Cottage industries

The putting-out system is a means of subcontracting work. Historically, it was also known as the workshop system and the domestic system. In putting-out, work is contracted by a central agent to subcontractors who complete the work in off-site facilities, either in their own homes or in workshops with multiple craftsmen.

It was used in the English and American textile industries, in shoemaking, lock-making trades, and making parts for small firearms from the Industrial Revolution until the mid-19th century; however, after the invention of the sewing machine in 1846, the system lingered on for the making of ready-made men's clothing.

The domestic system was suited to pre-urban times because workers did not have to travel from home to work, which was quite impracticable due to the state of roads and footpaths, and members of the household spent many hours in farm or household tasks. Early factory owners sometimes had to build dormitories to house workers, especially girls and women. Putting-out workers had some flexibility to balance farm and household chores with the putting-out work, this being especially important in winter.

The development of this trend is often considered to be a form of proto-industrialization, and remained prominent until the Industrial Revolution of the 19th century.

At that point, it underwent name and geographical changes. However, bar some technological advancements, the putting-out system has not changed in essential practice. Contemporary examples can be found in China, India, and South America, and are not limited to the textiles industry.

Historian David A. Hounshell writes:

In 1854, the British obtained their military small arms through a system of contracting with private manufacturers located principally in the Birmingham and London areas ... Although significant variation occurred, almost all of the contractors manufactured parts or fitted them through a highly decentralized, putting-out process using small workshops and highly skilled labor. In small arms making as in lock production, the "workshop system" rather than the "factory system" was the rule.

All of the processes were carried out under different cottage roofs. It was replaced by inside contracting and the factory system.

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