manufacturing

It’s graduation day, a time when young men and women proudly walk past family and friends to accept diplomas from their high school or college. The event marks the beginning of their new life, joining the American workforce. And perhaps, for some, marriage, starting a family and living in a house with a white picket fence.

This story, however, is about a different kind of graduating class. Unlike typical high school and college grads, these students have already tackled the struggles of unemployment, poverty, addiction and even years of incarceration. This graduating class is filled with students who are now restarting their journey toward economic self-sufficiency and attaining the American dream.

Compared to urban areas, in 2015, manufacturing represented a greater share of both private nonfarm rural jobs (14 percent vs. 7 percent) and rural earnings (21 percent vs. 11 percent). A new report from USDA’s Economic Research Service, Rural Manufacturing at a Glance, examines the manufacturing sector in rural America.

Small town Oroville, California sits on the banks of the Feather River at the foothills of the Sierra Nevada mountains. It was established to supply the thousands of prospectors headed to Bidwell Bar, one of the first gold rush mines in the state. Today, this community of 16,260 people produces much more than just gold dust.

At the edge of town, what started in 1989 as a backyard blacksmith shop by owners Michael Phulps and Sean Pierce has become a 82-employee steel manufacturing company called Metal Works, thanks to a little help from USDA Rural Development. Fourteen years ago, Metal Works received their first Business & Industry loan guarantee to purchase a 20,000 square foot fabrication shop and office building on a little over 18 acres. Since then, they’ve converted their original 9,400 square foot building to a retail steel shop, and added another 20,000 square foot fabrication shop, burn table, and a modern, high-precision drill and beam line. Now, they’ve leveraged a new Rural Development guaranteed loan to refinance, save tens of thousands of dollars annually, and hire 10 new employees as a direct result of those savings.

While many manufacturing companies provide well-paying jobs and play a vital role in creating vibrant, healthy rural communities, sometimes rural communities may struggle to attract these companies. To help bridge this gap, the Investing in Manufacturing Communities Partnership (IMCP) was created. This Administration-wide effort brings together federal departments and agencies to provide coordinated assistance to communities to become more attractive for manufacturers.

Recently, USDA hosted two IMCP events in Minnesota and California with diverse audiences of about 120 stakeholders representing manufacturing businesses, lenders, economic development organizations, universities and community colleges, small businesses development centers, and local leaders among others. At both meetings, USDA Rural Business-Cooperative Service Administrator Lillian Salerno led panels of federal partners that discussed the initiative and sought input on the needs of local manufacturers.

Each year our agency, USDA’s Economic Research Service, produces a six-page brochure packed with information on social and economic conditions in rural areas of the nation. This information is particularly useful for agencies that develop policies and programs to assist rural areas. We recently released the 2010 edition, which focuses on the rural economy, including employment trends and demographics.