MARKET-ORIENTED STRATEGY FOR FOREST-BASED RURAL ECONOMIC-DEVELOPMENT

Conventional economic development strategies have been unsuccessful in rural areas due to an inappropriate set of assumptions. Furthermore, specific strategies for forest-based economic development have not bee n formulated. This study developed a market-oriented strategic approac h for forest-based economic development in rural sectors of the South. To illustrate the approach, a heavily-forested rural two-county subre gion in South Carolina was targeted for analysis. The subregion has a large timber resource, but has only a small volume of forest products manufacturing within or near the subregion. The subregion's objectives , resources, and capabilities were analyzed in depth. Potential market s for wood products that could be manufactured in the subregion were i dentified and analyzed. Target markets and their highest-potential woo d products were selected, based on their best fit with the subregion's capabilities. A unique strategy was formulated for carrying out the f orest-based economic development program in the subregion, based on at tracting a planned set of wood products processing businesses to creat e a manufacturing network. This approach should be applicable to other locations in the South. The proposed manufacturing network, including both new and existing forest-related businesses, focused on specific product businesses and provided an opportunity for member firms to gai n and sustain a competitive advantage against competitors outside the network.