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In this World Development Report 2025 seminar series, Colleen Dunlavy (Professor Emerita of History, University of Wisconsin-Madison) discusses "Standard Sizes: The Government's Role in Diffusing Mass Production Techniques in the U.S., 1917–1960s" with chair Xavier Giné, Director, World Development Report 2025.
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00:00 Hello,

00:00 everyone,

00:00 and welcome to the,

00:02 I think

00:02 it's the 3rd,

00:03 3rd,

00:04 uh,

00:04 seminar of the

00:06 World Development Report 2025 seminar series.

00:09 I'm,

00:09 I'm Chavi Ginne,

00:10 uh,

00:11 the director of this year's WDR which

00:12 is entitled Leveraging Standards for Development.

00:16 So as preparation for the report,

00:17 we've commissioned a series of background papers

00:20 uh on various topics around standardization.

00:23 And so this seminar series allows the authors of the,

00:26 of the papers to present,

00:27 to present their work.

00:28 So,

00:29 we're,

00:29 we're delighted to have uh Professor

00:32 Colleen Dunavy.

00:33 She's a,

00:34 she's a professor,

00:35 emeritus professor of History

00:37 at the University of Wisconsin.

00:39 Um,

00:40 so,

00:41 you have,

00:42 Professor,

00:42 you have around

00:44 40,

00:44 45 minutes.

00:46 And we'll have,

00:48 then,

00:49 we'll postpone all questions uh till,

00:52 till the end.

00:53 OK?

00:53 Uh,

00:54 and so we'll be,

00:55 you know,

00:56 since this is online,

00:57 we'll be monitoring,

00:58 uh,

00:59 you know,

00:59 raise your hand and,

01:00 and,

01:00 uh,

01:01 and,

01:01 you know,

01:01 we'll call you

01:02 as,

01:03 as the,

01:03 as the questions arise.

01:05 Um,

01:06 so,

01:06 uh,

01:07 again,

01:07 thank you so much,

01:08 uh,

01:08 and,

01:09 and professor,

01:09 the,

01:10 the floor is yours.

01:12 OK,

01:12 thank you.

01:13 I'm gonna uh

01:16 Share my

01:20 PowerPoint.

01:31 You can see that

01:34 Yeah,

01:34 perfect.

01:35 OK,

01:36 good,

01:36 cause I don't get,

01:37 uh,

01:37 I don't have a little image

01:39 to tell me what you're seeing,

01:40 so,

01:41 uh,

01:41 all I'm seeing is what I'm seeing.

01:43 Um,

01:44 anyway,

01:44 thank you so much,

01:45 uh,

01:45 for the invitation to

01:47 participate,

01:48 um,

01:49 and to to write a background paper,

01:51 uh,

01:52 for the World Development report and to participate in the seminar.

01:55 I'm very,

01:56 uh,

01:56 happy to be here,

01:58 um.

01:59 I,

02:00 uh,

02:00 will,

02:01 uh,

02:01 give you a little bit of warning in advance that I,

02:04 like many people in Washington DC,

02:07 uh,

02:07 have been fighting a terrible,

02:09 uh,

02:09 battle with seasonal allergies.

02:11 And so,

02:12 um,

02:13 I have my cough drops at hand and a glass of water,

02:15 and I think I'll be fine,

02:16 but

02:17 don't be surprised if I have to take a little break along the way somewhere.

02:22 Anyway,

02:22 uh,

02:23 so I'm,

02:24 uh,

02:25 here to,

02:25 um,

02:26 talk about the background paper that I provided to the bank,

02:30 which you see here,

02:31 copy of here.

02:32 My assumption is that,

02:34 uh,

02:34 most of you have not read the paper,

02:36 um,

02:37 that,

02:37 that'll be my working assumption.

02:39 I hope you do read the paper,

02:40 which provides,

02:42 uh,

02:42 obviously more detail than I can give you today,

02:44 and,

02:45 uh,

02:45 even more details to be found in

02:47 My book,

02:48 Small,

02:48 Medium,

02:49 Large,

02:49 which provides the basis

02:51 uh for the paper that I

02:53 um wrote.

02:55 So I encourage you to,

02:56 uh,

02:57 to,

02:57 to forge ahead with that if you find this interesting.

03:01 What I wanna do today is just give you a

03:03 little bit of background about how I came to do this

03:06 research on the history of standard sizes,

03:08 and then walk you through the main arguments of the paper.

03:12 Uh,

03:13 it's basically organized chronologically.

03:15 It starts,

03:16 uh,

03:17 with a,

03:17 a

03:18 few words at least about the diversity of products,

03:22 everyday commodities that prevailed before World War One.

03:26 then phase one of the main story is,

03:29 well,

03:29 what happened during the Great War when

03:31 the officials tried to reduce product variety.

03:34 The war came to an end.

03:36 There's an interlude there that,

03:38 as you'll see in a minute,

03:39 sparked my interest in this whole thing.

03:41 Uh,

03:42 and then,

03:42 uh,

03:43 the Commerce Department stepped in in the 1920s,

03:46 and this is the,

03:47 the centerpiece of the story,

03:49 to revive the wartime program.

03:51 I'll close then with a few,

03:53 uh,

03:53 comments on the larger significance of the story.

03:57 So my background is hybrid,

03:59 uh,

04:00 I am,

04:01 I have a PhD in political science,

04:03 and in my studies,

04:05 my focus was on political economy,

04:08 uh,

04:09 history of technology,

04:10 and business history,

04:11 really kind of

04:12 equally divided between political science and history,

04:16 uh,

04:16 which was,

04:17 uh,

04:18 allowed in the,

04:19 um,

04:20 PhD program I was in,

04:21 which was

04:22 perfect for me.

04:24 Uh,

04:24 I then went on to teach business history and

04:26 the history of technology in the Department of History.

04:29 At the University of Wisconsin-Madison for 32 years,

04:33 approximately.

04:35 Um,

04:35 and the result of that is that if you put me in a room of historians,

04:39 I feel more like a political scientist.

04:41 If you put me in a room

04:43 of political scientists,

04:45 I feel more like a historian,

04:47 uh,

04:48 and I don't know what I feel like if you put me in a room of economists.

04:52 So,

04:52 um,

04:53 that's the,

04:53 the,

04:54 the disciplinary hybrid hybridity that

04:57 Uh,

04:57 identifies me.

04:58 My core interest,

05:00 uh,

05:00 throughout,

05:00 I think probably going all the way back to my undergraduate work,

05:04 is in how politics broadly conceived,

05:07 has shaped economic change.

05:10 That means economic development or non-development for that matter,

05:14 but it's the interplay between politics

05:16 and economics that has held my interest all these years.

05:20 Uh,

05:20 my earliest work was on the,

05:22 uh,

05:22 history of railroads,

05:24 uh,

05:24 19th century.

05:25 United States and Prussia,

05:27 and there my particular concern was to understand

05:30 the impact of the two different political structures in the United States

05:35 and Prussia

05:37 on

05:37 the emergence of that development of that industry.

05:41 From there,

05:42 I turned to corporations and shareholder voting rights in particular,

05:47 uh,

05:48 and I'm actually now currently writing a history of the corporation.

05:52 Uh,

05:53 for Polity Press.

05:54 This research on standard sizes represented a detour of sorts.

05:59 Um,

06:01 not,

06:03 let me say that the history of business

06:05 and history of technology both

06:07 focused on and for,

06:09 for a long time centered on the history of mass production.

06:13 So

06:13 mass production itself didn't represent a detour,

06:16 but this particular research did.

06:18 What got it started was a paragraph I read in a journal article.

06:22 Uh,

06:23 a,

06:23 a primary published source appeared in 1928.

06:27 I remember very distinctly

06:29 sitting in my little basement workspace

06:32 in

06:32 Madison,

06:33 Wisconsin,

06:34 when I read this,

06:35 this paragraph.

06:37 And it took me by surprise,

06:38 it startled me,

06:40 uh,

06:40 and here's the paragraph.

06:42 It says the 5 years immediately following the World War

06:45 were marked by a tendency on the part of industry

06:49 to return to

06:50 the old uneconomic conditions of over diversity.

06:55 Many products which had been simplified by the

06:57 Conservation division of the War Industries Board,

07:00 were again offered in a bewildering variety of sizes,

07:04 types,

07:04 and shapes.

07:06 Uh,

07:07 what

07:08 Surprised me here was not the reference to

07:10 the conservation division during the war Industries Board.

07:13 Two of my undergraduates had done research papers

07:17 on medical instruments and agricultural instruments,

07:20 and the

07:21 conservation division worked

07:23 to

07:24 push manufacturers of those products towards mass production during the war.

07:28 That wasn't surprising.

07:30 What was surprising to me was the reversal.

07:32 Uh,

07:33 the,

07:34 the,

07:35 the having manufacturers having learned how to mass produce during the war,

07:38 then stopped doing it,

07:39 then went back to

07:41 offering,

07:42 uh,

07:42 what the,

07:43 what the

07:44 writer here condemned as a bewildering variety of sizes,

07:48 types,

07:48 and shapes,

07:48 and I thought,

07:50 oh,

07:50 that's weird,

07:51 uh,

07:52 how,

07:52 what,

07:52 what's that about?

07:53 And so that took me down a rabbit hole then.

07:56 That eventually produced this

07:58 um

07:59 uh

08:00 book on the history of standard sizes.

08:04 Let me begin by just clarifying what the term standard sizes refers to.

08:09 It refers to standards

08:11 relating to size or style,

08:13 obviously,

08:14 that are adhered to collectively by competing firms.

08:18 Uh,

08:18 and those two,

08:19 those two words are key.

08:21 They're collective standards,

08:23 so industry-wide

08:25 standards,

08:26 and

08:27 they are adhered to by competing firms.

08:32 In other words,

08:33 firms that all

08:34 make

08:35 the same products

08:36 have agreed to just make this

08:39 small set of of

08:40 sizes.

08:42 Uh,

08:42 these are so taken for granted today that we often,

08:45 we don't even think about them,

08:46 but if you think for a moment

08:48 about bed sizes in the United States,

08:51 there are 4,

08:54 Four main bed sizes,

08:56 twin,

08:56 full,

08:57 queen,

08:57 and king.

08:59 Uh for those of us of a certain age,

09:02 uh we know that the twin extra long and the California king are newcomers.

09:06 They were introduced in the 60s.

09:09 Uh,

09:09 but these are standard bed sizes.

09:10 You go to the store today,

09:11 you don't,

09:12 you,

09:12 you decide in advance what size you can get,

09:15 and then you look for

09:16 that size.

09:18 Uh,

09:18 and this is true of electrical outlets,

09:20 toilet paper rolls,

09:21 uh,

09:22 a,

09:22 a host of other products.

09:25 Uh,

09:25 you bring home a lamp from the lighting store,

09:27 and you know,

09:28 as long as you stay in the United States,

09:30 it'll fit in the outlet on your wall.

09:33 Toilet paper will fit in the toilet paper holder,

09:36 printer paper will fit in your,

09:39 uh,

09:39 letter letter-sized printer paper will fit in your letter-sized folder,

09:43 etc.

09:43 etc.

09:44 They're just part of the modern landscape of consumption.

09:48 Uh,

09:48 but the question then is,

09:49 in particular because they're collective standards adopted by competing,

09:54 otherwise competing firms,

09:56 the question

09:57 I wanted to,

09:58 to,

09:58 I wanted an answer to was how did they get established?

10:02 And not only established,

10:03 but

10:04 when they were established,

10:05 how did it come about so quickly?

10:08 Um,

10:09 in 1921,

10:10 it is fair to say there were no standard sizes,

10:14 no nationwide,

10:15 um,

10:16 standard sizes.

10:18 But,

10:19 uh,

10:20 in 1922,

10:22 the standard bed sizes were adopted,

10:24 for example,

10:25 the four standard bed sizes.

10:27 Uh,

10:28 by a nationwide agreement in 1922.

10:30 By 1930,

10:32 90% of the

10:34 bed manufacturing was uh

10:37 conformed to these four,

10:39 standard sizes.

10:41 And by then,

10:42 1930,

10:44 uh,

10:44 standard sizes had been established for more than

10:47 100 everyday commodities.

10:50 And here I'm going to

10:51 quietly

10:53 Prevent my throat from scratching.

10:57 So,

10:58 um,

10:58 what I,

10:59 uh,

10:59 argue in brief,

11:00 in the,

11:01 in the paper and in the book

11:03 is that

11:06 The diffusion of mass production techniques

11:09 was not a natural process of learning and emulation.

11:14 This is the way that it's done.

11:17 That it is,

11:17 I'm gonna

11:19 talk more quietly.

11:20 I'm sorry,

11:21 my throat is

11:22 not liking this.

11:23 I'm gonna talk more quietly,

11:24 so let me know if I'm

11:26 speaking too quietly.

11:28 Um,

11:29 so the,

11:30 the conventional understanding in the historical literature is,

11:34 uh,

11:34 of the development of mass production techniques

11:37 over the course of the 19th century.

11:40 Culminating in

11:42 Henry Ford's automobile manufacturing process

11:46 in the early 20th century.

11:49 And then,

11:50 uh,

11:50 from there it was a process of learning.

11:52 Henry Ford was very open about his manufacturing

11:55 process.

12:00 He encouraged publicity.

12:02 And historians have assumed largely

12:05 that once manufacturers had that information,

12:08 they knew what to do and they did it.

12:11 Uh,

12:11 and this history that I've delved into here

12:14 shows to the contrary that

12:16 there was intense competition among middling manufacturers,

12:20 and that

12:21 that prevented them moving towards mass production.

12:25 Uh,

12:25 that intense competition,

12:27 uh,

12:28 produced a

12:29 a,

12:29 a,

12:29 a proliferation of product varieties.

12:32 Uh,

12:33 and the diffusion of mass production techniques,

12:35 which did ultimately happen,

12:37 in fact,

12:38 required a pushback against market forces,

12:41 against that competition.

12:43 That pushback came from the government,

12:45 uh,

12:45 and in that sense,

12:46 one can say

12:48 that the government made the

12:50 the Commerce Department,

12:51 as we'll see,

12:52 made the US into a manufacturing powerhouse.

12:56 Um,

12:57 so that's where I'm headed.

12:58 Uh,

12:59 let me start then with product diversity before the war.

13:03 Point of clarification,

13:05 uh,

13:06 there,

13:06 there is a term in the business literature called product diversification.

13:11 Uh,

13:11 this means,

13:12 um,

13:13 It generally means adding product lines,

13:17 related product lines to one business,

13:20 um,

13:21 related in this,

13:21 in,

13:22 in a technological sense,

13:23 so maybe if you,

13:25 uh,

13:26 I work in chemical processes,

13:27 you add some chemically related product lines

13:31 that you can use the same manufacturing facilities or similar facilities,

13:35 uh,

13:35 or that are related to your sales organization,

13:38 if you're equipped to handle

13:39 refrigerated or frozen products,

13:41 for example,

13:42 you may

13:43 Uh,

13:43 add other frozen or,

13:46 uh,

13:46 refrigerated product lines.

13:47 What I'm talking about here is proliferation

13:50 of product varieties within product lines.

13:54 Um,

13:55 So making slightly different products within the product line,

13:59 whether it's

14:00 uh shoes or beds or whatever,

14:02 uh,

14:03 and,

14:03 and this is crucial,

14:05 product changes that require changes in the manufacturing process.

14:10 Uh,

14:10 that means stopping

14:12 a production run,

14:13 changing the equipment to make the new slightly different product,

14:17 and then going on,

14:18 uh,

14:18 the way.

14:19 There are costs,

14:20 uh,

14:20 entailed there.

14:21 It reduces production runs,

14:22 etc.

14:23 etc.

14:24 So that's the kind of

14:25 product diversity that I'm talking about here.

14:28 Um,

14:28 there isn't a lot

14:29 of,

14:30 uh,

14:30 systematic,

14:31 there isn't much at all systematic evidence on product diversity.

14:35 Um,

14:36 before World War One,

14:38 this partly because historians haven't really paid attention to it,

14:43 um,

14:43 having been sort of enthralled to,

14:45 uh,

14:47 Mass production,

14:48 and then later to specialty manufacturers.

14:51 Um,

14:52 we do have some anecdotal evidence.

14:54 For example,

14:54 the Union Bed and Spring Company reported,

14:57 uh,

14:57 and it was a major producer of beds and springs,

15:00 reported that it was making

15:02 full width,

15:03 uh,

15:04 springs,

15:05 just full with springs,

15:07 in 62 varieties.

15:10 Uh,

15:10 41 of which it made in 2 widths,

15:13 even though these are quote unquote full width

15:15 springs,

15:16 made those in 2 widths,

15:17 and all of the varieties

15:19 it made in lengths,

15:21 which

15:22 produced a grand total of 206 varieties

15:25 of

15:26 full width springs.

15:29 Just a,

15:29 a,

15:29 a little,

15:30 um,

15:31 uh,

15:31 anecdote,

15:32 uh,

15:33 to illustrate product diversity.

15:36 Uh,

15:36 we also know that there was some

15:38 business disgruntlement with the diverse proliferation of product varieties

15:43 before the war,

15:44 and this we can see

15:46 in the efforts by trade associations

15:48 to diminish,

15:49 to reach collective agreements that would diminish.

15:53 Um,

15:53 product variety.

15:55 So for example,

15:56 um,

15:57 lengthy efforts to,

15:58 uh,

15:59 standardize screw threads,

16:01 automotive standards reached by the Society of

16:04 Automotive Engineers

16:06 were in fact

16:07 adhered to by small manufacturers,

16:09 but not,

16:09 not the large companies,

16:11 not the large auto manufacturers,

16:13 which had their own standards.

16:15 Machine tool manufacturers,

16:16 paint varnish manufacturers,

16:18 bed manufacturers,

16:20 farm implements,

16:21 lu

16:21 lumber,

16:22 paving bricks,

16:23 all of these lines of business through their trade associations,

16:26 tried

16:27 to reduce product variety before the war,

16:29 but were unsuccessful.

16:32 Um

16:33 There are a variety of sources of product diversity,

16:36 and once I kind of began to spell them all out,

16:38 I thought,

16:38 oh,

16:39 this is almost overdetermined.

16:41 Number one,

16:41 they're,

16:42 they're the specialty manufacturers whose conscious

16:45 uh

16:45 strategy,

16:46 business strategy was to specialize,

16:49 change products quickly.

16:51 These are the manufacturers that

16:53 historian Phillip Scranton has,

16:55 uh,

16:55 studied at considerable length.

16:58 They existed back in the early 20th century,

17:00 they exist,

17:01 of course,

17:02 to this day.

17:03 Uh,

17:04 second factor is hand to mouth buying.

17:07 Um,

17:07 this was,

17:08 uh,

17:08 prevalent in the early 20th century.

17:10 It basically meant

17:12 buying small quantities of goods frequently,

17:15 as opposed to,

17:17 um,

17:18 ordering seasonally,

17:19 say twice a year,

17:21 a large amount of goods.

17:23 Hand to mouth buying

17:24 became a widespread practice,

17:26 um,

17:27 in the early 20th century,

17:29 and in fact,

17:30 and thus encouraged product diversity.

17:33 Because

17:33 buyers were coming back regularly,

17:36 and manufacturers there wanted to offer them something new

17:39 in small quantities,

17:41 because that's what they were buying,

17:42 was small quantities.

17:44 A third factor is the American

17:46 political structure itself,

17:48 to the extent that there were regulations

17:50 governing,

17:51 say,

17:51 food,

17:52 uh,

17:53 electrical equipment,

17:54 building codes,

17:55 etc.

17:55 They tended to be fragmented.

17:57 Between the national,

17:59 state,

18:00 and municipal levels,

18:01 or local levels,

18:02 and so,

18:03 uh,

18:03 and those codes didn't agree,

18:05 they all had their own codes.

18:08 So that was another factor.

18:10 4th factor,

18:11 American individualism is something that uh some

18:14 um

18:16 Uh,

18:16 commentators pointed to,

18:18 uh,

18:19 seems to have been particularly rampant

18:21 where agricultural implements were concerned.

18:24 Farmers apparently had very definite ideas of what they,

18:27 uh,

18:27 needed to have in farm implements.

18:30 Uh,

18:30 it's also evident in some regional preferences,

18:33 for example,

18:34 uh,

18:36 concerning the length of the pants

18:38 in overalls.

18:40 The 4th factor,

18:41 the,

18:42 the,

18:42 the 4th factor,

18:43 uh,

18:43 5th factor,

18:44 sorry,

18:45 um,

18:46 was generally seen by observers as the root cause

18:50 of product diversity,

18:51 and that was competition,

18:53 uh,

18:53 for the

18:54 consumer's dollar.

18:56 Um,

18:58 middling manufacturers.

19:01 We're scrambling,

19:02 uh,

19:03 adhered to

19:04 a business strategy of,

19:06 of offering the consumer

19:08 whatever they wanted,

19:09 and sometimes

19:11 taking orders back to the factory that required some

19:14 changes to meet the demands of the consumer.

19:17 That was the dominant strategy,

19:19 pleasing the consumer,

19:21 or consumer sovereignty,

19:22 we could call it.

19:24 And the fear,

19:25 of course,

19:25 is if they didn't,

19:26 one of their competitors would,

19:28 and this is the way

19:29 uh a writer in the journal Industrial Management put it,

19:33 um.

19:34 This production of numerous varieties of a single commodity,

19:38 as long as

19:39 competition is the life of the trade.

19:42 One is always fearful lest the next uh

19:46 business competitor will display the latest style,

19:49 and that's why you've got this large variety.

19:53 Of products on the market.

19:55 Uh,

19:56 so that was certainly

20:00 It seems pretty clearly to have been the situation

20:03 uh on the eve of the war.

20:06 Yet,

20:06 as if you know the history of this period,

20:09 then you also know that this was an era of growing,

20:12 some could even say raging enthusiasm

20:15 for efficiency.

20:17 This is the era

20:18 of uh scientific management.

20:21 Anyway,

20:21 so,

20:22 uh,

20:22 the,

20:22 the upshot then

20:24 is that

20:25 um

20:25 manufacturers adhering

20:27 to the strategy of diversity of product diversity.

20:31 They found themselves

20:33 sort of caught

20:34 uh between a rock and a hard place.

20:36 On the eve of World War One,

20:38 then,

20:39 uh,

20:39 middling manufacturers were caught,

20:41 uh,

20:42 and in a um

20:44 Factory magazine in 1916,

20:46 before the US entered the war.

20:49 ran a uh

20:52 Uh,

20:52 an article,

20:53 in fact,

20:53 about Henry Ford with his Model T

20:56 and an adding machine company,

20:58 contrasting their styles,

20:59 one model

21:01 uh versus

21:02 In the case of the adding

21:04 machine company,

21:05 100 models offered in 600

21:08 different styles,

21:09 and concluded

21:11 it's hard to know which way the wind does blow.

21:14 Um,

21:14 so that was the situation when,

21:17 um,

21:18 the United States entered the Great War.

21:21 The war had broken out in

21:23 1914 in Europe.

21:25 The US entered in the spring of 1917.

21:28 Once that happened,

21:29 efficiency

21:31 came to the fore.

21:32 Consumer sovereignty

21:34 went by the wayside.

21:35 Uh,

21:36 the balance was tipped towards efficiency almost immediately.

21:40 Um,

21:40 the government scrambled to mobilize the economy for war over 19 months,

21:45 not knowing,

21:46 of course,

21:46 when exactly the war would end.

21:50 And the focus uh that uh I'm particularly interested in here

21:54 was on conserving civilian resources for the war effort.

21:59 So what I'm talking about here is manufacturing aimed at the civilian market,

22:03 not

22:04 military market.

22:05 There's a separate story there.

22:08 So as part of that

22:10 effort to conserve conserve civilian resources,

22:12 that meant labor,

22:14 um,

22:14 raw materials,

22:15 transportation,

22:16 etc.

22:18 Also they could be used directed towards the war effort.

22:23 Um,

22:23 the,

22:24 the

22:25 initial entity was something called the Commercial Economy Board,

22:29 created in 1917,

22:31 just before American entry into the war,

22:34 uh,

22:34 and this was succeeded,

22:35 um,

22:36 in a reorganization in the spring of 1918 by

22:39 the conservation division in the War Industries Board.

22:44 Both of these were headed by a man named Art Wilkinson Shaw.

22:49 He was a a

22:51 a marketing expert and business publisher.

22:54 With the close ties to uh

22:57 the new Harvard Business School.

23:00 He,

23:01 um,

23:01 uh,

23:03 His interest centered on distribution rather than production,

23:06 and so

23:07 when the Commercial Economy Board first got underway,

23:10 it focused on distribution.

23:13 Uh,

23:13 bread deliveries,

23:14 retail deliveries,

23:15 and the like.

23:17 And then in the reorganization of 1818,

23:20 when that became the conservation division,

23:22 uh,

23:23 Arch Wilkinson Shaw was the man who pushed,

23:26 it was his ideas,

23:27 uh,

23:28 driving this,

23:28 and he pushed forward

23:30 the process.

23:32 His strategy

23:34 began with trade associations.

23:37 There were some several 100 trade associations in the US by that time.

23:42 Uh,

23:42 and the kind of peak association was the Chamber of Commerce of the United States.

23:48 He worked with trade associations,

23:50 which appointed

23:51 uh

23:52 committees,

23:53 war service committees.

23:54 These were also

23:55 used elsewhere in the war effort.

23:57 Uh,

23:57 the US Chamber of Commerce stepped in and helped

24:00 industries organize,

24:02 if they didn't already have an association,

24:04 and appoint a committee to work with government officials.

24:08 Um,

24:08 he then held a,

24:10 a series of conferences with those committees representing their industry

24:15 and arrived at

24:17 measures that

24:18 everybody agreed would help to conserve resources during the war,

24:22 reached,

24:23 in other words,

24:24 collective agreements.

24:26 That included reductions uh on product

24:30 variety.

24:31 Um,

24:31 these were then published as conservation schedules.

24:34 They appeared in the official,

24:36 uh,

24:37 uh,

24:37 what is it called?

24:38 Official register,

24:39 Official Digest or something of the federal government.

24:42 They were published in the relevant trade journals and so on.

24:46 Um,

24:47 The goal here was simply to maximize output.

24:50 They didn't expect

24:51 uh companies to achieve Henry Ford style productivity levels.

24:56 They just wanted him to use less labor,

24:58 skilled labor,

24:59 and a minimum of materials and produce as much as possible,

25:03 uh,

25:04 as soon as possible.

25:06 That meant streamlining production and distribution,

25:09 lengthening production runs,

25:11 carrying less inventory,

25:13 reducing transportation costs,

25:15 also that those resources.

25:17 could go to the war effort.

25:19 Over time,

25:20 that came to be called,

25:21 generally called simplification.

25:25 And it was premised on reductions in variety.

25:29 Um,

25:30 that I think,

25:31 I hope that connection,

25:32 uh,

25:32 is clear.

25:34 For enforcement mechanisms,

25:36 the,

25:36 uh,

25:36 Commercial Economy Board initially relied on social sanctions,

25:41 appeals to patriotism.

25:43 Uh,

25:44 and also pledges,

25:45 public pledges.

25:47 Companies

25:48 had to pledge to adhere to the conservation

25:50 schedules and to do business only with companies

25:53 that adhered to the conservation schedules.

25:56 Uh,

25:57 then when the um

25:59 conservation division was created in the 1918

26:03 reorganization,

26:05 The War Industries Board's

26:07 priorities power

26:09 um was ramped up,

26:11 and what this did was

26:13 empowered the War Industries Board to

26:16 assign a priority level

26:19 to

26:19 uh purchase orders.

26:22 So a company wanting to purchase the raw materials that it might need,

26:26 or get transportation or fuel or whatever,

26:29 uh,

26:29 had to submit a purchase order,

26:31 which was given a priority number.

26:35 Companies that did not

26:36 adhere to the conservation schedules went to the bottom of the of the pile.

26:42 Then that meant essentially that if you

26:44 didn't adhere to the conservation schedule,

26:46 you're likely not to have the resources you needed

26:49 to keep your

26:50 uh business going during the war.

26:53 Uh,

26:55 it was a short experience,

26:56 19 months overall,

26:57 but nonetheless,

26:59 pretty effective system,

27:00 it seems

27:01 to be.

27:03 Some of the reductions achieved,

27:04 this is the table that the

27:06 US Chamber of Commerce,

27:08 which was a great

27:09 proponent of reducing varieties,

27:12 put together after the war.

27:14 It actually includes

27:16 uh fruit containers that were uh

27:19 that were um

27:21 uh reduced by Congress,

27:22 uh.

27:24 Set by Congress

27:26 And paving brick,

27:28 which was actually the first of the Commerce Department initiatives

27:32 that I'll be talking about in a minute.

27:34 But you can see there,

27:35 there's some considerable

27:37 um

27:38 Reductions,

27:39 uh,

27:39 piano stools in the middle of the chart,

27:42 piano benches and stools,

27:44 reduced pocket knives,

27:45 reduced,

27:46 uh,

27:46 a whole array of,

27:48 um,

27:48 agricultural implements.

27:51 Total implements is the total

27:54 agricultural implements included elsewhere in the table,

27:58 reduced from about 1100 to 137.

28:02 So that's um

28:04 The,

28:04 the,

28:05 an indication of the effects.

28:07 Uh,

28:08 now I'm gonna show you a list,

28:09 a partial list

28:11 of the

28:12 Affected lines of business.

28:14 This happens

28:15 uh to be alphabetical,

28:17 it was appeared in a post-war report,

28:20 um,

28:21 but it gives you a sense.

28:23 Just of the range of commodities

28:26 that were affected by uh conservation schedules during the war.

28:31 Um,

28:31 there is an interesting backstory here about the clothing industry,

28:35 which,

28:36 and the

28:37 promotion of the quote unquote,

28:39 slim silhouette as the wool conservation measure.

28:45 But I'm not gonna tell you about that.

28:47 Um,

28:48 And the editor of Shaw's Factory magazine concluded the war

28:53 left its impress everywhere.

28:56 In American manufacturing.

28:59 When the war ended,

28:59 of course,

29:00 the big question was,

29:01 would product

29:02 uh variety,

29:04 um,

29:05 uh,

29:05 proliferate again after the war.

29:09 There was widespread support in the business

29:11 community for continuing the conservation measures.

29:15 Um,

29:15 continuing these collective nationwide agreements.

29:19 Some,

29:19 a few of the better organized industries were able to hold the line,

29:23 at least in part,

29:25 for example,

29:25 paint and varnish.

29:28 But most industries succumbed.

29:30 To competitive pressures and began

29:33 uh allowing their products to proliferate again.

29:40 Um,

29:42 And in the economic turmoil after the war,

29:46 um,

29:47 competitive pressures became especially

29:49 um harsh

29:51 economic depression in 1920-192921,

29:54 consumer resistance to rising prices,

29:56 and so on,

29:57 and the result is that that companies generally reverted to their pre-war strategy

30:03 of making whatever the customer wants.

30:07 This then set the stage for Herbert Hoover,

30:11 who became

30:12 President Warren G.

30:13 Harding's

30:15 Secretary of Commerce in 1921.

30:18 He was a a a man of humble background,

30:22 a mining engineer.

30:24 A world renowned mining engineer,

30:26 in fact,

30:27 um,

30:29 An organizational wizard,

30:32 uh,

30:32 and,

30:32 uh,

30:34 a,

30:34 a,

30:34 a humanitarian,

30:36 um,

30:36 as well.

30:38 He took office in 1921 at the age of 46 and came to office

30:43 with the conviction

30:45 that the elimination of waste in the American economy

30:48 was key to achieving a higher standard of living,

30:52 and he thought the United States had to

30:54 achieve a higher standard of living,

30:56 uh,

30:56 to fend off

30:58 socialism,

30:58 communism,

30:59 and so on.

31:00 This is just a few years after

31:02 the Russian Revolution,

31:03 of course.

31:04 One of his first actions

31:06 at the Department of Commerce was to establish in the Bureau of Standards,

31:10 a division of Simplified Practice,

31:13 1921.

31:14 Uh,

31:15 and just

31:16 a,

31:16 a word about terminology.

31:19 He used the word,

31:20 they used the word simplified practice,

31:23 um,

31:24 which

31:25 is kind of interchangeable.

31:28 With simplification.

31:33 But you can see here a broad distinction between the two

31:36 simplified practice focusing on reducing product variety.

31:42 The similarities with

31:43 Shaw's project during the war were uh over

31:47 overwhelming,

31:48 I think,

31:48 remarkable certainly.

31:50 Uh,

31:51 he created a similar kind of structure.

31:55 That entailed collaboration with

31:57 uh committees of businessmen representing their trade associations,

32:02 empowered to speak for their trade associations.

32:06 The emphasis was on maximizing consensus.

32:10 So these uh collaborative projects

32:13 brought together producers,

32:15 distributors,

32:15 and consumers,

32:17 and the idea was to reach consensus

32:20 industry-wide across all of those.

32:23 Groups on

32:24 uh standard sizes.

32:27 Uh,

32:27 it was also a data-driven process,

32:30 as it had been during the war.

32:32 Very quickly,

32:33 they are,

32:33 the staff arrived at what

32:36 they call the 80/20 axiom,

32:39 and this is the idea that,

32:40 or the finding,

32:41 they're

32:42 based on their,

32:43 uh,

32:44 collections of data

32:46 that

32:47 Approximately 20% of the varieties that an industry produced

32:52 accounted for 80%

32:56 of the business.

32:58 The other 80% of varieties counted for only 20%.

33:02 And so what simplified practice was about is

33:05 uh designating those

33:07 uh

33:08 those varieties that furnished approximately 80% of business

33:13 and

33:13 designating those as standards.

33:17 The other varieties might still be available,

33:19 uh,

33:20 but they had to be special ordered,

33:22 and you could figure on paying more for them.

33:25 Um,

33:27 Out of this

33:28 came out of these uh

33:30 uh industry-wide deliberations came simplified practice recommendations.

33:36 These were published by

33:37 the

33:38 federal government.

33:38 You can see

33:40 um the United States Department of Commerce emblazoned across the top,

33:44 um.

33:46 In the middle,

33:47 this is issued not by trade associations or private sector

33:50 entities,

33:51 it's issued by the Bureau of Standards,

33:53 and down at the bottom printed by the Government Printing Office.

33:57 Uh,

33:58 if once you open the inside,

33:59 you would see that the,

34:01 the specific SPR.

34:04 Simplified practice recommendation

34:06 had been endorsed by the Secretary of Commerce

34:09 and by the Director of the Bureau of Standards.

34:12 So these came with the full force and power of the federal government behind them,

34:17 even though they were voluntary

34:19 standards.

34:21 By the mid 1920s,

34:23 they had worked out a detailed and codified process

34:27 uh

34:27 for arriving at simplified practice agreements.

34:32 Um,

34:32 this is the top portion of that graph.

34:35 Uh,

34:35 the principal avenue was,

34:38 um,

34:39 the trade association,

34:40 manufacturer,

34:41 distributor,

34:42 or consumer group,

34:43 meaning a trade association who came to the division of simplified Practice

34:48 and asked the division to help it

34:50 in organizing this collective agreement,

34:53 and the division was adamant,

34:55 and Secretary Hoover was adamant.

34:57 That the initiative had to come

35:00 from the private sector or

35:01 at best from technical

35:04 private technical associations,

35:06 but it did not come from the division

35:09 of simplified practice.

35:12 Uh,

35:12 once a request came to the division of simplified Practice,

35:15 a preliminary conference was called

35:18 to try and get a sense of whether they thought

35:20 that the industry would be receptive to something like this.

35:23 If there was agreement that it might be receptive,

35:26 then they would survey,

35:27 uh,

35:28 existing production and sales,

35:29 that was the data,

35:31 um,

35:31 component.

35:33 Out of that would come the recommendations

35:36 for standard sizes or styles,

35:38 which would then come through a general conference.

35:41 This was usually held again

35:44 uh

35:45 industry-wide

35:46 and nationwide.

35:48 And it was generally held at the Department of Commerce in Washington.

35:53 Here's the bottom half of the chart.

35:58 If the general conference accepted the recommendations,

36:01 which they almost,

36:02 but not always did,

36:05 Then those recommendations would be

36:08 publicized by the Department of Commerce industry-wide,

36:11 and when 80%

36:13 of manufacturers,

36:15 distributors,

36:15 and consumers

36:16 had accepted them,

36:18 80% by volume of production or consumption,

36:21 uh,

36:22 then they became official.

36:23 Uh,

36:24 they were

36:25 Published and distributed by the Commerce Department,

36:28 the equivalent of those World War One.

36:31 So this is the bottom of that process chart.

36:34 Um,

36:35 acceptance by 80%.

36:37 Um,

36:38 of the industry of a

36:41 conservation schedule published by the Department of

36:44 Uh,

36:45 commerce.

36:46 So it was a detailed,

36:48 uh,

36:48 well-defined process that virtually

36:51 that literally remained unchanged for decades,

36:55 um,

36:56 what some scholars have see as,

36:58 uh,

36:59 one of Hoover's,

37:00 um,

37:01 Uh,

37:01 most impressive accomplishments,

37:03 organizing industries

37:05 in this way to reach collective agreements,

37:07 uh,

37:08 among competitors.

37:11 Um

37:13 So,

37:14 uh

37:18 There are a couple of differences between

37:20 uh Hoover's and Shaw's practice that I wanna

37:23 mention just briefly.

37:25 Both of them related to the fact that

37:28 what Hoover was doing was in uh in peacetime rather than

37:32 um in wartime.

37:35 One was that this process

37:37 uh was entirely voluntary.

37:39 It had also been characterized

37:41 as voluntary

37:43 um

37:43 during the war,

37:44 but of course,

37:46 The war was the context,

37:47 and here it was in peacetime,

37:49 and so uh

37:51 uh Hoover and uh division staff were adamant

37:55 that this is entirely voluntary.

37:58 Also entirely to come from the pri the initiative

38:02 was to come from the private sector.

38:04 Um,

38:05 it also had softer enforcement powers.

38:08 It too relied

38:10 on social sanctions in the form of pledges,

38:13 which is to say that when companies accepted.

38:17 Uh,

38:17 the simplified practice recommendations,

38:20 uh,

38:20 they had to sign,

38:21 literally sign a pledge,

38:23 uh,

38:23 that they would adhere to it.

38:26 And then also

38:27 um

38:28 uh pledge to do business only

38:31 with other companies that adhere to it.

38:34 Social

38:35 enforcement.

38:39 Of course,

38:39 it didn't have the um

38:41 war industry board's

38:43 priorities power.

38:45 But what it did have was an alliance with

38:48 the Federal Specifications Board,

38:51 which was also a Hoover creation

38:53 in 1921.

38:56 The Federal Specifications Board

38:58 um

38:59 wrote specifications

39:01 that purchases

39:02 in order for the products in order to be

39:04 purchased by the federal government had to meet.

39:07 And those are often incorporated

39:10 um simplified practice recommendations.

39:13 I do wanna thank you

39:14 for,

39:15 you know,

39:15 taking time to write the book and,

39:17 and,

39:17 and,

39:18 you know,

39:18 telling us about,

39:19 about this,

39:20 uh,

39:20 this initiative.

39:21 So,

39:22 um,

39:23 thanks all for,

39:23 for the attendance.

39:24 Colleen,

39:25 do,

39:25 do get better.

39:26 Uh,

39:26 um,

39:27 uh,

39:27 Devesh,

39:27 you wanna,

39:28 you wanna say some,

39:29 some,

39:29 some,

39:30 some words?

39:32 No,

39:32 uh,

39:32 just to say,

39:33 uh,

39:34 that,

39:35 that,

39:35 that it was such a pleasure reading your book and your paper.

39:38 It's so,

39:39 so,

39:39 so clearly written,

39:40 and I wish,

39:42 I hope we can

39:43 write half,

39:44 half as clearly in the WDR

39:47 and I'm very sorry to see your health,

39:50 uh,

39:50 and we,

39:51 we hope you get better very soon.

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transcript
Hello, everyone, and welcome to the, I think it's the 3rd, 3rd, uh, seminar of the World Development Report 2025 seminar series. I'm, I'm Chavi Ginne, uh, the director of this year's WDR which is entitled Leveraging Standards for Development. So as preparation for the report, we've commissioned a series of background papers uh on various topics around standardization. And so this seminar series allows the authors of the, of the papers to present, to present their work. So, we're, we're delighted to have uh Professor Colleen Dunavy. She's a, she's a professor, emeritus professor of History at the University of Wisconsin. Um, so, you have, Professor, you have around 40, 45 minutes. And we'll have, then, we'll postpone all questions uh till, till the end. OK? Uh, and so we'll be, you know, since this is online, we'll be monitoring, uh, you know, raise your hand and, and, uh, and, you know, we'll call you as, as the, as the questions arise. Um, so, uh, again, thank you so much, uh, and, and professor, the, the floor is yours. OK, thank you. I'm gonna uh Share my PowerPoint. You can see that Yeah, perfect. OK, good, cause I don't get, uh, I don't have a little image to tell me what you're seeing, so, uh, all I'm seeing is what I'm seeing. Um, anyway, thank you so much, uh, for the invitation to participate, um, and to to write a background paper, uh, for the World Development report and to participate in the seminar. I'm very, uh, happy to be here, um. I, uh, will, uh, give you a little bit of warning in advance that I, like many people in Washington DC, uh, have been fighting a terrible, uh, battle with seasonal allergies. And so, um, I have my cough drops at hand and a glass of water, and I think I'll be fine, but don't be surprised if I have to take a little break along the way somewhere. Anyway, uh, so I'm, uh, here to, um, talk about the background paper that I provided to the bank, which you see here, copy of here. My assumption is that, uh, most of you have not read the paper, um, that, that'll be my working assumption. I hope you do read the paper, which provides, uh, obviously more detail than I can give you today, and, uh, even more details to be found in My book, Small, Medium, Large, which provides the basis uh for the paper that I um wrote. So I encourage you to, uh, to, to forge ahead with that if you find this interesting. What I wanna do today is just give you a little bit of background about how I came to do this research on the history of standard sizes, and then walk you through the main arguments of the paper. Uh, it's basically organized chronologically. It starts, uh, with a, a few words at least about the diversity of products, everyday commodities that prevailed before World War One. then phase one of the main story is, well, what happened during the Great War when the officials tried to reduce product variety. The war came to an end. There's an interlude there that, as you'll see in a minute, sparked my interest in this whole thing. Uh, and then, uh, the Commerce Department stepped in in the 1920s, and this is the, the centerpiece of the story, to revive the wartime program. I'll close then with a few, uh, comments on the larger significance of the story. So my background is hybrid, uh, I am, I have a PhD in political science, and in my studies, my focus was on political economy, uh, history of technology, and business history, really kind of equally divided between political science and history, uh, which was, uh, allowed in the, um, PhD program I was in, which was perfect for me. Uh, I then went on to teach business history and the history of technology in the Department of History. At the University of Wisconsin-Madison for 32 years, approximately. Um, and the result of that is that if you put me in a room of historians, I feel more like a political scientist. If you put me in a room of political scientists, I feel more like a historian, uh, and I don't know what I feel like if you put me in a room of economists. So, um, that's the, the, the disciplinary hybrid hybridity that Uh, identifies me. My core interest, uh, throughout, I think probably going all the way back to my undergraduate work, is in how politics broadly conceived, has shaped economic change. That means economic development or non-development for that matter, but it's the interplay between politics and economics that has held my interest all these years. Uh, my earliest work was on the, uh, history of railroads, uh, 19th century. United States and Prussia, and there my particular concern was to understand the impact of the two different political structures in the United States and Prussia on the emergence of that development of that industry. From there, I turned to corporations and shareholder voting rights in particular, uh, and I'm actually now currently writing a history of the corporation. Uh, for Polity Press. This research on standard sizes represented a detour of sorts. Um, not, let me say that the history of business and history of technology both focused on and for, for a long time centered on the history of mass production. So mass production itself didn't represent a detour, but this particular research did. What got it started was a paragraph I read in a journal article. Uh, a, a primary published source appeared in 1928. I remember very distinctly sitting in my little basement workspace in Madison, Wisconsin, when I read this, this paragraph. And it took me by surprise, it startled me, uh, and here's the paragraph. It says the 5 years immediately following the World War were marked by a tendency on the part of industry to return to the old uneconomic conditions of over diversity. Many products which had been simplified by the Conservation division of the War Industries Board, were again offered in a bewildering variety of sizes, types, and shapes. Uh, what Surprised me here was not the reference to the conservation division during the war Industries Board. Two of my undergraduates had done research papers on medical instruments and agricultural instruments, and the conservation division worked to push manufacturers of those products towards mass production during the war. That wasn't surprising. What was surprising to me was the reversal. Uh, the, the, the having manufacturers having learned how to mass produce during the war, then stopped doing it, then went back to offering, uh, what the, what the writer here condemned as a bewildering variety of sizes, types, and shapes, and I thought, oh, that's weird, uh, how, what, what's that about? And so that took me down a rabbit hole then. That eventually produced this um uh book on the history of standard sizes. Let me begin by just clarifying what the term standard sizes refers to. It refers to standards relating to size or style, obviously, that are adhered to collectively by competing firms. Uh, and those two, those two words are key. They're collective standards, so industry-wide standards, and they are adhered to by competing firms. In other words, firms that all make the same products have agreed to just make this small set of of sizes. Uh, these are so taken for granted today that we often, we don't even think about them, but if you think for a moment about bed sizes in the United States, there are 4, Four main bed sizes, twin, full, queen, and king. Uh for those of us of a certain age, uh we know that the twin extra long and the California king are newcomers. They were introduced in the 60s. Uh, but these are standard bed sizes. You go to the store today, you don't, you, you decide in advance what size you can get, and then you look for that size. Uh, and this is true of electrical outlets, toilet paper rolls, uh, a, a host of other products. Uh, you bring home a lamp from the lighting store, and you know, as long as you stay in the United States, it'll fit in the outlet on your wall. Toilet paper will fit in the toilet paper holder, printer paper will fit in your, uh, letter letter-sized printer paper will fit in your letter-sized folder, etc. etc. They're just part of the modern landscape of consumption. Uh, but the question then is, in particular because they're collective standards adopted by competing, otherwise competing firms, the question I wanted to, to, I wanted an answer to was how did they get established? And not only established, but when they were established, how did it come about so quickly? Um, in 1921, it is fair to say there were no standard sizes, no nationwide, um, standard sizes. But, uh, in 1922, the standard bed sizes were adopted, for example, the four standard bed sizes. Uh, by a nationwide agreement in 1922. By 1930, 90% of the bed manufacturing was uh conformed to these four, standard sizes. And by then, 1930, uh, standard sizes had been established for more than 100 everyday commodities. And here I'm going to quietly Prevent my throat from scratching. So, um, what I, uh, argue in brief, in the, in the paper and in the book is that The diffusion of mass production techniques was not a natural process of learning and emulation. This is the way that it's done. That it is, I'm gonna talk more quietly. I'm sorry, my throat is not liking this. I'm gonna talk more quietly, so let me know if I'm speaking too quietly. Um, so the, the conventional understanding in the historical literature is, uh, of the development of mass production techniques over the course of the 19th century. Culminating in Henry Ford's automobile manufacturing process in the early 20th century. And then, uh, from there it was a process of learning. Henry Ford was very open about his manufacturing process. He encouraged publicity. And historians have assumed largely that once manufacturers had that information, they knew what to do and they did it. Uh, and this history that I've delved into here shows to the contrary that there was intense competition among middling manufacturers, and that that prevented them moving towards mass production. Uh, that intense competition, uh, produced a a, a, a proliferation of product varieties. Uh, and the diffusion of mass production techniques, which did ultimately happen, in fact, required a pushback against market forces, against that competition. That pushback came from the government, uh, and in that sense, one can say that the government made the the Commerce Department, as we'll see, made the US into a manufacturing powerhouse. Um, so that's where I'm headed. Uh, let me start then with product diversity before the war. Point of clarification, uh, there, there is a term in the business literature called product diversification. Uh, this means, um, It generally means adding product lines, related product lines to one business, um, related in this, in, in a technological sense, so maybe if you, uh, I work in chemical processes, you add some chemically related product lines that you can use the same manufacturing facilities or similar facilities, uh, or that are related to your sales organization, if you're equipped to handle refrigerated or frozen products, for example, you may Uh, add other frozen or, uh, refrigerated product lines. What I'm talking about here is proliferation of product varieties within product lines. Um, So making slightly different products within the product line, whether it's uh shoes or beds or whatever, uh, and, and this is crucial, product changes that require changes in the manufacturing process. Uh, that means stopping a production run, changing the equipment to make the new slightly different product, and then going on, uh, the way. There are costs, uh, entailed there. It reduces production runs, etc. etc. So that's the kind of product diversity that I'm talking about here. Um, there isn't a lot of, uh, systematic, there isn't much at all systematic evidence on product diversity. Um, before World War One, this partly because historians haven't really paid attention to it, um, having been sort of enthralled to, uh, Mass production, and then later to specialty manufacturers. Um, we do have some anecdotal evidence. For example, the Union Bed and Spring Company reported, uh, and it was a major producer of beds and springs, reported that it was making full width, uh, springs, just full with springs, in 62 varieties. Uh, 41 of which it made in 2 widths, even though these are quote unquote full width springs, made those in 2 widths, and all of the varieties it made in lengths, which produced a grand total of 206 varieties of full width springs. Just a, a, a little, um, uh, anecdote, uh, to illustrate product diversity. Uh, we also know that there was some business disgruntlement with the diverse proliferation of product varieties before the war, and this we can see in the efforts by trade associations to diminish, to reach collective agreements that would diminish. Um, product variety. So for example, um, lengthy efforts to, uh, standardize screw threads, automotive standards reached by the Society of Automotive Engineers were in fact adhered to by small manufacturers, but not, not the large companies, not the large auto manufacturers, which had their own standards. Machine tool manufacturers, paint varnish manufacturers, bed manufacturers, farm implements, lu lumber, paving bricks, all of these lines of business through their trade associations, tried to reduce product variety before the war, but were unsuccessful. Um There are a variety of sources of product diversity, and once I kind of began to spell them all out, I thought, oh, this is almost overdetermined. Number one, they're, they're the specialty manufacturers whose conscious uh strategy, business strategy was to specialize, change products quickly. These are the manufacturers that historian Phillip Scranton has, uh, studied at considerable length. They existed back in the early 20th century, they exist, of course, to this day. Uh, second factor is hand to mouth buying. Um, this was, uh, prevalent in the early 20th century. It basically meant buying small quantities of goods frequently, as opposed to, um, ordering seasonally, say twice a year, a large amount of goods. Hand to mouth buying became a widespread practice, um, in the early 20th century, and in fact, and thus encouraged product diversity. Because buyers were coming back regularly, and manufacturers there wanted to offer them something new in small quantities, because that's what they were buying, was small quantities. A third factor is the American political structure itself, to the extent that there were regulations governing, say, food, uh, electrical equipment, building codes, etc. They tended to be fragmented. Between the national, state, and municipal levels, or local levels, and so, uh, and those codes didn't agree, they all had their own codes. So that was another factor. 4th factor, American individualism is something that uh some um Uh, commentators pointed to, uh, seems to have been particularly rampant where agricultural implements were concerned. Farmers apparently had very definite ideas of what they, uh, needed to have in farm implements. Uh, it's also evident in some regional preferences, for example, uh, concerning the length of the pants in overalls. The 4th factor, the, the, the 4th factor, uh, 5th factor, sorry, um, was generally seen by observers as the root cause of product diversity, and that was competition, uh, for the consumer's dollar. Um, middling manufacturers. We're scrambling, uh, adhered to a business strategy of, of offering the consumer whatever they wanted, and sometimes taking orders back to the factory that required some changes to meet the demands of the consumer. That was the dominant strategy, pleasing the consumer, or consumer sovereignty, we could call it. And the fear, of course, is if they didn't, one of their competitors would, and this is the way uh a writer in the journal Industrial Management put it, um. This production of numerous varieties of a single commodity, as long as competition is the life of the trade. One is always fearful lest the next uh business competitor will display the latest style, and that's why you've got this large variety. Of products on the market. Uh, so that was certainly It seems pretty clearly to have been the situation uh on the eve of the war. Yet, as if you know the history of this period, then you also know that this was an era of growing, some could even say raging enthusiasm for efficiency. This is the era of uh scientific management. Anyway, so, uh, the, the upshot then is that um manufacturers adhering to the strategy of diversity of product diversity. They found themselves sort of caught uh between a rock and a hard place. On the eve of World War One, then, uh, middling manufacturers were caught, uh, and in a um Factory magazine in 1916, before the US entered the war. ran a uh Uh, an article, in fact, about Henry Ford with his Model T and an adding machine company, contrasting their styles, one model uh versus In the case of the adding machine company, 100 models offered in 600 different styles, and concluded it's hard to know which way the wind does blow. Um, so that was the situation when, um, the United States entered the Great War. The war had broken out in 1914 in Europe. The US entered in the spring of 1917. Once that happened, efficiency came to the fore. Consumer sovereignty went by the wayside. Uh, the balance was tipped towards efficiency almost immediately. Um, the government scrambled to mobilize the economy for war over 19 months, not knowing, of course, when exactly the war would end. And the focus uh that uh I'm particularly interested in here was on conserving civilian resources for the war effort. So what I'm talking about here is manufacturing aimed at the civilian market, not military market. There's a separate story there. So as part of that effort to conserve conserve civilian resources, that meant labor, um, raw materials, transportation, etc. Also they could be used directed towards the war effort. Um, the, the initial entity was something called the Commercial Economy Board, created in 1917, just before American entry into the war, uh, and this was succeeded, um, in a reorganization in the spring of 1918 by the conservation division in the War Industries Board. Both of these were headed by a man named Art Wilkinson Shaw. He was a a a marketing expert and business publisher. With the close ties to uh the new Harvard Business School. He, um, uh, His interest centered on distribution rather than production, and so when the Commercial Economy Board first got underway, it focused on distribution. Uh, bread deliveries, retail deliveries, and the like. And then in the reorganization of 1818, when that became the conservation division, uh, Arch Wilkinson Shaw was the man who pushed, it was his ideas, uh, driving this, and he pushed forward the process. His strategy began with trade associations. There were some several 100 trade associations in the US by that time. Uh, and the kind of peak association was the Chamber of Commerce of the United States. He worked with trade associations, which appointed uh committees, war service committees. These were also used elsewhere in the war effort. Uh, the US Chamber of Commerce stepped in and helped industries organize, if they didn't already have an association, and appoint a committee to work with government officials. Um, he then held a, a series of conferences with those committees representing their industry and arrived at measures that everybody agreed would help to conserve resources during the war, reached, in other words, collective agreements. That included reductions uh on product variety. Um, these were then published as conservation schedules. They appeared in the official, uh, uh, what is it called? Official register, Official Digest or something of the federal government. They were published in the relevant trade journals and so on. Um, The goal here was simply to maximize output. They didn't expect uh companies to achieve Henry Ford style productivity levels. They just wanted him to use less labor, skilled labor, and a minimum of materials and produce as much as possible, uh, as soon as possible. That meant streamlining production and distribution, lengthening production runs, carrying less inventory, reducing transportation costs, also that those resources. could go to the war effort. Over time, that came to be called, generally called simplification. And it was premised on reductions in variety. Um, that I think, I hope that connection, uh, is clear. For enforcement mechanisms, the, uh, Commercial Economy Board initially relied on social sanctions, appeals to patriotism. Uh, and also pledges, public pledges. Companies had to pledge to adhere to the conservation schedules and to do business only with companies that adhered to the conservation schedules. Uh, then when the um conservation division was created in the 1918 reorganization, The War Industries Board's priorities power um was ramped up, and what this did was empowered the War Industries Board to assign a priority level to uh purchase orders. So a company wanting to purchase the raw materials that it might need, or get transportation or fuel or whatever, uh, had to submit a purchase order, which was given a priority number. Companies that did not adhere to the conservation schedules went to the bottom of the of the pile. Then that meant essentially that if you didn't adhere to the conservation schedule, you're likely not to have the resources you needed to keep your uh business going during the war. Uh, it was a short experience, 19 months overall, but nonetheless, pretty effective system, it seems to be. Some of the reductions achieved, this is the table that the US Chamber of Commerce, which was a great proponent of reducing varieties, put together after the war. It actually includes uh fruit containers that were uh that were um uh reduced by Congress, uh. Set by Congress And paving brick, which was actually the first of the Commerce Department initiatives that I'll be talking about in a minute. But you can see there, there's some considerable um Reductions, uh, piano stools in the middle of the chart, piano benches and stools, reduced pocket knives, reduced, uh, a whole array of, um, agricultural implements. Total implements is the total agricultural implements included elsewhere in the table, reduced from about 1100 to 137. So that's um The, the, an indication of the effects. Uh, now I'm gonna show you a list, a partial list of the Affected lines of business. This happens uh to be alphabetical, it was appeared in a post-war report, um, but it gives you a sense. Just of the range of commodities that were affected by uh conservation schedules during the war. Um, there is an interesting backstory here about the clothing industry, which, and the promotion of the quote unquote, slim silhouette as the wool conservation measure. But I'm not gonna tell you about that. Um, And the editor of Shaw's Factory magazine concluded the war left its impress everywhere. In American manufacturing. When the war ended, of course, the big question was, would product uh variety, um, uh, proliferate again after the war. There was widespread support in the business community for continuing the conservation measures. Um, continuing these collective nationwide agreements. Some, a few of the better organized industries were able to hold the line, at least in part, for example, paint and varnish. But most industries succumbed. To competitive pressures and began uh allowing their products to proliferate again. Um, And in the economic turmoil after the war, um, competitive pressures became especially um harsh economic depression in 1920-192921, consumer resistance to rising prices, and so on, and the result is that that companies generally reverted to their pre-war strategy of making whatever the customer wants. This then set the stage for Herbert Hoover, who became President Warren G. Harding's Secretary of Commerce in 1921. He was a a a man of humble background, a mining engineer. A world renowned mining engineer, in fact, um, An organizational wizard, uh, and, uh, a, a, a humanitarian, um, as well. He took office in 1921 at the age of 46 and came to office with the conviction that the elimination of waste in the American economy was key to achieving a higher standard of living, and he thought the United States had to achieve a higher standard of living, uh, to fend off socialism, communism, and so on. This is just a few years after the Russian Revolution, of course. One of his first actions at the Department of Commerce was to establish in the Bureau of Standards, a division of Simplified Practice, 1921. Uh, and just a, a word about terminology. He used the word, they used the word simplified practice, um, which is kind of interchangeable. With simplification. But you can see here a broad distinction between the two simplified practice focusing on reducing product variety. The similarities with Shaw's project during the war were uh over overwhelming, I think, remarkable certainly. Uh, he created a similar kind of structure. That entailed collaboration with uh committees of businessmen representing their trade associations, empowered to speak for their trade associations. The emphasis was on maximizing consensus. So these uh collaborative projects brought together producers, distributors, and consumers, and the idea was to reach consensus industry-wide across all of those. Groups on uh standard sizes. Uh, it was also a data-driven process, as it had been during the war. Very quickly, they are, the staff arrived at what they call the 80/20 axiom, and this is the idea that, or the finding, they're based on their, uh, collections of data that Approximately 20% of the varieties that an industry produced accounted for 80% of the business. The other 80% of varieties counted for only 20%. And so what simplified practice was about is uh designating those uh those varieties that furnished approximately 80% of business and designating those as standards. The other varieties might still be available, uh, but they had to be special ordered, and you could figure on paying more for them. Um, Out of this came out of these uh uh industry-wide deliberations came simplified practice recommendations. These were published by the federal government. You can see um the United States Department of Commerce emblazoned across the top, um. In the middle, this is issued not by trade associations or private sector entities, it's issued by the Bureau of Standards, and down at the bottom printed by the Government Printing Office. Uh, if once you open the inside, you would see that the, the specific SPR. Simplified practice recommendation had been endorsed by the Secretary of Commerce and by the Director of the Bureau of Standards. So these came with the full force and power of the federal government behind them, even though they were voluntary standards. By the mid 1920s, they had worked out a detailed and codified process uh for arriving at simplified practice agreements. Um, this is the top portion of that graph. Uh, the principal avenue was, um, the trade association, manufacturer, distributor, or consumer group, meaning a trade association who came to the division of simplified Practice and asked the division to help it in organizing this collective agreement, and the division was adamant, and Secretary Hoover was adamant. That the initiative had to come from the private sector or at best from technical private technical associations, but it did not come from the division of simplified practice. Uh, once a request came to the division of simplified Practice, a preliminary conference was called to try and get a sense of whether they thought that the industry would be receptive to something like this. If there was agreement that it might be receptive, then they would survey, uh, existing production and sales, that was the data, um, component. Out of that would come the recommendations for standard sizes or styles, which would then come through a general conference. This was usually held again uh industry-wide and nationwide. And it was generally held at the Department of Commerce in Washington. Here's the bottom half of the chart. If the general conference accepted the recommendations, which they almost, but not always did, Then those recommendations would be publicized by the Department of Commerce industry-wide, and when 80% of manufacturers, distributors, and consumers had accepted them, 80% by volume of production or consumption, uh, then they became official. Uh, they were Published and distributed by the Commerce Department, the equivalent of those World War One. So this is the bottom of that process chart. Um, acceptance by 80%. Um, of the industry of a conservation schedule published by the Department of Uh, commerce. So it was a detailed, uh, well-defined process that virtually that literally remained unchanged for decades, um, what some scholars have see as, uh, one of Hoover's, um, Uh, most impressive accomplishments, organizing industries in this way to reach collective agreements, uh, among competitors. Um So, uh There are a couple of differences between uh Hoover's and Shaw's practice that I wanna mention just briefly. Both of them related to the fact that what Hoover was doing was in uh in peacetime rather than um in wartime. One was that this process uh was entirely voluntary. It had also been characterized as voluntary um during the war, but of course, The war was the context, and here it was in peacetime, and so uh uh Hoover and uh division staff were adamant that this is entirely voluntary. Also entirely to come from the pri the initiative was to come from the private sector. Um, it also had softer enforcement powers. It too relied on social sanctions in the form of pledges, which is to say that when companies accepted. Uh, the simplified practice recommendations, uh, they had to sign, literally sign a pledge, uh, that they would adhere to it. And then also um uh pledge to do business only with other companies that adhere to it. Social enforcement. Of course, it didn't have the um war industry board's priorities power. But what it did have was an alliance with the Federal Specifications Board, which was also a Hoover creation in 1921. The Federal Specifications Board um wrote specifications that purchases in order for the products in order to be purchased by the federal government had to meet. And those are often incorporated um simplified practice recommendations. I do wanna thank you for, you know, taking time to write the book and, and, and, you know, telling us about, about this, uh, this initiative. So, um, thanks all for, for the attendance. Colleen, do, do get better. Uh, um, uh, Devesh, you wanna, you wanna say some, some, some, some words? No, uh, just to say, uh, that, that, that it was such a pleasure reading your book and your paper. It's so, so, so clearly written, and I wish, I hope we can write half, half as clearly in the WDR and I'm very sorry to see your health, uh, and we, we hope you get better very soon.
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