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American businessmen began building their factories primarily in the Northeast region of the United States during the early 19th century, particularly in areas like Massachusetts and Rhode Island. These regions had access to water power from rivers, which was crucial for operating machinery. Additionally, the growth of transportation networks, such as canals and railroads, facilitated the movement of goods and raw materials, further encouraging industrial development. Over time, factory construction spread to other parts of the country, including the Midwest.

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