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The introduction of new machine technology significantly transformed the putting-out system by increasing production efficiency and reducing reliance on home-based labor. As machines became capable of performing tasks more quickly and accurately, they centralized production in factories, diminishing the role of individual artisans. This shift allowed for higher output and lower costs, ultimately leading to the decline of the putting-out system as factory-based manufacturing became the dominant model. Consequently, workers transitioned from independent producers to wage earners in industrial settings.

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