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Business Development
Growing Appalachian Economies through Craft

The U.S. craft industry—a collection of small businesses with a large network of guilds, membership organizations, schools, suppliers, shops, galleries, and publications—is growing into a vibrant economic sector.

Craft is defined as a "(three dimensional) object made primarily by hand in Appalachia, distinguished by the materials used in their creation. These objects can be contemporary, traditional and/or decorative."

(Source: HandMade in America)

Personal income and national revenue from craft are substantial. National craft sales are approximately $13 billion a year. And the median household income of full-time craftspeople is $50,000 a year—26 percent above the national median of $39,657, according to a 2001 national economic impact study of 80,000 craftspeople, conducted by the Craft Organization Directors Association.

A demographic profile revealed that 79 percent of craftspeople work in a studio located on or in their residential property. In addition, 64 percent of craftspeople worked alone in a studio, 18 percent with a partner or family member, and 16 percent with paid employees. Moreover, craftspeople with paid employees have three times the household income and ten times the sales and revenue of those that work alone.

Craft Income Comparisons By State

State Median
Household Income
Median Craft
Household Income
Alabama $35,478 N/A
Georgia $39,003 $60,000
Kentucky $35,226 $45,000
Maryland $50,630 $75,000
Mississippi $30,628 N/A
New York $38,479 $58,450
North Carolina $37,057 $42,000
Ohio $38,970 $50,000
Pennsylvania $38,938 $52,000
South Carolina $35,376 $53,000
Tennessee $34,393 $48,000
Virginia $44,844 $55,000
West Virginia $28,420 $40,000
National Average $39,657 $50,000

Source: The CODA Survey: The Impact of Crafts on the National Economy

ARC states have a unique role in the craft industry. Appalachians developed functional crafts to serve the needs of frontier settlers, and continued developing crafts through the Industrial Revolution to the first Arts and Craft Movement of the early 1900s, to World War I and II, and to the second Craft Movement of the 50s and 60s. 

Several ARC states have begun to recognize and document the affect of this "invisible industry." In 1996, an economic impact study of craft in Western North Carolina, conducted by HandMade In America (located in Asheville, North Carolina), found that craft contributed $122 million annually to the Region's economy. In 1993, Kentucky conducted an economic impact study that tracked sales in the state, wholesale figures, reinvestment in the community, and other revenue generators. The University of Kentucky is updating these figures, with the decade of comparison due out in late 2003.

Other states, such as West Virginia and Pennsylvania, have long recognized craft's connection to tourism—they established craft shops at strategic locations on the interstate highway system.

Appalachia is a leader in producing handmade goods. Appalachia housed the earliest guilds, craft organizations, and artisan schools in the nation. The Region's industrial base in paper, furniture, wood, fibers/textiles, and ceramics all grew from handmade efforts. And the region's natural beauty and wealth of raw materials offer a setting craftspeople need to create and thrive.

Schools of craft in the Region are expanding. Appalachia's community colleges and independent craft schools draw many people seeking careers in the handmade industry. Appalachia already has an educational foundation on which the craft industry can grow and thrive. Kentucky and Ohio are creating schools of craft that will include business and marketing courses as part of their regular curriculum.

Who Buys Locally Made Craft?

  •  "History and Parks" tourists devote time to planning trips and enjoy exploring scenery, contemplating a sense of place, and photographing the experience. These tourists visit gardens, historic sites and museums, and state and national parks, in addition to buying crafts, postcards, collectibles, local food, and books about the area and its history. And they particularly like to display crafts in their homes.

  • Craft buyers in urban destinations are typically "Ethnic, Arts and People" travelers who tour ethnic communities, enjoy community festivals, attend concerts and theatre, visit art galleries and museums, and interact with local residents. These tourists prefer to buy ethnic crafts, folk art, designer craft, jewelry, and traditional crafts of the region—many of which can be used or displayed at home.

    Source: North Central Regional Extension Publications, in cooperation with the US Department of Agriculture.


  • Tourism Development
    State Tourism Contacts
    Economic Effects of Tourism in Appalachia
    Key Trends Affecting Tourism
    Profiles of Potential Target Markets
    Growing Appalachian Economies Through Craft
    Report on Tourism and Craft