While most sociologists now recognize the importance of urban industri
al problems, there is less awareness of the causes and social signific
ance of nonmetropolitan manufacturing decline. By means of structured
and informal interviews, nonparticipant observations, and analysis of
public documents, a case study was conducted to evaluate the economic
and social ''community impacts'' of industrial restructuring in a nonu
rban community. Eight negative consequences of manufacturing decline w
ere identified. The study generated information inconsistent with two
prevailing explanations for recent rural industrial troubles in the Un
ited States: the underskilled production labor theory, and the deficie
nt physical infrastructure thesis. Case evidence suggested that capita
l flight, economic and political network powerlessness, and managerial
competency deficits may be significant causes of rural manufacturing
decline. Given the significance of manufacturing for rural areas, more
cogent, multidisciplinary explanations for nonurban industrial shifts
need to be developed.