Earlier quoted context omitted.
The south wasn't really situated for industrialization at the time. They didn't have enough rivers that could turn a water wheel effectively. (That's what I've heard anyway)
Hmm, this doesn’t seem to be accurate. The missouri/mississipi rivers come to mind, as do many other river systems.
It looks like the south does have some suitable rivers, but you wonder why they exported their crops to the north just to buy them back again in their more processed form...that just doesn't make much sense from an economic standpoint. Clearly slavery wasn't a suitable replacement for the type of production work done in the north. It must have been a mix of social factors, combined with the fact that the north specialized in industry early on and you couldn't compete very well with the lack of expertise and lack of industry which supported the local industry in the south.
Anyway this is all just wild speculation. Take it for what you will.