A factory (previously manufactory) or manufacturing plant is a large industrial building where workers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production. Archetypally, factories gather and concentrate resources — workers, capital and plant.
Apart from that, many historians regard Matthew Boulton's Soho Manufactory (established in 1761 in Birmingham) as the first modern factory. (Other claims might be made for John Lombe's silk mill in Derby (1721), or Richard Arkwright's Cromford Mill (1771)—purpose built to fit the equipment it held and taking the material through the various manufacturing processes.)
British colonies in the late 18th century built factories simply as buildings where a large number of workers gathered to perform hand labor, usually in textile production. This proved more efficient – for administration and for the distribution of raw materials to individual workers – than earlier methods of manufacturing such as cottage industries or the putting-out system.
Cotton mills used inventions such as the steam engine and the power loom to pioneer the industrial factory of the 19th century, where precision machine tools and replaceable parts allowed greater efficiency and less waste.
Henry Ford further revolutionized the factory concept in the early 20th century, with the innovation of mass production. Highly specialized workers situated alongside a series of rolling ramps would build up a product such as (in Ford's case) an automobile. This concept dramatically decreased production costs for virtually all manufactured goods and brought about the age of consumerism.
In the mid- to late 20th century, industrialized countries introduced next-generation factories with two improvements:
Some speculation as to the future of the factory includes scenarios with rapid prototyping, nanotechnology, and orbital zero-gravity facilities.
Regulation curbed some of the worst excesses of industrialisation's factory-based society, a series of Factory Acts leading the way in Britain. Trams, automobiles and town planning encouraged the separate development ('apartheid') of industrial suburbs and residential suburbs, with workers commuting between them.
Though factories dominated the Industrial Era, the growth in the service sector eventually began to dethrone them: the locus of work in general shifted to central-city office towers or to semi-rural campus-style establishments, and many factories stood deserted in local rust belts.
The next blow to the traditional factories came from globalisation. Manufacturing processes (or their logical successors, assembly plants) in the late 20th century re-focussed in many instances on Special Economic Zones in developing countries or on maquiladoras just across the national boundaries of industrialised states. Further re-location to the least industrialised nations appears possible as the benefits of out-sourcing and the lessons of flexible location apply in the future.
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