2.5 Factory system
9 min read•august 21, 2024
The revolutionized American business, transforming production from small-scale cottage industries to large, centralized manufacturing. This shift laid the foundation for rapid industrialization and economic growth in the 19th and early 20th centuries.
Key features included , , and centralized facilities. These changes increased efficiency and output, but also altered worker-employer relationships and sparked debates about labor conditions and economic inequality.
Origins of factory system
- Factory system emerged as a pivotal development in American business history, revolutionizing production methods and economic structures
- Marked a significant shift from cottage industries and artisanal production to large-scale, centralized manufacturing
- Laid the foundation for America's rapid industrialization and economic growth in the 19th and early 20th centuries
Pre-industrial production methods
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Top images from around the web for Pre-industrial production methods
The Life of a Blacksmith in the 1800s (Role, Jobs, Tools & Clothing) - Working the Flame View original
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Cottage Industry Weaving | Ralph Malan | Flickr View original
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The Life of a Blacksmith in the 1800s (Role, Jobs, Tools & Clothing) - Working the Flame View original
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- Dominated by cottage industries with craftsmen working from home or small workshops
- Relied on hand tools and simple machines for production (spinning wheels, hand looms)
- Limited production capacity due to decentralized nature and lack of mechanization
- Guild system regulated quality and training of craftsmen in specific trades
Industrial Revolution impact
- Introduced new technologies and (steam engines, water wheels) enabling
- Shifted production from homes to centralized locations, creating the first true factories
- Increased demand for raw materials and energy sources (coal, iron) to fuel industrial growth
- Led to rapid as workers migrated to factory towns for employment opportunities
Early American factories
- established first successful textile mill in Pawtucket, Rhode Island in 1793
- in Massachusetts pioneered integrated factory system in early 1800s
- Early factories focused on textile production, later expanding to other industries (metalworking, furniture)
- Relied heavily on water power, often located near rivers and streams for energy
Key features of factories
- Factory system introduced fundamental changes to production processes and labor organization
- Emphasized efficiency, standardization, and in manufacturing
- Revolutionized the relationship between workers, owners, and the means of production
Division of labor
- Breaking down complex manufacturing processes into simple, repetitive tasks
- Specialized workers focused on specific steps in production process, increasing efficiency
- Reduced need for skilled artisans, allowing for employment of unskilled or semi-skilled workers
- Enabled faster training of new workers and increased overall productivity
- Adam Smith's concept of pin factory exemplified benefits of labor division
Mechanization and machinery
- Introduction of power-driven machinery to replace or augment human labor
- Increased production speed and output while reducing reliance on manual skills
- Key innovations included power looms, spinning jennies, and steam-powered engines
- Required significant capital investment, favoring larger-scale production facilities
- Led to standardization of products and improved quality control
Centralized production facilities
- Large-scale buildings housing multiple stages of production process under one roof
- Enabled better coordination and control of manufacturing operations
- Facilitated supervision of workers and implementation of uniform work practices
- Allowed for more efficient use of power sources and machinery
- Created distinct separation between workplace and home, altering social structures
Factory system in America
- American factory system developed unique characteristics influenced by abundant resources and entrepreneurial spirit
- Played crucial role in transforming United States from agrarian to industrial economy
- Contributed to America's emergence as a global economic power in late 19th and early 20th centuries
New England textile mills
- Pioneered large-scale factory production in America, particularly in cotton and wool processing
- Lowell system employed young women as primary workforce, providing housing and education
- Utilized water power from rivers, leading to development of mill towns along waterways
- Implemented vertical integration, controlling multiple stages of production process
- Faced competition from Southern mills in later years due to cheaper labor and proximity to cotton fields
Rise of mass production
- Emergence of revolutionized manufacturing (firearms, clocks)
- techniques, perfected by , dramatically increased production efficiency
- Standardization of products and components enabled economies of scale
- Led to significant price reductions, making goods more accessible to average consumers
- Fostered development of consumer culture and mass marketing techniques
Factory towns and communities
- Planned communities built around large factories to house workers and their families
- Provided amenities such as schools, churches, and stores, often controlled by company
- Created distinct social hierarchies based on job roles within the factory
- Led to development of new urban areas and altered existing settlement patterns
- Examples include Pullman, Illinois and Hershey, Pennsylvania
Labor and working conditions
- Factory system fundamentally altered the nature of work and worker-employer relationships
- Working conditions in early factories often harsh, leading to labor unrest and reform movements
- Shaped development of labor laws and regulations in the United States
Factory workers vs artisans
- Factory workers performed repetitive tasks, losing control over entire production process
- Artisans retained skills and knowledge of entire craft, often producing custom goods
- Factory work offered more stable employment but less autonomy and creativity
- Artisanal production declined as factory-made goods became cheaper and more abundant
- Some skilled artisans transitioned to supervisory or specialized roles within factories
Child labor in factories
- Widespread use of children in factories due to lower wages and small size for machinery maintenance
- Children often worked long hours in dangerous conditions, leading to injuries and health issues
- Lack of education opportunities for working children perpetuated cycle of poverty
- Progressive Era reforms led to laws and compulsory education requirements
- Keating-Owen Child Labor Act of 1916 attempted to regulate child labor at federal level
Labor unions and strikes
- Formation of early to advocate for better working conditions and wages
- Notable strikes included Lowell Mill Girls' strikes (1834, 1836) and Homestead Strike (1892)
- Knights of Labor and American Federation of Labor emerged as influential national unions
- Violent confrontations between workers and management (Haymarket Affair, Pullman Strike)
- Led to gradual improvements in working conditions, wages, and workers' rights over time
Economic impacts
- Factory system drove rapid economic growth and industrialization in the United States
- Transformed American economy from primarily agricultural to industrial powerhouse
- Created new economic classes and altered distribution of wealth in society
Productivity and efficiency gains
- Mechanization and division of labor significantly increased output per worker
- Economies of scale reduced production costs, making goods more affordable
- Improved transportation networks (canals, railroads) facilitated distribution of factory goods
- Increased productivity led to higher GDP growth and rising standard of living
- Enabled development of new industries and technologies through reinvestment of profits
Urbanization and migration
- Factory jobs drew rural populations to urban areas, fueling rapid city growth
- Internal migration patterns shifted, with people moving from rural South to industrial North
- Immigration from Europe provided labor force for expanding factories
- Led to development of new urban infrastructure (housing, transportation, utilities)
- Created social challenges including overcrowding, pollution, and public health issues
Wealth concentration vs distribution
- Factory owners and industrialists accumulated significant wealth ()
- Widened income gap between factory owners and workers
- Middle class expanded with growth of managerial and professional jobs
- Debates over fair distribution of profits between capital and labor intensified
- Led to progressive era reforms and early attempts at corporate regulation
Social and cultural effects
- Factory system profoundly impacted American society, altering traditional social structures
- Influenced cultural norms, family dynamics, and individual identities
- Sparked debates about progress, modernity, and the human cost of industrialization
Changes in family structure
- Shift from family-based production to individual wage labor
- Women and children entering workforce changed traditional family roles
- Separation of work and home life altered domestic arrangements
- Extended families often split as members migrated for factory work
- Rise of middle-class ideal of male breadwinner and female homemaker
Rise of consumer culture
- Mass production made goods more affordable and widely available
- Development of department stores and mail-order catalogs expanded consumer options
- Advertising industry grew to promote factory-made products
- Shift from self-sufficiency to reliance on purchased goods
- Emergence of fashion trends and planned obsolescence to drive consumption
Factory system critiques
- Romantic movement idealized pre-industrial life and criticized mechanization
- Transcendentalists like Thoreau questioned materialistic values of industrial society
- Marx and Engels developed critique of based on factory system exploitation
- Arts and Crafts movement promoted handmade goods as alternative to factory production
- Concerns about alienation and dehumanization of workers in factory system
Technological advancements
- Factory system both drove and benefited from rapid technological innovation
- Continuous improvements in machinery and processes increased productivity
- Technological advancements shaped the evolution of factory organization and management
Power sources for factories
- Early factories relied on water power, limiting locations to rivers and streams
- Steam engines enabled factories to be built away from water sources
- Transition to coal as primary fuel source for steam power
- Introduction of electricity in late 19th century revolutionized factory layout and operations
- Internal combustion engines provided new power options for smaller factories
Assembly line innovations
- Moving assembly line, pioneered by and perfected by Henry Ford
- Conveyor belt systems improved material handling and production flow
- Time and motion studies optimized worker movements and task sequencing
- Introduction of specialized tools and fixtures to support assembly line production
- Just-in-time inventory systems reduced storage needs and improved efficiency
Automation and machinery improvements
- Development of self-acting mules and power looms in textile industry
- Introduction of numerical control (NC) machines in mid-20th century
- Computer numerical control (CNC) machines improved precision and flexibility
- Robotics and (AGVs) for material handling
- Integration of sensors and computer systems for quality control and process monitoring
Factory system evolution
- Factory system continuously adapted to changing economic, technological, and social conditions
- Globalization and technological advancements led to significant shifts in factory organization
- Modern factories face new challenges and opportunities in increasingly complex global economy
Fordism and scientific management
- Henry Ford's mass production techniques revolutionized manufacturing
- Frederick Taylor's principles optimized work processes
- Emphasis on standardization, efficiency, and vertical integration
- High wages and benefits to ensure stable workforce and consumer base
- Dominated American manufacturing from early to mid-20th century
Globalization of factory production
- Shift of manufacturing to developing countries with lower labor costs
- Rise of multinational corporations with global supply chains
- Outsourcing and offshoring of production processes
- Development of export processing zones and special economic zones
- Challenges of maintaining quality control and labor standards across borders
Modern factory challenges
- Balancing automation with employment concerns
- Adapting to rapidly changing technologies and consumer demands
- Implementing sustainable and environmentally friendly production methods
- Managing complex global supply chains and logistics
- Addressing skills gap and workforce training for high-tech manufacturing
Legacy and significance
- Factory system played crucial role in shaping modern American economy and society
- Continues to influence global economic structures and production methods
- Legacy includes both economic prosperity and ongoing debates about social and environmental costs
Industrial capitalism development
- Factory system central to emergence of industrial capitalism
- Facilitated accumulation of capital and reinvestment in technological innovation
- Created new forms of corporate organization and financial instruments
- Led to development of modern management theories and practices
- Shaped economic policies and government-business relationships
American economic dominance
- Factory system key factor in America's rise as economic superpower
- Enabled mass production of goods for domestic and international markets
- Fostered innovation and technological leadership in various industries
- Contributed to America's high standard of living and consumer culture
- Influenced global adoption of American business models and practices
Environmental and social consequences
- Industrial pollution and resource depletion from factory production
- Urban environmental issues (smog, water contamination) in factory towns
- Labor movements and workers' rights advocacy emerged from factory system
- Ongoing debates about deindustrialization and job loss in traditional manufacturing sectors
- Globalization of factory system raised questions about international labor standards and fair trade
Key Terms to Review (30)
Assembly line: An assembly line is a manufacturing process in which individual components are added sequentially to create a finished product. This method streamlines production by allowing workers to focus on specific tasks, significantly improving efficiency and output. The assembly line concept revolutionized industries by promoting mechanization and enabling mass production, which ultimately transformed the factory system and led to various manufacturing innovations.
Automated guided vehicles: Automated guided vehicles (AGVs) are mobile robots used in industrial settings to transport materials or products without human intervention. These vehicles navigate through predetermined paths using various technologies such as lasers, magnetic strips, or cameras, streamlining processes in manufacturing and warehousing. AGVs are integral to the efficiency of the factory system, allowing for enhanced productivity, reduced labor costs, and improved safety.
Capitalism: Capitalism is an economic system characterized by private ownership of the means of production, where individuals or businesses operate for profit in a competitive marketplace. This system encourages innovation and investment, driving economic growth and the creation of wealth while also contributing to social inequalities.
Centralized production facilities: Centralized production facilities are large-scale manufacturing plants where production processes are consolidated to enhance efficiency, control, and output. These facilities often utilize advanced machinery and labor systems to streamline operations, reduce costs, and ensure consistent product quality, playing a pivotal role in the factory system of the industrial era.
Child labor: Child labor refers to the employment of children in work that deprives them of their childhood, interferes with their ability to attend school, and is harmful to their physical and mental development. This practice was prevalent during the rise of the factory system, where children were often employed for their small size, which allowed them to perform tasks in cramped spaces. The exploitation of child labor raised significant ethical concerns and ultimately led to social reform movements aimed at protecting children's rights and improving working conditions.
Division of Labor: Division of labor refers to the separation of tasks in any economic system so that individuals can specialize in specific roles, enhancing productivity and efficiency. By breaking down the production process into distinct steps, it allows workers to focus on a single task, which can lead to increased skill development and faster output. This concept is essential in understanding the transition from traditional artisan economies to more structured systems like factories, where tasks are systematically divided among workers.
Economies of Scale: Economies of scale refer to the cost advantages that businesses achieve due to the scale of their operations, with cost per unit of output generally decreasing as production increases. This concept is pivotal in understanding how larger firms can operate more efficiently than smaller ones, leading to significant competitive advantages across various sectors.
Factory Act: The Factory Act refers to a series of legislative measures aimed at improving conditions in factories and regulating labor practices during the Industrial Revolution. These laws sought to address the exploitation of workers, particularly women and children, by setting limits on working hours, establishing safety standards, and ensuring a minimum level of education for young workers. The Factory Acts played a significant role in shaping the modern factory system by promoting workers' rights and enhancing workplace safety.
Factory system: The factory system is a method of manufacturing that emerged in the late 18th and early 19th centuries, characterized by centralized production facilities where workers used machinery to produce goods on a large scale. This system significantly increased productivity and efficiency compared to earlier methods of production that relied on small-scale, home-based work. The factory system played a crucial role in the mechanization of production, leading to shifts in labor practices and economic structures.
Fordism: Fordism refers to the system of mass production that was popularized by Henry Ford in the early 20th century, characterized by assembly line techniques and standardized parts. This approach revolutionized manufacturing by allowing for increased efficiency and lower costs, ultimately making products more affordable for the average consumer. Fordism also embodies the idea of paying workers higher wages to enable them to purchase the goods they produced, thus creating a cycle of consumption that fueled economic growth.
Great Depression: The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted through the late 1930s, marked by widespread unemployment, significant declines in industrial production, and deflation. This period dramatically reshaped American society and led to major changes in government policies and labor movements.
Henry Ford: Henry Ford was an American industrialist and the founder of the Ford Motor Company, renowned for revolutionizing the automobile industry through the introduction of assembly line production methods. His innovations not only made automobiles affordable for the average American but also set standards for mass production that transformed various industries, leading to a new era of mechanization and efficiency in manufacturing.
Industrial Revolution: The Industrial Revolution was a period of significant economic, technological, and social change that began in the late 18th century and continued into the 19th century, marking the transition from agrarian economies to industrialized ones. This transformation was characterized by the rise of mechanization, the growth of factories, and innovations that reshaped production processes, labor dynamics, and urban landscapes.
Interchangeable parts: Interchangeable parts are components that are made to such precise specifications that they can be substituted for one another without custom fitting. This concept revolutionized manufacturing by allowing mass production and simplified repair and assembly processes, playing a crucial role in the development of the factory system and fueling technological and manufacturing innovations.
Labor Movement: The labor movement refers to the organized efforts of workers to improve their working conditions, wages, and rights through collective bargaining and activism. It emerged in response to the harsh realities of industrial labor and sought to address issues such as long hours, low pay, and unsafe working environments. Throughout American history, the labor movement has played a crucial role in shaping labor laws and promoting social justice, particularly during periods of significant economic change and industrialization.
Labor Unions: Labor unions are organized associations of workers that aim to protect and promote their rights and interests in the workplace. These organizations advocate for better wages, working conditions, and benefits, often negotiating with employers through collective bargaining. Labor unions emerged as a response to the changing dynamics of work brought about by industrialization and mechanization, playing a crucial role in shaping labor laws and workplace standards during the rise of the factory system, manufacturing innovations, and the influence of industrial era tycoons.
Lowell Mills: The Lowell Mills were a series of textile factories in Lowell, Massachusetts, that became a significant part of the American Industrial Revolution in the early 19th century. These mills marked a shift from home-based production to a factory system, utilizing mechanized processes and largely employing young women known as 'mill girls' who sought economic independence. The innovations in these mills played a crucial role in shaping the factory system by demonstrating mass production techniques and creating an entirely new workforce culture.
Mass production: Mass production is the manufacturing of large quantities of standardized products, often using assembly lines and mechanized processes to increase efficiency and reduce costs. This approach not only transformed industries but also shaped labor practices, the economy, and consumer culture by making goods more accessible and affordable to the general public.
Mechanization: Mechanization refers to the process of using machines to perform tasks that were previously done by hand. This shift dramatically transformed production methods, the structure of workplaces, and agricultural practices, leading to increased efficiency and output. The rise of mechanization was a cornerstone of the Industrial Revolution, affecting labor dynamics and paving the way for the factory system as well as modern agricultural techniques.
National Labor Relations Act: The National Labor Relations Act (NLRA), also known as the Wagner Act, is a foundational piece of legislation enacted in 1935 that protects the rights of employees to organize, engage in collective bargaining, and participate in labor unions. This act established a framework for labor relations in the United States, addressing the balance of power between employers and employees during a time of significant industrial change and labor unrest.
Power sources: Power sources refer to the various means through which energy is generated to operate machinery and processes in the factory system. This concept is crucial as it highlights the transition from traditional manual labor to more advanced methods of production, significantly increasing efficiency and output. The shift to different power sources, like steam engines and later electricity, played a pivotal role in the evolution of industrial practices and enabled the growth of larger factories.
Ransom Olds: Ransom Olds was an influential American automotive pioneer and the founder of the Oldsmobile brand, credited with revolutionizing the automotive industry through the introduction of mass production techniques. His innovative approaches in manufacturing set the stage for the mechanization of production, particularly with the use of assembly line techniques, and significantly contributed to the development of the factory system in the United States.
Robber Barons: Robber barons refers to a group of wealthy and powerful industrialists in the late 19th century who amassed vast fortunes through exploitative practices, monopolistic strategies, and often unscrupulous means. These individuals played a crucial role in shaping the American economy during the industrial revolution, establishing large corporations that would dominate various sectors and significantly influence labor practices and economic interdependence.
Samuel Slater: Samuel Slater was an English-American industrialist known as the 'Father of the American Industrial Revolution' for bringing British textile technology to the United States in the late 18th century. His work marked a pivotal shift from an artisan-based economy to a mechanized production approach, paving the way for the factory system that would dominate American manufacturing in the 19th century.
Scientific management: Scientific management is a theory of management that analyzes workflows to improve economic efficiency and productivity, primarily in manufacturing settings. This approach emphasizes the use of data and scientific methods to determine the most efficient ways to perform tasks, aiming to reduce waste and increase output. Its principles were widely adopted during the Industrial Revolution, transforming factory systems and influencing technological and manufacturing innovations, as well as shaping the practices of industrial era tycoons who sought to maximize profits and streamline operations.
Steam-powered factories: Steam-powered factories are industrial facilities that utilize steam engines as a primary source of power to drive machinery and production processes. This innovation played a crucial role in the factory system by significantly increasing productivity and enabling the mass production of goods, transforming the landscape of manufacturing and labor during the Industrial Revolution.
Textile Mills: Textile mills are industrial facilities dedicated to the production of textiles, primarily through the spinning of fibers into yarn and the weaving or knitting of that yarn into fabric. These mills became a cornerstone of the factory system during the Industrial Revolution, significantly increasing the speed and scale of textile production compared to traditional handcraft methods.
Urbanization: Urbanization refers to the increasing population shift from rural areas to urban centers, resulting in the growth and expansion of cities. This phenomenon has significant implications for economic development, social changes, and the transformation of industries as societies adapt to a more urban-focused lifestyle.
Worker strikes: Worker strikes are organized work stoppages by employees aimed at protesting working conditions, wages, or other employment-related grievances. These strikes often arise in response to industrial changes, such as mechanization and the growth of the factory system, where workers seek to negotiate better terms or resist unfavorable conditions imposed by employers. Strikes serve as a crucial means for laborers to express their discontent and push for reforms in their workplaces.
Working Class: The working class refers to a social group primarily engaged in manual labor or industrial work, often employed in factories and low-wage jobs. This group emerged significantly during the industrial revolution, reflecting the shift from agrarian economies to industrialized societies. The working class played a crucial role in the development of factory systems, which relied on their labor to drive mass production and economic growth.