Textile manufacture during the British Industrial Revolution was centred in south Lancashire and the towns on both sides of the Pennines in the United Kingdom. The main drivers of the Industrial Revolution were textile manufacturing, iron founding, steam power, oil drilling, the discovery of electricity and its many industrial applications, the telegraph and many others. Railroads, steamboats, the telegraph and other innovations massively increased worker productivity and raised standards of living by greatly reducing time spent during travel, transportation and communications.

Before the 18th century, the manufacture of cloth was performed by individual workers, in the premises in which they lived and goods were transported around the country by packhorses or by river navigations and contour-following canals that had been constructed in the early 18th century. In the mid-18th century, artisans were inventing ways to become more productive. Silk, wool, and linen fabrics were being eclipsed by cotton which became the most important textile.

Innovations in carding and spinning enabled by advances in cast iron technology resulted in the creation of larger spinning mules and water frames. The machinery was housed in water-powered mills on streams. The need for more power stimulated the production of steam-powered beam engines, and rotative mill engines transmitting the power to line shafts on each floor of the mill. Surplus power capacity encouraged the construction of more sophisticated power looms working in weaving sheds. The scale of production in the mill towns round Manchester created a need for a commercial structure; for a cotton exchange and warehousing. The technology was used in woollen and worsted mills in the West Yorkshire and elsewhere.

Elements of the Industrial Revolution

The commencement of the Industrial Revolution is closely linked to a small number of innovations, made in the second half of the 18th century:The Industrial Revolution – Innovations John Lombe's water-powered silk mill at Derby, built in 1717, was arguably the first successful highly mechanised factory in Britain. John Kay's 1733 flying shuttle enabled cloth to be woven faster, of a greater width, and for the process to later be mechanised. Cotton spinning using Richard Arkwright's water frame, James Hargreaves' spinning jenny, and Samuel Crompton's spinning mule (a combination of the spinning jenny and the water frame). This was patented in 1769 and so came out of patent in 1783. The end of the patent was rapidly followed by the erection of many cotton mills. Similar technology was subsequently applied to spinning worsted yarn for various textiles and flax for linen. The improved steam engine invented by James Watt and patented in 1775 was initially mainly used for pumping out mines, for water supply systems and to a lesser extent to power air blast for blast furnaces, but from the 1780s was applied to power machines. This enabled rapid development of efficient semi-automated factories on a previously unimaginable scale in places where waterpower was not available or not steady throughout the seasons. Early steam engines had poor speed control, which caused thread breakage, limiting their use in operations like spinning; however, this problem could be overcome by using the engine to pump water over a water wheel to drive the machinery. In the iron industry, coke was finally applied to all stages of iron smelting, replacing charcoal. This had been achieved much earlier for lead and copper as well as for producing pig iron in a blast furnace, but the second stage in the production of bar iron depended on the use of potting and stamping (for which a patent expired in 1786) or puddling (patented by Henry Cort in 1783 and 1784). Using a steam engine to power blast air to blast furnaces made higher furnace temperatures possible, which allowed the use of more lime to tie up sulfur in coal or coke. The steam engine also overcame the shortage of water power for iron works. Iron production surged after the 1750s when steam engines were increasingly employed in iron works.

These represent three 'leading sectors', in which there were key innovations, which allowed the economic takeoff by which the Industrial Revolution is usually defined. Later inventions such as the power loom and Richard Trevithick's high pressure steam engine were also important in the growing industrialisation of Britain. The application of steam engines to powering cotton mills and ironworks enabled these to be built in places that were most convenient because other resources were available, rather than where there was water to power a watermill.

Industry and invention Before the 1760s, textile production was a cottage industry using mainly flax and wool. A typical weaving family would own one handloom, which would be operated by the man with help of a boy; the wife, girls and other women could make sufficient yarn for that loom.

The knowledge of textile production had existed for centuries. India had a textile industry that used cotton, from which it manufactured cotton textiles. When raw cotton was exported to Europe it could be used to make fustian. Knitting machines too had long been known. The stocking frame was invented in 1589 and spread throughout England during the following two centuries, mechanising hosiery production. 14,000 were in use by 1750.

Two systems had developed for spinning: the simple wheel, which used an intermittent process and the more refined, Saxony wheel which drove a differential spindle and flyer with a heck that guided the thread onto the bobbin, as a continuous process. This was satisfactory for use on handlooms, but neither of these wheels could produce enough thread for the looms after the invention by John Kay in 1734 of the flying shuttle, which made the loom twice as productive.

Cloth production moved away from the cottage into manufactories. The first moves towards manufactories called mills were made in the spinning sector. The move in the weaving sector was later. By the 1820s, all cotton, wool, and worsted was spun in mills; but this yarn went to outworking weavers who continued to work in their own homes. A mill that specialised in weaving fabric was called a weaving shed.

Early inventions East India Company During the second half of the 17th century, the newly established factories of the East India Company in South Asia started to produce finished cotton goods in quantity for the British market. The imported Calico and chintz garments competed with, and acted as a substitute for Indian wool and the linen produce, resulting in local weavers, spinners, dyers, shepherds and farmers petitioning their MPs and in turn Parliament for a ban on the importation, and later the sale of woven cotton goods. Which they eventually achieved via the 1700 and 1721 Calico Acts. The acts banned the importation and later the sale of finished pure cotton produce, but did not restrict the importation of raw cotton, or sale or production of Fustian.

The exemption of raw cotton saw two thousand bales of cotton being imported annually, from Asia and the Americas, and forming the basis of a new indigenous industry, initially producing Fustian for the domestic market, though more importantly triggering the development of a series of mechanised spinning and weaving technologies, to process the material. This mechanised production was concentrated in new cotton mills, which slowly expanded till by the beginning of the 1770s seven thousand bales of cotton were imported annually, and pressure was put on Parliament, by the new mill owners, to remove the prohibition on the production and sale of pure cotton cloth, as they wished to compete with the EIC imports.

Indian cotton textiles, mainly those from Bengal, continued to maintain a competitive advantage up until the 19th century. In order to compete with Indian goods, British merchants invested in labour-saving technical advancements, while the government implemented protectionist policies such as bans and tariffs to restrict Indian imports. Britain eventually surpassed India as the world's leading cotton textile manufacturer in the 19th century.

Britain During the 18th and 19th centuries, much of the imported cotton came from plantations in the American South. In periods of political uncertainty in North America, during the Revolutionary War and later American Civil War, however, Britain relied more heavily on imports from the Indian subcontinent to supply its cotton manufacturing industry. Ports on the west coast of Britain, such as Liverpool, Bristol, and Glasgow, became important in determining the sites of the cotton industry.

Lancashire became a centre for the nascent cotton industry because the damp climate was better for spinning the yarn. As the cotton thread was not strong enough to use as warp, wool or linen or fustian had to be used. Lancashire was an existing wool centre. Likewise, Glasgow benefited from the same damp climate.

The early advances in weaving had been halted by the lack of thread. The spinning process was slow and the weavers needed more cotton and wool thread than their families could produce. In the 1760s, James Hargreaves improved thread production when he invented the Spinning Jenny. By the end of the decade, Richard Arkwright had developed the water frame. This invention had two important consequences: it improved the quality of the thread, which meant that the cotton industry was no longer dependent on wool or linen to make the warp, and it took spinning away from the artisans' homes to specific locations where fast-flowing streams could provide the water power needed to drive the larger machines. The Western Pennines of Lancashire became the centre for the cotton industry. Not long after the invention of the water frame, Samuel Crompton combined the principles of the Spinning Jenny and the Water Frame to produce his Spinning Mule. This provided even tougher and finer cotton thread.

The textile industry was also to benefit from other developments of the period. As early as 1691, Thomas Savery had made a vacuum steam engine. His design, which was unsafe, was improved by Thomas Newcomen in 1698. In 1765, James Watt further modified Newcomen's engine to design an external condenser steam engine. Watt continued to make improvements on his design, producing a separate condenser engine in 1774 and a rotating separate condensing engine in 1781. Watt formed a partnership with businessman Matthew Boulton, and together they manufactured steam engines which could be used by industry.

Prior to the 1780s, most of the fine quality cotton muslin in circulation in Britain had been manufactured in India. Due to advances in technique, British "mull muslin" was able to compete in quality with Indian muslin by the end of the 18th century.Gail Marsh, 19th Century Embroidery Techniques (Guild of Master Craftsman Publications Ltd, 2008), p. 70.

Timeline of inventions In 1734 in Bury, Lancashire, John Kay invented the flying shuttle — one of the first of a series of inventions associated with the cotton industry. The flying shuttle increased the width of cotton cloth and speed of production of a single weaver at a loom. Resistance by workers to the perceived threat to jobs delayed the widespread introduction of this technology, even though the higher rate of production generated an increased demand for spun cotton.

In 1738, Lewis Paul (one of the community of Huguenot weavers that had been driven out of France in a wave of religious persecution) settled in Birmingham and with John Wyatt, of that town, they patented the Roller Spinning machine and the flyer-and-bobbin system, for drawing wool to a more even thickness. Using two sets of rollers that travelled at different speeds yarn could be twisted and spun quickly and efficiently. This was later used in the first cotton spinning mill during the Industrial Revolution.