Much manufacturing in the 18th century was carried out in homes under the domestic or putting-out system, especially the weaving of cloth and spinning of thread and yarn, often with just a single loom or spinning wheel. As these devices were mechanized, machine made goods were able to underprice the cottagers, leaving them unable to earn enough to make their effort worthwhile. Other products such as nails had long been produced in factory workshops, increasingly diversified using the division of labour to increase the efficiency of the system.

Based on this passage, where are goods produced in the domestic system? Let's give stream of consciousness first:
To answer this question, we should know that: Much manufacturing in the 18th century was carried out in homes under the domestic or putting-out system, especially the weaving of cloth and spinning of thread and yarn, often with just a single loom or spinning wheel.
So, the final answer is in homes.