Among district states, Colorado has the most educated work force and highest per capita income. Manufacturing is less important in Colorado than other states, accounting for only 7 percent of GSP in 2003 versus 13 percent in the nation (Table 2). On the other hand, the telecommunications and broadcasting sector and the professional and technical services sector are both significantly more important in Colorado than the nation. The Front Range of the Rocky Mountains is home to several big telecom firms (Qwest, Level 3, Echostar) and to computer software companies of all sizes, causing the state to rank near the top of most lists of high-tech activity across the country. Tourism and air transportation are also important industries, reflecting the large number of tourist attractions in the mountains, the popularity of Denver as a convention center, and the role of Denver International Airport as a major airline hub. As a result of this concentration in telecommunications, tourism, and air transportation, Colorado was especially hard hit by the recession of 2001 and the terrorist attacks of September 11.

Colorado is much less vulnerable than it used to be to big swings in energy markets, because there are not nearly as many big energy firms headquartered in Denver as in the early 1980s. However, the state still has considerable reserves of natural gas on the Western Slope and in the Greeley area, making energy an important sector. There is also substantial agricultural activity in the Eastern plains, including wheat and cattle.

Due partly to its scenic amenities and partly to its strong job market, Colorado experienced substantial in-migration from other states during the 1990s. This in-migration provided a big boost to the services and construction sectors but also pushed up housing prices and raised the cost of living, eliminating much of the advantage that Colorado used to enjoy over other states. The in-migration also led to concerns about the adverse effects of rapid growth on the state's environment and quality of life, prompting some local governments to place curbs on further development. As the Colorado economy slowed in the first half of the 2000s, the net inflow of people from other states declined sharply. However, most experts expect net in-migration to recover during the rest of the decade.

Many parts of rural Kansas are still heavily dependent on farming, but agriculture accounted for only 2.4 percent of GSP in 2003, half as much as in 1990. Despite the widespread perception of Kansas as a farming state, manufacturing is more important than in the nation as a whole, accounting for a little less than 15 percent of GSP in 2003. A particularly important industry is aircraft manufacturing. This industry is concentrated in the Wichita area, where Boeing, Cessna, Raytheon, and Bombardier all have major operations. Food processing is also important in Kansas, especially in the southwestern part of the state where several large meatpacking plants have attracted thousands of immigrants, mostly from Mexico. Telecommunications also accounts for a large share of output in Kansas, over 6 percent in 2003, reflecting the large number of Sprint employees working on the Kansas side of the Kansas City MSA.

Missouri is the district state most dependent on manufacturing, which accounted for over 15 percent of GSP in 2003. However, much of this activity is in St. Louis, which lies outside the Tenth District. The Missouri side of the Kansas City MSA is relatively diversified, with a wide range of service and manufacturing industries. These include a major auto assembly plant (Ford), a major data processing firm (DST), a large greeting card company (Hallmark), and a large healthcare software company (Cerner). Of the two other MSAs in the Tenth District portion of Missouri, St. Joseph grew only modestly during the 1990s, while Joplin shared in the boom experienced by nearby Springfield and Branson. Tourism is important in the state as a whole, but most of this activity is outside of the Tenth District (e.g. Lake of the Ozarks and Branson).

Nebraska is the most highly agricultural of the district states. Agriculture accounted for over 6 percent of the state's GSP in 2003, six times as much as in the US. Food processing is also an important industry, comprising almost 4 percent to GSP. The state's central location along east-west transportation routes has also provided a boost to the trucking and railroad industries. Although the finance sector is less important than in the nation as a whole, Nebraska has a sizeable insurance industry, most of it located in Omaha. That area is also home to a large number of data processing and computer outsourcing companies. The growth of these companies was aided by the laying of many miles of fiber optic cable by the Strategic Air Command, which moved to nearby Offutt air force base after World War II.

New Mexico is home to the Sandia and Los Alamos national laboratories and a number of military bases, making the state nearly twice as dependent on the federal government as the rest of the nation. In addition, mining remains a vital sector of the economy, accounting for over 7 percent of GSP in 2003. Much of this activity is oil and gas extraction, which is concentrated in the northwestern corner of the state. Despite the continued importance of government and mining, New Mexico has become much more diversified in recent years. Growth in semiconductor production, most of it at a large Intel plant in Albuquerque, has sharply boosted the share of manufacturing in total GSP. The state's call center industry has also expanded considerably, attracted by a large bilingual workforce. Finally, tourism has increased in importance over the last decade, with much of the activity centered around Santa Fe. Despite these positive developments, New Mexico continues to have one of the lowest per capita incomes in the nation, a reflection of the high rate of poverty and structural unemployment in non-metropolitan areas of the state.

The energy industry is still important in Oklahoma, but the state's economy has become more diversified over the last 20 years due to strong growth in service-producing sectors. Oil and gas extraction accounted for 4.4 percent of GSP in 2003. That share was over five times as great as in the nation as a whole, but only one-fourth as high as during the energy boom of the 1980s. Despite the long-term decline in the importance of energy in Oklahoma, a number of large energy companies are still headquartered in the state, such as Williams, Chesapeake, Devon, and Helmerich and Payne. Agriculture has also diminished in importance, although Oklahoma remains a major producer of cattle and winter wheat. Government plays a larger role in Oklahoma than most other states, due in part to the presence of several large military bases. Reflecting the increased diversity of the state's economy, Tulsa has a large number of aerospace firms and a major American Airlines maintenance facility. On the negative side, Oklahoma has recently lost two large auto-related manufacturing operations--a General Motors assembly plant and a Bridgestone tire factory, both in Oklahoma City.

Wyoming is the district state most dependent on mining, although agriculture and tourism also play key roles in the economy. Oil and gas extraction accounted for 12 percent of GSP in 2003 and other mining activity for more than 9 percent. Wyoming has large deposits of coal-bed methane, a relatively cheap source of natural gas. The state also has plentiful supplies of low sulfur coal, giving it a big advantage over other coal-producing states. A major obstacle to expansion of the energy industry has been the lack of adequate pipelines to transport natural gas out of state. This obstacle has been reduced with the 2003 expansion of the Kern River Pipeline system connecting Wyoming to the West Coast. Yellowstone and Jackson Hole are important sources of tourist revenues, while cattle-raising is the major agricultural activity.

1 The figures in this paragraph are based on statewide data and thus include portions of Missouri and New Mexico outside the Tenth District.

2 The share of natural resources and mining in district output has probably increased somewhat since 2004 due to the impact of higher oil and gas prices on drilling and production. From June 2004 to June 2006, employment in the natural resources and mining sector grew 23.4 percent, while total employment in Tenth District states increased only 3.3 percent.