New Economy Manufacturing Meets Old Economy Education Policies in the Rural South

Despite growth in services, manufacturing remains a vital part of the rural South's economic base, responsible for nearly one in every three dollars earned in its private sector. Much of the manufacturing was attracted to the region by low-cost labor and low taxes. But manufacturing is changing, adopting new technologies and management practices and seeking more highly skilled labor. Rural manufacturers in Southern counties high in manufacturing have few complaints about State and local taxes, but these counties also have low revenue per pupil in their school systems. Poor schools are likely to be a barrier to attracting advanced technology manufacturing, limiting the ability of these counties to participate in the New Economy.