The railroads had a fairly large impact on the Industrial Revolution. Railroads could transport materials needed faster than before, which helped factories produce goods. This helped big business to grow. The railroad also let people from the country move into the city, which helped provide a work force for the factories. This helped big business even more.
The railroad also helped some industries such as the coal industry. Before, coal had to be mined, brought to the surface, and transported all by hand. Once railroads became popular, however, it became easier to move mined coal more quickly. The railroad also helped other industries, including the coal industry, by purchasing from them. The lumber and steel industries grew larger due to the supplies needed to build railroads.
The railroad helped people as well. Railroads could deliver supplies quickly and fairly inexpensively. This was crucial for some towns in more rural areas, because it meant they could get any good they needed. The railroad also made new jobs for people. Because of its popularity, railroads needed workers to build more tracks, engines, and to fill other jobs. Other industries also needed more workers due to the growing demand of supplies needed for railroads, which produced even more jobs.
Sources:
http://www.let.rug.nl/usa/essays/1801-1900/the-iron-horse/the-industrial-revolution.php
http://www2.needham.k12.ma.us/nhs/cur/Baker_00/baker_1800_soc/baker_by_gw_p.1/railroads.htm
http://library.thinkquest.org/05aug/01419/railroadstext.html
The Industrial Revolution & Railroads 