How did the integration of steam engines change factory building locations?

It allowed factories to be built away from riverbanks and operate constantly.

The shift in motive power, moving from water wheels to the integration of steam engines, was perhaps the greatest multiplier of output capacity during this era. The Water Frame demonstrated the speed advantage of mechanical power over muscle, but water power inherently required factories to be situated directly adjacent to rivers. Steam engines provided a consistent, external power source that was independent of water flow or daylight availability. This meant manufacturers could decouple production capacity from these geographical and biological constraints, allowing factories to be built in various locations and operate continuously, which was fundamental to defining mass production.