Where Factories Were Built The first factories were built where physical characteristics of the environment favored them. In Pennsylvania factories used charcoal, which could be made from abundant local timber, for power. These factories turned iron ore, which was mined and smelted locally, into machines, tools, and guns.

In New England, textile factories were built alongside the hilly region's numerous falling streams, which provided power for mills. Investors modified the physical environment by building dams and canals to power the mills. These modifications spurred economic growth. Local wool and cotton from the South provided the raw materials for thread, yarn, and fabric. In Lynn, Massachusetts, businesses systematized shoemaking,

Why were many early factories built in the Northeast?

Many early factories were built in the Northeast because of the region's physical characteristics, such as abundant local timber, falling streams, and hilly terrain, which provided the necessary resources and power for factories. The region also had access to raw materials such as iron ore, wool, and cotton, which were necessary for the production of machines, tools, and textiles. The investors in the region also modified the physical environment by building dams and canals to power the mills, which further spurred economic growth.