Table Of ContentLIVE WORK GROW
Market Street brings original
insights and clarity to the
evaluation and revitalization of
the places where people live,
work and grow. Through honest
and informed assessments,
Market Street can equip you with
the tools to create meaningful
change. Our solutions
successfully merge our
experience and expertise with
the economic and social realities
of our clients. Market Street’s
community clients are
successful at creating stronger
programs, increasing
operational budgets, and
creating new quality jobs that
improve the quality of life in
their communities.
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Table of Contents
Introduction ............................................................................................................ 1
Executive Summary ................................................................................................ 3
People ................................................................................................................... 16
How is the region growing and changing? ......................................................... 16
How are Greater Sioux Falls’ residents doing? .................................................. 26
Do local education and training programs promote workforce competitiveness? . 33
Key Takeaway Points........................................................................................ 42
Prosperity ............................................................................................................. 43
What are the realities of the Sioux Falls Area’s economy? ................................. 43
How diversified is the local economy? ................................................................ 48
What opportunities and threats exist to business creation, expansion, and
relocation?........................................................................................................... 55
Key Takeaway Points....................................................................................... 66
Place ...................................................................................................................... 67
How “livable” is Metro Sioux Falls? .................................................................. 67
What makes the area unique? ............................................................................ 73
Key Takeaway Points........................................................................................ 86
Conclusion ........................................................................................................... 87
Appendix A: Methodology ................................................................................... 89
Geography ..................................................................................................... 89
Data Sources ................................................................................................. 91
Stakeholder Input ......................................................................................... 91
Patent Data .................................................................................................... 91
Appendix B: Community Survey ........................................................................ 92
Competitive Assessment
October 2009
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INTRODUCTION
There is much cause for optimism in the Sioux Falls Area. While many U.S. regions
are suffering from the combined effects of employment and population loss, both
these trends have been positive for the Sioux Falls region. A number of other
indicators are also trending well for the community. However, the most dangerous
path a region can take is the one that does not move forward.
Economic development has never been more competitive than it is today.
Communities are now battling for not only companies, but talented workers as well.
Acknowledging the need to continue its forward trajectory, public and private leaders
in Greater Sioux Falls have launched this Future Sioux Falls strategic visioning
process to determine “what’s next” for the region, its businesses and its residents.
As part of this comprehensive effort to continue to expand its competitiveness and
livability for businesses and individuals, Forward Sioux Falls, the City of Sioux Falls,
Minnehaha and Lincoln Counties, the Sioux Falls area Community Foundation, and
the Sioux Empire United Way have retained Market Street Services, a national
economic and workforce development consulting firm based in Atlanta, Georgia, to
facilitate the creation of a new strategy that will enhance the economic and
community development activities and programs in the Sioux Falls Area.
The components of the Future Sioux Falls process are:
Competitive Assessment: This report will present a breadth of research to
demonstrate the Sioux Falls Area’s competitive position to accommodate
“visionary” growth and development. A combination of factors that determine a
community’s strengths as a place to live, work, and do business will be assessed
including indicators related to education and workforce development,
infrastructure and land use, business costs, and quality of life.
Target Business Analysis: Building on the extensive research and data analysis
from the Competitive Assessment, the Target Business Analysis will blend
quantitative and qualitative research with significant technical information
including location quotients, economic base analysis, and industry-by-occupation
employment data. The final product will produce a short list of clearly defined
target sectors and the opportunities and challenges involved in effectively
growing them.
Marketing Review: The next step in the process will focus on marketing
activities through a review and assessment of the Sioux Falls Development
Foundation and Chamber of Commerce’s marketing efforts to determine if they
reflect best practice methods for increasing awareness and investment in the
Competitive Assessment 1
October 2009
area. Current internal and external marketing program tools will be reviewed,
including the Foundation’s website, advertising and collateral materials,
inbound/outbound marketing events, public relations, trade shows, site selection
professional visits, and branding and identity efforts.
Future Sioux Falls Strategy: The Strategy will represent the culmination of all
research completed and will present action items geared toward addressing
challenges and capitalizing on opportunities for visionary growth. The Strategy
will serve as a tool to unify the Sioux Falls area’s public and private leadership
behind a consensus blueprint for the community’s future. The final Strategy will
include best practices as well as benchmarks and performance measures.
Implementation Plan: While the Strategy represents “what” the Sioux Falls area
needs to do to achieve its preferred future, the Implementation Plan will
determine “how” that will be done. This report will include a capacity
assessment, a first-year action plan, a five year action plan, and will determine
which organization(s) should lead plan implementation efforts.
The Future Sioux Falls process provides a tremendous opportunity for the region to
come together around a shared vision for future progress and development. Coming
to consensus on this vision is simply the first step, however. Realizing these
ambitious goals will ultimately ensure that the successful path the Greater Sioux Falls
region has followed continues steadfastly into the near- and long-term future.
Competitive Assessment 2
October 2009
EXECUTIVE SUMMARY
This Competitive Assessment examines the issues that impact and determine economic
competitiveness and community vitality. Key demographic and economic indicators
for the Sioux Falls Area are compared to state and national trends. The metropolitan
statistical area (MSA) is then compared to three similar communities that Sioux Falls
competes with for jobs and workers: the MSAs of Des Moines, Iowa; Fargo, North
1
Dakota; and Rochester, Minnesota . The report’s key findings are discussed in
terms of the three engines that influence an area’s competitiveness: its People, their
Prosperity, and its quality of Place.
People
The following chart shows Sioux Falls’ performance compared to its peer metro
areas, the state and the nation for key indicators related to demographic and
socioeconomic trends. While the region leads the way in terms of population growth
and domestic migration, it is comparatively less diverse, has lower educational
attainment levels among its adults, and less higher education capacity than the
benchmark regions.
Of those survey respondents who had experience with the Sioux Falls Area’s public
schools, most were very satisfied with the quality of education and dedication of
educators. However, the lack of a major research university presence in the
community adversely impacts Sioux Falls’ educational attainment and post-secondary
opportunities. Lack of education was cited as one of the greatest weaknesses of the
local workforce.
As new people from every nationality and background move to Greater Sioux Falls,
the community has been faced with rapid changes in terms of its diversity. The
challenge this presents is daunting to some survey respondents and exciting to
others. Many saw great potential in leveraging a new, diverse identity for the future of
Sioux Falls while others felt that the immigrants’ presence negatively affected local
education and community dynamics.
1
The selection methodology for these areas is included in Appendix A.
Competitive Assessment 3
October 2009
Sioux Falls, Des Moines, Fargo, ND- Rochester, South United
SD IA MN MN Dakota States
PEOPLE: Snapshot data
Population Growth
% 2000-08 24.5% 15.5% 12.2% 11.8% 6.5% 8.0%
Rank 1 2 3 4 6 5
Domestic Migration
Accounted for x% of 2000-08 population change 54.6% 37.6% 38.4% 13.6% 10.9% n/a
Rank 1 3 2 4 5 -
Diversity
% minority residents, 2008 9.6% 14.2% 8.2% 11.5% 13.9% 34.4%
Rank 5 2 6 4 3 1
Poverty
2007 total poverty rate 8.5 8.7 11.9 8.2 13.2 13.0
Rank 2 3 4 1 6 5
Bankruptcy
Bankruptcies per 1,000 residents, 2008 9.6 13.8 10.7 8.3 7.1 13.3
Rank 3 6 4 2 1 5
Per Capita Income
Per Capita Income, 2007 $38,551 $40,923 $36,459 $40,740 $35,760 $38,615
Rank 4 1 5 2 6 3
Educational Attainment
% of adults w/ an Associate's degree or higher, 2008 38.7% 42.7% 46.1% 47.6% 34.7% 35.2%
Rank 4 3 2 1 6 5
College Students
College students per 100 residents* 12.8 13.1 19.0 20.2 n/a n/a
Rank 4 3 2 1 - -
“1” is considered highest-performing, while “6” is the poorest performing among these geographies.
Note: Data sets presented throughout this report are at the metropolitan statistical area (MSA) level,
unless otherwise noted. Sources and methodology notes related to these indicators are detailed in tables
throughout the People section of the report.
How is the community growing and changing?
Rapid population growth and increasing diversity: Since 2000, the State
of South Dakota grew by 49,350 residents, with metro Sioux Falls capturing
the majority of this growth (45,373 residents or 92 percent). The region has
grown by 24 percent, surpassing the growth rates in most other growing
Midwestern cities, including the benchmark communities. With this growth
diversity has increased. Minority residents account for ten percent of the total
Competitive Assessment 4
October 2009
