What Is the Factory System?
The factory system is a method of manufacturing that centralizes production within a specialized establishment, bringing together workers, machinery, and raw materials under one roof. It represents a significant shift in economic systems from decentralized, home-based production to a unified, large-scale industrial setting. This system fundamentally transformed how goods were made, facilitating greater efficiency and enabling mass production through the extensive use of machinery and a structured division of labor. The factory system typically involves significant capital investment in buildings and equipment, with ownership often held by individuals or corporations who employ the workforce.
History and Origin
The factory system emerged during the Industrial Revolution in the 18th century, primarily in Great Britain. Before this period, manufacturing was largely characterized by the domestic system (or "putting-out system"), where individuals produced goods in their homes or small workshops. The catalyst for the factory system was the invention and application of power-driven machinery, particularly in the textile industry.14
A pivotal figure in the development of the factory system was Sir Richard Arkwright. He patented the water frame in 1769, a breakthrough that mechanized cotton spinning and required power sources larger than could be accommodated in homes. This led him to establish Cromford Mill in Derbyshire, England, in 1771, which is often recognized as the world's first successful water-powered cotton spinning mill and a cornerstone of the modern factory system.13 At Cromford Mill, Arkwright centralized production, organized labor into shifts, and harnessed water power, laying the groundwork for the modern industrial factory system.,12 This approach allowed for continuous operation and significantly increased output compared to traditional methods.
Key Takeaways
- The factory system centralized manufacturing in dedicated facilities, moving production away from homes.
- It introduced large-scale machinery and a detailed division of labor, boosting production volumes.
- The system led to unprecedented economic growth and spurred urbanization as workers migrated to factory towns.
- It transformed the employer-employee relationship, giving employers control over working conditions, hours, and tools.
- While increasing output, the early factory system was associated with harsh working conditions, low wages, and the widespread use of child labor.
Interpreting the Factory System
The factory system fundamentally reshaped how goods were produced and consumed, laying the foundation for modern industrial economies. Interpreting its impact involves understanding its dual nature: a driver of immense productive capacity and a source of significant social upheaval. On one hand, it allowed for previously unimaginable levels of output, making goods more accessible and affordable to a broader population. This shift enabled technological advancements and the proliferation of consumer goods.
On the other hand, the factory system led to profound changes in the nature of work. It moved workers from autonomous, often skilled craft-based labor to repetitive, specialized tasks dictated by machines and factory schedules. This concentration of labor in factories created a new industrial working class, whose experiences were often marked by long hours, low pay, and dangerous environments.11 Understanding the factory system involves recognizing its role in creating both widespread prosperity and significant social challenges that prompted labor reforms and the rise of the trade union movement.
Hypothetical Example
Consider a hypothetical scenario in the early 19th century involving a shoemaking business. Under the prior domestic system, a cobbler might work from their home, individually crafting shoes from start to finish, perhaps assisted by family members. Production would be slow, and output limited to the cobbler's individual skill and time.
With the advent of the factory system, a shoe manufacturer invests in a factory building and machinery for different stages of shoemaking. Instead of one cobbler making an entire shoe, the process is broken down: one group of workers cuts leather, another sews uppers, a third attaches soles, and a fourth finishes the product. Each group operates specialized machines for their task. This productivity increase means the factory can produce hundreds or even thousands of pairs of shoes daily, far exceeding what individual cobblers could achieve. The manufacturer benefits from economies of scale, reducing the per-unit cost of production, and can supply a much larger market.
Practical Applications
The core principles of the factory system continue to underpin modern manufacturing and global supply chain management. Contemporary factories, while vastly more technologically advanced with automation and robotics, still rely on centralized production, specialized tasks, and mechanized processes to achieve high output.10
For instance, the automotive industry exemplifies the factory system's evolution. Automobile assembly plants bring together countless components and a highly specialized labor market to produce vehicles on a massive scale. The concept of interchangeable parts, which was enhanced by the factory system, is crucial for efficient assembly and repair in virtually every manufactured good today. The factory system's legacy is visible in the way businesses manage production flows, optimize resource allocation, and leverage technology to meet consumer demand and drive national economies. Its influence extends to considerations of fixed costs associated with establishing and maintaining large-scale production facilities.
Limitations and Criticisms
Despite its role in economic development, the early factory system faced significant limitations and criticisms, particularly concerning its social impact. Working conditions were often harsh, characterized by long hours (12 to 16 hours per day, six or seven days a week), low wages, and dangerous environments with little to no safety measures.9,8 Factories were often poorly lit, unsanitary, and overcrowded, leading to the rapid spread of diseases.7
A major criticism was the widespread use of child labor, where children as young as six years old worked in factories for minimal pay, often performing hazardous tasks.6 These conditions led to widespread exploitation, impaired development, and a lack of education for working-class children.5 The rigid discipline, lack of breaks, and physical punishment inflicted upon workers were also significant drawbacks.4 These societal issues spurred early labor movements and calls for reform, highlighting the human cost associated with unchecked industrialization. Reformers pressed governments for changes, which eventually led to the passage of early factory acts aimed at improving working conditions and limiting child labor.3
Factory System vs. Domestic System
The factory system represents a radical departure from the earlier domestic system (also known as the cottage industry), which it largely replaced during the Industrial Revolution. The primary distinction lies in the location and organization of production.
| Feature | Domestic System | Factory System |
|---|---|---|
| Production Location | Individual homes or small workshops | Centralized, purpose-built factories |
| Scale of Production | Small-scale, often custom-made or limited batches | Large-scale, mass production |
| Machinery | Simple hand tools or basic machines; worker-owned | Complex, power-driven machinery; employer-owned |
| Division of Labor | Limited; one worker (or family) performs multiple tasks to complete a product | Extensive; tasks broken down into specialized, repetitive steps |
| Work Pace | Self-regulated; worker sets their own hours and speed | Machine-paced; rigid schedules and long, fixed hours |
| Capital Investment | Low; minimal overhead for the individual producer | High; significant investment in buildings, machines, and raw materials |
| Worker Autonomy | High; workers maintain independence and control over their work environment | Low; workers subject to strict employer rules and factory discipline |
Confusion often arises because both systems were methods of manufacturing. However, the factory system marked a fundamental shift from distributed, artisanal production to concentrated, mechanized, and supervised production, leading to vastly different economic and social structures.
FAQs
What was the main reason for the development of the factory system?
The factory system developed primarily due to technological advancements, particularly the invention of power-driven machinery that was too large and expensive for home use. This machinery, coupled with the desire for increased production efficiency and output, necessitated centralizing production in dedicated facilities.
How did the factory system change society?
The factory system profoundly transformed society by accelerating urbanization as people moved to cities for work, creating a new industrial working class, and changing family structures as work moved outside the home. It also led to significant social issues, such as poor living and working conditions, which eventually sparked labor reform movements.2,1
Is the factory system still relevant today?
Yes, the core principles of the factory system—centralized production, mechanization, and division of labor—remain fundamental to modern manufacturing and industrial practices worldwide, though adapted with advanced technologies like automation and robotics.