Economy

Since gold was first discovered in the Rockies in the 1850's, Colorado has changed from a rugged frontier of boomtowns and mining camps to a prosperous state with a modern diversified economy. Agriculture and mining dominated all other activities until World War II. Since then, rapid growth in manufacturing and other sectors has greatly broadened the economic base. Government (federal, state, and local), retail trade, the service industries, and manufacturing employ the largest number of workers. Tourism is also a major and growing part of the economy.

Colorado had few manufacturing industries until World War II stimulated large-scale industrialization. Since the war numerous industries, especially in the electronic and aerospace fields, have been attracted to the state. Nearly all manufacturing is concentrated in cities along the western edge of the plains; more than two-thirds is in metropolitan Denver.

Food processing, based on local agricultural production, usually contributes much of the value of all manufacturing in Colorado. Of chief importance are meat packing, the bottling of soft drinks, and beer brewing. The manufacturing of electrical and electronic equipment and computer products follow food processing in importance. These industries are the fastest growing in the state and account for much of the industrial expansion in recent years. Products include devices that store computer data, electronic components and devices, semiconductors, and measuring instruments.

Other major industries produce fabricated metal products and chemicals. There is a large iron and steel complex at Pueblo.

Despite a decline in relative value, agriculture remains a vital sector of Colorado's economy. Nearly three-fifths of the state is classed as farmland. The rugged central and western parts of the state are used chiefly for grazing; the plains, for raising both crops and livestock. Farms tend to be large, averaging about 1,250 acres (505 hectares).

Roughly 75 per cent of all farm income is derived from livestock. Beef cattle and calves, including animals shipped to Colorado feedlots from other states, provide most of the total. Sheep and lambs are grazed in the mountains and western uplands; the state is a major producer of spring lamb and wool. Dairying is important around the major cities.

Because of variable and sometimes inadequate rainfall on the plains, crop production in Colorado fluctuates considerably. Several good years are usually followed by one or more poor ones. Irrigation is widely practiced in the South Platte basin north of Denver, in the San Luis Valley, and along the Arkansas and Colorado rivers.

Wheat—grown mainly by dry-farming methods—and corn are the leading crops in value. Other crops cultivated include hay and barley. Sugar beets and potatoes are the chief irrigated crops. Peaches are grown in significant quantities. Vegetables—especially onions and lettuce—are also important.

Petroleum, natural gas, and coal are the most important of Colorado's varied mineral resources. The Henderson Mine, in Clear Creek County, is a major producer of molybdenum. Petroleum, most of which is piped to other states for refining, comes from large oil fields in the Wyoming Basin and on the northern plains. Other important minerals include sand and gravel, coal, granite, and limestone. Small amounts of a number of other minerals, including gold and silver, are also mined or obtained as by-products. Denver serves as a major center for companies engaged in the exploitation of energy resources throughout much of the western United States.

Its pleasant climate, spectacular scenery, and year-round sports and recreational facilities make Colorado one of the nation's most popular vacation areas. The money spent in the state by visitors each year makes tourism nearly as important as agriculture and mining in Colorado's economy. There are numerous winter resorts, with some of the finest skiing facilities in the United States.

Despite its mountainous terrain, Colorado has a modern, well-developed transportation system. Denver is the transportation hub for much of the Rocky Mountain and Great Plains regions of the United States.

Most of the railway trackage is east of the Rockies; few lines traverse the mountainous part of the state. Roads and highways, including three Interstate highways, criss-cross the state and wind through the mountains over passes as much as 12,000 feet (3,660 m) above sea level. Some of the higher passes are closed by snow during winter. DenverInternational Airport is one of the busiest commercial facilities in the nation.