Comprehensive, place-based partnership strategies and interventions could narrow the disparities between thriving and struggling rural communities and boost millions of Americans’ quality of life.
A common misconception about the rural United States is that it is a monolith. In truth, it consists of a wide variety of geographies, economies, and cultures. During a McKinsey Live, partners Sarah Tucker-Ray and Duwain Pinder presented new research focused on understanding the challenges and opportunities facing the various types of rural communities and developing strategies for enhancing their economic opportunities, growth, and resilience.
Rural counties are home to one in seven Americans and collectively contribute $2.2 trillion to US GDP. Their economies, often centered on farming, mining, or manufacturing, have overall slower employment growth than those of urban areas, which are more likely to be part of the knowledge economy and home to highly specialized industries. Based on the economic and demographic indicators of 3,100 counties, the researchers identified six distinct rural-community archetypes, each with its particular needs and investment potential.
Nearly two-thirds of an expected $1 trillion in advanced-manufacturing projects—from sectors such as semiconductors and biomanufacturing—will soon be within commuting distance of rural Americans. Moreover, the manufacturing sector expects a shortfall of 2.1 million workers by 2030. That means that civic and business leaders in rural communities—as well as the financial institutions, not-for-profits, schools and universities, and state governments serving them—have a once-in-a-generation opportunity to meet the rising demand for skilled workers and unlock more than $30 billion in annual wages.
Capitalizing on that opportunity will require, above all, developing and mobilizing people equipped with the right skills. That will require focused actions, often on the part of multiple organizations working in concert. Based on insights about each rural-community archetype and factors that propel rural development and mobility, the researchers identified several types of economic-development interventions for rural leaders to consider along with their community’s archetype.
Many successful examples of these types of interventions are already in place.
Targeted investments. New investments of all sorts must align with the unique strengths of a rural community’s archetype.
Workforce pipeline. Rural school districts need to ensure their students have core reading, math, and critical-thinking skills when they leave high school. School districts and community colleges could work with companies to implement structured training for roles in demand.
Anchor partnerships. Nearby anchor institutions, such as universities and philanthropic groups, could boost regional economics by helping rural counties secure grants and train workers.
Cross-sector solutions. In areas with low levels of health and well-being, collaborative efforts of multiple sectors could address rural challenges like healthcare access, transit, and digital connectivity.
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For more on this topic, see the report Small towns, massive opportunity: Unlocking rural America’s potential, as well as the articles “Who is rural America?” and “Manufacturing in rural America: A plan for K-12-industry partnerships,” on McKinsey.com.
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