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Let me put it this way, Eddie...
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War factories were structures assembled on the battlefield by the USA and China and later by EU and APA to manufacture a large array of tanks and other vehicles (in fact, all of the combat ground units used by those factions). Vehicles were built individually, with commanders able to set a 'build queue' of units to be constructed. In addition to constructing vehicles, War Factories had repair bays capable of repairing one vehicle at a time, and could also develop certain upgrades for both factions.
Note that the GLA did not possess War Factories, but rather Arms Dealers. However, the functions of the structures were essentially identical.