Most of Maine's industrial manufacturing has been concentrated in six major 

 industries. These are textiles, lumber and wood, transportation equipment, 

 food, paper, and leather. All of these industries began in the 19th century 

 and with the exception of leather experienced their greatest growth by 1930. 

 This maturing of the industries came about because of changing markets, 

 interregional competition, the depletion of raw resources, higher costs of 

 energy and transportation, and aging facilities. As a result, Maine's 

 employment has not kept pace with its population growth. 



The coastal economy closely parallels that of the State as a whole. No 

 comprehensive studies exist on the economy of the coast as a distinct region. 

 Colgan (1979) has conducted a preliminary examination of the coastal economy 

 using data from State agencies. The coastal economy began to decline 

 following the Civil War, when the population growth rate declined and market 

 demand for natural resources, such as granite, salt, ice, and some farm 

 products, was altered by increased use of cement and refrigeration and by 

 competition from markets elsewhere. 



The railroad and the steamship contributed to the growth of tourism which 

 became one of the most important elements of the coastal economy. Bar Harbor 

 (region 5), Rockport (region 4), Boothbay (region 2), and Portland (region 1), 

 all thrived as resort areas. Tourism grew rapidly after 1920, when the 

 automobile increased access to coastal peninsulas that rail service had not 

 reached. 



The coastal economy was almost wholly built upon natural resources, which 

 were, for the most part, renewable and plentiful. These resources include 

 water, fisheries, wood, and minerals. The decline in Maine's industry that 

 began after the Civil War continued until World War II. The availability of 

 resources that were transported more easily and the decreased demand for 

 natural resources contributed to the decline of the coastal economy. For 

 example, in 1900 the demand for raw timber and lumber (which were exported 

 through the coast) declined and the demand for paper products increased. When 

 paper mills were built they were located inland, closer to the pulpwood 

 resource. Only the St. Regis Paper Company in Bucksport remained on the 

 coast. The shift in demand away from certain resources (e.g., granite, ice, 

 salt, and farm products) resulted in a greater dependence on fishing, tourism, 

 energy generation, and, to a lesser extent, manufacturing. 



After World War II a trend toward trade and service and away from 

 manufacturing began on the coast. During this period the trade industry 

 became the largest employer and manufacturing fell to second place. 

 Presently, the trade sector is the largest employer in the coastal zone 

 (45,622 or 31.8%; table 2-15). Manufacturing industries now employ 25% of the 

 employed persons in the coastal zone. 



2-63 



10-80 



