Adjusting to Changes in Traditional Markets: The Problems of Small Manufacturers in Older Industrial Regions

Abstract

A declining manufacturing base in many regions, fueled by plant closures and work force reductions, has hurt many small companies that historically have operated as suppliers to the larger companies. This article examines the experience of smaller manufacturing companies in adjusting to new market circumstances. Many of these companies, job shops in particular, are experiencing difficulties because they do not have the marketing and product development expertise required to recapture most markets or to identify new ones. For many, outside assistance may be necessary to help them with the transition, and programs to provide this help should become part of a region's overall approach to economic development.