Sioux Falls has enjoyed impressive growth over the past seven decades. But much of this growth didn’t just happen for the sake of growth. Instead, it was due in no small part to visionary leadership. I hope current and future community leaders appreciate the importance of a thoughtful and strategic approach to growth opportunities.
Comparing Our Success to Others
Growing up in Sioux Falls in the 1950s and 60s, I often heard comparisons between Sioux Falls and Sioux City. Sioux City, the other “Sioux,” was larger at the time but sometimes derided as a gritty river community dominated by the meatpacking industry. It wasn’t experiencing the same growth as our city, which seemed to instill in us a subtle sense of superiority—we felt as though we were somehow better (part of any good rivalry).
In 1950 nearly 84,000 people lived in Sioux City. Seventy years later, less than 86,000 lived there. In 1950 almost 53,000 lived in Sioux Falls. By 2020 that number was over 192,000. What a shocking difference between communities only 80 miles apart. I never fully understood what inhibited growth in the other Sioux. Perhaps a number of factors contributed, including its proximity to our business friendly, no income tax state.
Similarly, I was aware in my youth that Rapid City, located on the west side of the state, also wasn’t enjoying the same kind of economic and population growth that Sioux Falls was. But their growth was certainly much better than Sioux City’s. Their 1950 population of 25,000 tripled to nearly 75,000 by 2020. Before long they too may pass Sioux City.
Strengths of Sioux Falls
As an adult, I was involved in community leadership, both as an owner of a large family business and on the board of the Chamber of Commerce and other community groups. I learned some good explanations for why we were doing better than some neighboring communities.
Sioux Falls’ success didn’t happen by accident—early state and local leaders laid the groundwork for the city’s growth. For example, they ensured that two major interstates intersected in Sioux Falls, providing the region with a critical transportation hub. Additionally, they secured federal support for an above-average airport facility, further positioning the city for growth.
Another key factor in Sioux Falls’ success has been its strong community spirit. Local business leaders often came together to work for the betterment of the community. Locally owned businesses and banks played pivotal roles in fostering a cooperative, forward-looking environment. The Chamber of Commerce organized a unique community appeals program to streamline funding requests from nonprofits, while the annual Sioux Empire United Way campaigns consistently garnered remarkable support.
Other Cities in the Region Have Unique Strengths
Although the western part of South Dakota boasts tourist attractions like Mount Rushmore, the Black Hills, and the Badlands, Sioux Falls leveraged its strengths in agriculture, banking, and other industries. Yet, when comparing Sioux Falls to northern plains cities like Rochester, Lincoln, Fargo, or Des Moines, it’s clear that our growth story, while impressive, is not entirely unique.
For instance, Rochester benefits from the world-renowned Mayo Clinic and Lincoln thrives with its large university. Each city has capitalized on its own strengths, and Sioux Falls can continue to learn from these examples.
But before I go any further, I should share some hard numbers.
Census Data
| MSA Population Data | ||||||||
| Sioux Falls | Lincoln | Fargo-Moorhead | Rapid City | |||||
| 1950 | 70,910 | 119,742 | 89,240 | 45,569 | ||||
| 1960 | 118,373 | 67% | 168,853 | 41% | 106,027 | 19% | 70,239 | 54% |
| 1970 | 125,000 | 6% | 182,432 | 8% | 120,238 | 13% | 75,967 | 8% |
| 1980 | 139,076 | 11% | 208,673 | 14% | 137,574 | 14% | 91,078 | 20% |
| 1990 | 153,500 | 10% | 229,091 | 10% | 153,296 | 11% | 103,221 | 13% |
| 2000 | 187,093 | 22% | 266,787 | 16% | 174,367 | 14% | 112,818 | 9% |
| 2010 | 228,261 | 22% | 302,157 | 13% | 208,777 | 20% | 126,382 | 12% |
| 2020 | 276,730 | 21% | 340,217 | 13% | 249,843 | 20% | 139,074 | 10% |
| Growth Since 1950 | 290% | 184% | 180% | 205% | ||||
A metropolitan statistical area (MSA) is a geographical region with a relatively high population density at its core and close economic ties throughout the region. The Sioux Falls MSA has skyrocketed 290% in my lifetime. Other northern plains cities have also grown, but not quite as much. The Des Moines MSA is up 214%, Rapid City 205%, Lincoln, NE 184%, Fargo-Moorhead 180% and Omaha 164%.
Smart Growth
Strategic and thoughtful growth has been essential to Sioux Falls’ success. A prime example is the targeted approach taken in the 1970s by local banker Tom Reardon and Governor Janklow to attract Citibank and other financial services companies. This strategy has proven highly effective, with the financial services industry bringing substantial benefits to both the city and the state. Similarly, the growth of the healthcare sector has been remarkable, creating hundreds of well-paid jobs and contributing positively to the community.
Not All Growth is Good
As we look to the future, our community must remain strategic in pursuing growth opportunities. What benefits a business or developer may not always align with the city’s best interests. The guiding principle should be whether a project truly serves the community. A recent example illustrates this point.
Sioux Falls narrowly avoided the establishment of a second meatpacking plant. While some city leaders and development officials supported the idea, the project ultimately fell through for economic reasons—a fortunate outcome. This type of development is not what our community needs, and in this instance, we were lucky to avoid it.
Meatpacking plant north of downtown Sioux Falls
Sioux Falls has been well-served by significant levels of local ownership and control of businesses. Locally owned companies tend to be more invested in the community, making decisions with the city’s well-being in mind. By contrast, large outside corporations can prioritize profit over the community, sometimes externalizing their costs onto the community.
Not all industries and jobs benefit a community equally. High-paying jobs contribute more positively than lower-paying, tough-labor positions. While this may seem obvious, history has shown that these distinctions are often overlooked. Sioux Falls’ leaders must continue to make smart decisions about which industries and businesses to welcome.
And as the slaughterhouse example demonstrates, local leaders, developers and community promoters are not always motivated to do the right thing.
Let’s Continue to be Strategic
The city’s impressive growth over the past seven decades is a testament to its ability to adapt and make wise choices. I hope current and future leaders will continue this legacy by addressing challenges thoughtfully and guiding Sioux Falls toward a future of smart, sustainable growth.
Joe, Thanks, as always, for this interesting comparison and the reminder that it is important to support growth that enhances our city and its future. Amazing growth between 1950 and 1960–must be why Washington High School was so crowded.
Bruce, agreed. Great comparison and reminder to support city growth!
It’s wonderful to keep reading business perspectives and absorbing the wonderful business acumen and resultant successes of all that. True that! However, South Dakota leadership failed through the ages to support and largely ignored the value of an alternative appropriate education to a college degree to foster economic development. Not just for business growth, but for employees as well.
I’m happy and glad everyone in the state with an education can and will prosper.
I’ve lived in Sioux Falls for three and a half decades and have thus directly experienced only about half of the history that Joe recounts. (Thanks, Joe.) The population of Sioux Falls has slightly more than doubled over this time. Most of the changes I’ve experienced have been overwhelmingly positive. I’ve been retired for nearly five years and have contemplated moving many times but have never found a compelling reason to do so. I grew up in the snow (as a native of the other Dakota) and it still doesn’t much faze me. And the weltanschauang of the general populace is consonant with my cultural roots (although I’ve come to venture far afield from some of them.)
I spent my entire career within universities, both public and private. I am curious as to what Mr. Sullivan (whom I do not know) is trying to convey in his statement that “South Dakota leadership failed through the ages to support and largely ignored the value of an alternative appropriate education to a college degree to foster economic development.” I have difficulty seeing that would apply to Sioux Falls. A quick mental accounting includes the presence of several alternatives to a university education during my time in Sioux Falls; Southeast Tech. (1968-,) Killian (1977-2015,) Globe (2008-2017,) CTU (? -2016,) Nettleton (?-1997,) Stewarts (1959-,) NAU (?-2019) and SD School of Massage Therapy (1987-). I’d be surprised if in my haste I haven’t missed a few (or even several) institutions. What “alternative appropriate education” opportunities are missing? Are such opportunities outside the realm of educational institutions? Are they such things as apprenticeships which are within the purview of employers and perhaps professional associations? How has SD (or more specifically per Joe’s account, SF) leadership failed? I am not speaking as a cheerleader/critic for/of any particular cause, group or perspective. I am simply curious and always mindful that my life experiences sometimes blind me from seeing what is obvious to others.
Thanks Joe for your great perspective about the phenomenal growth of our wonderful community. I have also experienced that growth over seven decades and I am continually amazed at the progress and success of our city.
I have also experienced almost 20 years of living in other communities both large and small, East coast to West, and while I miss aspects of them all, I realize that Sioux Falls is an outstanding place to call home!!!
Your thoughtful piece is appreciated and hopefully you will continue your Blog. I was born in SF in the first year of the Baby Boom and lived in and was educated in southeastern part of SD. Employment opportunities lured the SD native (same generation and education experience) whom I married and me to the Minneapolis area which was undergoing growth and expansion at a similar pace responsive to the economic influence of the Baby Boom. As it happened, I entered the professional niche of community development and public administration for five decades with several suburbs, Hennepin County, the State, and with the Metropolitan Council. At retirement, we decided to return to SD. Lessons learned include the fever pitch of development often fails to account for the long-term impacts of the growth particularly with respect to infrastructure needs and costs (is the new development paying its own way?) and the physical and social needs of the existing community (are aging utility lines and housing being replaced rehabilitated and replaced at the same pace as the new development?). Should there be provision for a metropolitan area planning that transcends individual counties and cities (which may have in- place joint powers agreements)? Lack of sound planning policies is also evident when NIMBY (Not-In-My-Back-Yard) influence development. Disdain for another meat-packing facility is a bit disingenuous for a culture that both produces and consumes meat. A final consideration for sound planning efforts is the determining the likely fate of the thousands of multiple dwelling units. Will population growth continue to create the demand? Current demographic data suggest that post-Baby Boom generations will not sustain the same economic environment. I recall urban planning theory expounded in the 1960s about the grown in the Plains whereby a long corridor would develop from the Omaha, NE are northward to the Canadian border (think, I-29). Sioux Falls was indeed a key component—but so was Sioux City. The issue today as in many other areas of our culture is whether we have learned from our past and applied corrective lesions to our future.
What a great historic and current study on Sioux Falls. I am guessing we are around d the same age. The 60s were absolutely idyllic in my mind. A safe smaller city with just a terrific upbringing. I have so many wonderful memories of my home town and your thoughtful assessment is just terrific. I am retired now in Clearwater, Florida, but get back home at least annually and enjoy the well planned growth of our hometown! Thank you Joe for sharing so much of Sioux Falls! Deb
Another strong factor in the Sioux Falls growth was SF economic development leader Dave Stenseth and his successor until hi untimely death in the Governor Mickelson plane crash, Roger Henie.