The economy of New Hampshire has grown and changed greatly over the years.
During the 1600s the state’s income was primarily through fishing and timber.
The two combined to create a large shipbuilding industry which thrived
throughout the 18th and 19th centuries. In the 1700s, settlers began moving
inland and agriculture became an important economic activity. Farming could
not support New Hampshire for long, however. Although considered largely
agricultural, the state’s poor soil and short growing season make a strong
agricultural industry impossible.
As the Industrial Revolution
approached, and technology such as water-powered mills became available,
textile manufacturing boomed throughout the state. The invention of the
railroad also aided in the farming drop, as Midwestern farm goods could
now easily be transported to New England. The textile industry peaked in
the early 1900s and began to decline, as did shoe manufacturing. New Hampshire
possessed many desirable traits for industries, such as an willing labor
force, low land costs, low taxes, few regulations, and a perfect location
for northeastern markets. Many new industries sprang up, replacing the
textile mills.
Today, New Hampshire
is thriving under many different markets, such as manufacturing, energy,
and tourism. New Hampshire is among the six most industrialized states
in America. Industries such as electronics, communications and utilities
as well as other services have become important in New Hampshire’s economic
life. Agriculture, mining, forestry, fishing, and transportation continue
to be present economic activities, although their roles are minor. With
a 1997 gross state product of 38.1 billion dollars, one could easily say
that New Hampshire is doing well.
As previously stated,
manufacturing accounts for a large part of the state economy. Over one-forth
of the state’s nonagricultural labor force is employed in manufacturing.
New Hampshire’s chief manufactured goods include machinery, electrical
and electronic products, plastics, precision instruments, and fabricated
metal products. North of the White Mountains, the only large industrial
center is Berlin, which produces paper and pulp.
Tourism is the second
most important market in New Hampshire’s economy, and its role cannot be
understated. Major tourist attractions, such as the White Mountains, Lake
Winnipesaukee, Strawberry Banke, numerous state parks, and others draw
vacationers to the Granite State. People come to New Hampshire year-round
to enjoy skiing, water sports, and tax free shopping. New Hampshire, in
fact, is the only state with no general sales tax and no state income tax.
Although agriculture
is of minimal importance to New Hampshire’s economy, dairy products keep
the market alive. Among other chief crops are nursery and greenhouse products,
hay, vegetables, fruit, maple syrup and sugar products. The apples and
syrup are two of New Hampshire’s products which are the finest around.
Hay, corn, and peaches are crucial crops too. Also important to agriculture
in the state is the raising of cattle, sheep, hogs, horses, and chickens.
Mining, forestry, and
fishing are other markets worth mention in New Hampshire’s economy. Non-fuel
minerals accounted for 53.1 million dollars in 1998. Major minerals found
in the state are sand, gravel, crushed or dimension stone, and gemstones.
Approximately 85% of the state is covered with forests, making lumber an
important resource. Common trees used for lumber in New Hampshire include
the white pine, hemlock, oak, and birch. Such timber, mostly softwoods,
is used for manufacturing pulp and paper products, railroad ties, furniture,
and fence posts. On the coast, shellfish, especially lobster, and deep-sea
fish rank as top fishing products. Saltwater fishing centers exist in Hampton,
Portsmouth, and Rye.
The job market in New
Hampshire is well balanced as of now. A 1998 census placed unemployment
at 2.9%. Employment distribution is as follows: 29.9% service, 25.9% trade,
17.7% manufacturing, and 13.5% government. |
