American manufacturers developed large efficient factories that made it possible for them to compete with the British. The first factories brought workers together in one place and applied the principle of -Division of Labor- where each worker had a specific task to do in the process of production.
1825 The completion of the Erie Canal connected New York City with the Great Lakes region and to foreign trade.NYC became the nation's most important economic center as the Erie Canal connected the city to the interior of the continent and to foreign trade.
Urbanization - Cities became manufacturing centers and trade centers and increased in population.
Roads, Canals & Railroads -Transportation improvement included better roads and new waterways accelerating both industrial and agricultural economic expansion.
Major migration of people to SW & Midwest led to the expansion of markets
By the 1820s, there was a national network in existence. The canal construction served as a model for the organization and methods later used to construct the railways. They were ultimately largely outdated as profitable commercial enterprises by broadening of the railways from the 1840s. Visit the site http://en.wikipedia.org/wiki/Industrial_Revolution top read more details.