III.

Economic Activities

From the American Revolution, before which it was a predominantly agricultural state, until the mid-20th century, Connecticut was primarily an industrial state. The small-scale industries that existed in the 17th century to supply the needs of the early colonists first began to expand and prosper after the revolution. Subsequently, manufacturing expanded rapidly, aided by the abundance of water power, by the availability of raw materials from elsewhere in the country and from abroad, and by the remarkable ingenuity of numerous inventors and business people. By the late 1990s Connecticut also had a large services sector. A number of major corporations maintained headquarters in the state, many in Fairfield County, in the southwest. It is the financial sector, however, that contributes the most revenue to Connecticut’s economy, driven in large part by a large insurance industry centered in Hartford.

Connecticut had a work force of 1,844,000 people in 2006. Of those the largest share, 40 percent, worked in the diverse service industry, doing such jobs as working in dry cleaners or data processing. Another 17 percent were employed in wholesale or retail trade; 15 percent in manufacturing; 12 percent in federal, state, or local government, including those in the military; 38 percent in finance, insurance, or real estate; 5 percent in construction; 5 percent in transportation or public utilities; and 1 percent in farming (including agricultural services), forestry, or fishing. Fewer than one percent of workers held jobs in mining. In 2005, 16 percent of Connecticut’s workers were members of a labor union.

A.

Agriculture

There were 4,200 farms in Connecticut in 2005. Of those a minority produced annual income of more than $10,000; most of the rest were sidelines for operators who held other jobs. Farmland covered 145,687 hectares (360,000 acres), of which 48 percent was used to raise crops. Most of the rest was pasture for livestock.

A.1.

Livestock and Livestock Products

Sales of livestock and livestock products accounted for 34 percent of the total sales of Connecticut’s farm products in 2004. The production of poultry and eggs is a leading agricultural activity in the state. Eggs and chickens for distribution in the nearby urban markets are produced on specialized poultry farms. Incubators, brooder houses, and other costly equipment are needed for poultry raising, but fertile soils and flat land are not required. Poultry raising is, therefore, well suited to the farms in the Eastern and Western highlands, though it is concentrated in the Eastern highlands. Dairy farming is another leading agricultural activity. Most of the state’s dairy farmers specialize in the production of milk for urban markets. Beef cattle, sheep, and hogs are also raised on Connecticut farms.

A.2.

Crops

Sales of greenhouse and nursery products are the leading source of farm income in Connecticut. Hay, sweet corn, and tobacco are the most valuable field crops. Yet tobacco fields occupy only about 1 percent of the cultivated cropland. Tobacco is grown mainly in the Connecticut Valley Lowland. Connecticut Shadegrown, a variety of premium tobacco used for cigar wrappers, is grown under a permanent cover of open-mesh cloth. The cloth, supported several feet above the crop by poles, protects the tobacco from direct sunlight and heavy rains. Other types of tobacco are grown in open fields. Potatoes, hay, and corn are sometimes grown in rotation with tobacco.

Vegetables and fruits are cultivated in the lowlands. Sweet corn is sold directly to markets and consumers rather than processed, and commands a high price because of its freshness. Many other vegetables, raised on farms in the vicinity of the larger cities, are also sold directly to consumers. Apples, grown mainly in the Connecticut Valley Lowland, are the principal fruit crop.

B.

Fisheries

Salmon and shad were once abundant in the rivers of Connecticut, and a variety of other fish and shellfish were once taken from the coastal waters. The annual fish catch declined after the late 19th century, partly because of the increasing water pollution of the rivers and coastal waters. Since the early 1970s Connecticut has successfully followed a program that improved both coastal water quality and shellfish production. Water quality management, habitat improvement, and the seeding of shellfish has revived the industry, and large amounts of coastal waters are leased to private shellfish farmers. The eastern oyster and the hard-shell clam have been the focus of the program, although soft-shell clams and bay oysters have also benefited. The principal fish caught in Connecticut today are bluefish and striped bass. Lobster and oysters are the leading shellfish and provide most of the income from fishing. The value of the fish catch was $33.4 million in 2004.

C.

Forestry

Lumbering now plays only a minor role in the state’s economy. During the 18th and 19th centuries, lumber was cut for use in Connecticut’s shipbuilding industry and was also the major fuel used in buildings, lime kilns, and brass mills. Hardwood trees, principally white oak, American basswood, and hop hornbeam, provide most of the cut lumber.

D.

Mining

Connecticut has only a few known mineral deposits of commercial worth. Copper and lead were mined in colonial times and used in making household utensils. Iron was also mined, and during the American Revolution, Connecticut supplied iron for the manufacture of weapons, ammunition, and other military equipment for the colonial forces. However, nonmetals now account for all of the state’s mineral production. Traprock, which is used in road-building, and sand and gravel are the state’s most valuable minerals.

E.

Manufacturing

Connecticut established a thriving industrial complex in the colonial period, largely because its fast-flowing streams and waterfalls could easily be harnessed for power. Nails were produced early in the 1700s, and brass making was introduced in 1749. Weapons manufactured in Connecticut were used to fight the British during the American Revolution. In the 1790s the state was known for its hats (made in Danbury) and timepieces (made primarily in Watertown). Connecticut resident Eli Whitney developed the cotton gin, which rapidly separated the seeds from cotton and made its cultivation, and the production of cotton cloth, economical. The state’s armaments industry was an important supplier of firearms during World War I (1914-1918) and World War II (1939-1945), and the world’s first nuclear-powered submarine was launched from a Connecticut shipyard in 1954.

The leading industry in Connecticut in the late 1990s was the manufacture of industrial machinery, including computers, office machines, ball and roller bearings, turbines, and engines. Other leading manufacturers were the makers of transportation equipment, particularly helicopters, aircraft engines, propellers, ships, and submarines; the producers of chemicals and related products, particularly pharmaceuticals and soaps; and firms engaged in developing instruments for surgery and medicine, process control devices, measuring equipment, and optical instruments and lenses. Another important industry was metal fabrication, including the manufacture of small arms and ordnance, hardware and hand tools, and cutlery.

The principal manufacturing centers are Hartford, Bridgeport, New Haven, Waterbury, Stamford, New London, New Britain, Norwalk, Danbury, and Meriden. Some of them are traditionally noted for a single product, but all produce numerous other goods as well. New Britain is known particularly for hardware and Bristol for specialty electrical equipment and mechanical springs. Groton produces submarines for the United States Navy.

F.

Electricity

Until the middle 19th century, many swift-flowing streams and waterfalls turned the waterwheels of mills and factories built along rivers and streams. The state’s water-power resources were an important factor in its early industrialization and were later exploited by its electric power industry. In 2005, however, 48 percent of the electricity generated in the state came from conventional steam plants fueled by oil or coal. Hydroelectric dams generated only 1 percent of electricity produced in the state. Connecticut’s four nuclear power plants all ceased operations in the mid-1990s.

G.

Insurance

The insurance industry dates from the 18th century when marine insurance was underwritten to cover the hazards of shipping. Connecticut insurance companies now underwrite policies for fire insurance, traveler’s insurance, automobile insurance, aircraft insurance, and life, accident, and disability insurance. Many insurance companies with headquarters in the state have their home offices at Hartford.

H.

Transportation

H.1.

Highways

Connecticut serves as a major gateway for highway routes into the New England region. The state’s extensive highway system includes several heavily traveled roads linking New York City with Boston. Among the major highways in Connecticut is Interstate 95, which extends across the southern part of the state. This route follows the route of the famous Boston Post Road, which linked Boston with New York City in colonial times. In 2004 the state had 34,026 km (21,143 mi) of highways, including 557 km (346 mi) of the federal interstate highway system.

H.2.

Railroads

The principal passenger railroad in Connecticut is operated by the Metro-North division of New York State’s Metropolitan Transportation Authority. Metro-North’s main line in the state carries thousands of commuters daily between New York City and suburbs in Connecticut. Amtrak provides passenger service along the shore and through Hartford. The largest freight hauler is the Consolidated Rail Corporation (Conrail). Some 51 percent of the tonnage of goods hauled by rail and originating in the state were nonmetallic minerals in 2004, and another 37 percent was waste and scrap. In 2004 the state had 874 km (543 mi) of railroad track.

H.3.

Airports

The state’s major airport, Bradley International Airport, is located near the town of Windsor Locks, north of Hartford. In 2007 there were 6 airports scattered throughout Connecticut, many of them private airfields.

H.4.

Waterways

The Connecticut River was once a major trade route but is little used today, except by pleasure boats and small barges transporting oil and gasoline to Hartford. Connecticut is linked with Long Island by ferry service from Bridgeport.

I.

Trade

A large part of Connecticut’s wholesale and retail trade is domestic, for Connecticut is advantageously located in a densely populated region that constitutes one of the richest consumer and industrial markets in the United States. Connecticut’s major seaports are New Haven, Bridgeport, and New London. These three ports handle the bulk of Connecticut’s foreign trade. Exports shipped from Connecticut include motors and aerospace vehicles and parts, industrial machinery, fabricated metals, instruments, chemicals, cutlery, tools, and hardware. Among the bulky raw materials imported by the state are limestone; lumber; manganese, chromium, copper, and cobalt ores; and iron and steel and other metals.