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Encyclopedia > Inside contracting

Inside contracting is the practice of hiring contractors who work inside the proprietor's factory. It replaced the putting out system, where contractors worked in their own facilities. Inside contracting was the system favored by the Springfield and Harper's Ferry Armories. Since the manufacturing system developed in the armories also became popular (the American system of manufacturing), manufacturers in the early 19th century tended to hire people trained in the armories as managers. They brought with them the practice of inside contracting. From 1794 to 1968 the Springfield Armory was a center for the manufacture of U.S. military small arms and the site of many important technological advances. ... Harpers Ferry is the name of several places in the United States of America: Harpers Ferry, Iowa Harpers Ferry, West Virginia There was also John Browns raid on the armory at Harpers Ferry, West Virginia as well as a Battle of Harpers Ferry in the American Civil War. ... The American system of manufacturing involves semi-skilled labor using machine tools and templates (or jigs) to make standardized, identical, interchangeable parts, manufactured to a tolerance. ...


The manufacturer hired inside contractors and provided materials and machinery. Each inside contractor was expected to hire his own employees and meet certain production and quality goals, but everything else was left to him. As a result, the system rewarded ingenuity, but also rewarded local optimization. For example, it was to the inside contractor's benefit to allow machinery to deteriorate toward the end of his contract since maintenance was costly and he might not reap the long-term benefit if he didn't get another contract. The system was eventually replaced with the factory system, in which everyone was an employee of the manufacturer directly. The factory system was a method of manufacturing adopted in England at the beginning of the Industrial Revolution. ...


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