The Manufacturing Sector in the South Status and Recent Trends

Manufacturing has been in decline throughout most of the U.S., following a pattern seen in most industrialized economies. The southeastern states were once an exception to this trajectory due to factors such as lower costs and business-friendly policies; many domestic and international firms continue to establish operations across the region. At the same time, most states in the South are experiencing an overall decrease in manufacturing employment as production is increasingly relocated offshore. This paper provides a brief examination of the manufacturing sector across the South, including employment and production trends. Many southern states still retain above-average concentrations of manufacturing. Overall employment in this sector is decreasing, yet value-added from manufacturing shows signs of increase and perhaps suggests an industrial transition, especially in many key subsectors. These potential shifts raise questions about sustainable regional economic development.