The industrial organization that arose primarily during the Industrial Revolution, characterized by the concentration of labor and machinery in a single, often large, building. This setup facilitates mass production through the use of standardized processes and specialized tasks. A significant example is the textile mills of Lowell, Massachusetts, which employed young women and integrated all aspects of cloth production under one roof.
Its emergence marked a pivotal shift from earlier cottage industries and artisan production, fundamentally altering economic and social structures. The system fostered unprecedented levels of output and economic growth. However, it also led to new social problems, including harsh working conditions, long hours, and the rise of a wage-dependent labor force. Its development significantly contributed to urbanization as people migrated from rural areas to find employment.