Manufacturing is moving into the exurban countryside, away from centra
l cities and their suburbs. However, manufacturing firms remain attrac
ted to markets, labor, and transportation facilities and, therefore, t
end to avoid remote areas. Increasing numbers of firms and employment
are locating outside developed urban areas but not necessarily in the
rural hinterlands. We call this middle area exurbia, and we call the p
rocess of manufacturing growth in this area exurban industrialization
it will fuel further population deconcentration and thus presents new
opportunities for formerly rural communities within expanding urban te
rritory. It also presents new challenges to communities competing for
manufacturing firms. Finally it presents fundamental challenges to man
ufacturing policy at all levels of government. This article uses econo
mic base analysis to characterize exurban industrialization trends, di
scusses the nature of competition for new manufacturing jobs in this c
ontext, and reviews important policy implications.