The textile industry, in particular, was transformed by industrialization. Before mechanization and factories, textiles were made mainly in people's homes (giving rise to the term cottage industry), with merchants often providing the raw materials and basic equipment, and then picking up the finished product. Workers set their own schedules under this system, which proved difficult for merchants to regulate and resulted in numerous inefficiencies. In the 1700s, a series of innovations led to ever-increasing productivity, while requiring less human energy.

For example, around 1764, Englishman James Hargreaves (1722-1778) invented the spinning jenny (“jenny” was an early abbreviation of the word “engine”), a machine that enabled an individual to produce multiple spools of threads simultaneously. By the time of Hargreaves' death, there were over 20,000 spinning jennys in use across Britain. The spinning jenny was improved upon by British inventor Samuel Compton's (1753-1827) spinning mule, as well as later machines. Another key innovation in textiles, the power loom, which mechanized the process of weaving cloth, was developed in the 1780s by English inventor Edmund Cartwright (1743-1823).

Developments in the iron industry also played a central role in the Industrial Revolution. In the early 18th century, Englishman Abraham Darby (1678-1717) discovered a cheaper, easier method to produce cast iron, using a coke-fueled (as opposed to charcoal-fired) furnace. In the 1850s, British engineer Henry Bessemer (1813-1898) developed the first inexpensive process for mass-producing steel. Both iron and steel became essential materials, used to make everything from appliances, tools and machines, to ships, buildings and infrastructure.

The steam engine was also integral to industrialization. In 1712, Englishman Thomas Newcomen (1664-1729) developed the first practical steam engine (which was used primarily to pump water out of mines). By the 1770s, Scottish inventor James Watt (1736-1819) had improved on Newcomen's work, and the steam engine went on to power machinery, locomotives and ships during the Industrial Revolution.