Factory system
![Reconstructed historical factory in Žilina (Slovakia) for production of safety matches. Originally built in 1915 for the business firm Wittenberg and son.](/Images/godic/202501/12/Zilina_zapalkaren1323.jpg")
![New Lanark mill](/Images/godic/202501/12/New_Lanark_buildings_20091323.jpg")
![Cromford mill as it is today.](/Images/godic/202501/12/Cromford_1771_mill1323.jpg")
![The Soho Manufactory in 1800.](/Images/godic/202501/12/Soho_Manufactory_ca_18001323.jpg")
The factory system is a method of manufacturing using machinery and division of labor. Because of the high capital cost of machinery and factory buildings, factories are typically owned by capitalists who employ the operative labor. Use of machinery with the division of labor reduced the required skill level of workers and also increased the output per worker.