Correctional industries in general are beginning to be managed like a business due to the private sector's influence on various aspects of public functions such as corrections and due to increasing prison populations that place more demands on correctional industries to create jobs for inmates. Correctional industries do not compete unfairly with the private sector even with their inexpensive labor pool, since the quality of products is good, and they do not capture an adverse market share from the private sector. Operating constraints of correctional industries include security, an unskilled labor force, inmate 'featherbedding,' inmate turnover, inefficient equipment, capital investment constraints, the need to diversify, and procurement constraints. Yet correctional industries must consider the same marketing factors that private industry does, including market potential, profitability, inmate employment potential, capital investment, training, and security. As more traditional labor-intensive markets become saturated, correctional industries may look toward more capital-intensive industries as future candidates for expansion. Another option may be partnership with the private sector where shared benefits may be realized. 16 references.