There is a synergistic effect between the production service industry and the manufacturing industry, and the effect is influenced by the business cost and the rate of urbanization. In the different stages of industrialization, the relation between the production service industry and the manufacturing industry is different. During the mid-industrialization, in the case of limited needs, producer services and manufacturing reject each other because of the “crowding-out effect”. Hunan Province is in the middle of industrialization. Through the analysis of the data from 2003 to 2012, it is concluded that the production service industry and manufacturing industry have mutually exclusive effect in space in Hunan Province.