Though the nation's manufacturing sector has decreased significantly over the past half century, these businesses remain critical to the strength of the innovation economy and the mobility of low-income households. A large portion of small manufacturers are clustered in urban areas, but federal policy has neglected or hindered these valuable assets. This paper identifies ways that government can facilitate the growth of small-scale urban manufacturers within a greater economic development scheme. Government agencies can utilize this sector by first identifying the unique manufacturing assets of local and regional areas and prioritizing them within policy, regulation, and public investment.