Southern Advantages
The Confederacy lacked men and weapons, but the men they did have were of the highest caliber. Most of the nation's best generals fought on the Confederate side during the war. Also, in response to the Union's superior industrial plants, the South increased their own manufacturing. Unlike the Northerners, the Southerners as a unit also strongly believed in the cause they fought for. Before the war, many Southerners had practiced riding and hunting for sport and to make a living. This prepared them to form skilled cavalries with excellent aim that could ride in circles around the Union's larger, slower infantry.
This also enabled them to evade the Union's powerful artillery and even sabotage it in areas. The Union blockade on the Southern coasts did cut off income from cotton exports, but the South did not need to import much to survive. The crops that were grown in the South sustained the people for a little while, at which time blockade runners assisted in supplying foreign goods that would keep the Confederacy fighting for years. A larger concern for the South was the issue of transportation. There were not as many developed railways in the South, but Confederates had an in-depth knowledge of the local waterways. Once the Union was on their turf, Confederates had the upper hand because they knew the terrain better.