At the end of the 1860s, came a new industrial surge caused by two armed conflicts: the American Civil War and the Paraguayan War. The second resulted in the emission of currency and an increase in import tariffs to cover the costs of war.
Most large industry is concentrated in the south and south east.
The north east is traditionally the poorest part of Brazil, but it is beginning to attract new investment.
The practice was resumed in the 1840s, when new industrial establishments received subsidies.
in 1857, seven factories benefited from this practice of incentives, among them, the Ponta da Areia mentioned above and that was owned by Irineu Evangelista de Sousa (later Viscount of Mauá).
However, most, about 56 establishments, would be considered workshops by today's standards, directed toward the production of soap and tallow candles, snuff, spinning and weaving, foods, melting of iron and metals, wool and silk, amongst others. There were twenty establishments that could be considered in fact manufacturers, and of this total, thirteen were created between the years 18.
All were, however, of small size and resembled large workshops more than proper factories.In 1880 the Industrial Association was established, with its first board elected the following year.It supported new industrial incentives and propagandized against the defenders of an essentially agricultural Brazil.Still, the manufactured goods were quite diverse: hats, combs, farriery and sawmills, spinning and weaving, soap and candles, glasses, carpets, oil, etc.Probably because of the instability of the regency period, only nine of these establishments were still functioning in 1841, but these nine were large and could be considered to “presage a new era for manufactures”.During the 1870s, the decline of the coffee region of the Paraíba Valley and in some areas of sugar production, caused many plantation owners to invest not only in the cotton textile industry, but also in other manufacturing sectors.