Economy of Lexington, Kentucky facts for kids

The economy of Lexington, Kentucky is special because of its location. Unlike many big cities, Lexington is far from large rivers. This meant it didn't become a center for heavy industries, like those found in cities such as Cincinnati or Pittsburgh.

Instead, Lexington worked hard to be a leader in new technology. It wanted to attract different types of businesses that made lighter goods or offered services. For example, Lexington was the first city in Kentucky to have street lights. It also had one of the first police forces. By the early 1880s, the city was proud of its modern sewer system and sidewalks. Later in the 1880s, more improvements came, like telephone lines, street railways, and even an ice factory. These changes helped Lexington become a key center for farming and manufacturing in its region.

Tobacco Takes Center Stage

Challenges in the tobacco industry in the early 1900s helped a special type of tobacco, called burley, become very important in Lexington. Many companies that sold and stored tobacco started to open in south Lexington. They were often found near South Broadway.

The first big tobacco facility was the Burley Loose Tobacco Warehouse Company, which opened in 1905. The city's first plant for drying tobacco also opened that year. By 1910, Lexington was known as the "largest tobacco market in the world."

Growth During Tough Times

In the 1930s, during the Great Depression, the government and wealthy horse owners helped fund new building projects. This created jobs and boosted the economy.

The 1940s brought big changes to the University of Kentucky. Many new buildings were constructed, including dorms and classrooms. Memorial Coliseum was also finished during this time.

In the early 1950s, a lot of money was spent on research for national defense. This was during the Cold War. This research further increased the university's importance and created many jobs in Lexington and across Kentucky.

A New Focus: Healthcare

Around this time, leaders like A.B. "Happy" Chandler helped make the University of Kentucky Medical Center a top priority. In 1956, $5 million was set aside to start building the medical center. The total cost ended up being $28 million. The first part built was a hospital with 500 beds.

Because of the Medical Center, a whole new part of Lexington's economy grew. Other hospitals were drawn to the area. The Veterans Administration Hospital expanded, and the Shriners Hospital for Children was built. St. Joseph's and Central Baptist hospitals also grew a lot during this period.

The "Industrial Revolution" in Lexington

The early 1950s was a time of huge growth, often called Lexington's "Industrial Revolution." Many big companies opened factories in the city. These included IBM (whose Lexington operations are now part of Lexmark), Square D, and Dixie Cup. Soon after, Trane also opened a facility.

Between 1954 and 1963, Lexington's job numbers soared by 260 percent. The amount of goods made in the city grew four times larger. From 1960 to 1970, Lexington's population increased by 32%, reaching over 108,000 people. All this new industry and a high demand for homes made Lexington one of the fastest-growing cities in the United States.