concerns, and the American consumer began to shift their buying habits. Seeking lower production costs, many manufacturers relocated facilities outside of traditional urban centers like Philadelphia and Pittsburgh, as employees now had access to private transportation. With increased global competition, many manufacturers also began investing in new technologies and automation that would increase productivity and profitability, but resulted in the displacement of many traditional manufacturing jobs throughout the state.
Modern Manufacturing (1990s – Present)
The changing landscape of the post-war decline in manufacturing helped fuel Pennsylvania’s manufacturing Renaissance, resulting from high level investments in advanced manufacturing technologies, including robotics, automation, artificial intelligence and increased use of data. Pennsylvania’s current leading manufacturing industries include food and beverage production, chemicals and specialty plastics, wood and paper products, pharmaceuticals and medical devices, and heavy machinery and equipment. These are vastly different industries than those that built the historical manufacturing foundation in Pennsylvania. Pennsylvania industries are adapting over time, and the investments being made today will ensure that Pennsylvania’s manufacturing industries will produce great things for generations to come.
Please reach out to a member of our Manufacturing & Distribution team for more information on the topic outlined above. For more information regarding our Manufacturing & Distribution experience, visit our Manufacturing & Distribution industry page.
About the Author
Aaron joined McKonly & Asbury in January 2019 and is currently a Principal with the firm. As a member of the firm’s Audit & Assurance Segment, he serves a variety of clients in a number of industries, including family-owned busine… Read more