Economy of Memphis, Tennessee facts for kids

Memphis, a large city located on the Mississippi River in the Southeastern United States, has always been an important place for moving goods. Even during the American Civil War, its port was one of the biggest on the Mississippi, helping to ship supplies.

Today, Memphis continues to be a major transportation hub. It's home to Memphis International Airport, which is the second largest cargo airport in the world. This airport handles a huge amount of goods, making it the busiest domestic airport for cargo. The city is also a key center for railroads, ranking third in the U.S. for rail activity, after Chicago and St. Louis. It's one of only four U.S. cities that has five major Class 1 railroads, which are the largest freight railroads.

Because Memphis is so important for shipping and transportation, many businesses choose to be there, especially those that make products shipped all over the country. Three very large companies, known as Fortune 500 companies, have their main offices in Memphis: FedEx, AutoZone, and International Paper. These big companies have helped create a strong manufacturing industry. In 2014, about 34.5% of all jobs in Memphis were in manufacturing and transportation.

Over time, Memphis has also grown its economy in other ways, especially in service industries. This means the city is becoming less dependent on just making and moving goods. The amount of money made by private service industries grew a lot between 2003 and 2013, showing how much the economy has changed.

Big Companies in Memphis

Memphis is home to many important companies. Some of these companies are traded on the stock market, meaning anyone can buy parts of them. Others are private, owned by individuals or smaller groups.

Companies Traded on the Stock Market

• FedEx (NYSE: FDX): This is the world's largest air freight company. They ship packages and cargo all over the globe. In 2021, FedEx was ranked as the 45th largest company on the Fortune 500 list.
• International Paper (NYSE: IP): This company makes paper products. In 2021, it was the 141st largest company on the Fortune 500 list.
• AutoZone Incorporated (NYSE: AZO): AutoZone sells car parts. They have over 6,900 stores in the United States and Mexico. In 2021, it was the 248th largest company on the Fortune 500 list.
• First Horizon National Corporation (NYSE: FHN): This company runs banks like First Tennessee and First Horizon. In 2021, it was the 686th largest company on the Fortune 500 list.
• Sylvamo Corporation (NYSE: SLVM): This company also makes paper products. It used to be part of International Paper. In 2023, it was the 727th largest company on the Fortune 500 list.
• Mueller Industries (NYSE: MLI): This company makes metal tubes and fittings. In 2021, it was the 861st largest company on the Fortune 500 list.
• Terminix (NYSE: TMX): Terminix is one of the biggest pest control companies in the world. In 2021, it was the 923rd largest company on the Fortune 500 list.
• Mid-America Apartments (NYSE: MAA): This company owns and manages apartment buildings.
• Frontdoor, Inc. (NASDAQ: FTDR): This company offers services for home repairs and maintenance using technology.

Private Companies in Memphis

• Baker, Donelson, Bearman, Caldwell & Berkowitz: A law firm.
• Barnhart Crane and Rigging: A company that specializes in heavy lifting and transport.
• Belz Enterprises: A company that develops, owns, and manages real estate.
• Guardsmark: A security and investigation company.
• Katt Worldwide Logistics: A transportation company.
• Lenny's Sub Shop: A chain of restaurants that sell sandwiches.
• Malco Theatres: A company that operates movie theaters.
• Ozark Motor Lines: A transportation company.
• Varsity Brands: This company makes uniforms and runs sports camps.
• American Residential Services (ARS/Rescue Rooter): A home services company.
• City Gear: A clothing store that sells streetwear clothing.

Other Major Operations

Many large companies have important offices or facilities in Memphis:

• Allenburg Cotton and Cargill Cotton: These companies trade and handle cotton.
• Carrier: This company has a plant in Collierville that makes central air conditioning units.
• Evergreen Packaging: A packaging company.
• Hilton Hotels: Their global information technology headquarters and data center are in Memphis.
• Morgan Keegan & Company, Inc.: An investment banking firm.
• Nike: Has a very large footwear distribution center and other facilities.
• Nucor Steel Memphis Inc.: Makes special steel bars.
• Smith & Nephew: Their world headquarters for orthopaedic reconstruction and trauma is in Memphis.
• Medtronic: Their spinal and biologics division headquarters is in Memphis.
• Williams-Sonoma, Inc.: Has its main global distribution facilities here.
• Y&S Candies: A plant that makes popular candies like Twizzlers and Bubble Yum chewing gum. It is part of The Hershey Company.

Important Nonprofits

Memphis is also home to several important nonprofit organizations:

• Ducks Unlimited: A conservation group focused on wetlands.
• Methodist Healthcare: Operates hospitals, home health agencies, and clinics.
• St. Jude Children's Research Hospital: A famous hospital and research center that treats children with cancer and other serious diseases.

Companies That Used to Be Here

Over the years, some major companies that were once based in Memphis have either moved or merged with other companies:

• Union Planters Bank (1869–2004): A bank that was acquired by Regions.
• National Bank of Commerce (1873–2005): Another regional bank acquired by SunTrust.
• Schering-Plough Corporation (1908–2009): A pharmaceutical company that merged with Merck & Co.
• Piggly Wiggly (1916–1939): A national supermarket chain that moved to Florida.
• The Ford Motor Company: Built cars in Memphis from 1913 to 1959.
• Firestone Tire and Rubber Company: Operated a tire plant from 1936 to 1982.
• The International Harvester Company: Had a manufacturing plant from 1947 to 1985 that made farm equipment.
• Wright Medical Group (1950–2016): A medical device manufacturer that moved to Amsterdam.
• Holiday Inn (1952–1985): A worldwide hotel chain that moved to Atlanta.
• Fred's (1953–2019): A discount store chain that went out of business.
• Perkins & Marie Callender's LLC (1958–2019): Restaurant chains that went bankrupt.
• GTx Incorporated (1997–2019): A pharmaceutical company that merged with another company.
• EdR (2004–2018): A company that owned student housing properties, acquired by Greystar.
• Verso Corporation (2006–2017): A paper products manufacturer that moved to Ohio.
• ServiceMaster (2007–2020): A cleaning services company that moved to Atlanta.
• Chicago Bridge & Iron Company and General Electric: Built large structures like nuclear reactor parts in Memphis.

Memphis and the Entertainment Industry

The entertainment industry and film industry have also grown in Memphis recently. Many major movies have been filmed in the city, using its unique locations and atmosphere.

Movies Filmed in Memphis

• Making the Grade (1984)
• U2: Rattle & Hum (1988)
• Mystery Train (1989)
• Great Balls of Fire! (1989)
• Trespass (1991)
• The Firm (1993)
• A Family Thing (1996)
• The People vs. Larry Flynt (1996)
• The Rainmaker (1997)
• Cast Away (2000)
• The Queens of Comedy (2001)
• 21 Grams (2003)
• Hustle & Flow (2005)
• Walk the Line (2005)
• Forty Shades of Blue (2005)
• Black Snake Moan (2007)
• Nothing But the Truth (2008)
• The Blind Side (2009)