Andrew Carnegie (1835-1919) was an industrialist, philanthropist, and a key contributor to the rise of America’s steel industry during the Gilded Age. 

In 1848, Carnegie’s family emigrated from Scotland, arriving in a small town in Pennsylvania. At a young age, Carnegie began working as a messenger boy, delivering telegrams. This eventually turned into a job at the Pennsylvania Railroad Company, where he learned many of the skills he would later need in steel manufacturing. 

Towards the end of the Civil War, Carnegie left the railroad business to invest in a business venture involving the production of iron and steel. At first, the business helped in the production of wartime necessities for the Union Army. After the war ended, business continued to thrive and Carnegie never looked back.

From 1885-1900, Carnegie was at the peak of his industrial might, dominating the steel industry with the largest privately-owned network of steel plants. During this time, Carnegie made two extremely significant contributions to American industry. 

First, Carnegie applied the economic concept of vertical integration to his supply chain, enabling him to more efficiently produce steel by intertwining different elements of the production process including transportation, manufacturing, and the collection of raw resources. His second contribution involved his adoption of the Bessemer Process, a key part of establishing his competitive advantage over other producers. The process resulted in the creation of a steel at lower cost that was perfect for rails. 

In 1901, Carnegie decided to retire and his steel holdings were bought out by J.P. Morgan to form the U.S. Steel Corporation. According to Wikipedia, the deal is still the largest industrial takeover in US history. 

From 1890 to his death in 1919, Carnegie acted as a scholar and philanthropist. He is best known for his article, The Gospel of Wealth (1899) in which he argues that the best way to combat income inequality is for the wealthy few to voluntarily give back as opposed to passing it down within the family lineage. By the time of his death, Carnegie had given away almost 90% of his fortune to various foundations, libraries, educators, and research centers.

Sources:

Wikipedia entry

Carnegie’s Story