American Entrepreneurship since 1900 Assignment: Economic Influencers between 1900 and 1929 - Henry Ford

            Henry Ford is a well-known entrepreneur that fundamentally changed the manufacturing of automobiles and, by doing so, made them affordable and more accessible for most people. His innovations would directly impact the growth and culture of the United States. Ford’s early business practices were supportive to the employees as he offered high wages, shorter working days, and additional provisions like education, English classes, jobs for ex-convicts, and hiring women at the same wages as men.

            The Ford Motor Company is proud of their history and has taken specific interest in curating their story for anybody to explore. Much of their information online also points to primary sources of documents and photographs. Moving beyond the company website, multiple biographies have been written, articles published, programs produced, and podcasts released on the work of Henry Ford. Diving into primary sources like newspapers and magazines printed when Ford was making these groundbreaking changes provides a feel for the opinions of people during that time. Evaluating government labor and manufacturing statistics highlights the truth behind information that was provided from secondary sources.

            Henry Ford had an interest in machines and as a young man worked as an engineer for the Edison Illuminating Company. Even with a demanding work schedule, a wife, and a young child, Ford spent his little free time building a gas-powered horseless carriage. After selling it, he got investors and created the Detroit Automobile Company in 1899. Disagreements caused him to leave after a few years and he later founded the Ford Motor Company in 1903.

            The first automobile, the Model A, was produced shortly after the company was founded. However, the work was slow and all the parts came from other companies. Innovation continued with newer and improved models over the years. When the Model T was released in 1908, it was marketed for the middle class and the success overloaded production. It took just over twelve hours to produce one Model T. Even with the hefty price tag of $850, the public wanted them, but new orders had to be suspended so the company could catch up. Ford wanted to lower the cost to appeal to even more people, but also needed to increase productivity. He was running into a manufacturing bottleneck and he needed a solution.

            Assembly lines were not a novel idea as other industries had already been implementing them for ages. Ford was inspired by meat-packing plants in Chicago and Cincinnati so he created a moving assembly line for the Highland Park, Michigan plant in 1913. Initial testing was good, and the technique was implemented for the Model T production. The automobile could now be churned out in about an hour and a half. In 1914, the price of the Model T was lowered to $490 and would continue to drop to $260 in 1924. Sales skyrocketed! Ford’s innovation of automobile manufacturing with a moving assembly line increased efficiency and productivity. However, Ford did not have all the money go into his own pocket.

            Life on the assembly line was not glamorous. It was repetitive, monotonous, and required little skill. At the time, workers earned $2.34 for a nine-hour workday. Turnover was high. Ford wanted to change this, so in January 1914, a five-dollar a day wage was announced – and each workday was only eight hours. This development generated a number of results. Ford could now successfully run three shifts a day, keeping production going constantly. There were more people clamoring for the jobs and less turnover. With the higher pay, employees moved up into the middle class and had the finances available to spend which helped boost the economy. These employees would also help boost the sales of the Model T, which they could finally afford. The change in wages is reflected in the census of manufactures as in 1914, 1919 and 1923, factory employees for “Transportation, air, land, and water” earned the highest compared to all other industries. Another added benefit was that women who were employed at the company also received the same five-dollar a day wage, though most of those positions were not on the assembly line at first.

            The moving assembly line was soon being implemented in other automobile manufacturing plants such as at Buick, Studebaker, and Hudson. Although their vehicles were not as popular as the Model T, the lower cost of production made the cars more affordable. As more people owned automobiles, the way people travelled and connected within the United States began to change. The development of the suburbs would result as people could live further from cities. As more people began to drive for travel, the growth of roadside businesses such as motels and gas stations at various distances were built up. Infrastructure of the country was being altered to accommodate the vehicles by having more paved roads that then created highway networks which would lead to the interstate system in place today. All of the vehicles and drivers generated necessary traffic control for safety, which produced even more inventions and innovations and laws. The necessity to increase productivity at the Ford Motor Company would be a catalyst that leads to massive development and progress in the United States.

Sources

Bonville, Frank. What Henry Ford is Doing. Detroit. 1917. https://www.loc.gov/item/ca18000226/.

Ford Motor Company. “Articles.” https://corporate.ford.com/articles.html

History.com. “Henry Ford.” Last updated February 27, 2025. https://www.history.com/articles/henry-ford

Library of Congress. “Ford Implements the Moving Assembly Line.” https://guides.loc.gov/this-month-in-business-history/October/Ford Date accessed July 16, 2025.

PBS. “The Life of Henry Ford.” American Experience. https://www.pbs.org/wgbh/americanexperience/features/henryford/ Date accessed July 16, 2025.

The Henry Ford. “Crowd of Applicants outside Highland Park Plant after Five Dollar Day Announcement, January 1914.” https://www.thehenryford.org/collections-and-research/digital-collections/artifact/35765/ Date accessed July 16, 2025.

United States 69^th Congress, 1^st Session, Senate Document No. 126. “National Wealth and Income.” 1926. https://hdl.handle.net/2027/mdp.39015022383221

Weber, Austin. “Assembly Then & Now: The Man Behind the Moving Assembly Line.” Assembly. February 1, 2003. https://www.assemblymag.com/articles/82847-assembly-then-now-the-man-behind-the-moving-assembly-line