San Nicolas has an agricultural economy like its neighboring towns, producing similar crops like rice, corn, tobacco and vegetables. It is also, however, a major producer of maguey plants, the processed fibers of which are transported by oxcarts to the port of Currimao.

The people of San Nicolas take pride in their various craft industries. By the end of the nineteenth century, the town was known for its pottery, weaving, leatherwork, furniture-making, fabrication of iron and tin products as well as carriage-making (carroceria).

The type of clay for making terracotta bricks is found in many of its barrios. Its kiln-fired earthenware come in various shapes and sizes: from cooking pots and stoves to water jars and well casings to roof tiles and flue pipes to miniature toys and flower pots. San Nicolas pottery is widely available in market places all over Ilocos Norte and nearby provinces. Visitors who want to see local craftspeople at work can visit San Nicolas’ barangays 7, 8 and 9.

Also known for its metal, leather craft and wagon wheel making, San Nicolas is a recommended destination for collectors of folk art.