Many U.S. manufacturing firms started, closed, or moved during 1969-75, a period of declining employment. Over 30 percent of firms operating in 1969 closed during the period and were replaced by new firms; 27 percent of manufacturing jobs in 1969 were lost by 1975 through firms closing, but only 20 percent were replaced by new firms. Nonmetropolitan counties provided more stable employment than metropolitan counties. Low-wage, labor-intensive industries (textiles, apparel, leather products, lumber products, and furniture) were less stable than other industries. Contrary to the belief that manufacturing firms have relocated from metropolitan to nonmetropolitan areas, few firms changed county locations over the study period.