Yet the success is not unqualified. Isserman suggests that while parts of the region are catching up, some still considerably lag the nation. The Region's historical reliance on the manufacturing sector and the restructuring that trade and technology are fostering, suggest that a taking stock exercise is warranted. This study examines how the manufacturing sector in Appalachia has evolved over the past thirty years. One key indicator of the economic opportunities in a region is the rate at which new job opportunities are created.
New plants offer new employment opportunities for workers.
New plant formation rates can also be seen as a measure of the economic vitality of a region. To see how Appalachia fared during this period of restructuring, this study examines whether new plant formation in Appalachia matches new plant formation in the rest of the country. We examine the entry of new manufacturing establishments and the exit of existing establishments across 5-year intervals relative to the US entry and exit rates. Beyond providing new employment opportunities, new plants and firms can have a transforming effect on regions. If new plant formation is concentrated in particular sectors, this can significantly affect the industrial base in a region.