Lawrence, Massachusetts was established in 1840 as one of America’s first planned industrial cities. Investors like Daniel Saunders and Abbott Lawrence acquired land along the Merrimack River to power textile mills. The Great Stone Dam, built from 1845 to 1848 at Bodwell's Falls, is an example of infrastructure which supplied energy for the city’s industry.

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Later in the 19th century, Lawrence became known for worsted wool and cotton goods, leading to an increased need for labor and waves of immigration from Canada and abroad. The city's textile industry declined beginning in the 1920s, accelerating after World War II as mill owners moved production to the Southern U.S. and overseas for lower costs and fewer regulations. With more highways, Lawrence has increasingly become a suburban area.

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Lawrence currently supports significant employment within the service industry, while retaining elements of its manufacturing heritage. The city manufactures a range of products, including electronic equipment, textiles, footwear, paper goods, computers, and foodstuffs. Organizations such as New Balance are attracted to Lawrence due to its established manufacturing background, affordable real estate, and strategic access to major highways and transportation corridors. The Lawrence Economic and Business Development division of city government prioritizes making the city more livable while attracting new business.