Overview
Historically, it has been an important center of industrial manufacturing and a supplier of natural resource products, such as granite, lobster, and cod.
Its population is concentrated on the coast and in its southern states, and its residents have a strong regional identity. The American textile industry began along the Blackstone River with the Slater Mill in Pawtucket, Rhode Island.
In the first half of the 20th century, the region went through a long period of deindustrialization as traditional manufacturing firms moved to the Midwest, with textile and furniture industries migrating to the South. In the mid- to late 20th century, a growing portion of the regional economy included high technology (including computer and electronic equipment manufacturing), the military defense industry, financial and insurance services, as well as education and health services.
As of 2007, the inflation-adjusted total government output of the six New England states was $763.7 billion, with Massachusetts ($365 billion) contributing the most and Vermont ($25.4 billion) the least.
Exports
Exports consist mostly of manufactured products, including specialized machinery and weapons (particularly aircraft and missiles), built by the region's educated workforce. About half of the region's exports consist of industrial and commercial machinery, such as computers, electronic, and electrical equipment. This, combined with tools, chemicals, and transportation equipment, accounts for about three-quarters of the region's exports. Granite is quarried in Barre, Vermont; guns are made in Springfield, Massachusetts, and Saco, Maine; boats are made in Groton, Connecticut, and Bath, Maine; and hand tools are made in Turners Falls, Massachusetts. Insurance is also a driving force in and around Hartford, Connecticut.
New England exports food products, ranging from fish to lobster, cranberries, potatoes, and maple syrup. Services are also important, including tourism, education, financial services, and insurance, as well as architectural, building, and construction services. The U.S. Department of Commerce has described New England's economy as a microcosm of the entire U.S. economy.
Manufacturing
In 2010, a University of Connecticut study indicated that five of the six states ranked 43rd or lower in manufacturing costs, meaning that manufacturing in New England is generally more expensive than in other parts of the United States. Only Maine was less expensive. Vermont, Rhode Island, and New Hampshire tied for last place. Historic industrial cities like Lowell, Massachusetts, have attempted to repurpose mill buildings for residential and commercial purposes.
Agriculture
Agriculture is limited by the region's rocky soil, cold climate, and small size. However, some New England states rank highly among U.S. states for specific production areas. Maine ranks ninth in aquaculture and has abundant potato fields in the northeast. Vermont ranks fifteenth in dairy production, and Connecticut and Massachusetts are seventh and eleventh, respectively, in tobacco production. Cranberries are grown in the Cape Cod-Plymouth-South Shore region of Massachusetts, and blueberries in Maine.
Energy
The region is generally considered energy efficient compared to the United States as a whole, with every state except Maine ranking among the ten most energy-efficient states; every state in New England also ranks among the ten most expensive states for electricity prices.
Three of the six New England states are among the top consumers of nuclear energy in the country: Vermont (first, 73.7%), Connecticut (fourth, 48.9%), and New Hampshire (sixth, 46%).
Taxes
A 2005-2008 study listed Rhode Island, Connecticut, and New Hampshire among the five states with the highest average property taxes, as a percentage of home value. New Hampshire, on the other hand, has neither a sales tax nor an income tax.
According to the Tax Foundation, all New England states, except New Hampshire, had higher average local tax burdens than the U.S. average in 2010, although the study acknowledges that "the local government tax burdens of all 50 states are very close to each other." In 2011, four of the nation's ten largest state governments were experiencing budget problems before balancing their budgets, in New England: Connecticut, New Hampshire, Maine, and Vermont.
In terms of per capita income, Connecticut, Massachusetts, and New Hampshire are also three of the wealthiest states, with Connecticut ranking first in the U.S.
Real Estate
In 2011, three of the six states—Connecticut, Maine, and Vermont—were among the ten states with the highest number of foreclosures requiring court processing, ranging from nearly 20 years for Connecticut to 16 years for Maine. The U.S. average was eight years.
