Because European products, particularly English textiles, were no longer available to American consumers, American firms had an opportunity and an incentive to grow. As a result, textile factories sprouted in New England during the 1810s and especially during America's war with England (1812 to 1815), which again cut off British imports. Although textile factories (and later, factories producing iron and other products) were born and thrived during the antebellum period, the manufacturing sector lagged well behind the agricultural sector in total employment. By 1860 the manufacturing sector employed one and a half million Americans; the agricultural sector employed nearly 5.8 million workers.
Ultimately, the rise of the American manufacturing sector was limited by firms' ability to transport their goods to distant markets. In 1800, products could be moved between American cities via the ocean or inland waterways. Overland transportation was extraordinarily costly and impractical. However, two developments in the antebellum period led to a dramatic change in the way producers shipped their goods to American markets. First, the Erie Canal opened in 1825. The completion of the canal allowed farmers to ship agricultural products from Midwestern farms to Eastern markets, and it also allowed manufacturers to ship goods from Eastern factories to Midwestern cities.
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