Economy of Memphis, Tennessee

Located on the Mississippi River, the metropolitan area of Memphis is one of the largest in the Southeastern United States, ranking 42nd in the United States according to the 2010 census.[1] The city has historically been one of the largest shipping hubs in the Mid-South, dating back to the Civil War, when the port was one of the largest on the Mississippi River and served as a shipping hub for the Confederacy.[2]

As transportation methods developed, Memphis has continued to hold significance as a transportation hub. Now the city is home to the second largest cargo airport in the world, Memphis International Airport,[3] and the world’s busiest domestic airport with 3.9 million metric tonnes. Memphis International Airport and Memphis have had huge significance in the railroad industry. The city has the 3rd largest rail center in the U.S. behind Chicago and St. Louis.[4] It is also one of only four U.S. cities with five Class 1 railroads.

Because Memphis has been such an important city for transportation and shipping, it is attractive to businesses, especially those producing goods shipped nationwide. Three Fortune 500 companies, FedEx, AutoZone and International Paper Co. call Memphis home. These significant businesses have brought a large manufacturing industry. Of the 607,900 jobs in Memphis in July 2014, 209,900 are in the manufacturing and transportation industries, around 34.5 percent.[5]

Over the years, the city has become less dependent on its manufacturing and transportation sectors and has diversified its economy especially in services. The Gross Domestic Product of the private sector good-producing industries have grown from $8,309 million to $11,459 million from 2003 to 2013.[6] Over that same time period, the private sector service industries grew from $39,354 million to $48,641 million.[6]