Whilst doing a bit of reading I discovered that the term “Factory” is actually a shortening of an older word “Manufactory” which was in use in the 1800s. The Miriam Webster dictionary states that the first known use of that word was in 1641.

My uncle who is a bit of a linguistic expert added a little more and provided the origins of the word “Manufactory”

“Latin manu meaning by hand and factory coming from factum meaning made“

This is interesting as it’s modern usage implies automation rather than hand made.

Additional reference:

http://en.wikipedia.org/wiki/Soho_Manufactory