Overview
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Rural businesses and industries often specialize in resource
based activities such as agriculture, forestry, mining, or natural
amenity-based recreation. In addition, manufacturing
establishments--some involved in processing food, wood and mining
products, but most in "footloose" activities unrelated to local
natural resources--have been a key part of many rural economies.
Rural areas tend to have significantly fewer financial,
professional, scientific and information services activities that
concentrate in urban economies. The public sector has been a major
source of earned income in rural areas. Trends in these activities
shape the job opportunities available to the rural labor force.
ERS research on business and industry focuses on the
competitiveness of rural industries and businesses in the
increasingly global economy, as well as their impacts on local
communities.
- In 2012, ERS in cooperation with Washington State University is
launching a large survey of innovativeness in rural (and urban)
establishments. A central purpose will be to understand better the
business characteristics and local community settings most
conducive to effective business practices and success.
Examples of previous ERS research findings include:
- Rural manufacturers do not lag urban manufacturers in the
adoption of new methods and processes (see Rural Competitiveness: Results of the 1996 Rural
Manufacturing Survey, March 1999) although there has been some
lag where local work force education levels are low. Smaller plants
are more likely to adopt new methods and practices in industrially
diverse rural counties where there are more people in creative occupations, an
indication that community context is important for
innovation.
- While recreation is often cited as a source of low-paying jobs,
counties specializing in recreation fare well (see Recreation, Tourism, and
Rural Well-Being, August 2005) on many measures of well-being,
including wage levels and income. A central problem facing
residents in these counties is high costs of housing. Manufacturing
is particularly important in rural areas that are not favored by
mountains, lakes, and climates attractive for recreation and
retirement.