Factories located near bodies of water because it allowed them to be powered by the water. Factory work was very important for people, as many of them moved near the factories. As more and more people came, the cities urbanized.
The south was more industrial than the north with beast of burden and mills. While in the 20th century the north was more ubanized and industrialized due to factories as well as opening jobs. The south totally couldn't get agriculture out of their way nor accept a change.