The increasing importance of service sector employment is one of the most talked-about economic trends in recent years. The shift from goods-producing employment is often viewed with alarm in nonmetro areas because goods-producing industries have long been the backbone of their economies. However, the focus on differences between services and manufacturing industries obscures important changes occurring within the goods-producing industries themselves. In particular, the nonmetro manufacturing sector's restructuring over the past 20 years has important implications for nonmetro employment and earnings.