By: Bob Mundt, President and CEO
I recently attended the International Site Selectors Guild Conference in Orlando where site selectors from around the world gathered to discuss the latest factors influencing corporate relocations and expansions. The timing of the President’s tariff talks highlighted much of the discussion, but to my surprise, most of these professional site selectors, real estate brokers, and corporate relocation specialists were very upbeat and positive about 2025.
While tariffs are top of mind now, they have been a part of corporate culture for years and have always leveled with market dynamics. Many suggested these tariffs as political game playing and should be short lived. Most of the discussion centered around the import cost of raw materials used in much of our manufacturing and processing as opposed to our exports. Professionals indicated there are a few products that cannot be sourced somewhere other than the tariffed countries. General consensus…wait it out and see what sticks.
Kent Cutler’s column accurately spells out what we expect at the Development Foundation. Our pipeline for prospects is strong and we have land available for expansion. Companies are looking for alternative places to do business, targeting lower costs states over those on the coasts and in the South. The plains states are beginning to emerge as places with low-cost energy, available/affordable land, high quality of life, and lower operating and labor costs.
As our current Administration encourages reshoring/onshoring, these companies will be looking for options. Our marketing efforts through these professionals and our relationships with their companies are important in opening the door for South Dakota and the Sioux Falls region.
In addition, we will be working closely with our existing industries to make sure they have what they need to be profitable through our business retention and expansion programs. Our workforce initiatives will continue to recruit talent to the region through our high schools, universities, tech schools, alumni, and those families looking to return to their roots.
I look forward to working with our staff and our Board to continue our momentum as we launch into a new year and a new Forward Sioux Falls capital campaign. Sioux Falls has always been the example of excellence in business development and growth in South Dakota, and we will continue our efforts to support you and your business.
Thanks for supporting us.