Manufacturing Plant Survival in a Period of Decline

We examine the effects of individual plant and local characteristics on explaining survival of manufacturing plants over the last two recessions. We link the establishment‐level Rural Manufacturing Survey to longitudinal establishment employment records (Quarterly Census of Employment and Wages) and examine establishment survival using a Cox proportional hazards model. We find that independent and smaller plants were most likely to survive this period of manufacturing decline (1996–2011) and their survival was more affected by local context than establishments which are part of a multi‐plant firm. Among independent plants, we find that those in metropolitan counties had higher hazard rates despite finding access to local markets being a driver of survival. Plants located in more competitive counties had higher hazard rates.