April 25, 2023

The Governor’s Office of Economic Development facilitated 37 “project wins” in 2022, representing nearly $2 billion in new capital investment, Commissioner Steve Westra reported today.

Westra gave an overview of the office’s performance at its annual conference in Sioux Falls.

Of the 37 successful economic development efforts facilitated by his office, “last year saw a significant concentration in agriculture and manufacturing in keeping with our six key industries,” Westra said.

For instance, Valley Queen Cheese in Milbank announced a $200 million expansion that will include 130 new employees and lift its production capacity to 8 million pounds of milk daily.

“They’re a staple in our community, Milbank, and a regional powerhouse,” Westra said, adding the expansion will result in a $2 billion economic impact and the need for 30,000 more cows to support it.

In manufacturing, a sector in which one in 10 South Dakotans works, Manitou announced an $80 million expansion at its facilities in Madison and Yankton. The company specializes in articulated, skid steer and track loaders and telehandlers.

Its expansion also will support 130 new employees.

Westra reported that GOED also worked on 82 new projects and responded to 54 proposals last year.

The economic development success comes against a broader state backdrop of growth.

South Dakota’s population now exceeds 900,000 people, Westra said, ranking it fifth last year for percentage growth nationwide.

The state also ranked 10th for personal income growth, with a compound rate of 6.5 percent growth in the past five years. Average annual wages grew 7.4 percent from 2021 to 2022, also outpacing the nation.

Going forward, GOED is using a $1 million federal grant to support infrastructure needs. That will include a statewide assessment of roads, railroads and utilities “to understand in broad terms what our current infrastructure in the state looks like, where there are gaps, how much it will cost to fill those gaps,” Westra said. “Based on data, we will select 16 economic development sites to evaluate infrastructure and determine improvement cost.”

The grant also is supporting capital improvement planning for 17 communities.

Additionally, the state is supporting the newly announced South Dakota Trade organization with a $175,000 SBA grant as it launches. The nonprofit will be led by Luke Lindberg, former chief of staff and chief strategy officer at the Export-Import Bank of the United States.

“Their role will be to administer grant funds, provide education on exporting goods, facilitate trade missions and offer free consulting services to companies in South Dakota,” Westra said.