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Simplified etymology
Factory is rooted in Latin facere, “to make or do,” and its sense “a place where things are made” probably came from Latin factorium, “oil press.” In the late 16th century it denoted a trading company’s foreign base or station, where a factor or agent worked. A sense resembling the modern one appeared in the early 17th century, although until the Victorian era a building where goods were produced was more usually called a manufactory.
Etymology
Probably from factor + y, although in noun sense 1 (“a place where manufacturing takes place”) apparently influenced strongly by association with Classical Latin fact-, the past participial stem of faciō (“to make”); compare manufactory and Latin factōrium (“an oil press”). In noun sense 8 (“a trading establishment”), originally after Portuguese feitoria. In noun sense 9 (“an invoice or inventory”), probably after obsolete Dutch facture (“bill”); see facture. Compare Dutch factorij, Middle French factorie, Spanish factoría.
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