Economy

Since the 1930's, and particularly since World War II, Tennessee has grown steadily from a predominantly agricultural state to one having a diversified economy. Manufacturing has made the most rapid gain and is now the leading sector of the economy. The largest number of Tennesseans are employed in manufacturing, wholesale and retail trading, service industries, and government. Despite its relative decline, agriculture remains important.

Much of Tennessee's industrial growth has stemmed from an abundance of TVA power, relatively low-cost labor, and an influx of new industries from outside the state.

Tennessee is one of the leading industrial states in the South. Nationally, it ranks among the top one-third of the states, though far behind the leaders. Most of the industrial development has been in or near Memphis, Nashville, and Chattanooga, and in the tri-city area of Kingsport, Johnson City, and Bristol.

Chemicals, clothing and textiles, processed foods, machinery, electrical and electronic equipment, and paper items are the chief manufactured products. Chemicals make up the leading group. Synthetic fibers, plastics, fertilizers, acids, paints, and drugs are but a few of the many items produced. Tennessee's synthetic fibers play a major role in its textile and apparel production, as does its cotton. From other large industries come a wide range of machinery; fabricated metal goods; stone, clay, and glass products; printed and published matter; primary metals; paper; leather goods; and furniture. In hardwood lumber production, Tennessee is one of the nation's leading states.

Some of Tennessee's industries are distinctive, if not unique, and reflect the folk traditions of the state. In Nashville is centered the recording and broadcasting of country music—a multimillion-dollar annual industry. Among other industries are the making of handicraft products by Appalachian mountaineers and the distilling of Tennessee sour-mash whiskey.

Farming has improved greatly throughout most of Tennessee since the 1930's, when much of the farmland was of poor quality due to soil erosion and fertility depletion. Improvement began with the TVA's massive conservation program, which meshed federal and state efforts. With it came increased erosion control, reforestation, advanced farming methods, new crops, fertilizers, and rural electrification—the foundations of modern farming.

Farms occupy about half of Tennessee's land area. Roughly 45 per cent of the farmland is used for crops; the rest is mostly pasture and forest. The most productive commercial farms are on the Jackson Plain, in the Nashville Basin, and in the Great Valley. In some of the mountainous areas of eastern Tennessee, small subsistence farms prevail.

Soybeans, which are widely grown in Tennessee, are by total value the chief crop in the state. Cotton, hay, corn, and tobacco are also leading crops. In acreage, corn greatly exceeds all other crops. Timber from farmland plots is also an important source of income.

Tennessee's livestock and livestock products—cattle and calves, milk, hogs, poultry, and eggs—are usually substantially more valuable than its crops. A specialty of the state is the raising of thoroughbred horses, particularly the Tennessee Walking Horse, a breed prized for its smooth running walk.

Mining forms a relatively small, but nevertheless significant, part of the state's economy. Tennessee is a leading producer of ball clay (for ceramics) and other clays, zinc, and phosphate rock. In total value of production, coal, crushed stone, and zinc are the leaders.

Bituminous coal of a relatively high grade is mined on the Cumberland Plateau, both in strip mines and underground. Limestone and sandstone are produced in many parts of the state. Tennessee marble, quarried largely in the Knoxville area, is used in construction throughout the United States. Zinc comes from several counties in the eastern and central parts of the state.

Since the time of the Wilderness Road and the Natchez Trace in the late 18th century, Tennessee has provided vital transportation routes. Today, railways crisscross the state, with major lines following north-south routes. Memphis and Nashville are the principal hubs of the rail network. The road system includes seven Interstate highways and several other multilane divided highways. Nashville, Chattanooga, Memphis, and Knoxville are the chief points of convergence for Interstate highways in the state.

Nearly a dozen major airlines serve Tennessee, primarily through airports at Memphis, Nashville, Chattanooga, and Knoxville. The Mississippi, the Tennessee, part of the Cumberland River, and the Tennessee-Tombigbee Waterway are federally maintained waterways. Memphis has long been a leading inland port.