The factory system was a method of manufacturing first adopted in England at the beginning of the Industrial Revolution in the 1750s and later spread abroad. This system replaced the putting-out system. The main characteristic of the factory system was the use of machinery, originally powered by water or steam and later by electricity. Other characteristics of the system mostly derive from the use of machinery or economies of scale. These characteristics are:
- Change from craftsman labor to mechanized production: Before factories many products such as shoes and muskets were made by skilled craftsmen who usually made an entire article, often custom and almost always unique. In contrast, factories practiced division of labour, in which most workers were either low skilled laborers who tended or operated machinery and unskilled laborers who moved materials, semi-finished and finished goods. There were a few skilled mechanics. Division of labor was also practiced by the putting out system in which, for example, pieces of leather were cut off-site and brought to a central shop to be made into shoes or other articles.
- Economies of scale: Factories produced product on a much larger scale than the putting out or crafts systems. Because factories could over supply local markets, access to transportation was important.
- Factories used far less manpower per unit of production and therefore lowered product cost.
- Location: Before the widespread use of steam power and railroads, most factories were located at water power sites and near water transportation. After the widespread introduction of railroads, which coincided with more efficient and affordable steam engines, factories could be located away from water power sites but tended to be located along railroads or with access to water transportation.
- Building design: Workers and machines were brought together in a central factory building or buildings specially designed to handle the machinery and flow of materials. Although all work was usually done under one roof in the earliest factories, in multi-story buildings, different operations were done on different floors. (Multiple story buildings were common because they facilitated transmission of power from a water wheel, turbine or steam engine through line shafts.) In large factories, such as locomotive works, different processes were performed in different buildings. Foundry and blacksmith operations were normally kept in a separate building for reasons of safety, cleanliness and health.
- Product uniformity, including any components, such as soles, heels and uppers for shoes and shoes made to uniform sizes, although in the early years a given size from different manufacturers had different dimensions. Uniformity was mainly due to the precision possible from machinery, but also, quality was overseen by management. The quality of many machine operations such as sewing was superior to hand methods. Near the end of the 19th century the capability of making interchangeable parts from metal was in widespread use.
- Factories were able to produce a steady supply of goods.
Workers were paid either daily wages or for piece work, either in the form of money or some combination of money, housing, meals or goods from a company store. (See: Truck system) Piece work presented accounting difficulties, especially as volumes increased and workers did a narrower scope of work on each piece. Piece work went out of favor with the advent of the production line, which was designed on standard times for each operation in the sequence, and workers had to keep up with the work flow. The cost and complexity of machinery, especially that powered water or steam, was more than cottage industry workers could afford or had the skills to maintain. The exception was the sewing machine, which allowed putting out of sewing to continue for decades after the rise of factories. Home spinning and weaving were displaced after in the years following the introduction of factory production, especially where transportation facilitated distribution.
Because the efficiency of steam engines decreased with decreasing size and because cost per horsepower went up as size went down, the smallest steam engines were about 2 horsepower. This was a larger size than needed by most workshops and consequently most workshops relied on manual power until electrification in the 1910s and 1920s. To overcome this limitation many workshops rented space in power buildings which provided a take off from a line shaft powered by a central steam engine.
One of the earliest factories was John Lombe's water-powered silk mill at Derby, operational by 1721. By 1746, an integrated brass mill was working at Warmley near Bristol. Raw material went in at one end, was smelted into brass and was turned into pans, pins, wire, and other goods. Housing was provided for workers on site. Josiah Wedgwood in Staffordshire and Matthew Boulton at his Soho Manufactory were other prominent early industrialists, who employed the factory system.
The first use of an integrated system, where cotton came in and was spun, bleached dyed and woven into finished cloth, was at mills in Waltham and Lowell, Massachusetts. See: Lowell Mills and Waltham-Lowell system.
The Nasmyth, Gaskell and Company's Bridgewater Foundry, which began operation in 1836, was one of the earliest factories to use modern materials handling such as cranes and rail tracks through the buildings for handling heavy items.
Richard Arkwright is the person credited with being the brains behind the growth of factories. After he patented his water frame in 1769, he established Cromford Mill, in Derbyshire, England. The factory system was a new way of organizing labour made necessary by the development of machines which were too large to house in a worker's cottage. Working hours were as long as they had been for the farmer, that is, from dawn to dusk, six days per week. Overall, this practice essentially reduced skilled and unskilled workers to replaceable commodities.
Much manufacturing in the 18th century was carried out in homes under the domestic or putting-out system, especially the weaving of cloth and spinning of thread and yarn, often with just a single loom or spinning wheel. As these devices were mechanized, machine made goods were able to under price the cottagers, who were forced to work in a central factory. Other products such as nails had long been produced in factory workshops, increasingly diversified using the division of labour to increase the efficiency of the system.
Factory workers typically lived within walking distance to work until the introduction of bicycles and electric street railways in the 1890s. Thus the factory system was partly responsible for the rise of urban living, as large numbers of workers migrated into the towns in search of employment in the factories. Many mills had to provide dormitories for workers, especially for girls and women.
The transition to industrialisation was not without difficulty. For example, a group of English workers known as Luddites formed to protest against industrialisation and sometimes sabotaged factories. They continued an already established tradition of workers opposing labor saving machinery. Numerous inventors in the textile industry such as John Kay and Samuel Crompton for example, suffered harassment when developing their machines or devices.
In other industries the transition to factory production was not so divisive.
Until the late 19th century it was common to work 12 hours a day, six days a week in most factories; however long hours were also common outside factories.
Debate arose concerning the morality of the system, as workers complained about unfair working conditions prior to the passage of labour laws. One of the problems concerned women's labour, which in many cases women were paid almost a quarter of what men made. Child labour was also a major part of the system, and was vehemently argued by those who deemed it immoral. However, in the early 19th century, education was not compulsory and in many families having children work was necessary due to low incomes. (Samuel Slater employed children but was required to provide basic education.) Children commonly did farm labor and produced goods for the household. Besides working in factories children worked in mines. Automation in the late 19th century is credited with displacing child labor, with the automatic glass bottle blowing machine (ca. 1890) cited as an example, having been said to do more to end child labor than child labor laws. Years of schooling began to increase sharply from the end of the 19th century.
Some industrialists themselves tried to improve factory and living conditions for their workers. One of the earliest such reformers was Robert Owen, known for his pioneering efforts in improving conditions for workers at the New Lanark mills, and often regarded as one of the key thinkers of the early socialist movement.
Karl Marx worried that the capitalist system would eventually lead to wages only sufficient for subsistence due to the tendency of the rate of profit to fall. Subsistence wages were indeed the case in parts of England during the depression years of the late 1830s to early 1840s. The depression was immediately followed by the Irish famine of 1845-50 which brought large numbers of Irish immigrants to seek work in the English and American factories.
One of the best known accounts of factory worker's living conditions during the Industrial Revolution is Friedrich Engels' The Condition of the Working Class in England in 1844. By the late 1880s Engels noted that the extreme poverty and lack of sanitation he wrote about in 1844 had largely disappeared.
- American system of manufacturing
- Mass production
- Industrial revolution
- Interchangeable parts
- Assembly line
- Adam Smith
- Steam engine
- Putting out system
- Productivity improving technologies (historical)
- British Agricultural Revolution
- Lowell mills
- Waltham-Lowell system
- Derwent Valley Mills
- Line shaft
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- Preface to the later editions (post 1887) of Conditions of the Working Class in England in 1844