The second industrial phase began in Canada in the late 1890s and took full effect in the early 20th century. The use of new resources and new energy sources, in addition to the emergence of new industrial sectors, set this phase apart from the first industrial phase. The economic structure of this era was based on monopoly capitalism in which commercial exchanges were important.
Because of its vast natural resources, Quebec benefited from this second industrial phase of industrialization. Resources such as forests, minerals and waterways were exploited, facilitating the development of several industries. These industries also created many jobs throughout the province.
In the 1900s, print newspapers were the main source of information for people. This meant that the demand for paper was very high in both Canada and the United States. Consequently, several American and Canadian companies established themselves in Quebec to source the wood products needed for paper production to meet the demand. Unlike the early phase of industrialization, logging was now primarily for pulp and paper rather than lumber.
Forest regions such as Mauricie, Outaouais and the Saguenay were very attractive to the pulp and paper industry. The forests in these regions were made up of spruce, a useful wood for the manufacture of these products. Quebec quickly became the largest exporter and international producer of paper.
In the late 1920s, the creation of various industries led to an increase in demand for different metals and ores. Gold, iron, copper, silver and asbestos soon attracted companies who wanted to exploit them. These metals were often used to transport electricity and to create various products.
The mining industry developed quickly in certain regions of Quebec. The Eastern Townships and Abitibi experienced a major mining boom. In these regions, towns were built near the mines to make it easier to hire workers. Railroads and ports were also created to transport the resources extracted from the mines to big cities, where they underwent initial processing. These resources were then mainly exported to Europe and the United States.
Between 1898 and 1929, Quebec built more than 50 hydroelectric dams on various rivers in its territory to take advantage of the energy they generated. These dams were mainly located in the Saguenay, Outaouais and Mauricie regions and near the St. Lawrence River.
Hydroelectric dams were very expensive to build and few French Canadians had enough money to invest in them. As such, the capital used to construct these dams mainly came from English-Canadian companies and American investors.
The hydroelectric power plants powered the cities and because of this, they attracted various industries. Because these industries had started to use electricity to run many of their machines, being close to the power plant reduced the cost of transporting this energy. As a result, several pulp and paper and aluminum industries were established in the Mauricie region, near the hydroelectric plant.
However, there were also negative consequences to building these hydroelectric facilities. They frequently caused various parts of the territory to flood. These floods affected not only wildlife, but also the people who lived in the area, many of whom were members of Indigenous nations, forcing them to relocate if they did not want to be flooded and making it impossible to survive and maintain their way of life.
In addition to natural resource industries, the second industrial phase led to the establishment of metallurgical and chemical industries. These types of industries were built near hydroelectric dams since they required a lot of energy to manufacture or process their products.
In the metallurgical industries, aluminum smelters were becoming increasingly important. They were mainly established in regions with enough hydroelectric potential to meet their energy needs, such as the Saguenay and Mauricie regions.
Chemical industries produced various elements, including plastics, using petroleum, as well as products for the textile and pulp and paper industries. Considering their needs and to meet the demand, several chemical industries were set up near Montreal.
In the 1900s, Western Canada was developing rapidly due to immigration. The new settlers needed products in order to settle properly in this new territory. This increase in demand helped grow various industries, including textiles, construction and food.
The increase in commercial agriculture made the processing of various agricultural products more popular. In the dairy industry, new cheese factories and dairies were created throughout the province. The same was true for grain production, which led to the establishment of several bakeries.
Manufacturers became more numerous and diversified to keep up with the demand. These industries mainly produced goods for everyday life. With the introduction of electricity, some goods were highly sought after, such as toasters, radios and light bulbs. As cars became popular, factories also produced various engines.
World War I significantly impacted the Canadian economy. The start of the war caused American investors to abandon Canadian and Quebec industries to focus on their own. However, Canadian industries operated at full capacity to meet the demand on the front lines, which limited economic losses.
To keep up with the government’s production demands, industries shifted their focus from manufacturing goods for citizens to manufacturing war-related products. Factories made soldiers’ uniforms, weapons and transportation-related products.
As the men went off to war, the factories quickly ran out of manpower, turning to women instead.
The war generated strong demand in all sectors, including agriculture. To increase production, new land was cleared to create larger farms. However, the majority of products from commercial agriculture were sent to the front lines as opposed to citizens.