There are multiple obstacles to Confederate industrialization. To run through some of the chief ones:
1) Lack of any financial infrastructure, no real banking establishment, no organized system for credit and securities, tended to mean that capital was safest tied up in land or slaves, and therefore not available for investment;
2) Lack of coherent internal transportation infrastructure and networks - the South had no central railway trunk, instead there was a patchwork of inefficient short run rails with no standardization, canals, and poor quality roads, all oriented toward delivery to export, this meant significant internal transshipment costs, particularly compared to imports. Not fatal, but a serious cumulative handicap.
3) A constitutional prohibition against infrastructure projects.
4) A relatively small and extremely fragmented domestic market, particularly in comparison to adjacent rivals the US, Britain and France, which placed the domestic industries at a net disadvantage compared to manufactured imports.
5) Serious difficulties penetrating any foreign market, notably America, Europe or Latin America for a number of reasons, ranging from distance, lack of blue water shipping, prior secured market positions for the US and Britain, distaste for slavery, etc.
6) A fairly regressive 'renter/owner' plantation culture that places a premium on land and property ownership and is unlikely to support or embrace entrepreneurialism.
7) Low tariff policies that would have made it difficult for domestic industries to thrive against foreign imports.
8) Massive confederate war debts and deficit policy likely to produce hyperinflations, crashes and speculative bubbles.
9) Inability to access foreign investment capital based on the hostility to slaveocracy.