Labor Force Characteristics of ‘High Tech’ vs. ‘Low Tech’ Manufacturing in Nonmetropolitan Counties in the West

Abstract

To replace lost jobs and re-stimulate economies, community economic development policies are focusing on “high technology” manufacturing industries. National statistics indicate that this focus has promise. For communities to realize this potential, however, the specific occupational structures of the establishments locating in nonmetropolitan communities must meet employment needs and goals. According to the product-profit life cycle hypothesis, manufacturing firms locate in nonmetropolitan areas primarily to take advantage of low wage, low skill labor. If this is true for high tech manufacturing, their occupational structures and employment impacts may differ little from traditional nonmetropolitan manufacturers. The purpose of this paper is to (1) provide a further test of the product-profit cycle hypothesis for high tech manufacturing; (2) determine if high and low tech manufacturers provide different employment opportunities for nonmetropolitan communities; and (3) determine if the educational requir...